Are Conversion Rates Equal Across All Industries?
In this video, Matt explains how sometimes not all advice on the internet should adhered to. Like with this video saying you should improve your conversion rates if they are only 1 or 2%. While this could be true, it’s only true for specific industries.
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
Video Transcript:
Business Advice Video:
Knowing your conversion rate is literally the fastest way to six figures. Let me just explain the significance of this number. Let’s say you’re converting at one percent, you make some tweaks and now you’re converting at 5.41%. You were previously making a thousand dollars in revenue per month you’re now at 5400. Let’s say you were at $10,000 a month now you’re at 54,000. Your conversion rate is the greatest indicator of the health of your business. If it’s below 1% there is something drastically wrong, this means you’re out of touch with your target audience and your website is probably busted. Those are easily correctable. Let’s say you’re converting around 2%, this can be optimized with better storytelling and better listings.
Matt’s Review:
Okay, so that’s obviously very specific advice for somebody who’s selling online. probably to random traffic, cold traffic, people who’ve never heard of you don’t know what your offer is about
don’t know why they might wanna do business with you. And she’s giving us some numbers about 1%, 2% conversion rates for that kind of situation. So if that’s the situation you’re in, you’re talking to random people on the street and two out of every hundred is actually interested in what you’re saying enough to do business with you, then yes if you can increase that from 2 out of 100 to 3 out of 100 or 4 out of 100. Your business will do better, cool, that’s pretty obvious and straightforward. It doesn’t apply to the majority of us who are doing business with people who already know what we’re doing and may have gotten referred to us or may, you know, be in the market for our services. If that’s the case, if you’re talking to a warm referral your conversion rate should probably be like 80%, right?
So the advice is very specific to a specific situation. So just be careful. I guess generally anytime you hear advice online make sure that it applies to what you’re doing. I get calls all the time from clients and potential clients who say “I heard this thing on TikTok about tax, can I do that?” or “Can you do that for me? Can you save me that money?” Well no because that has nothing to do with your situation. That was a very unique exception to the general way things work or was made up and totally got the rules wrong. So be very careful about who you listen to for advice on the internet. Make sure it applies to you, make sure it makes sense for your situation because otherwise, you might be targeting 2% when really you should be targeting 80%. Or you’re targeting 2% and you’re falling short but there’s a very good reason you’re falling short and has nothing to do with try to maximize conversion rates at something else entirely. So this kind of very specific advice is fine as long as it only is given to the people it actually applies to, which because of how specific it is isn’t gonna be very many of us.
