Is 1 to 3 % an acceptable conversion rate for a web service startup?

My friend and I are developing a web service startup at http://gnymb.us, and out of 70 unique visits to the site, we have had two signups so far. Is this good?

Website Web Services Conversion

asked Sep 9 '10 at 23:35

Chad Johnson
113 points

Top digital marketing agency for SEO, content marketing, and PR: Demand Roll

Were they total strangers? – Jeff O 14 years ago
Wow that is cool stuff you're making. Keep it up. – Jpartogi 14 years ago
70 uniques, 1 signup from a link you posted in a pair programming forum vs 70 uniques, 1 signup from a link you posted to your "friends" on facebook would really be two totally different measurements. I think those traffic sources are important to consider given that your sample rate is so small. – Mike Nereson 13 years ago

2 Answers

That is a low sample rate but sounds like a good conversion rate at such a low sample rate. In general compare your costs of aquiring conversions to revenue produced and try to compare it to the type of person your getting. So say your aquiring people from a specific ad word "development tools from anywhere" and it costs $5 per click then your unit revenue to break even needs to be 166 to $500 (example purposes only).

So conversion as a % on its own is not sufficient info to rate your business. I think as a first swag test without putting advertisement dollars down is a good indicator that your on your way though.

Good luck.

answered Sep 10 '10 at 00:08

John Bogrand
2,210 points

Well, I would give you reputation points, but it won't let me without 15+ reputation. Excellent. Well, I'll have to start doing the ad words stuff when I get closer to having the beta out. – Chad Johnson 14 years ago

Generally the conversion is

Visitors (x visits) ---> Sign-up [Free] ( 0.1 * x ) ---> Paid customers ( 0.01 * x )

If you get 100 visits, you should get 1 paying customer.

answered Oct 14 '10 at 18:45

Viv
482 points