The Overall Long Term Success Of Your Online Business Venture Will Ultimately Be Determined By How Well You Know And Understand These Five Basic Online Fundamental Stats…
Picking up from where you left off in Part One of this post about proven web marketing strategies. If each lead is costing you $5.32 (or X) and you currently have no viable back end (additional sales) marketing funnel in place and you’re currently only earning $2.77 upfront on each lead.
You quickly realize that you probably need to change your marketing plan or you risk going broke!
And you now know whether your upfront cost is justified.
3.) Sales Conversion Rate (SCR): This simple calculation tells you how many of your subscribers are taking the action you wanted them to take, within a given time frame such as one week, month, year etc.
For ex: If you had an opt in list of 5,000 subscribers and you emailed them an offer and 107 people actually purchased something. Simply divide 107 by 5,000 and you should get a (SCR) of .0214%. Now multiply that figure by 100.
(107 divided by 5,000 = 0 .0214 x 100 =2.14%)
(In reality there is another actual calculation that needs to be made, but to keep from confusing you or make this example far more complicated than it needs to be, that step is being omitted here.) See concept # five below.
Next you simply multiply that number by 100 and you should get a Sales Conversion Rate (SCR) of 2.14%. ( 0.0214 x 100=2.14%)
Meaning – that on average, for every 100 (on or offline) subscribers that you send an offer to about two people will purchase something.
Email Marketing Will Become A Main Component Of Your Online Success…
And of course the more customers and clients that you can convert over to receiving emails as opposed to costly offline snail email, you will eliminate your postage, printing and type setting cost. (Or at least greatly reduce them.)
And now even a dismal 1-3% SCR ( providing you have a digital product or service of some kind) will probably still mean some type of overall gross profit to you instead of a barely break even or a flat out loss.
Of course (your real SCR) rate will ultimately depend on several related factors such as.
A.) The offer itself -meaning -how well it was written. The overall effectiveness (or lack there of) of your main power headline (s) and whether or not there was a compelling call to action etc.
B.) The initial and final price of the product or service that’s being offered. Meaning – was it a final offer “close out” sales price or a “OTO” ( One Time Only) offer or was it a low price introductory trial offer of 30-90 days etc.
C.) How Iron Clad was (or is) your money back guarantee (refund policy.) Do you offer a Lifetime Money Back Guarantee or just somewhere between 30 – 90 days etc?
( And how well does your Money Back guarantee stack up against your top five major competitors or your industry in general?)
D.) Whether or not you offer any powerful (and relevant) free (purchase now super duper) bonuses with your purchase and the quality of them etc.
(Because if you can’t sell the bonuses outright, there not worth giving away!)
E.) Whether or not this is your first offer to your list and whether or not it’s your own actual product or service or whether its an affiliate sales link recommendation etc.
F.) The type of personal relationship that you have (or are currently) developing with your subscribers! Do they see you as a trusted credible source for powerful relevant inside information?
Or did they join your list simply to get your freebie lead generator and do you merely view them as nothing more than a mere inconvenience that has to be tolerated for the sake of constantly trying to shake them down with offer after lame offer!
Your Long Term Success Or Failure On Or Offline Will Also Ultimately Be Determined By How Much Trust And Credibility That You Have Developed With Your Valued Subscribers….
4.) Your Opt in Rate: This (extremely important) figure tells you what percentage of your all important first time visitors -to your site- sign up (opt in) to your list.
So if your offering some type of lame or saturated hand me down freebie that you got from some guru or gurette, your opt in rate won’t be nearly as good as it could and should be.
(Important note: Your unique first time visitor did not come to your site, just to get a saturated hand me down freebie that you got from some other online guru or gurette! The first thing they actually buy into is you!)
Because (obviously) the newer & more original that your freebie lead generating info product is; ( like maybe) a current 60-90 power minute interview with some respected (or up and coming) respected industry source, the more likely your targeted audience will want, need and desire your powerful free list building information!
Say for example that for every 100 unique first time visitors to either your (highly targeted) lead capture page and or your blog. Thirty seven people (37) opt in (join) your list in order to get your powerful state of the art market tested lead generating freebie.
Simply divide 37 by 1oo and then multiply your results by 100 and you should get an opt in rate ( for this specific example only) of 37 percent.(37/100 = .37% x 100 = an opt in rate of 37%.)
( 37/100 = .37 x 100 = 37%) keep in mine, there is no standard opt in rate percentage to expect, because your specific audience and your offer to them is unique. However, if your overall opt in rate is less than 2 percent.
Meaning – if (on average) for every 100 unique first visitors to your website/blog etc. And only two people or less are opting in (joining) your list to get your state of the art, market tested freebie, you probably need to be offering them something else!
(Or you desperately need some expert help with your copy writing.)
Which also means you need to immediately start testing other free lead magnets!
And last but certainly not least….
5.) Your Click Through Rate (CRT). Take your total number of “click throughs” -meaning- the total number of viewers that click on the sales link in your emails. Divide that number by 100 and multiply the results by 100.
( Most of the good autoresponders services provide software that will track this and other important stats for you.)
For example: Let’s say that you currently have an opt in list of 10,000 subscribers. (Which means your probably getting extremely good and consistent at List Building 101.)
And you sent out an email to your list that has one of your affiliate links in it. If 934 of the 10,000 total opt ins actually click on your link. In order to determine your click through rate (CTR).
You simply divide 934 by 10,000 and multiply your results by 100 and you should get a click through rate of 9.34%.
( 934/10,000 = 0.0934 x 100 =9.34%)
Do Not Confuse Your Sales Conversion Rate With Your Click Through Rate!
So as not to confuse you here. Your click through rate (CTR) was 9.34%. Not your Sales Conversion Rate (SCR)!
Meaning- you sent out an email with your affiliate link in it to your entire list of 10,000 opt in subscribers.
And (for whatever reasons) 934 of them clicked through to your actual link. That’s where your click through rate of 9.34% came from.
But in order to determine your actual SCR, you must now divide your actual number of sales (74) by your actual number of click throughs (934) and then multiply your results by 100.
( 74/934 = 0.0792 (rounded off three places after the decimal) multiplied by 100 = a SCR of 7.92%.
So for this specific example only.Your actual ‘Sales Conversion Rate’ was 7.92%.
You master these five basic (must know) vital online fundamentals and you will not only be light years ahead of your wanna be competitors.
But you will also have just taken a giant step towards being able to attract the big time JV partners as well!
Study and master these, because these are just five of the main stats that your top JV partners will want to know about your online sales letter offers etc. Nuff said!
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