This is how to use leverage effect for your business on the internet.
For example, you have a $100 product for sale with a 1% conversion rate on your sales letter.
That means you make $100 for every 100 visitors who come to your website.
(100 visitors x 1% conversion = 1 sale at $100).
Let’s say it costs you $90 to get 100 visitors to your website resulting in one sale.
(I’ll assume you’re selling an e-book or something wih no physical delivery costs.)
That means you spent $90 on traffic.
You made $100 in sales. Your gross profit is $10.
Now, let’s start testing.
You test your headline and increase your conversion from 1% to 1.2%.
That measly little .2%
On the contrary, for every 100 visitors that come to your website, you’re now making $120, but you’re still just spending the same $90 (your cost didn’t go up).
You just tripled your profitability!
How?
Instead of making $10 profit, you’re now making $30 profit.
Same traffic.
Same advertising expense.
With this simple headline test, you tripled your profitability.
What if you tested a few of the bullets and raised conversion by just 0.1%?
What if you tested the offer itself and raised conversion by 0.15%?
What if you tested a simple picture at the top of the page and raised conversion by 0.25%?
Now you’re converting at a rate of 1.7%.