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December 29th, 2009, 02:58 AM #1
Developing a conversion rate? Excuse my ignorance.
- Join Date
- December 23rd, 2009
Hello every one,
I am a complete newbie and really appreciate the knowledge and wisdom provided by the members of this forum, it is such a great resource. Thank you so much.
I am a merchant who is trying to develop an affiliate program.
If I understand correctly, it is wise to have a conversion rate to show possible affiliates so they can determine wether or not sending traffic to your site is worth it.
What is the best way to develop a conversion rate? We are in the high-end diamond jewelry market.
December 29th, 2009, 10:51 AM #2
Are you asking for a formula? Sales / Traffic * 100
It really depends on what you are driving to - if your doing a single landing page for a single product, what does that convert at? If you are offering an affiliate program for an entire cart-based site, what does the site convert at in general?
Also, it is just wise to focus on your advantages. If your conversion rate rocks, boast it. If it doesn't, focus on your payouts or some other benefits to get affiliates interested in testing your program. Giving your conversion rate out will definitely help in crunching numbers on a topical level, but different traffic converts at different rates so it isn't a great gauge on how something will perform.
December 29th, 2009, 03:56 PM #3Originally Posted by Medge
If your conversion rate is low, first find out why and how to fix it. If your site isn't converting you won't keep affiliates for very long. Don't expect affiliates to convert at a higher rate than you're getting now.
December 29th, 2009, 04:24 PM #4
I generally don't publish conversion rates below 3%. If you have one over 5% boast about it and over 10% sing from the roof tops. Other important numbers are average order value and average commission.
The savvy jump at these numbers, ShareASale and AvantLink have the best merchant metrics which can drive sign-ups.
December 30th, 2009, 01:48 AM #5
Originally Posted by Chuck Hamrick
- Join Date
- December 23rd, 2009
Chuck, our conversion rate is expected to be around 1%. But our average order value is about $850. I don't know if that compensates for the low conversion rate. This is what troubles me. I'm afraid that I will scare off affiliates with a 1% conversion rate or will seem "shady" by not posting a conversion rate altogether.
December 30th, 2009, 09:06 AM #6
Most affiliates are smart enough to know that a 1% conversion with a $50 payout is better than 3% at $10, but as you push your program I would definitely split your pitch into "program highlights" for advantages like $850 average rev per order and "program details" for traffic restrictions and if you want to include stats like a less than average conversion rate.
December 30th, 2009, 10:30 AM #7
Try to find out how your competitors convert. If they're converting at 3% and you're at 1%, you may have an issue. You may be able to compensate if you pay a higher commission and build a better program. It often comes down to where is the affiliate getting the most bang for their traffic.
December 30th, 2009, 12:51 PM #8
Mark, few merchants publish actual conversion data but super affiliates will ask for it. My top fitness equipment program converts at just over 2% with AOV of $1,180, and average commission of $95. The last number is the most attractive to affiliates.
Be honest with affiliates but you don't have to throw yourself on the sword. Put out current, useful information which will be greatly appreciated. IMHO 99% of programs are lousy at providing what affiliates need.