The truth is that when it comes to getting conversions for your course, it’s all in the numbers.It really is as simple as basic math.
Lesson #1: Know The STATS.
In order to find out how many leads you need to filter down your funnel and convert into real sales you first need to start with the STATS. And statistics show that on average, you can expect between 2%-5% of people on your list to purchase from you, so remember this when determining your revenue. If you’re launching something you’ve launched before, or running an evergreen funnel, and have your own conversion rate, then use that!
Lesson #2: Reach Your Revenue Goals With a Simple Formula.
Now that you know your conversion rate and you’ve gathered up the total number of subscribers on your list, you’re ready to start applying this basic formula in order to reach your revenue goals!
So, without further ado, here it is:
Total # of Subscribers x Conversion Rate of 2%-5% x The Price of Your Product or Service = Your Revenue Goal!
Seems pretty simple, right?
But the learning doesn’t stop there, you’ll also want to jot down the details, consider the numbers and start crunching them using the three steps in the following chart as an example.
Step #1: Determining Your Revenue and Sales.
In this step, it’s really all about figuring out how to reach your revenue and your sales goals and this does require… more math. Apologies in advance.
So take a look at the example: There is a goal of $10,000 in revenue.
The price of product or service is $349 or about 0.3% of the goal, and the price to produce that product is only at $100 or 1% of the total $10,000.
Not a bad margin.
So then if you want to make a profit of around 39-40% of the $10,000 in revenue you’d need to sell at least 40 products at the $349 cost and the $100 price to produce it.
So, 40 products sold x $349 selling price will give you $13,960 dollars, and it only took you $4,000 to produce that product…
(40 products x $100 to produce = $4,000)
Ultimately, you’re making $9,960 in revenue which is very close to that goal of $10,000!
Tracking with me still?
Great, let’s move along then!
Step #2: Gather Up Your Conversion Rates.
Take a look at your conversion rates. You can predict how many leads you will need to generate based on the percentage of your leads that convert to customers. If your lead conversion rate is 3% and you need to make 40 sales, you’ll need around 1,333 leads on average to reach your target (40/0.03)…
And if you want to find out how many leads you’ll need to reach your revenue goals you can simply take your sales goals number and multiply it by the percentage of customers who visit your sales materials or add to cart, which in this case that conversion rate is at 50%.
So that’s 1,333 leads to reach your sales goals x 2 at a total of 2,666 for your conversion rate of the number of leads needed to reach your revenue goal.
Step 3: Determine Your Lead Price & Ad Budget:
And last but not least…
( I promise you we are almost done with numbers here…)
There is determining your lead price and ad budget.
This really just comes down to how much profit you’d like to actually make out of your total revenue (Here it is 50% of the $10,000 at $5,000) and how much you can afford to spend on ads ….
And if your not a math wiz and don’t necessarily have time to crunch up all those numbers I totally understand!