Welcome to the psychology of conversion section. If you've been learning in the way I recommended, you must have completed the psychology of digital information product creation, and the psychology of pricing. Good job so far, but honestly, the best is yet to come. If this is the section you start from, don't forget to watch the other sections as well only then you will be able to increase your marketing influence massively. In this lecture, we'll talk about what conversion or conversion rate is and why it is important for you as a business owner. Once we understand what conversion rate is, we will focus on increasing it.

And this is the primary purpose of the whole section to increase your conversion rate, which means higher results and higher return on In your investment. This is why the whole section is critically important to any online business. No exceptions here. The principles we'll be talking about have been tried and tested, but you will have to implement them in your business. I'm sure right now, you might be doing some of the practices I'll teach you. But even if you do, please stay open minded in think how you can improve.

Because when we talk marketing, there is always room for improvement. So are you ready? Let's get started. First of all, let's answer the question. What is a conversion? You have a conversion.

When a visitor on your website takes an action you want. You have a conversion. When a visitor on your website takes an action you want. This action might be a purchase, signing up for your free report, registration for webinar downloads of yours up, it might be anything. To calculate your conversion rate, you will have to know the total conversions you have in the total visitors. You divide the total number of conversions by the total number of visitors and then multiply by 100.

Because you want to get the percent rate. Let's see an example. You've created a brand new squeeze page, and you send traffic to it. a squeeze page has one purpose alone to collect email addresses. So yoga version, in this case, is a signup for whatever you exchange, it might be a free report, free video training, etc. You've sent 1000 visitors to that squeeze page and 200 people sign up.

You divide 200 by 1000, then multiply by 100 in you get the conversion rate. In this case it is 20% When we apply certain psychological triggers to the squeeze page, we will be able to increase the conversion rate. For example, a change in the headline might lead to 10% increase in the opt in rate or a change in your value proposition. We'll be talking about that, don't worry. The point is that if you pay for traffic, you spent money to get 1000 visitors or 1000 clicks, and the more lead subscribers or opt ins, it's the same thing you get from these clicks, the larger the number of your email list becomes, and the cost of lead acquisition lowers. Let's say you pay $500 for 1000 clicks and you get 50 leads, your conversion rate is 5%.

That means you pay $10 to add a subscriber to your email list. In the second scenario, up increase your conversion rate to 40% you pay $500 for 1000 clicks in you get 400 leads. That means you pay $1 and 25 cents for a subscriber to join your email list. And it is a good practice to know these numbers because when you get more advanced in build your marketing funnel, you will know how much a subscriber is worth to your business. For example 100 subscribers go through your whole funnel in you make $350 that means each subscriber is worth $3 and 50 cents to your business. Since you know that number 350 you can be more precise when you do your budgets for paid traffic because not all traffic is created equal.

You will know how much you're willing to spend to acquire a new lead Now, I asked you if you know that each lead that goes through your marketing funnel is worth $5 to your business, and you can acquire new leads for $2 each. How many new leads Would you like to add to your funnel? How much money would you be willing to spend? simply said, you invest $2 in you get $5 back, I guess you would want to buy all the traffic in the world. I know marketers who claim they've perfected their sales funnels to the point they're making $40 per lead on average. These are James Francis and Nick Stephenson.

I didn't see it with my eyes so I don't know if it is true or not. This is why bestselling author Brendon Burchard said that if you're not spending at least $1,000 per day on Facebook ads, you are not in the Modern Marketing. business or something of that sort. Another important aspect to consider is the time because each funnel takes time to complete. For example, my funnel takes around 15 days to complete. This section will focus entirely on increasing your conversion rate.

And even though these concepts could be applied to all kinds of actions you want your visitors to take, my focus will be on subscribing to your email list and making a purchase. In this way, you will decrease the cost of lead acquisition in increased how much a subscriber or lead is worth to your business. I told you the best is yet to come. Let's recap. Number one, you have a conversion. When a visitor on your website takes an action that you want to calculate your conversion rate, divide the total number of conversions by the total number of visitors and then multiply by 100, you can see the formula.

To calculate your cost per lead, divide the money you spent on ads by the number of leads. Again, there is a formula for you. To calculate how much a lead is worth to your business, you will have to divide the revenue you generated from a number of subscribers. Your focus should be on increasing your conversion rate on your squeeze page and sales page. Number six time is a factor. Each funnel takes time to complete.

Now, before I close, I would like to mention that these numbers are just examples. To make a precise conclusion you need data. If you made $350 from your first 100 leads, that doesn't mean your funnel will perform exactly The same way when you add 100 more leads. Therefore, to be accurate again, you need data when calculating how much a lead is worth to your business $3,500 from 1000 leads will give you more accurate information, more accurate estimate, then $350 from 100 leads clear. All right. I can't wait to present some of the most powerful psychological triggers that will boost your conversion rate.

Thank you for watching and stay purposeful