Stats to Track Numbers to Crunch

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Before you start recording and analyzing data, you need to know what statistics you're trying to calculate - and why. Here are the 4 questions that you want answered during your research.

1. What percentage of visitors to my site become customers?

2. What is the conversion rate for each Affiliate Program?

3. How much is each visitor worth?

4. How much does it cost to bring a new visitor to your site? Let's go through them one at a time.

1. What percentage of my visitors become customers?

This percentage is known as the visitor-to-customer conversion rate, or simply, your conversion rate. When you hear other webmasters speak of their 'conversions' or say something like, "That program converts at 1.5 percent", they are talking about their visitor-to-customer conversion rate.

This is probably the most important number you will ever deal with in your affiliate business. It tells you exactly how well you convince your visitors to buy your affiliate merchants' products.

Average conversion ratios for affiliates range between .5 and 1.5 percent. Super affiliates often convert their traffic by much higher percentages. Some of my sites convert visitors to customers at rates between 6 and 20 percent.

In the following example, let's say your site receives 30,000 visitors in a month, and 375 of those visitors became new customers.

Here is the formula:

Conversion Rate = Number of new sales divided by the number of unique visitors. Using our numbers above, 375 new sales / 30,000 unique visitors is a conversion rate of 1.25%.

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