What is a Normal Conversion Rate to Expect?

Your conversion rate itself does not matter, but it factors in to the final equation. What really matters is your Return On Investment (ROI). To find ROI:

(Conversion Rate) = (Number of Sales) ÷ (Number of Clicks)

(Your Tot Rev per Sale) = Tot $ that the customer gives you per sale
(Your Tot Rev per Sale) = (Product Cost + Sales Tax + S&H)

(Your Tot Cost per Sale) = Tot $ that you spend per sale
(Your Tot Cost per Sale) = (Production Cost per Sale + Tax + S&H)

**Your total cost per sale does NOT include advertising costs

(Profit per Sale) = (Your Tot Rev per Sale) - (Your Tot Cost per Sale)

(Profit per Click) = (Profit per Sale) x (Conversion Rate)

ROI = (Profit per Click) ÷ (Avg. CPC)

If you have an ROI of 1.33, it means that you should expect $1.33 in pre-ad profit for every $1 that you spend on ads. An ROI of 2.04 translates to a pre-ad profit of $2.04 for every $1 spent on ads.

This means that you have a break-even muse if it has an ROI of 1. Any ROI greater than 1 will be profitable. However, it may not always stay higher than 1 if it is close to 1. You could still lose money even though your muse passed the test.

If your muse has an ROI between 1 and 2, you may want to think about investing. Your muse isn't exactly "highly profitable" but you could definitely profit a little while you learn the back end of muse design.

You want to invest if your ROI is above 2. If your muse gets an ROI between 3 and 5, you definitely want to invest.

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