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  1. #1
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    Average Industrywide Conversion Rate for Affiliate Programs
    What is the average conversion rate, industrywide, for affiliate programs? I seem to recall reading somewhere that it is 2%. Does that sound right?

  2. #2
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    Quote Originally Posted by Snowman
    What is the average conversion rate, industrywide, for affiliate programs? I seem to recall reading somewhere that it is 2%. Does that sound right?
    SM, I have seen CR rates from 14% on CU to dismal rates of .5% ...
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  3. #3
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    Quote Originally Posted by Snowman
    What is the average conversion rate, industrywide, for affiliate programs? I seem to recall reading somewhere that it is 2%. Does that sound right?
    Yep, that's right. Overall. Of course individual affiliates, merchants will vary but that would be the overall conversion rate. I remember a long time ago seeing some study on this and then I think it was Todd? posted something like that.

  4. #4
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    Andy, what is CU?

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    Checks Unlimited

  6. #6
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    Quote Originally Posted by Snowman
    Andy, what is CU?
    SM,

    7 Day EPC: $110.28 - Click to View EPC Trend Chart
    7 Day Reversal Rate: 0.00% - Trend
    7 Day Conversion Ratio: 12.80% - Trend
    7 Day Average Sale: $40.92 - Trend

    Checksunlimited ...
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  7. #7
    Moderator MichaelColey's Avatar
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    It varies so much from merchant to merchant and affiliate to affiliate that an average is pretty meaningless. I suspect that 2% is probably pretty close to average, but it could easily be 10 times lower or 10 times higher for specific merchants or affiliates.
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  8. #8
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by MichaelColey
    I suspect that 2% is probably pretty close to average...
    That would be my guess too...

    The top three affiliate program for Geno-the-affiliate convert at 4.94%, 4.55% and 4.12%. The worst one converts at 0.76%-0.48%.

    As for Geno-the-OPM the average conversion rate across all programs fluctuates around the 2% Michael has mentioned.

    Geno

  9. #9
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    I think 1% is probably more accurate as an "overall average" conversion rate across all active retail-tangible-product affiliate programs.

    One factor that prevents comparison is that some merchants use different measures for "conversion rate." For example, Amazon reports to its affiliates on the "number of items ordered," and not on the number of transactions; since some consumers buy "more than one" items per transaction, but none can buy "fewer than one" items in a transaction, counting items instead of transactions will definitely inflate the "apparent" conversion rate when comparing to merchants who report using "transactions."

    (And programs that pay for "leads" can't fairly be compared to programs that pay for transactions.)

    I have run some campaigns that brought my conversion rate (for that merchant) above 20%; I have had other profitable campaigns with conversion rates of 0.1% or less. Of course, I've tested and abandoned many merchants who had 0% conversion rates (zero sales after thousands of pre-qualified clickthroughs). I would say that among all my merchants who have generated transactions, my conversion rate averages just over 1%; if I add in my testing for merchants who couldn't convert customers at all, it would be just below 1%.

    One factor that can impact "apparent conversion rates" is the presence of a "coupon prompt" during the merchant's checkout process; this prompt will lead many consumers to execute a search and many of them will return to the site using an affiliate link, representing a "recapture" which can create an "apparent" conversion rate of 15% to 25% for that affiliate. If the merchant draws a significant portion of their affiliate transactions from these coupon sites, the result can easily be "affiliate conversion rates" of 5% or more, even though the merchant's "overall conversion rate" (from all sources) is 1% or less.

    Another factor, of course, is whether or not merchants "pare their affiliate lists," as CJ and LinkShare encourage their merchants to do, so that affiliates with low EPC, low CTR, and/or low conversion are simply removed from these programs, leaving only the best-performing affiliates participating in the affiliate program. This restricts growth of overall sales and profits, but makes the affiliate-program's "performance" numbers appear better.

  10. #10
    OPM and Moderator Chuck Hamrick's Avatar
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    Conversion rate is similar to interest rate. It is dependent on the vehicle i.e. passbook savings, mortgage, credit card, car loan.

    I have had successful affiliates decline promoting retail sites because of poor conversion 0.5-1.5% and opt for a direct to manufacturer program. A VP for a company I worked for said he was going to achieve a site-wide conversion of 20% in two years. That is a fantasy when the average rate was 4% which was high for that market.

    Some where I read that Amazon has an average rate of 20% but I can't find the article.

  11. #11
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Chuck Hamrick
    Some where I read that Amazon has an average rate of 20% but I can't find the article.
    Amazon sent out this press release
    "SEATTLE--(BUSINESS WIRE)--April 24, 2007--Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2007" but I'm not sure if that is what you are looking for or not.
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  12. #12
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    Quote Originally Posted by Chuck Hamrick
    Some where I read that Amazon has an average rate of 20% but I can't find the article.
    An average of 20% for amazon is really high and close to impossible. If know amazon does a lot of A-B testing to help conversion but I doubt that with their tweaking, having that avg seems to be a bit out of reach.

    I would think an avg of 2-3% sound decent.

  13. #13
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    As far as Amazon conversion rate, remember there is affiliate conversion rate and then their regular conversion rate. I think most of the people that shop there have shopped there before so it should be pretty good.

    Also they measure conversion rate, at least affiliate conversion rate different from everybody else so it looks a lot higher than it actually is.

    Let's say you send them 100 clicks and you have a 10% conversion rate as listed by them. That could be one customer buying 10 items on one order. So normally an order = a conversion, with Amazon an item = a conversion. I have an 8.98% conversion rate so far this month and that number came by dividing the number of items by the number of clicks.

    And here's one from a couple of years ago and they were converting at 12.8%:

    http://www.clickz.com/showPage.html?page=3496786

  14. #14
    Average conversion rate for all campaigns and all publishers in our network over the past month is 2.72%. I have to say everyone here is pretty accurate.

  15. #15
    ABW Ambassador Rehan's Avatar
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    Keep in mind that there are different ways to measure conversion rates. Google does it by calculating transactions per visit. But Amazon may calculate it as items sold per unique visitor. And is it daily unique visitor? weekly? monthly? that makes a big difference, too. Considering how many people go to Amazon just to browse or read reviews, I'm sure their transactions per visit figure is a lot lower than 12.8%.

  16. #16
    Affiliate Manager Blair.com's Avatar
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    An industry-wide number is just about meaningless. It can vary from affiliate to affiliate and merchant to merchant. Additionally, the products being sold can also play a HUGE part. It might be better to try to come up with with an average conversion rate for electronics merchants, apparel merchants, sporting goods merchants, etc.
    Christopher Park
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  17. #17
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by Blair.com
    An industry-wide number is just about meaningless. It can vary from affiliate to affiliate and merchant to merchant.
    I agree.

    Quote Originally Posted by Blair.com
    It might be better to try to come up with with an average conversion rate for electronics merchants, apparel merchants, sporting goods merchants, etc.
    I personally do not think this would work as two merchants in the same vertical can have a totally different affiliate program conversion rate, and this figure will be more characteristic of their own website's (and affiliate program's) capability to convert rather than of the vertical's "average" conversion rate.

    I think the "average industry wide conversion rate for affiliate programs" may be calculated only upon analyzing average conversion rates of affiliate programs in the arsenals of a given number of affiliates. Say, I currently promote 10 affiliate programs (not a made-up figure; analyzing my real situation here). 5 of them covert. An average conversion rate across those 5 is currently 2.97% (the top 3 of mine have been steadily converting at 4%+ over the past 12 months). If I include my non-converting affiliate programs (which maybe I should do, as I am sending them traffic), my average conversion rate will equal 1.49%.

    Geno

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