Split Testing…How critical is it?
Hey guys..as I mentioned in the last post that I would give you a little insight on split testing and just how important it is.You see, on the surface, it may come across as a time-waster, but in reality, it could be the difference in making a few dollars and making 100's or even 1000's of dollars. Let's just break it down from my perspective...of course. You see, just a few days ago I ran a "split test" on a lead capture page that I created for my new membership site.
I wanted to see how well my original page would convert against a new variation.Well, just a minute Jerry. What exactly is split testing first of all? Good question....First of all, if you've been following my blog for any length of time, you know that I always mention that in marketing, especially when it comes to paid advertising, you should always be TESTING.
Testing just implies that what you put out on the "web", isn't really proven to be a winner for you just yet, hence the means to have to TEST it. You need to see how the market (your niche) will respond to what you have to offer. It's how the multi-million dollar companies do it everyday, but in their case the tend to use "focus groups". A focus group is generally comprised of a few individuals from within a specific "target market" or niche that have been selected to give a company feedback on their product and/or service.
It is generally used to gather information on how well the product is received and whether or not improvements need to be made before launching it to a greater audience.If you think about it, it just makes sense...right? Why would you spend thousands of dollars to send out an ad that haven't been proven to a few hundred people? You wouldn't and that's why you do small "targeted" test to start.
Once you get the results back from that test, then you can gauge whether or not you can ramp or scale your marketing up a notch.That's why when you saw me split testing my membership lead capture page, in essence I was attempting to see if one would "out do" the other. If the "control" page where to convert higher than the "variance" page, then it wouldn't make sense for me to spend more money sending targeted traffic to that page....right?
Absolutely no sense at all and that's why it's tested.In the original page, all I wanted to see was whether or not it would convert and at what percentage. Typically, a twenty percent conversion is really good for any kind of marketing efforts. It's sort of a base line to start. Anything above twenty percent should be considered stellar results. I was thrilled as I mentioned in the last post to get a thirty-five percent conversion right out of the gate. Now the task was to improve and that's why I ran a "Split Test" to see if I could improve it.
To run the test, there are several ways that you could do it. I chose to utilize a piece of software that I purchased a couple of months ago that ironically, I use to track all of the clicks to my solo ads as well. So how does the testing work? First, I make sure that my pages have been created.See below:
Now that I have my pages created...it's just a matter of driving traffic to them. Some people would purchase a solo ad and send all the clicks to the first page. Then gauge the results of how well it converted. If I send 100 clicks and I get 30 opt ins or leads, that would mean that my conversion rate was 30 %.
Conversion Calculation: 30 [leads] / 100 [clicks purchased] x 100 [standard] = X
Now on the other hand, the test can be done simultaneously as well. Instead of sending to one page (control), you can also send it to the (variance) page. How do you do that?
Simple....just use a traffic rotator. When using a rotator, you will create a campaign within your tracking software or rotator. Once the campaign has been created, then you will insert your lead capture page links. They would be labeled link #1 and link #2 inside the rotator.
You would then give the actual rotator link to your solo ad provider so that when he or she sends the traffic or visitors to your link, they would be evenly distributed to the two different pages. The tracking link to the rotator is totally different than the capture page links and for good reason. When the traffic hits the "rotator link", the first capture page link in the rotator will get the first "hit" and the second link in the rotator will get the second "hit".
This process will continue until all of your clicks purchased are exhausted or the fulfillment is complete. Some solo ad providers usually over-deliver the actual amount purchased which is always a good thing. That means you're paying a little less per click for your solos. Cha Ching....money in your pocket. Sweet!
See example screenshot below:
Step 1: Prepare your campaign by selecting "Evenly Rotator" to rotate your traffic from link #1 to link #2
Step 2: Create your links
Step 3: Get your actual "rotator link" for your solo provider
Once you have all the pieces together, you of course get your swipe email together along with the tracking link above and send it over to your solo ad provider. That way, your traffic is being rotated to your different split test pages and you're are able to track exactly how many actual "unique and raw" clicks you are receiving. It's a surefire way to keep your solo provider honest with his clicks and you're able to see how well your test has done too.
What does all of this mean in terms of actual $$ for me and my business? Simple.
Let's just say you have a 20% opt in rate from your original page. That means that you are able to capture 20 out of every 100 visitors that come to your site. Now let's just say you spent $40 for your solo ad. Typically every good sales page converts leads at about 1-2%. That means that you have any where from .1 to .4 actual sales that would be generated for you on the front end.
So let's average that out and say about .25 sales are generated from your marketing efforts.
Now let's also assume that your product or offer cost $20 bucks
Example: .25 [sales] x $20[per product sold] = $5, so you're now $35 in the hole as far as your Return On Investment....
Now let's assume that you have optimized your lead capture page through multiple split testing and you managed to get it up to 40%. Now your numbers should be doubled....right? Instead of 20 leads, you now have 40 leads.
Also, instead of .25 sales, you now have .5 sales which means you are now making $10 per campaign which improves your ROI ever so slightly. But, you're not done. Because you now have a follow up process in place, you can now keep in contact with your new leads and build a deeper relationship with them on the "back end" and help them further with their marketing or business issues.
Some will go on to buy what you're offering because now they've gotten to know you a little better and now don't mind purchasing from you. That's the part of the process that most marketers tend to mess up. They believe in the churn and burn method where they bombard their list with offer after offer and never really finding out exactly how they can help them or add more value to their life and business.
They literally wear their list out to the point where they begin unsubscribing or opting out. Just too many offers over and over with no real value.
When you do correct follow up and relationship building with your leads, you are building a long lasting and viably substantial long-term business my friend. That's how it should be done online.
Now let's just assume you're able to convert another 3 of those leads. Well, now you have another $60 that you've generated on the backend to add to your original $10 bucks and you're sitting pretty at $70 bucks. Remember, you spent $40 for the campaign and now you've pocketed seventy from your front end sales and your backend sales which gives you a profit margin of $30 bucks. Talk about success.
That's success for the long term and now all you need to do is scale it up. You have the formula to success on the front end and back end. You now know how to take care of the needs of your subscribers because you are constantly providing real solutions to their problems at a premium.
Understand that in the example above, you're dealing with a very low cost product. Just think that if you had a product that was a bit higher priced? That would mean that you stand a chance to make your investment back a whole lot quicker and easier. That's of course if the product converts well for you.
That's been one of the biggest problems in online marketing to date. Granted, there are a lot of products (affiliate) that you can offer to your potential leads. But not all of them can be marketed at a profit. Most of them, you literally lose money, because the commissions are so low. That's why a lot of people are not really making any money online these days. It's just too costly to market such low commissioned offers.
Actually, I found myself in the same boat just a short while ago until I came across a program and system that literally changed my online career. It was single handed-ly the one thing that started putting real money in my business hands down. Since becoming a part of it, I've went from literally 0 to generating several four figure days consistently.
It showed me how to get the best return on my investment and how to actually market the right products that won't "break the bank" so to speak and get the best conversions. I have actually done quite a bit of split testing with several of the lead capture pages within that system as well and have seen exactly which ones are making the most money.
In conclusion, marketing can be fun again. It can also be rewarding if you do the necessary things to be successful. If you're the lazy type, then this is not for you, BUT if you're a hard worker, it's just a matter of time before you see the results you're looking for my friend.
til next time,
Jerry (high conversions) Handy
p.s- As always, please do let me know what you think about conversions in your business and how have you been able to optimize them. It's always a good thing when we can sharpen one another. As they say, iron sharpens iron. Hook me up my brothers and sisters.