After seeing that getting a top spot on the various web hosting guides can get into the $2-3 per click range, I wonder what kind of conversion rates people have experienced?

I could see that it would be worth paying that if the conversion rate were good, but it looks like a very expensive way to get a customer if you are paying for a large # of clicks to obtain 1 new customer.

Does anyone have any thoughts about this or about promotion in general?

Mark

Don't expect great conversion, but of course there will be some conversion. We do a lot of advertising like that (you may have seen some) and it's only useful for getting signups if you have a large budget.

I always wondered why hosts pay - the list sites are packed with hosting paying $2 - $3 a click. Figure their traffic isn't much more than 500,000 uniques a month (a guess) and there are 30 hosts to choose from - if each position got the same click that would only give each link about 16,000 VIEWS a month.

A unbelievable click thru rate is 10% = giving you 1600 clicks a month

A good conversion rate is 1% = gives you 16 customers.

1600 clicks at $2 = $3,200 (not to mention the slotting fee)

16 customers at a annual rev per of say $200 = $3,200

you break even - but only with a huge click rate of 10%. Google ads are only 3%.

I don't know why people pay it - any insight?

It's simple. Lets say they get only 5 people to sign up. The people love the hosting and each get 2 of their friends to signup. Each of them love the hosting and get 2 signups from friends and sor forth. That total is about 20 and rising. The key is getting the initial signup from someone who does not know anyone on the host. Once they get them (if they can produce a good service) they will stay and tell others. Word of mouth is the greatest advertising anyone can get. In the end sometimes it's worth it and sometimes it's not. Its a gamble that many are willing to take.

boon, you are totally correct.
People don't take into consideration what one sign up can produce from one of these sites. Even though its not great for roi the branding effect is also in effect with these listings, and if they don't sign up now, they at least know about you in the future.

What amazes me is that Rob is going on about receiving 1600 clicks but only converting 1% of those clicks, how about you look at what your doing wrong when visitors are clicking on your site and stop blaming the low conversion rate on where you advertise on.

In response to your question Mark, with so many web hosting companies fighting for a share of the market it creates a demand and paying $2-$3 a click will be here to stay for a while.

Thanks for the answers. I guess the next question would be where can I advertise that is less expensive but still gets a decent level of results.

Originally posted by dido
What amazes me is that Rob is going on about receiving 1600 clicks but only converting 1% of those clicks, how about you look at what your doing wrong when visitors are clicking on your site and stop blaming the low conversion rate on where you advertise on.[/B]

Hi Dido,

I'm quessing you work for one of these list sites. What do you believe is a realistic conversion rate? I would be very interested in knowing your secrets and what people are experiencing.

Originally posted by FortuneCity
Hi Dido,

I'm quessing you work for one of these list sites. What do you believe is a realistic conversion rate? I would be very interested in knowing your secrets and what people are experiencing.

Yes, I would also be interesting in hearing someone expound upon this topic in further detail.