Stats are something most people don’t follow closely enough. Website statistics can be a huge advantage. When you have a website, and you have it up and running, there are only a couple ways to make more money from
Number one is to get more people to actually buy from you, which is called
conversion. I don’t care what anyone else says, everything falls into one of those two categories. If you’re getting enough traffic and you’re not converting enough people, then that’s what you need to focus in on. So, there are really only two methods – get more traffic or increase the conversion on your site. That’s it — there’s nothing else.
The question always comes up, what should my conversion rate be? Anyone that tells you there is a simple answer to that are totally full of it because there’s not a simple answer to that. That number is determined by certain factors and depending on what your desired outcome will determine what the rate should be.
A 1% conversion rate means that out of 100 visitors, one person will buy what you are offering. Along with conversion rate you can figure your visitor value. If you had 100 people visiting the site and you had one sale of
$20, you would divide 20 by 100 and you would find that each visitor is worth .20 cents.
Let’s assume that you still had a 1% conversion rate, but you were offering
a $1,000 product. If you only got one sale out of it divide that by 100 and what we have is $10 per visitor. So with a 1% conversion rate for a $20 eBook each visitor is only worth .20 cents, but on a higher ticket item, a 1%
conversion rate at $1,000 is worth $10 per visitor whether they buy or not. Do you see how that works?
You can use the same formula to figure out the conversion rate of an Opt-in page? If you have 100 people come to your opt-in page and 35 people opt-in, that means your conversion is 35%. Now, that has nothing to do with your sales ratio, meaning how many people actually buy because even though you could get 35% of the people to opt-in, you still may only have a 1% conversion rate as far as from visitor to sale.
Being able to see how much traffic you’re getting and being able to figure out your conversion rates will help you see what you have to do to make more money on from your websites. Keeping an eye on your stats will show you if you need to up your traffic generation campaign or if you need to tweak your site to try to convert more visitors into customers.
Your stats may even show you that you are getting enough traffic and a decent conversion rate, but you simply need to offer a higher priced product. So watch your stats, run your numbers and adjust things when necessary to increase the cash flow of your site.