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Good Conversion Ratio is ... ?

by Irmscher
19 replies
Hey guys and gals

I am far form being an expert in conversion ratios

But what is considered to be a good conversion ratio for the Digital product

PDF ebook to be more specific

I know that 1% is OK

Cheers
#conversion #good #ratio
  • Profile picture of the author Raydal
    The average online conversion rate is 2.7% according to current research.
    You can use that as a baseline to know how well you are doing.

    -Ray Edwards
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  • Profile picture of the author kennyisrich33
    Banned
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    • Profile picture of the author Raydal
      Originally Posted by kennyisrich33 View Post

      as long as got sales profits..who cares about the conversion anyway ?? as now the economic is doing badly..

      You're right! You should be making more money in this bad economy
      because it favors online marketers. So aim for 12% conversion like
      Amazon.com

      -Ray Edwards
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      The most powerful and concentrated copywriting training online today bar none! Autoresponder Writing Email SECRETS
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  • Profile picture of the author Irmscher
    thanks guys, 12% is a killing Conversion ratio

    I think 2.7% is brilliant conversion ratio

    i have a good sales page so will see...

    Cheers
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  • Profile picture of the author Neil Morgan
    I agree Michael.

    I focus on visitor value which does take account of conversion rate but other things too, including the all-important cost of getting your visitors.

    Internet Marketing Rule #1 - Know Your Numbers

    Cheers,

    Neil
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  • Profile picture of the author mikemcmillan
    1% isn't going to make a killing for you, but it's a start. For digital products a rate of 4% would be great. But it depends on the source of your traffic. PPC generally converts higher than something like a banner link on a banner shootout farm.

    The other factor is the opt-in rate you are getting at your site. If you can opt-in 20-40% of your visitors to a mini-course or newsletter--you can make a killing because even if you are getting a 1% conversion rate on immediate sales, you can market to your list over and over and over again--thus increasing your overall conversion rate over time.
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    • Profile picture of the author jamawebinc
      Does conversion rate from free traffic matter at all? I don't think so.

      First, you are not paying for the traffic. So if you get 200 visitors from google organic traffic for free - who knows how many of these people are targeted. But it cost you nothing to get them anyway. (except for perhaps the bandwidth cost which shouldn't be much)

      Second, the search engines are not perfect. Sometimes they get it wrong. For instance: you may get a bump in traffic because google has listed you for a keyword phrase that will not bring you buyers at all. In fact it may not even be an appropriate keyword for your site at all but it has your website listed under this keyword phrase.

      You conversion rate will actually go down because you got more traffic, which wasn't very good qualified traffic.

      If you pay for the traffic it is much more important to keep track of your conversion rate because you are choosing who to put your message in front of and, of course, you are paying for the traffic.

      If you are not converting that traffic, maybe it's not only your offer or sales message which is bad, maybe you are putting your ad in front of the wrong eyes. But since you have control over it, it makes the conversion rate matter more.

      On another note: I have seen some marketers give numbers such as - Getting 200 mailing list sign ups per day. Of which 10% buy so that's 20 buyers.

      Well, lets say for argument sake that those 200 sign ups come from a 20% conversion rate of total visitors that sign up for the mailing list. so that would mean 200 people signed up from 1000 total visitors.

      So, what constititues the sale conversion rate? 20 sales from 1000 visitors? Or 20 sales from 200 qualified prospects?

      Depending how the number are produced and defined, results can be totally different, or made to look more impressive than they are.

      Conversion rate must be defined before you can use it to judge your own business against.
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      • Profile picture of the author DavidO
        jamawebinc has made some good points. A lot of talk about conversion rates is nonsense. The real talking point is your return on investment and your cost per customer. I only get a relatively "low" 1% overall but it's all free traffic and it's abundant. So I may actually be doing better than someone claiming 3% who's using PPC.

        And keep in mind that a lot of claims are just that. Conversion tends to vary greatly depending on traffic sources, the economy, news developments affecting your niche and so on.

        I've had extended periods of 2%+ conversion and I could quote that and look good. But then I hit a slump (like right now) and it goes way down. I can't explain it. But 1% is about my long-term average, despite a website that's been praised by copywriters and experienced marketers.

        So you need to take a lot of claims with a grain of salt.
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  • Profile picture of the author Ron Douglas
    Originally Posted by Michael Frisom View Post

    Hi all:
    In my opinion a perfect conversion ratio is determined by the initial amount of investment in your campaign. If you spend 25.000 Dollars a day, 2.7 is not exactly good.
    I'm not following why just because you spend $25,000 a day that a 2.7% conversion is not good.

    You have to also factor in the amount of traffic you get for your money and the price point.

    For example, if $25,000 a day is getting you 50,000 targeted visitors a day, a 2.7% coversion will result in 1,350 sales per day.

    As long as you make $19 per sale or more, you're in business --> $19 x 1,350 = $25,650

    If you have a $50 product, a 2.7% conversion would be killer --> $50 x 1,350 = $67,500

    Not to mention the customer list that you're building and any profits from upsells.
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  • Profile picture of the author mannoo2005
    It depends on the quality of your visitors:
    how targeted
    country and economic situation
    time of targeting (which day and which hour)
    age

    quality of your site:
    design: how attractive and professional
    sales copy
    price testing.
    psychological effect

    many more factors which is long list to determine conversion of any website
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  • Profile picture of the author Paul Buckley
    When launching a new site or ad campaign, I use a 1% conversion rate as my breakeven benchmark. If I'm converting at 1% and breaking even or making a little profit then I know the project is a keeper and all I need to do is tweak the ad campaign for better quality/higher volume traffic and/or tweak the site for better conversion.
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  • Profile picture of the author TimRobinson
    Rather than going on conversion rate, I generally try to aim for a good value per visitor rate of at least $1 per visitor.

    For a $17 product this means you need a conversion rate of 5.88% (1 * 100/17

    For a $37 product this would be a conversion rate of 2.7% (1 * 100 / 37)

    For a $97 product this would be a conversion rate of 1.03% (1 * 100 / 97)

    This is a much better way of calculating the success of a product rather than just the Conversion Rate.

    As a 5% conversion rate for a $7 product is horrible, but 5% for a $297 product is phenomenal.

    When you go by value of each visitor it's much easier to calculate the success of your product.
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  • Profile picture of the author Neil Morgan
    Hello Tim

    I do that too. But be aware that you could be doing yourself out of money unless you drill down a bit.

    Why?

    Because focusing on an "across the board" average hides the fact that some targeted visitors have a higher visitor value than others.

    For example, on my main site, some targeted visitors have a value of $1 but others from a different source have a visitor value of $2.

    See what I mean?

    Cheers,

    Neil
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  • Profile picture of the author lavaleekathy
    Would agree with posters, anywhere around 2% is perfect for a conversion ratio on traffic to your site and sales from your site or capture page for sure!
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  • Profile picture of the author Paul Hancox
    But what is considered to be a good conversion ratio for the Digital product... PDF ebook to be more specific... I know that 1% is OK
    Imagine you had a "magic wand" that could tell you what your OPTIMAL conversion rate could be on your product and traffic, and you discovered it was 12.7%, then how would you rate a 1% or even 2.7% conversion rate?

    Unfortunately, such a "magic wand" doesn't exist, but what I'm trying to say is, what is the maximum conversion rate your sales process can achieve? The answer is, you won't know until you've split tested and split tested and then done lots more split testing - along with customer feedback and finding out where the bottlenecks are in your sales process (i.e. where you're losing potential customers).

    Yes, the "industry average" was 2.7% (although that includes medium sized businesses), but who cares? If 2.7% makes you a LOSS, then it's no good for you. (Unless you don't mind making a loss initially to make it up on the backend).

    You should be aiming to achieve the OPTIMAL conversion rate on your site, by split testing (or multivariate testing if you have the traffic).
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  • Profile picture of the author Tron2k
    70 bucks for hosting+xsites builder and paypal addon and PPC=2 sales within hours after going live.
    6 the next day,and 1 the following morning made me over 1200 within 2 and a half days! thats my FREE WSO
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  • Profile picture of the author Craig Fenton
    Hi Irmscher:

    Hope all is well. Since I am not far off from launching my own product I asked several long time marketers off line about conversion rates. They had a standard wish of at least 3 percent. This would fall perfectly in Raydal's superlative answer because any poll or stat can have a margin of error + or -.

    You can also throw out the statistics if your investment vs return equals or supersedes the numbers you originally shrived for.

    For instance if you created a product that cost you 121 dollars or 121 Pounds and you stated to family if after one year the total profit surpassed 10x the investment you would be fine, the 2.7- 3.0 percent may not come into play.

    There are others that are very regimented in their goals. I've had fellow authors tell me if they didn't reach a certain rank on Amazon they felt they failed (even if the book sold way over the average and made them a good return for the year).

    Make your own decision if it is percent of return, net profit, the actual experience, the potential exposure, or any or all of the above.

    May you reach every goal you seek!
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  • Profile picture of the author laurelwachtel
    I would think that 1% is a reasonable sales conversion rate to be sure, but generally most sales on clickbank and commission junction are up around the 2% mark. I think I'm going to crunch the numbers on my affiliate links again just to make sure!
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