Dear Partners, I am very happy to share our February web statistics with you because we have significant results that directly affect your bottom line:
There are two very important points that I want to emphasize;
- first, the conversion rate increased to 4% which represents an improvement of 30% compared to previous months,
- second one is the direct result of this: acquisition cost on average is down to $25-$27 range for the whole traffic which clearly shows the significant upside potential for this program. With the new commission plan, you have the ability to cover 70-80% of your investment immediately and break even in 3-6 months with the recharge commissions! Considering the average lifetime is about 30 months, the ROI can go up to 200% over the lifetime.
As you know, we implemented new sign up process along with the new payment option (PayPal) in January and we started getting the results immediately. Let me elaborate more on the details because there are very important insights in each segment of traffic. Mainly the traffic is generated through referring sites and search engines. So, we need to look into each segment to understand the numbers better.
In February on average, the conversion rate of the traffic that is coming from Search Engines (any pay per click campaigns done by agents that do not have their own domain), is 4.1%, an improvement of 40% compared to January. This is significant improvement which results in fewer dollars spend by you for each customer acquired!
Second segment is the referring sites (any agent website with its own domain) and the average conversion rate is 3.8% for the same period, an improvement of 30% compared to January. This is also significant, but not as good as the search engines. When you look into details, you find the answer why it is so. The people that are coming from search engines have 10% less bounce rate (% of people who leave on the first page within very short time) compared to referring sites, and number of pages viewed per visitor is higher than the other one, which clearly shows that the referring sites are not as much targeted as the paid search engine campaigns.
But bottom line is for both sources, the conversion rates improved significantly. There are still some improvement areas for referring sites, but still good. Furthermore, let's elaborate what these numbers mean in more detail:
- Let's visualize a scenario that an agent brings 1000 people to our website!
- On average the cost of one click is in the range of $0.8 to $1 which means the total budget to bring 1000 people is about $800 to a $1000.
- With the average of 4% conversion rate, it will translate into 40 new sign ups.
- So, when you divide the total amount spend to 40 ($1000/40), on average the cost per acquisition is about $25.
- This amount goes up for referring sites up to $27 on average, so the range is about $25-27.
So, with some improvements in your homepage, referring page or on the campaigns with search engines, by targeting niche markets, such as mobile phone owners, certain international communities, there is still a big room to decrease the cost down to $20s. If you need any details of web statistics for February, please let us know. Benchmark analysis always helps.
