Conversion Rate Calculation Question

2 replies
I hear people talking conversion rates, but I find myself confused.

When use to sell a product I stocked (many years in the past) I would track 'conversion rate' as # of visitors per sale.

So if I had 100 visits and 1 sale, that was a 1% conversion rate.

However I hear affiliates counting conversion rate as a ratio of "clicks per sale".

This can be confusing!

For example, I have a website that gets 1 sale for every 20 clicks (5%)
But I get 1 click for every 25 visitors to my website. (4%)

So my REAL conversion rate is really only 1 in 500, or .2%.

But, in terms of IM jargon, what is my 'conversion' rate?
#calculation #conversion #question #rate
  • Profile picture of the author David Keith
    its gets even more confusing when you add in unique visits vs raw visits and many other metrics.

    the truth is that you will have a conversion rate for many different variables, and they all tell you different things.

    you do need to know your conversion rate of visitors to clicks. that tells you whether your call to action is working or not.

    you also need to measure clicks to sales (i am guessing as an affiliate). if you have a low click to sale percentage then you have some re-working to do. you may have un-qualified traffic, or the sales page you are sending to may be bad, or maybe you did not do a good job of pre-selling.

    the key is to test all the different variables, and then work out where your biggest area of opportunities is in your sales funnel. your sales funnel is just the path a visitor takes from your to the ultimate goal of taking an action that pays you.
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  • Profile picture of the author zamzung
    You can watch it in any way you want... if you are happy with conversion ratio of "sales / number of visits" that's good for you... I mean, what ever makes you have and whatever you are confident to work with...

    It also depends where you are watching your stats... for example, if you have your own product, then you could watch it as "sales / visitors" ratio... but if you are working with affiliate program, you could watch it as "sales / clicks" ratio where clicks is the amount of visitors you sent directly to affiliate site through your website... and that number will be lower than the number of visitors to your website...
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