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How many sales should I get per 100 leads?

by mailhotjm
20 replies
Hi,

I'd like to know, my cost per lead using facebook ads for a free fitness video series can be 3-5$. After they'd enter their email for the free sample videos, I'd promote my real offer that is the complete video series which I priced at 45$

So basically for me to be profitable I should have AT LEAST 1 sale per 9 leads (11%), is that doable?

Thanks
#100 #leads #sales
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  • Profile picture of the author Gambino
    Originally Posted by mailhotjm View Post

    So basically for me to be profitable I should have AT LEAST 1 sale per 9 leads (11%), is that easily doable?
    Easily doable? I would say no.

    If it were easy, everyone would be doing it.

    However, it is possible to convert 11% of leads into sales. But there are far too many variables and not nearly enough information listed in this thread to guess at what rate you/your funnel will convert.

    What you can do is test. Run enough traffic through your funnel to have an idea at what rate it converts. That will be far better than any random guess you may get in this thread.

    Then, you can modify your funnel by adding upsells and/or downsells and/or other products in order to increase the average value of a customer and potentially convert those who say no to your offer on something else.
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    • Profile picture of the author mailhotjm
      Originally Posted by Gambino View Post

      Easily doable? I would say no.

      If it were easy, everyone would be doing it.

      However, it is possible to convert 11% of leads into sales. But there are far too many variables and not nearly enough information listed in this thread to guess at what rate you/your funnel will convert.

      What you can do is test. Run enough traffic through your funnel to have an idea at what rate it converts. That will be far better than any random guess you may get in this thread.

      Then, you can modify your funnel by adding upsells and/or downsells and/or other products in order to increase the average value of a customer and potentially convert those who say no to your offer on something else.

      Thank you for your reply
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    • Profile picture of the author Eva Lyon
      is it necessary to use paid ads (Facebook or Instagram) just to promote email submit offers?
      If no, what is the best way to promote this type of CPA offers? (Using free traffic mostly and may be paid also.)
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  • Profile picture of the author 55sadhikar
    There are several route to climb the top of the peak. If you are smart enough ; you will hire a mentor to the top of the peak, why? Because he/she's been there and done that... Or you can try on your own not knowing you going to tumble off the cliff with bruised body and probably some broken bones...
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  • Profile picture of the author Ettienne
    Always split test. 11% conversion rate is not an easy number to get with a "set up and hope for the best" technique. Split test, keep improving the pages that work better, duplicate, vary them up, change headlines, etc.

    With proper split testing you can go up to 15% conversion rate, which is pretty decent.
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    • Profile picture of the author mailhotjm
      Originally Posted by Ettienne View Post

      Always split test. 11% conversion rate is not an easy number to get with a "set up and hope for the best" technique. Split test, keep improving the pages that work better, duplicate, vary them up, change headlines, etc.

      With proper split testing you can go up to 15% conversion rate, which is pretty decent.

      Yes I do expect to do a lot of testing, analyzing then optimizing; I love doing that


      It's either I work on getting higher conversions or work on getting lower paying leads, in the end I am only wondering if 11% is an "achievable/realistic" goal
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      • Profile picture of the author dave_hermansen
        Originally Posted by mailhotjm View Post

        It's either I work on getting higher conversions or work on getting lower paying leads, in the end I am only wondering if 11% is an "achievable/realistic" goal
        You missed one ... or you raise the price of your product.
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    • Profile picture of the author Eva Lyon
      What is split testing, please?
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      • Profile picture of the author mailhotjm
        Originally Posted by Eva Lyon View Post

        What is split testing, please?
        Post your own question in the forum...

        There are many ways to generate traffic, I personally choose to invest my time into SEO and PPC solely

        Split testing is basically creating 2 pages that are very similar with a few details changed then sending traffic for testing conversion rates; then you analyze and optimize and re-test with splits until you get the rates you want
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  • Profile picture of the author Jason Kanigan
    As a highly paid funnel strategist, I can tell you conclusively:

    "I don't know." :-)

    Lead quality varies from source to source. You're using FB ads, which allow for significant "dialing in" of targeting...that means you * can * get there, but as to where you are right now? Who knows.

    BTW I am super glad you are looking at your numbers. Hardly anyone bothers to do that--and all the successful people watch them like hawks.

    An 11% conversion rate is way too high for expectations on an unproven funnel.

    Start with 0.5% (yeah, you'll have to rejigger your offer) and move up from there.

    Assuming you can't make the numbers work with front end sales, consider laddering: you have a second, upsell offer for people who buy the first, and one out of so many who buy the front end get the upsell. There you make your profit.

    But how long will that take, and how many FE buyers do you need to reach a profit? Time will tell.

    Trying to show you a different perspective.

    If it was me running this thing, I'd be looking for ways to take what I learned--how to generate a certain set of leads at $3-$5--and make it profitable...which probably means finding a higher ticket FE offer.
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    • Profile picture of the author mailhotjm
      Originally Posted by Jason Kanigan View Post

      As a highly paid funnel strategist, I can tell you conclusively:

      "I don't know." :-)

      Lead quality varies from source to source. You're using FB ads, which allow for significant "dialing in" of targeting...that means you * can * get there, but as to where you are right now? Who knows.

      BTW I am super glad you are looking at your numbers. Hardly anyone bothers to do that--and all the successful people watch them like hawks.

      An 11% conversion rate is way too high for expectations on an unproven funnel.

      Start with 0.5% (yeah, you'll have to rejigger your offer) and move up from there.

      Assuming you can't make the numbers work with front end sales, consider laddering: you have a second, upsell offer for people who buy the first, and one out of so many who buy the front end get the upsell. There you make your profit.

      But how long will that take, and how many FE buyers do you need to reach a profit? Time will tell.

      Trying to show you a different perspective.

      If it was me running this thing, I'd be looking for ways to take what I learned--how to generate a certain set of leads at $3-$5--and make it profitable...which probably means finding a higher ticket FE offer.



      Yes that was also part of my plan, making multiple upsells and/or upgrades down the road to get a higher customer lifetime value so that it gives me more range for conversion rates. I am sure by doing that I can reach a profit (been there done that)


      I even had the idea of double qualifying non-buying leads after 72h to ask for their phone numbers so I can get my secretary to build trust over the phone... she could simply offer a free offer and then ask for their weight/height/sex/age/etc then copy/paste a workout program already made up, send it then follow up a week and a half after; I'm a big fan of the phone unlike many here



      As a funnel strategist though, have you ever been able to make a profit OR break even on a front-end offer (under 100$) solely..?


      Thanks for your reply




      (p.s. I deal a lot into offline advertising for my local business, I am planning on slowly moving over to online fitness marketing as I developed an addiction for the sales mentality and numbers lol)
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      • Profile picture of the author Jason Kanigan
        Originally Posted by mailhotjm View Post

        Yes that was also part of my plan, making multiple upsells and/or upgrades down the road to get a higher customer lifetime value so that it gives me more range for conversion rates. I am sure by doing that I can reach a profit (been there done that)


        I even had the idea of double qualifying non-buying leads after 72h to ask for their phone numbers so I can get my secretary to build trust over the phone... she could simply offer a free offer and then ask for their weight/height/sex/age/etc then copy/paste a workout program already made up, send it then follow up a week and a half after; I'm a big fan of the phone unlike many here



        As a funnel strategist though, have you ever been able to make a profit OR break even on a front-end offer (under 100$) solely..?


        Thanks for your reply




        (p.s. I deal a lot into offline advertising for my local business, I am planning on slowly moving over to online fitness marketing as I developed an addiction for the sales mentality and numbers lol)
        I generally don't play around with low ticket offers. To make it work you need more "at bats", and therefore a higher conversion rate. That means capturing the lead and warming that person up with content and more opportunities to buy.

        This is a learning process and will likely take you awhile to dial in.

        The math is simple enough: generate a customer at a rate less than your sale price. Generating the lead has a cost. But that's only one factor: there's overhead as well--autoresponder, cost of any subcontracted writers/videographer, website hosting, etc.

        There are ways of driving the cost of customer acquisition down, like partnering with someone who already has a "good fit" list of buyers. You know these people will buy; they've bought something before, which shows they aren't tire kickers. And you can leverage the trust they have in the other person (the list owner shoots a video saying you're a good person and your products will help them.) Much of my time is invested in looking for such partnerships.
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  • Profile picture of the author Mihai1555
    money comes with the follow up... you can get 1 or more sales for every 9 leads if you send them good information and you get their attention and they connect with you
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  • Profile picture of the author InternetMarketingMadeEZ
    On whether you can achieve 1 front-end sale per 9 leads, it totally depends on the product demand, your sales page and your product price. As mentioned by others, you need to test and get data to confirm these.
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  • Profile picture of the author paul45955
    It depends on how good your product is and how targeted your traffic is
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  • Profile picture of the author superowid
    Generally in marketing theory (if I'm not wrong) the max. number is averaging on 4%. So it'd be max. 4 sales per 100 good leads. How good your lead is what we can't guess.
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    • Profile picture of the author dave_hermansen
      Originally Posted by superowid View Post

      Generally in marketing theory (if I'm not wrong) the max. number is averaging on 4%. So it'd be max. 4 sales per 100 good leads. How good your lead is what we can't guess.
      There are far too many factors involved to make a general statement like this. We've had sites that averaged 15-20% conversion rates. We've had others that averaged a half percent.

      Too many things play a role. Sure, things like trust and providing enough information that a customer feels confident in making a purchase play an extremely important role, but so do things like price point, where the lead came from and whether or not it is a site with a high percentage of repeat customers.

      If your average sale is $1,500-$2,000, your conversion rate is going to be far lower than if your average sale is $25. Then again, you're gong to need those higher conversion rates because it might take 50 of those $25 orders to make the same profit as just one $2,000 order.

      If the majority of your traffic comes from Facebook ads, where nobody was really looking to buy anything when they went there, your conversion rate is going to be significantly lower than if it came from a Google Ad or organic listing where people were actively searching for the product.

      If you have the type of products that people NEED to buy frequently (a unique, proprietary coffee blend that they cannot do without, for instance) and you are the only place that has it, your conversion rates are going to be MUCH higher than the norm.
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      • Profile picture of the author superowid
        Originally Posted by dave_hermansen View Post

        There are far too many factors involved to make a general statement like this. We've had sites that averaged 15-20% conversion rates. We've had others that averaged a half percent.
        Agree!
        It was in theory that I remembered from my marketing class when I was in a college.
        You can pass it or stay under in a reality.
        Until today I still don't know where this 4% number came from.
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  • Profile picture of the author ryanbiddulph
    This varies on many factors, but all comes down to your clarity aka lack of fear aka lack of doubt. Clear the doubt - like, releasing the need to ask questions - and the number rises.
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  • Profile picture of the author jmosticc22
    It is doable but it will much depend on your quality of leads. I would say right from the beginning that even if you get a 5% conversion rate that would be a very good starting point. But like others have said, test it out and go from there.
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