{"id":2674,"date":"2016-12-19T16:55:28","date_gmt":"2016-12-19T16:55:28","guid":{"rendered":"https:\/\/www.gonogo.co.il\/en\/?p=2674"},"modified":"2018-03-04T13:58:58","modified_gmt":"2018-03-04T13:58:58","slug":"what-is-the-conversion-rate-in-your-business-plan","status":"publish","type":"post","link":"https:\/\/www.gonogo.co.il\/en\/what-is-the-conversion-rate-in-your-business-plan","title":{"rendered":"What is the conversion rate in your business plan"},"content":{"rendered":"
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An app is worth a thousand words or a few million dollars in a better case<\/h2>\n
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The last few months have felt as if the dot com bubble\u00a0which occurred in 1999 is returning with full force<\/div>\n
Everyone today wants to be\u00a0a millionaire and it seems like more and more entrepreneurs are achieving their\u00a0dream.\u00a0We read in the financial papers almost daily now, how this young bright mind is going to be netting a few dozen million dollars by\u00a0making an exit of his cyber-security startup.\u00a0However, one should also keep in mind that high growth\u00a0startups and entrepreneurships have a very slim chance of surviving<\/div>\n
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According\u00a0to research held by Berkley & Stanford faculty members in 2011, more than\u00a090% of high-tech companies fail. Of those which fail, 74% fail because of premature scaling. Premature scaling happens when a company shows inconsistency in some of its business aspects, meaning for\u00a0example, it invests heavily or unnecessarily before seeing any customers or\u00a0revenue<\/div>\n
Another example of premature scaling would be a company which releases\u00a0a bugged or non-working product. Furthermore, the researchers also found that a\u00a0solo founder takes longer to reach the scale stage and that balanced teams of\u00a0founders (where one is technically-driven, and the other business-driven) tend\u00a0to raise 30% more money, have 2.9x user growth and are less likely to scale\u00a0prematurely than one-sided teams (where both founders are either\u00a0technically-driven or business-driven)<\/div>\n
This is to say that if you\u2019re looking\u00a0for a co-founder for your startup it is best that you not have the same\u00a0background A good\u00a0example of preparing for a real view of the company\u2019s potential future is\u00a0writing\u00a0a business plan<\/a>\u00a0Our customers in the high-tech sector\u00a0which require our assistance in\u00a0writing business plans<\/b>\u00a0to potential investors\u00a0(or even for internal needs, as objective and realistic financial projections)\u00a0have to have basic knowledge of revenue-creating channels across the web<\/div>\n
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It seems that the most prevalent way\u00a0nowadays is to either advertise via Google dwords or through Facebook Ads.\u00a0When promoting your company\u2019s web\u00a0page, official Facebook page, or even a simple landing web page for an\u00a0app\/service or product you are offering, you need to keep in mind who are your\u00a0potential clients and by what strategy you wish to advertise (but also make\u00a0sure you have a great SEO team enhancing your site\u2019s mobile visibility and\u00a0compatibility with Google\u2019s algorithms)<\/div>\n
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There are several advertising abbreviations and terms that every newbie in the online media must and should know<\/div>\n
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Unique Visitors<\/b>\u00a0(or simply Uniques) – A visitor who has never visited your site before. Each\u00a0visitor is counted once, regardless of how many visits he makes (hence, Unique)<\/div>\n
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CPC\u00a0<\/b>(cost-per-click) – A financial number which suggests how much it costs in average to put an ad for one click by a visitor (this number can range between 0.01$ and a few dozen dollars, depends on what you\u2019re promoting and your market audience). In general the average CPC rates have been diminishing since 2011. During the previous quarter, Average CPC rates have fallen by another 6% for an 11th consecutive time. Average CPC is comprised of various segments such as Mobile and Desktop or Geographical location (CPC in mature markets is rising, while in developing markets it\u2019s falling) so the number itself (which is close to $1) is not that significant. The fact that there is an ongoing trend in the CPC rates should be recognized and familiar by aspiring promoters<\/div>\n
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CPM\u00a0<\/b>(cost-per-mille) – A financial number which suggests how much it costs to have 1,000 \u201ceyeballs\u201d (views) to your ad. Normally you would use this term when you try to get your ads to as many people as possible (to enhance brand awareness and not necessarily to get more clicks)<\/div>\n
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CTR\u00a0<\/b>(click-through-rate) – to know this statistics you divide the amount of people who\u00a0clicked on your ad by the total amount of people who viewed it. You can use this statistic to learn about the effectiveness of your ad and the relevance and efficiency of it to your market audience<\/div>\n
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Conversion Rate<\/b>\u00a0– when you divide the amount of people that interacted with your site (customers, people who signed up for your service or purchased a product) by the amount of people who clicked – \u00a0the conversion rate for your ads emerges. A good conversion rate is considered somewhere between the range of 1%-4%, but it really depends on the product you\u2019re selling (if you\u2019re promoting luxury apartments in Manhattan, you\u2019re probably going to get a much lower conversion rate, and it goes the other way around). This number can only be viewed once you start your marketing campaign, so along\u00a0with CTR you can gauge the quality of your ads using these rates. Even though you will usually end up\u00a0just paying some professional to promote your site, you should always become familiar with these terms as they can become critical to your marketing campaign success or failure<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

An app is worth a thousand words or a few million dollars in a better case The last few months have felt as if the dot com bubble\u00a0which occurred in 1999 is returning with full force Everyone today wants to be\u00a0a millionaire and it seems like more and more entrepreneurs are achieving their\u00a0dream.\u00a0We read in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-2674","post","type-post","status-publish","format-standard","hentry","category-magazine"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/posts\/2674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/comments?post=2674"}],"version-history":[{"count":3,"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/posts\/2674\/revisions"}],"predecessor-version":[{"id":4515,"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/posts\/2674\/revisions\/4515"}],"wp:attachment":[{"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/media?parent=2674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/categories?post=2674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gonogo.co.il\/en\/wp-json\/wp\/v2\/tags?post=2674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}