RE: [uk-netmarketing] Re: Piece of string question

[Robin Edwards]

If we make some assumptions (why the hell not it's Monday) then


* Cost to generate visitor = $1.00

* Conversion rate = 0.18%

* Cost per sale = $555.00


If the margins are more than $555.00 then you're onto a winner.


In reality, I suspect the cost to generate each visitor was higher than

$1.00 given the amount of money poured into marketing the site. If it was

$2.00 per visitor things don't look so good.


Of course they can up/cross/whatever sell them insurance, servicing,

accessories and, hopefully, their next car.


Is it true that boo.com had a conversion rate of 0.2%?


What's the margin on a pair of trainers?


Robin


--

Robin Edwards

Clockworx

T: +44 1543 252370           F: +44 1543 420761

E:

robinclockworx [dot] co [dot] uk

   W: http://www.clockworx.com/ W2:

http://www.shopworx.net/


> -----Original Message-----

>

From: Sam Michel [samchinwag [dot] com (mailto:samchinwag [dot] com)]

> Sent: 22 January 2001 14:59

> To: uk-netmarketing from chinwag

> Subject: [uk-netmarketing] Re: Piece of string question

>

>

> Hi Neil,

>

> > -----Original Message-----

>

> From: Neil [dot] McIntoshguardian [dot] co [dot] uk [Neil [dot] McIntoshguardian [dot] co [dot] uk (mailto:Neil [dot] McIntoshguardian [dot] co [dot] uk)]

> > Sent: 22 January 2001 11:27

> > To: uk-netmarketing from chinwag

> > Subject: [uk-netmarketing] Re: Piece of string question

> >

> > I would imagine it varies, depending on what the site is selling

> > and also on whether you mean registered users to be people who

> have simply

> > given over some personal details, or who have actually parted with cash.

> >

> > If in the latter category, I got a press release from Autobytel

> > the other day, titled "Autobytel's success to date revealed" which said

> they had

> > 900,000 unique visitors since August, and had generated 1,700

> car purchase

> > orders in that time.

> >

> > Even assuming all those orders go through to completion, my dodgy

> > arithmetic makes that a browser to customer rate of 0.18%... would many

> folk

> > on the list regard this as success?

>

> Doesn't it depend on the value (to Autobytel) of each transaction? If

> they're making a couple of thousand dollars on each sale, then

> it's probably

> a reasonable conversion factor. I'd be surprised if it was much higher if

> the main trade is very high ticket items like cars....or am I missing

> something?

>

> Toodle Pip

>

> Sam

> ----------------------------------------------------------------------

>       Sam Michel, Chinwag - Internet Community

>

e: samchinwag [dot] com http://www.chinwag.com

>          t: 0870 730 7313  f: 0870 730 7312

>

>     Chinwag, building focused digital communities

>                  http://www.chinwag.com

> ----------------------------------------------------------------------