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.
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%.
Was this article helpful?
It’s so much easier than you think to create unlimited wealth online. I’m going to show you exactly how in my comprehensive guide. Affiliates are making more money than ever these days easily cashing in while they are off doing other things. It’s nice to know you can bring in a massive income while you’re not even monitoring things because you will not be personally selling anything. You don’t even have to speak from the people that order from you.