Turning Website Visitors Into Actual Revenue

Today I want to talk about your conversion rate, and how increasing it can increase your bottom line. Not by driving more traffic, and not by spending more on ads. From exactly the visitors you already have.

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Here is what we will cover:

• How to calculate your conversion rate
• Average conversion rates across different industries, so you can see how you compare
• A calculation that shows what your website is worth now, and what it could be worth at a higher conversion rate

Grab a pen and paper. You might want to work through some of these numbers on your own as we go.

Key Elements

Let's start with definitions, just to make sure we are all on the same page.

Lead

A website visitor who has given you their contact details, like their name, email, and phone, requesting more information about your business. This is a potential future customer or client.

Lead magnet

Something you create that your audience wants. It has to be really good, something they would be willing to pay for, but they are going to get it for free in exchange for their email address. It might be:

• A cheat sheet or a guide
• A trial membership
• A coupon
• An MP3 or a video training

It is going to help them solve a problem or create a transformation they really would be willing to pay for. Of course you are going to give it to them for free, which is what makes it irresistible.

Conversion

A different way of saying someone has taken a desired action. Depending on the stage of the buying process your visitor is in, there are different conversion goals we try to hit. In this case we are trying to get website visitors to become leads, so we are talking about collecting their email.

Your conversion rate is the percentage of users who take a desired action on your website.

Today that means the percentage of people who give you their contact details to request information about your business.

Doing the Math

Let's look at your existing numbers. How many leads do you get from your current website each month?

To find your conversion rate:

1. Count your action takers, the people who gave you their email address in exchange for information about your business. I usually recommend looking at the last month.
2. Count your unique visitors over that same timeframe.
3. Divide action takers by unique visitors. That percentage is your conversion rate.

Now let's look at the average across different verticals. Depending on your industry, there is going to be an average and a top percentage. The chart below looks at all accounts across the internet, then breaks it down into e-commerce, legal, business to business, and finance.

Here is why that matters. The top performers are getting three to five times better than the average in every single vertical. These are not unicorns doing something unattainable. There are small things you can do on your website to increase your conversion rate and get closer to those numbers, in every industry.

Your Website Value Bottom Line

Let's say your website gets about a hundred visitors a day, so 3,000 monthly visitors. You are getting about 20 leads a week, or 80 a month. That works out to a conversion rate of 2.67%.

Let's also look at the yearly value of a client. Over the course of a year, counting their purchases and any repeat sales, let's say the average client is worth $5,000 to you.

To turn that into annual website revenue, we need two more industry averages:

• 5% of leads book a sales call. For every 100 leads, about five people book.
• 25% of those calls close. This one varies based on how great you are at selling and how awesome your product is, but 25% is a reasonable average.

Run those hypothetical numbers and this website earns about $60,000 a year.

What Happens When You Double It

Now suppose we do some optimization and bump that 2.67% up to 5.33%. Everything else stays the same. Same traffic, same client value, same close rate. You are simply getting 160 leads instead of 80.

Keep optimizing and improving, and at a 13.33% conversion rate the same website earns $300,000.

Conversion rate	Leads per month	Annual website revenue
2.67%	80	$60,000
5.33%	160	$120,000
13.33%	400	$300,000

Again, this is from the same amount of traffic. We are not spending more on ads to get people to your site. This is from the same ad spend, and the same number of visitors you are already driving.

What If Your Audience Is Smaller?

A lot of people tell me they are not getting anywhere near that many visitors. So let's run a smaller example.

• 1,500 monthly visitors, about 50 a day
• A 2.07% conversion rate
• A client worth $3,000 a year rather than $5,000, maybe a $2,500 program plus a smaller package

That website earns just under $14,000 a year. A side hustle.

Now take the conversion rate from 2% to 10%, and the same website earns $70,000 a year.

For a lot of people, that is the difference between a side project and leaving a corporate job to do their business full time.

That is why this excites me so much. I love helping people live their dream and share their gifts with the world.

Increasing your conversion rate can make a real difference to your business, and it does not require a single extra visitor.

If you would like some help building a website that converts better, take a look at how we can help. And if you would rather just talk it through with me first, feel free to set up a call on my calendar.