If you want a sustainable online business model, then find a way to make Google Adwords work for you. You have an instantly level playing field with the biggest players out there and as long as you spend he time building a site with a high enough conversion rate, the money you spend on Adwords will turn into profits at a consistent rate. The cost per click in Adwords is determined by the market, but your conversion rate in your site is the one feature controlled by YOU.
Money spent on better website conversion always has better ROI than money spent directly on more web traffic. Let’s say you spend $500 to get 100 visitors to your website. If you convert 2 visitors to become leads, then you have a 2% lead conversion rate.
- Lead conversion rate is 2%
- Your cost per lead is $250
- For every 100 visitors you are getting two phone calls or emails
I Don’t Know… Maybe One A Week
Is this a normal rate of conversion? In truth, after working with over a thousand websites and owners, this is about normal, although there are many that get lower rates of conversion and very few that get higher rates. The conversation goes like this “What is your lead conversion rate?” the owner says “I am not sure”. I ask “ Well how many emails do you get a month from the website?” Owners says “Maybe a couple a week.” which probably means one a week.
Double or Triple Your Revenue
The only choice for this business owner to double or triple the leads coming in, is to double or triple the budget that will result in double or triple the website traffic. However, if the owner spends some money on testing, and on doubling or tripling the conversion rates in the website, then there will be double or triple the leads with no additional money spent on traffic. This will happen each and every month with no additional money spent on traffic.
How Do You Change Conversion Rates?
The typical way to get more leads is to offer something of value in return for visitor contact information. The thing to remember is that offering someone a free consultation or a “whitepaper” on the topic, is almost as worthless as offering nothing at all. There are no boilerplate solutions for lead conversions.
Here is the data from a recent conversion optimization project. This company’s website had a typical “request information” button on several pages in the website.
Their conversion rate through that channel was between 1 to 2%. In other words, out of every 100 visitors to that page, only 2 moved to the next page and filled out the form. They didn’t offer much, so very few people took action.
Quid Pro Quo
We helped the company create a valuable asset that precisely matched the needs of the average visitors and seemed irresistible. We added graphics, arrows and headlines to the page to reinforce the offer and saw an instant jump to 5% conversion rate.
Drive The Message “Home”
Video spokespersons on the internet are perceived very differently depending on the demographic viewing them, but even more importantly depending on the nature of the product and stage of purchase the visitor is in. For this particular conversion project, we decided to test a video spokesperson to push the lead conversion asset, or the bait if you will. The video was very short (18 seconds) and emphasized that the valuable asset would be received 5 seconds after the request form was completed. The visitor then clicked the video itself or the picture of the asset and was taken to a form page. The video popped up once more for 10 seconds to remind them they would get the valuable asset in 5 seconds after form completion. The result of using the videos and a two step process was a 4-fold increase over the offer without any video.
- No asset offered – Conversion rate 1-2%
- With asset (no video) – Conversion rate 5%
- With asset and two videos – Conversion rate 15-20%
This client was paying $4 per click (visitor to their site) with Google Adwords so we can easily calculate how much they were spending before for each lead and how much they are spending now, after we optimized their site.
Lets look at 100 visitors to their site at $4 Per visitor (click).
10 Fold Decrease In Cost Per Lead
Group – Cost Per Lead
No asset offered – $200 per lead (1-2% conversion rate)
With Asset (no video) – $80 per lead (5% conversion rate)
With asset and video – $20-$26 per lead (15-20% conversion rate)