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"Identifying What 'Conversion Rates' Really Means When Evaluating Potential Solo Ad Joint Ventures"

Of the major pieces that make up a
successful online business, high
conversion rates can be one of the
most coveted. A solid product, strong
sales copy, targeted traffic,
effective advertising, and other
factors all contribute to the highly
important business metric,
the "conversion rate".

The term "conversion rate" is simply
the ratio of people that visit your
site versus the number of people that
visit your site and buy something from
your site. If you have 100 people
visit your site daily and 4 people buy
from you, essentially your daily
conversion rate is 4%.

That's obviously an unqualified number
because you don't have all the
information about those visitors for
that day.

There is no real standard definition
that everyone adheres to and agrees
upon and there is no governing body
that says online marketers must
define "conversion rate" the same way.

The "conversion rate" metric can take
into consideration any of or more of
the following:

* A 1st time visitor to the site
versus 1st time visitor who buys your
main product on the 1st visit.

* A visitor who reviews your site but
doesn't buy on the first visit but
does buy on a subsequent visit.

* A visitor who doesn't buy but joins
your list and buys later.

* A visitor who doesn't buy your main
product but joins your list and buys
another product of yours.

* A visitor who buys a product from
you not associated with the main site
which is where they were originally
referred.

* A visitor who buys your main product
in a bundle that includes other
products the visitor is interested in.

*And so on...

Take the above scenarios and add in
the fact that most of the time the
source of the traffic isn't given, and
you can easily get an 'ambiguous at
best' definition of what "conversion
rate" means.

Many successful online marketers with
lists are bombarded with joint venture
proposals that include some sort of
conversion rate metric designed to
build intrigue and desire to the list
owner to make them seriously consider
going ahead with the solo add joint
venture proposal.

While the conversion rate metric is a
necessary piece of the potential joint
venture package, it can be misleading
if not properly qualified.

So, what questions do you ask to
properly qualify what 'conversion
rate' means and how do you verify it?

Short of looking at the other
marketer's web log, you really can't
verify the metric. The best thing to do
is to review the product yourself if
possible and take a look at the sales
copy of the product. Take a look
at the Alexa ranking to see what type
of traffic the site is getting, at
least from a volume standpoint.

Remember, Alexa rankings measure
volume of traffic not the quality of
traffic. Go to Google or some other
search engine and see what types of
sites link to the site of the product.

If there are professional well
traveled sites that link to the site
that fit well within the niche that
the product caters to, and the sales
copy, price point, and delivery are
professional and fitting to the
product offering, maybe the conversion
rate is comparable to what you're
being told it is.

But, just because the conversion rates
maybe close to truthful, it doesn't
mean that sending a solo ad to your
list will work well.

You have to decide for yourself if the
product could pull in the type of
conversion rates that are being 'sold'
to you by the proposer of the JV.

Remember that the source of traffic is
one of the main factors that will
determine what type of conversion rate
any JV will obtain. Ask yourself if
your list will respond well to a solo
ad JV. Only you as the list owner will
know whether the product will be
useful to your list and purchased by
your list.

Be humble, work smart, keep it simple.

Karl Augustine
"The Regular Guy"
(c) Karl Augustine
Starting an online business

About the Author

*Author, "9 Deadly Mistakes To Avoid When Starting An Online Business"
*Get exclusive SEO reports for top 10 rankings today!
http://www.9mistakes-online.com

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