Let’s do this. I really want to come up with a real world example. Let’s write down in a column $50, write down $100, write down $500, and then write down $5,000.
Let’s talk about a $50 product and let’s talk about some average conversion rates. Does anybody on this phone call sell a product that ranges somewhere between $30 and shy of $100? Say between $30 and $70 and then maybe give me kind of a rough conversion rate. It doesn’t have to be exact, but kind of an average conversion rate. When somebody sees that sales page, how many of them buy it?
What we find is that with $50 products that a decent sales page, and I’m not talking about the greatest sales page on earth, and I’m also not talking about one-time launches. I’ve had $100 products that sell. In fact I did a $300 product launch a couple of months ago and I had like a 10% conversion rate on it, but it was a launch. It was a one-time event.
If I mailed that on a regular basis it would probably a ½% or something like that, but we’re talking about a launch. We’re going to look at some long-term conversion rates. I’m not looking at special circumstance conversion rates.
Generally long-term conversion rates for a $50 product will be somewhere between say 1-3%. Let’s do this. I really do want to make this phone call interactive, although I’m doing a ton of teaching here. Let’s just have some agreement or disagreement with that as being a reasonable average range for a $50 product.
Does 1-3% sound fair?
Caller: Sure.
Sean: Now what would we expect for an average conversion rate online for say a $100 product? Would it be in about the same range, 1-3% or maybe 1-2-1/2%?
Now if we have a $500 product online and we have a relationship – I’m going to move away for just a split second on this and talk about relationships. I’ll probably talk about this some more later.
A $50 or $100 product can be easily sold using hype. It can be sold using scarcity. It can be sold as you absolutely need this right now, what do you have to lose, it’s only $50. You can use those strong-arm tactics with a $50 or $100 product and people will buy them if they need the stuff. The relationship is not important.
But when you move into a $500 product, and even more importantly when you move up to a $5,000 or $10,000 product or more, then they have to trust you. There has to be a trust level. They have to know that 1) you’re able to deliver, and 2) that they personally trust you. They can personally interact. They like the way that you respond.
What happens is between $100 and a $500 product is there has to be a relationship-building process. I’m actually going to describe that relationship-building process later on in this phone call and how you can build that.
As we move from this $100 product that ranges from 1-3% conversion rate, I’m now going to assume that we’re not using a whole lot of hype to sell this $500 product, but instead we’re building a relationship with people.
What kind of conversion rate could we expect on a $500 product?
Caller: ½%?
Sean: Yes, I was just writing 1/2% down. Any other guesses there on a $500 product?
Ok, we could obviously go as low as we want. If you’re not building a relationship then the conversion rate could be 0, but generally what we see is somewhere between 0.3% and maybe 1% on a long-term basis.
Again, that’s just a regular average list of yours. If you launched a $500 product to a set of customers that have bought $500 products from you before and then you pre-qualify people by having them jump onto another list that they want to get first dibs at this product, you could have a 30% conversion rate on a $500 product.
So really I’m looking at long-term numbers here. I want to have real fair numbers. So somewhere between .3% and 1% is fair.
Author Resource:-
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Sean Mize is an internet marketing mentor who teaches people to generate over $15,347 per month online via automated systems and product funnels.
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