Want to know what’s the single most important thing you can do to increase your conversion and grow your business? No, I’m not about to sell you on some insane program. This is vital stuff that you can and should be doing for low-cost or free.

Again and again search marketers tell their clients that they really, really need to track everything they do. Sadly a lot of the time this sage advice falls on deaf ears. If you’re new to the business the whys and wherefores of tracking everything you do online can be missed, to be sure.

But this subject is worth grappling with and I can’t think of a better example than Facebook, which is now worth a whopping $15 billion according to the (very reasonable) calculations of Danny Dover over at SEOmoz.org

Just for the sake of comparison, MySpace changed hands in 2005 for a mere $580 million, yet it has been around for much longer than Facebook, which is only five years old, and the MySpace user base was over 100 million as of 2006.

Now why should Facebook be worth so much more than any of the other social networking sites?

It’s all down to tracking. Facebook CEO Mark Zuckerberg has tracked everything his members do and stored that information.

So what?

Well just think for a moment how much more effective it would be if you wanted to place an ad on Facebook, and you could choose the age and gender of your target market. Not only that, but you could match your product to their interests (just to mention a few simple parameters of search). Just think how much you could increase your conversion rate by knowing these details and being able to target in this way.

Well, that’s the secret. That’s why advertising on Facebook is likely to be so much more effective than advertising on any of the other social marketing sites.

Now, almost certainly this information is going to have you rushing out to arrange for tracking of your site. Good idea. But before you do it take the time to shop around. If your web hosting doesn’t provide you with a range of comprehensive tracking tools (mine does: the button to HostGator is to your right over there), then go and sign up immediately with Google Analytics. Its free, you can track as many sites as you want, and you can even set some goals for yourself over there.

Stay tuned for a post on the best tracking tools out there in the next day or two.