Single conversion rate first or overall profits first?

Discussion in 'ClickBank' started by tanakanewyork, Apr 27, 2009.

  1. #1
    Most vendors always say how high their conversion rate is to attract and recruit as many affiliates as possible. Some may claim that their conversion rate over 20%. It maybe possible like what they said and I have posted one titled “Some tips to improve conversion rate up to 10%.” Click URL: http://forums.digitalpoint.com/showthread.php?t=1322831.

    On this post, I would like to talk about something related to single conversion rate and overall profits.

    You and we all know that most affiliates will choose the products with the price over $20; one of the reasons why they do this is to ensure their benefits. Now most of them choose those with a sale price over $30.
    Here I would show you an example and you will know which one is you should focus on.
    Let’s say a product priced $34.67 (all value added services included), then the affiliates will get about $26 per sale, even less. Now he can make 40 sales per day, thus his overall earning is about $1040. Now let’s turn to another product price $59.87 (not all value added services included, single package we say it is $34). Just like the previous product, we find that affiliates can also get $26 per sale. But if the potential customers think that the value added services of the second product is worthy of that money, then they will choose. Now you can calculate that if you’re overall earning is $1040, and then you only need to make 23 sales per day.

    One is 40 sales, another is 23 sales. If the hops are the same, then the conversion rate of the second one is lower than the first one. If the potential customers think it is worth money to pay value added services of the second product, then you can make more sales. Thus your overall profits improve. It is because we should concern about the overall profits.

    Is the product they paid worth that money?
    Low price sometimes means low product quality, complaints and high refund rate later. But most affiliates don’t care about the refund rate after they got the commission and extra bonus. For the long-term interest, I think promoting a top quality product is the best choice. Most of the potential customers will search the comments about the product he would like to purchase, if he find so many complaints, then he will find something else. Maybe at first they will be attracted by low price, but after they used the product, most will ask for a refund. Thus the overall profits reduce.

    There is another aspect that will affect your overall benefits. It is “$/sale:”.
    You may be confused what it is. Here I would like to show you the whole list. $/sale: $33.82 | Future $: - | Total $/sale: $33.82 | %/sale: 75.0% | %refd: 73.0% | grav: 69.20.

    I think you got it now. It is the average sale price that affiliates make. Before you promote some products, please do remember to compare the average sale prices. It is very important for you to make huge earnings.

    Though the title says conversion rate and overall profits only. You can find other aspects mentioned above also affect your overall benefits.

    After reading this, I think you know that the overall profits is more important than conversion rate.

    I will continue to tell you what I know. It is good to share.
     
    tanakanewyork, Apr 27, 2009 IP