What conversion rate can one REALLY expect?
Before I even ask this question, I realize that the answer depends on the niche, the traffic source and other factors as well.
However, I'd like to get a general idea of what's an acceptable "conversion rate" and indeed how you're even supposed to calculate it.
Question 1: How do you calculate your "conversion rate"? Is it
(a) The number of sales divided by the number of unique visitors to your site (i.e. the percentage of visitors who turn into buyers)
OR
(b) The number of sales divided by the number of click-throughs you had on your affiliate link (i.e. the percentage of clicks that turn into sales)
Question 2:: What conversion rate would you be happy with from a typical affiliate site promoting (let's say) a physical product on Amazon?
I've heard a lot of people say that 1-2% is a decent conversion rate (the average). But is that from visitors to the site? Or clicks on the affiliate link?
If it's from clicks on the affiliate link, that worries me.
Suppose I get 3000 visitors to my affiliate site per month. And suppose that I get 500 clicks on my affiliate links per month.
Suppose my "conversion rate" is 2%.
If conversion rate is calculated from visitors (i.e.(a) above), then I'd get 60 sales per month.
If conversion rate is calculated from click-throughs, then I'd get 10 sales per month.
Huge difference!
Suppose I get $10 commission per sale (4% of a $250 product on Amazon).
Then the income would be either $600 (pretty nice!) or $100 (not really that great).
Obviously it all depends on what this 1-2% "conversion rate" is supposed to mean.
I'm pretty new to all of this so I'd be thrilled if some experienced marketers could enlighten me.
Thanks for taking the time to read this. I hope you're doing well,
Regards
Adam
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