What conversion rate can one REALLY expect?

9 replies
Hi everyone,

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
#conversion #expect #rate
  • Profile picture of the author wordpressdoctor
    It really depends on what you are selling, offering, or giving away. Really difficult to measure.
    Signature
    ****** LEARN HOW WE MAKE OVER $5,000 PER MONTH****** SELLING UNIQUE ARTICLES ON FIVER AND OTHER FORUMS. THIS TOOL CAN CREATE OVER 500 UNIQUE ARTICLES, IN SECONDS, FOR ANY NICHE!
    {{ DiscussionBoard.errors[6092283].message }}
  • Profile picture of the author paul nicholls
    you only want to be using stats from people that actually come to your sales page

    so say if your sales page gets 100 unique views a month and you make 5 sales a month then you have a conversion of 5%

    which is actually fairly good if its a clickbank product

    but it all depends on how targeted the traffic is mostly

    However if you are an affiliate then an extra step is include ie the clicks on your affiliate link

    if you had 3000 visitors to your site and 500 people clicked an affiliate link then
    you have a 16.6% click rate on your site

    then from those 500 if you make 5 sales then your conversion rate is 1%

    if you get $40 per sale

    so for every 3000 visitors you get to your site you would on average make $200

    $40 sale x 5 sales a month = $200

    you would make $200 a month from the above traffic and stats

    hope this helps

    paul
    {{ DiscussionBoard.errors[6092298].message }}
  • Profile picture of the author petelta
    When determining your conversions, you are always looking at the amount of unique visitors to the page...

    If you calculate how many people click the link in your email, you will have a horrible rate.

    When I upload a new affiliate email or add a link to my blog, I will click it at least 3 or 4 times to check it. Estimating my test clicks as 4 viewers will destroy your conversion rate and your confidence lol.

    Travis
    Signature
    TEESPRING Student Rakes In Over $116k In Less Than 3 Months
    Niche Pro Profits - How I raked in OVER $120k in 9 months with authority niche sites...

    {{ DiscussionBoard.errors[6092303].message }}
  • Profile picture of the author Chri5123
    Good thread.

    I keep it simple when looking for a conversion rate.

    Acceptable would be 4%.

    I normally try and get 100 REALLY targeted visitors and then if you get 4 sales out of that it is O.K.

    What I try to aim for is a conversion rate of 15% -20% but the higher the better.

    If I send 100 REALLY targeted visitors and don't get one sale - I keep on going until I do and then I tweak the sales page to get it under 1 in 100 following the above.

    Hope this helps?

    Chris
    {{ DiscussionBoard.errors[6092319].message }}
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Chri5123 View Post

    I tweak the sales page to get it under 1 in 100 following the above.
    The OP is asking as an affiliate, I think, Chris - not as a vendor: he won't be able to alter the sales page?

    Originally Posted by keepongoing View Post

    I've heard a lot of people say that 1-2% is a decent conversion rate (the average).
    People here often give that sort of figure as an average for a "typical ClickBank product"; yes.

    It wouldn't be realistic for Amazon (unless perhaps you were trying to do it with poor targeting, or without building a list, or something?).

    Originally Posted by keepongoing View Post

    But is that from visitors to the site? Or clicks on the affiliate link?
    Clicks on your affiliate link are visitors to the site, aren't they? (The sales site, not your own site). People are giving figures like that as the percentage of sales page visits on which they get a sale. Not as the percentage of visitors to their affiliate site. Most affiliate sales are made from clicks in links in emails, anyway, not from clicks on links on an affiliate's site. http://www.warriorforum.com/main-int...ml#post5210243

    (I know you're not asking specifically about ClickBank, but to some extent you can substitute the words "affiliate sales" for "ClickBank sales", and the sense and the point are the same.)

    Originally Posted by keepongoing View Post

    If conversion rate is calculated from click-throughs, then I'd get 10 sales per month.
    On the basis of the theoretical figures you've given, yes: you'd get 10 sales per month, not 60.

    What matters, though, whether it's ClickBank, Amazon, or whatever, is to build a list and not try to make affiliate sales just from clicks on affiliate links on your website. Not only because you'll sell far more that way to start with, but also because that way you can build a real sales funnel and sell repeatedly to your subscribers, which is where most of the money is, in affiliate marketing.

    For myself, I often find that my Amazon conversion-rates are about eight/nine/ten times as high as my ClickBank conversion-rates. But my ClickBank commission-rates are about eight/nine/ten times as high as my Amazon commission-rates, so it doesn't make all that much difference to me, really, in the overall scheme of things, on products with equivalent prices. What I try to do is to make repeat sales (typically at increasing prices/commissions) to the same people - but you can't do that without a list.
    {{ DiscussionBoard.errors[6092403].message }}
  • Profile picture of the author keepongoing
    Hey everyone - thanks for sharing your thoughts.

    @ AlexaSmith - What I was trying to contrast is measuring conversion rate as

    (a) a percentage of the unique visitors to your site (affiliate site)

    (b) a percentage of the clicks on the affiliate links

    ANyway - I have to dash right now but hope to come back and interact more. Once again, thanks for chipping in everyone. I really appreciate it
    {{ DiscussionBoard.errors[6096846].message }}
  • Profile picture of the author Ken Hoffman
    The better question is, "How do I increase my conversion rate?" It's far too easy to get caught up in speculation like this. Far better to try something and look at the actual numbers.

    After you see what the actual numbers are then you can better your conversion rate by improving the copy/design elements OR if you have a positive R.O.I but want to increase it, drive more traffic to the site.
    Signature
    http://www.warriorforum.com/warriors...ost-sales.html
    Professional Direct Response Copywriting
    50% Off Limited Time Offer!
    "http://www.profitproducingcopy.com"
    {{ DiscussionBoard.errors[6098894].message }}
    • Profile picture of the author keepongoing
      @Ken Hoffman - the trouble is I can't really ask myself how to increase my conversion rate if I don't even know what it is, or even what it means.

      I actually think a lot of people equivocate on this and that not everyone is referring to the same thing, which is why I asked whether we're talking about

      (a) percentage of unique visitors who go on to buy
      (b) percentage of clicks that become sales

      From the comments in this thread, it seems most people calculate their conversion rate from their visitors, not directly from the clicks.

      So 1% conversion rate means "1 sale out of every 100 visitors."

      (rather than "1 sale out of every 100 clicks on aff link")

      My situation is this:
      - I get about 150 targeted visitors to my affiliate page per day (via "buyer keywords)
      - I get (let's say) 20 clicks on affiliate links per day (140 clicks per week)

      Suppose I now get a "1% conversion rate." Well that means either:

      (1) 1.5 sales per day (if conversion rate is calculated as a percentage of visitors)

      or

      (2) 1.4 sales per week (if conversion rate is calculated as a percentage of clicks)

      When I hear internet marketers say "1% conversion rate" I'm not sure how they calculate it.

      Which means I'm not sure how well/poorly I'm doing...

      Thanks again everyone
      {{ DiscussionBoard.errors[6105282].message }}
      • Profile picture of the author Shadowflux
        The best way to increase your conversion rate is to increase the narrowness with which you target a set of potential customers. For example:

        You can offer a product for $10 about "Betta Fish Care" and then market it to the entire web and end up with a very poor conversion rate.

        Or

        You can offer a $10 product about "Curing Betta Fish Diseases" and market it directly to people looking to cure their fish of disease. You could, theoretically, market it to only 10 people and have a 50%+ conversion rate.

        The important thing to remember is that numbers, like a conversion rate, work best in the theoretical planning stages of any strategy. They aren't going to accurately predict how many sales your get or how often you get a sale. You should just focus on selling as many copies of your product as you can.
        Signature
        Native Advertising Specialist
        Dangerously Effective
        Always Discreet
        {{ DiscussionBoard.errors[6105454].message }}

Trending Topics