A few years ago I was a coach for Ryan Levesque’s coaching program.
My role was to answer questions in the Facebook Group, answer email questions, get on zoom calls, and show up to Live Events.
This exposed me to very possibly over 1,000+ questions over the years I worked there. All variants of similar themes.
One of the most common themes was…
“My product isn’t selling. What should I do to make it sell?”
If they were working on running Facebook Ads, they would ask… how do I word my ads to get more clicks? Or how do I target buyers?
If they were working on their quiz funnel, they would ask… how do I word my quiz landing page, questions, and opt-in page to get the most leads?
Some of them would tell me their lack of sales was a result of not enough visitors. So the questions would revolve around how to get more visitors.
And if they were working on their sales page, they wanted to know the highest converting headline or what were the best “persuasive words” to use to increase their conversion rate & turn more visitors into sales.
=== What is “Conversion Rate”? ===
Your conversion rate is the rate at which whatever method you are using to sell (your sales mechanism) turns visitors into customers.
So let’s say your sales mechanism is a text-based sales page.
If you had someone running your marketing you might hear them say your conversion rate is 1%. How do they arrive at that number? And is it good or is it bad?
Let’s say you received 100 visitors to that sales page.
That means 100 people clicked on your ad and landed on your sales page.
Of those 100 people who landed on your sales page, you got one sale. That means that 1 person out of 100 visitors purchased, giving you a conversion rate of 1%.
(1 sale ÷ 100 visitors) x 100 = 1%
If you received 500 visitors and made 10 sales, your conversion rate would be 2%.
(10 sales ÷ 500 visitors) x 100 = 2%
If you received 1,000 visitors to your sales page and you made 5 sales, your conversion rate would be 0.5%
(5 sales ÷ 1,000 visitors) x 100 = 0.5%
=== What conversion rate is considered good? ==
The standard conversion rate people shoot for is 1% or greater.
So for every 100 visitors to your sales page you want to make at least 1 sale.
Can you make a sales funnel work with a conversion rate that is less than 1%?
A conversion rate of less than 1% doesn’t mean you can’t make your funnel work, it just means you may have to spend more money on the front end to acquire customers.
One way to offset this additional advertising investment is to offer a higher priced back-end program to help cover the additional advertising costs required to get more visitors to your website. We can talk more about that in a future blog post.
=== Why is Conversion Rate important? ===
People are eager to learn how to increase their conversion rate because a higher conversion rate makes it easier to spend money on advertising without going into a big loss on the front-end.
Also, your conversion rate gives you a general idea of how much you’ll be able to spend on advertising to breakeven.
For example if your product price is $99 and your conversion rate on your sales page is 1%.
That means if you are running ads and paying for clicks you can do some quick math to determine up to how much you can spend PER click to breakeven.
In this case, at a $99 price point and 1% conversion rate you’d be able to spend up to .99 cents per click to breakeven. (99 x .01)
At the same price point, if you have a 5% conversion rate you’d be able to spend up to $4.95 per click and still breakeven.
While the questions the coaching members were asking me were all great questions.
What many of them missed and only a few of them ever asked me was…
“Am I selling the right product?”
You see, most wanted to find out all the best techniques & strategies to sell a product they wanted to sell and not necessarily what their market wanted to buy.
This could be for a variety of reasons.
Perhaps they already spent a lot of time, money, and effort creating a product on a topic they were passionate about. And so… “Why jump ship to something else when I’ve already invested so much into this product?”
Or some would say… “But they need this stuff, they should want it.”
So when it came time to test their funnels on cold traffic, some of them would get little to no sales at all. And then they would spend their time working on an endless number of small adjustments to the existing funnel.
Completely neglecting or overlooking…
One of the most effective strategies for increasing their conversion rate.
And that strategy is NOT to test different Facebook Ad wording, making 100’s of adjustments to your funnel (especially without testing any of those adjustments with live traffic), or even getting the perfect headline.
It’s to find the best Product-To-Market Match.
Basically… “How well does your product match what your market wants to buy?”
If you are working on getting your online business off the ground, one of the best things to do is to test selling multiple different products on the front-end until you find one that is a perfect match for what your market is buying right now. Timing is another crucial factor but I will cover that at a later point.
For now, know that the tighter your product-to-market match is, the higher your conversion rate will be. So if you’ve been fiddling with an existing sales funnel for a while and still aren’t getting the results you want, it may be time to ask yourself the tough question…
“Have I been trying to sell what I want to sell instead of offering what my market wants and is already buying?”
See you next time…