This week we are talking numbers…
Don’t run away yet – it’s ok, it’s not that scary
But it is important to know what you’re in for.
So let’s start by talking conversion rates. There are some very standard industry averages for the number of sales, that is the number of people you will convert to a paying client.
Selling via email:
Sales from an email list convert at 1 to 3%. That is to say, if you have a list of 100 people, you are likely to make somewhere between 1 and 3 sales.
Even people with a highly engaged audience convert at only just over 3%. As an example, Kimra Luna recently launched BTBY to a highly engaged Facebook group and her email list, and converted at about 3.6%.
This is why people focus on increasing the size of their list, as the bigger the list the more sales they should make.
Selling on the phone:
Phone sales tend to convert at about 10%. That means for every 10 sales you make, you should get 1 yes.
Now that’s a much higher rate than selling on email, but a lot of people fear selling on the phone. Facing 9 no’s to find one yes is hard work and very taxing.
Selling face to face:
A standard conversion rate for face to face sales can be up to 30%. Some great sales people, who have already actively engaged their audience can convert at 50% when selling face to face.
This rate is much much higher than email or even the phone, but it requires being close enough to your leads to meet them, travel time and a venue to meet at.
The moral of the story:
There isn’t “right” method to sell. You can use email lists, selling on the phone or face to face, it’s up to you. But it is important to know what you’re in for.
Don’t get disheartened if you don’t get a lot of sales if you are selling to a list of 50 people – the average sales via email to a list of 50 people is between 0.5 and 1.5 sales. Even at a good conversion rate, you’re only likely to make one sale.
Know your figures, build your list, offer massive value 🙂 and it all stems from there.
Note: these figures are all “averages”. You may well convert at rates which are much higher than this or even rates which are much lower than this.
I’d love to hear from you, has this rung true?