When you look at terms such as conversion rates or click through rate, it’s really tough to see what a hundred clicks really means. And, that is why you need to measure your statistics and figure out what your sales letter converts at, and what your opt-in converts at.
When your sales letter converts at a certain percentage, that means that the percentage that comes to your sales letter buys. If you have a 2% conversion rate, for every 100 sales letter visitors, two of them buy. If you have an opt-in page in front of your sales letter and it converts at 50%. That means that’s if two people show up, one of them signs up. And, now you can have fun and figure out how much money 100 visitors or 1,000 visitors will get you if you know all your numbers.
Let’s say that you had a thousand visitors, you are sending them to a 50% converting opt-in page, at 2% converting sales letter for a product that you sold for $100 dollars. How much money would that be, If you sent 1,000 visitors to a 50% converting opt-in page, this would be 500 prospects or subscribers looking at your sales letter. And, if over the lifetime of that sales letter if people look at it right away or come back from follow-ups, 2% of them buy. Two percent of 500 people buy. That means you have 10 buyers.
If you have ten buyers at $100 dollars, that means you now can expect to get $1,000 dollars from 1,000 visitors or in other words, one dollar per click. And, what that means is that if you are paying for traffic, you could pay fifty cents per click and double your money. If you are paying people for opt-ins, you can pay fifty cents for every opt-in subscriber. It’s very important to figure out these numbers because not all traffic is equal. Different people have different list sizes, those subscribers might have different relationship with the list owner, and even them subscribers might be trained for a certain price.
That means that you might be used to a 2% converting sales letter from your own traffic but if somebody mails for your offer and their subscribers are only used to paying $10 dollars, it might not convert at all and you’ll not have the same type of buyers from your list as from someone else’s list. But it does give you a good estimate, especially if you have new subscribers to tell if this new batch is as responsive as your existing subscribers. If you get opt-ins from a particular message board, are those ones really clicking and buying, And, if not you need to retrain those brand new email subscribers.