According to one of Internet researches, it reveals that the ratio of average internet sales conversion rate is 2.8%. Because this research did not include smaller group of internet marketers, the actual result could be lower, so it is likely close to 1 to 2 %.
Of course, these analyzes might not assure us if that 1% represents bad or good, as it actually depends on what you are going to sell. For example, if you are going to sell a $50 million engine of a jet, and then 1% would add more revenue. You simply need to bring in about a hundred visitors to earn a $50 million sale.
Let us do some calculation, if you are going to sell $50 product and your sales conversion rate is 1% of your visitors turn into customers, so all 100 visitors will earn you 50 bucks. Definitely, the actual profit will completely depend on your costs. If it costs you $30 to produce these visitors, then you are making a pure profit of just $20. Bottom line, you are expected to bring in more traffic to get more incomes.
In order to reduce your online costs, you may seek cheaper sources of traffic - definitely PPC advertisement is going to raise your cost, and other than that, traffic generation from unreliable sources is often has another level - it will consume more of your time.
Don’t’ worry about that. Let us see what would come out if you were able to turn your sales conversion rate from 1 to 2 percent of your visitors into customers. It would imply that altogether one hundred visitors now bring in two new customers. Now your profit is $100 in revenue ($50 per customer). Let us assume your cost is still $30 to capture the unchanged amount of visitors. Right now, your pure profit is $70.
Did you know what would happen if you were going to adjust your conversion rate, your profit has got raised from $20 to $70 for each 100 visitors - that’s an increment in profit by 500 percent, yes, it is all without paying extra cost. That’s the way how you are going to maximize your sales profits.
It will get more effective if you have gone from turning 1% to 3% of your visitors into customers. That means, you would gain 3 sales, which equals to $150 in revenue for every 100 visitors. Once again, your costs would remain the same at $30, so your net income is $120. Do you know how much percentage of your increment in profits now?
The question is: How can you increase the conversion numbers from 1% to 3% or the even more higher, without adding extra money to your marketing budget?
An answer to this question is to find the hidden factors in your own site. And I can estimate that your site has more than a few factors which is hidden in your site right now - and of course you do not know where the location is. (If you do know, then you will not even read this post).
This type of method used to find the hidden factors was not a big mystery - the term is called split testing method, conducted by testing and tracking every element of your site, it will maximze your profit tremendously. Some of your website elements are the header image, your website layout, color used for heading / sub heading, your headline text, etc.




















November 3rd, 2008 at 5:43 pm
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