How many times have you heard that if you get a 1% response rate you’re doing great? I literally see or hear this 2-3 times per day. When people talk about 2-3% response rates, they are very excited. And, they should be.

But, let’s take a step back for a moment. It is critical that you clearly understand what “1% response” rate really means. Please pay attention, especially if you’re buying advertising.

When I use the term response rate, I mean something very specific. It is an idea that gained a lot of traction in the early days of direct mail marketing. It’s a way of quantifying the success (or failure) of a direct mail campaign. However, there are some important nuances to consider. Response rate was meant to be one dimensional: send out postal mail and measure the response to that mail. Often, the physical mail included a questionnaire, so people were literally responding.

So, when internet marketers talk about response rate, most of them are myopic and short sited. They make the same assumptions that the direct mail marketers often made. Although I will say that some savvy direct mail marketers looked at response rate along many dimensions, which is what I’ll explain here.

In the realm of internet marketing, we absolutely must look at many dimensions to get to the core truth of response rates.

The best way to understand response rates in our current world is with an example. This should open your eyes. I’m going to show you just how hard it is to get up to a 1% response rate, the way that most people talk about it nowadays.

See the example inside the Simple Cash Blog (members only!)

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