# How Do You Calculate Your Conversion Rates?

Discussion in 'White Hat SEO' started by Ramsweb, Jun 22, 2010.

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1. ### RamswebJr. VIPJr. VIP

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Let us say you are selling affiliate products. I know the most basic conversion rate is calculated by dividing the sales by the number of hops or affiliate links click count.

But conversion rate could be any one of the following - I just want to know from people which is the figure that they focus on and if they can throw out the averages that they have seen in each category.

Let us assume that a website gets 1000 visitors and makes 10 sales.

Now, this can be looked at in several ways.

1. 10/1000 = 1% Conversion Rate for all people visiting your website
2. 10/500 = 2% Conversion Rate for people who haven't bounced (Assuming 50% bounce rate)
3. 10/200 =5 % Conversion Rate. I got the 200 from the 500. Not everyone who comes to your site is going to click on the affiliate link. Some will bounce, some will just look around and my experience is that only about 40% click on the affiliate link. So I got the 200 from the 500 with the 40% CTR.

Now, when people throw about their conversion rates - they are probably referring to number 3.

I would be really interested to know what you guys have for a figure for number 2. Or, what is your CTR on the affiliate link as a % of all the people who come in to your site? Do share your thoughts if you don't mind as it will help me analyze the effectiveness of one of my sites.

Thanks

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