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Conversion rates: Basics so fundamental it hurts

8:04 pm on Oct 13, 2009 (gmt 0)

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Hi I'm looking at investing in some products for online sale. Typically I hear that conversion rates are 1-3% online. Does that mean if I have 1000 people visit at 1 per click I need those 10 people to buy 100 each? That kinda ruins my plans for low price products to sell? What's the consensus on this - just dip your toe in? Could be costly!



8:55 pm on Nov 4, 2009 (gmt 0)

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Hi Nstaylor,

Put simply, it means that a realistic goal should be 3 sales for every 100 visits(clicks). In ppc, the key factor to consider will be the cost per click of your best keywords versus what CPA (cost per acquisition) you need to function profitably.

My suggestion would be to identify your most targeted keywords first and bid competitively on them to start the business rolling. All things being equal, the more relevant the keyword phrase, the more likely the conversion. Starting slow is not a bad idea if this is your first foray into PPC advertising.

Good luck!