Friday, September 7, 2007

Affiliate Marketing Tips - Conversion Rate Vs Conversion Ratio

Marketers love to throw around Numbers and stats, as if the human race rose and set around them. Ever travel to the Clickbank marketplace to see some of the top merchandising merchandises and the insane statistics that they're claiming as far as conversion? It's enough to do you sick. Well, I'm going to cut through all the refuse as far as these stats and also clear up some confusion regarding transition charge per unit versus transition ratio. It is my hope that when you are finished reading this article, you'll be able to take all of this with a grain of salt and also understand what these Numbers really mean.

The first thing you have got to understand is the difference between transition charge per unit and transition ratio because many sellers interchange these footing and they are not the same.

Conversion charge per unit is an existent percentage. For example, if person states that their transition charge per unit is 6%, that agency that for every 100 people that come up to their site, they do 6 sales. You acquire the per centum by dividing the figure of gross sales by the figure of visits and then multiplying by 100. So if you acquire 70 visits for a diagnostic test and do 7 sales, you split 7 by 70 and then multiply by 100. That volition give you a 7% transition rate.

Conversion ratio is presented as Ten figure of gross sales for every Yttrium figure of visits. So a transition ratio of 4:25 agency 4 gross sales for every 25 visits. If you desire to convert this to transition percentage, then you simply take the figure of gross sales divided by the figure of visits and multiply by 100. In this case, the transition charge per unit would be 16%.

What you necessitate to cognize about these numbers, when they acquire thrown at you, is that most sellers will not give you true statistics. They'll state you that their transition charge per unit is 6% but what they don't state you is that this is based only on Adwords advertising, or on listing promotion. If they were to give you the stats for all their promotions, they would probably turn out to be less than the stats they are showing. The ground for that is because they always set their best ft forward. So it is of import to be aware of this when you make up one's mind on a merchandise to advance as an affiliate.

Naturally, sellers are going to desire to set their best ft forward when giving you their transition stats. As long as you understand this, you'll be better able to do an informed determination when crucial what merchandise you're going to set your money behind.

To YOUR Success,

Steven Wagenheim

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