What Is A Conversion?
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What Is A Conversion?

A very important term in the internet marketing world is conversion. Most people consider a conversion to be when someone makes a purchase or completes the payment process.  But it can also be someone opt’ing into your email subscriber list or making a phone call.  Put simply, a conversion occurs when you turn a click on your webpage into a paying customer or you get them to click your affiliate ads or take the needed action. Learning more about what a conversion actually is can be a great way to increase the conversion rate of your website, which is ultimately your goal as an internet marketer or business owner.

The marketer’s dictionary definition for conversion rate is the ration of visitors who convert from content viewers into desired actions. This conversion can actually be many different things. While on retail pages, a conversion would be a sale, on other pages it may be something as simple as signing up for a mailing list or clicking on a banner ad.

The conversion rate is calculated with a very simple formula, which is number of goal achievements divided by the total number of visits. However, once you have the conversion rate, what good does it do you as an internet marketer or business owner? By itself, it is not very useful. This is because every type of website is going to have a different target conversion rate.  But now you can test, test, and test again to get the optimum conversion rate.  This is a key element to any business and their ROI.

It is often much easier to get someone to click a banner than to make a purchase. In turn it is easier to make a small sale than a large one. So, these rates are really only useful when compared among themselves or among similar websites.
Most business owners are not aware of this type of jargon so next time you hear the term conversion rate, you will know exactly what it is they are talking about.

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