Stone Soup of an Online Business


Decide or Wet

Posted by: pin on: 01 Jan, 2008

“You are on your half way to school, and rain starts to fall down. Here comes to a decision to be made. Either to rush back and get yourself a umbrella or sprint your way to school”

Puzzling? It is about decision, making the best decision at at the most right time!

Your online business just started. You have average 20 visitors a day. 2 out of 20 sign up for your online service. Well, you have just got yourself 10% conversion rate daily!

The two important measurement in this case, are Visitors and Conversion rate.

If you can increase Visitors to 40 a day - quite likely you are getting 4 successful sign up a day. Same goes to the conversion rate!

You post a comment in someone’s Blog with a link pointing back to your website. Yes, you drive more visitors but it does not increase your conversion rate. In another senario, you post some recent testimonials on your website, and this increase your conversion rate, but has nothing to do to drive in more Visitors.

Let’s make thing simple, if you have less than 100 visitors a day! Let’s see why we should focus in driving more Visitors first and only deal with Converision Rate later?

1. Without certain amount of Visitors, it is difficult to measure the effectiveness of a change to your website for the sake of conversion rate!

2. You want to have shopping cart system, royalty program, membership login, etc. Let’s be true. Your website is new, you need visitors. You need their feedback to shape the features of your website. Shopping cart make buyers’ life easier (though we can also prove to you that not all your potentials know how to use a shopping cart, I will explain in future). No one come to your website because you have a shopping cart!

3. The more time you have spent in improving conversion rate, the less time you have to drive in more visitors!



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1 Response to "Decide or Wet"

1 | marcus

January 2nd, 2008 at 10:05 am

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To those who understand the idea, it’s always a chicken and egg question. Traffic first or conversion first?

To those who don’t understand the idea, just focus on the 2nd last paragraph, last sentence.

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