Real Quick Question about Conversion Rates...

by rvrabel2002

Posted: 15 years ago 7 replies

INTERNET MARKETING

How is Conversion rate defined, is it the ratio of people visiting your site to how many buy? Or is it the ratio of how many click on your affiliate link and how many buy out of that? Thanks.

#conversion #question #quick #rates #real

Ben Roy 15 years ago

The term 'conversion rate' can apply to any action. So if you have a page with an affiliate link on it, the conversion rate is how many people click the link divided by how many people visited the page. If that takes them to a sales page, your conversion rate there is how many people bought divided by how many people clicked across. You can also measure the conversion rate of your entire sales funnel, which is how many people bought the product divided by how many people viewed the initial page.
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- scattermouse 15 years ago
  
  As Ben said, conversion rate can mean all sorts of different things.
  
  It's most commonly used in terms of a sales page though - so the number of sales divided by the amount of traffic to that page.
  
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Neil Morgan 15 years ago

For me, it's only meaningful if you use the number of unique visitors rather than the total number of visitors or page views.

For example, if your stats show 100 total visitors and 1 sale, that suggests a conversion rate of 1% (1/100).

But if those "100 visitors" turned out to be 25 unique people who visited the page 4 times each then the conversion rate is actually a much healthier 4% (1/25).

IM mathematics is one of my favourite subjects. Sad, or what?!

Cheers,

Neil
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- rvrabel2002 15 years ago
  
  I have a site that has about 300 visits, with about 10% clicking through my affiliate link, and only one sale. Its a high involvement CPA offer, pays around $35 and its a review site. Is this a bad conversion. I mean, Im getting people to click the affiliate link, but the page isnt converting. Maybe I need to presell better?
  
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- Lance K 15 years ago
  
  Originally Posted by Neil Morgan
  
  IM mathematics is one of my favourite subjects. Sad, or what?!
  
  If so, I'm sad right along with you.
  
  I prefer the label of profitable to sad though.
  
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Phil Ayres 15 years ago

For me, the most important conversion rate would be the % of people who convert to a sale from the media I actually spend money on!
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Ben Roy 15 years ago

To take what I said one step further, the reason measuring multiple conversion rates is important is because improving ANY conversion rate improves your bottom line. For instance, if you 'convert' more people on your landing page to actually click the link, you'll have more people on the sales page which will equate to more sales.

If you improve the number of people who actually buy on the sales page, you will also have more sales. The same applies to signing up for your list, confirming their account, clicking through links in your emails, etc. Focusing on improving one specific thing at a time can lead to big overall improvements in results.

In the case of 300 views : 30 clicks : 1 sale, I'd say your click through conversion is low but your sale conversion is good to high. Assuming that these numbers were big enough for statistical confidence (they aren't), increasing your click rate to 20% would double your sales.
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