8 replies
I would like to know how you guys calculate how many of your visitors actually purchase something?

Lets say you have a webshop...you have on a monthly basis around 1k visitors.
How many of them do you expect the least to buy something?
This question i'm asking because i need to make a business plan and i need to know what i need to calculate with.
I know it varies with type of webshop but i just need to know how i should calculate the least i can expect from it...
  • Profile picture of the author Gambino
    The least you can expect from it is $0.00. There are way to many variables - the sites set up, the the niche, your pricing, your competition, the sales copy, the type of site, your abilities, where you advertise, etc - to even take a guess.
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  • Profile picture of the author Jason Kanigan
    Are they qualified prospects? Or just random junk traffic?

    What are you measuring?

    Unqualified Leads >>> Qualified Leads >>> Sales

    What will your site do to ensure these three elements of a successful funnel are included?

    Throwing crap at a wall and hoping something sticks is not "To Manage We Must Measure."
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    • Profile picture of the author Mgungor
      Obviously it will not be trash...
      We will hire a SEO company whom we have worked with before. They have done a good job before...

      But even before arriving to that point...i can't seem to have an idea of the least i can expect from a webshop.
      Yes, as it was said what is your niche and what you will sell depends a lot i know. But when the traffic comes that are interested in the product (cause they searched for it on the net) then i suppose there must be a basic amount you would expect to sell right?
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      • Profile picture of the author Steve B
        Originally Posted by Mgungor View Post

        But when the traffic comes that are interested in the product (cause they searched for it on the net) then i suppose there must be a basic amount you would expect to sell right?

        No, that is not right.

        Anyone that gives you an answer is making assumptions about the number of sales you will have, the price of those sales, the number of returns, and the cost of the goods sold . . . none of which you have given us a clue on.

        Until you have some benchmarks from selling whatever it is that you're going to sell, there is no way anyone can guess accurately at the numbers. And if you're going to base your business on what someone in a public forum is completely guessing about . . . well, that is not the way to do business.


        Steve Browne, online business strategies, tips, guidance, and resources

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  • Profile picture of the author Jason Kanigan
    Set conservative targets, and then achieve them.

    Then raise them.

    You ARE only guessing at the start. It's an estimation. What do you think is reasonable and conservative for those three variables I listed above?

    I would do it the other way around. How much money do I want to make? How many sales does that mean? How many qualified leads do I need in that case? And therefore how many unqualified leads?

    Total revenue desired / Average sale price = # of sales needed (I would probably add 25-50%)

    You want $2000 a month?

    Say an average sale price of $50...means you need 40 sales.

    And you don't want them right up to the wire, Day 30, either do you. No, you want to pass that point with some days to go in the month so you have some breathing room. So let's make it 50 sales.

    How many qualified leads do you think you need to hit 50 sales?


    My guess, and it's a GUESS, is 20 interested people who came with the intention of buying this Wobbledygook 3000 from someone, maybe you, in the near future...

    50 X 20 = 1000 qualified leads!

    And what have you just learned?

    That if all goes according to plan, you DON'T have enough traffic to hit your money target!

    Now how many unqualified leads do you need to get those 1000 qualified leads?

    Say 10. Out of every 10 goofballs who accidentally visit your site, 1 is interested in that Warbledy-I-Can't-Even-Remember-How-I-Spelled-It.

    10 X 1000 = 10000 unqualified leads.

    Now you know what realistic traffic level you require.

    "I want to make as much as I can" is the fool's errand and the newbie's poorhouse.

    Set targets. Adjust. Achieve them.

    No battle plan survives contact with the enemy.

    Same here.

    You will find your estimates may reflect reality or be way off.

    But now you know where to look.

    If you dump 10000 leads into the funnel, and only 200 are qualified, now you know you have a traffic quality problem.

    If you put 10000 unqualified leads in, get 1000 qualified, and sigh because only 20 people bought, now you know you have a conversion problem.

    Sure beats throwing crap at the wall and hoping something sticks, don't it.
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  • Profile picture of the author BacklinkzTopper
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  • Profile picture of the author Randall Magwood
    Honestly since you don't know the true answer to this question (because it hasn't happened yet), you should know that your focus should be on the "backend marketing" side of thing. How much money do you think your average customer will spend with you over the lifetime of you having them on your customer list? Once you have this answer, you can then determine how much money you're able to lose when getting a new customer (some people WILLINGLY are able to go negative) - because you can easily recoup your investment soon due to backend selling, and the average value of your customer base.

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  • Profile picture of the author koz
    When you take the totality of results everyone has achieved, you can come up with a %. But that percentage varies widely.

    There are a few factors that sways this figure and that is:
    traffic > offer
    product & price
    sales funnel

    To see how valid this point is, go to the forums and check out amount of replies and you will see there is a vast difference between amount of views and replies, and likewise visitors and conversions.

    Some food for thought with targeting. People walking into a grocery store are 99% likely to buy. Someone walking into a computer shop might only be 40% likely to buy. Those are not accurate figures but with some thought we can see those metrics likely hold up.

    Finding those base figures though, I suggest doing a trial run to get your base figures. Nothing like getting a practical baseline.

    My recommendation is to have contingency plans instead of wishful thinking. Start off with calculations at 1%, then 5%, then 10%. Then implement your site and then seek to improve once you have your base figures and you do that with looking at the sections above and improving them. So, in essence, don't focus on that's the number, plan for the worst and work your way to the best.
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