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Originally Posted by Rubber Duck
What is this "direct" traffic that needs filtering out?
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Touch's approach is correct, you need to be able to identify traffic by source. Analytics does that well. "Direct" traffic is type-in traffic (although it can also be traffic from bookmarks but we will ignore that for the moment). Everything else comes from referrals from another website or a search engine.
If you look at this most of you may find yourself surprised at how much google or yahoo traffic you actually have.