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When a user types your website into a browser, the request travels all the way from her computer to your server and back. The time taken for this is called Latency.
Latency is a big reason for the slow performance of a website. In fact, in our internal tests we've found that latency can be as much as 30 times higher for a poorly setup website.
The good news is that fixing such issues requires only prudence – simply ensure that your website is hosted on a server closest to where most of your customers are. The faster your website loads, the fewer customers leave your website and the more business you do.