Ryan Urban

Say someone's conversion rate is 2%.

No, no, no.

I'm debating your question.

I'm going to tell you why it's a bad question.

So say when you look at someone's Google Analytics and your own Google Analytics,

So you'll see, I have a 2% conversion rate.

But if you're paying AdWords or Facebook for a whole bunch of traffic, that traffic's not converting a 2%.

You'll say, oh, it's converting a half percent or 1%.

Why is that?

When you have an aggregate number, you have these people who are your good customers, maybe with a credit card on the file.

They're converting a 5% to 10%, but you have a small percentage of those.

And then your prospects that, good prospects might convert at 1% or 1.5%.

You have crabby prospects who converted a quarter of a percent.

But that 2% number of what your conversion rate is, you barely have any customers that fit into that swatch.

So your mean, your median, your mode, that number doesn't make sense.

So say if I say, hey, our average customer was ARPU was $8,000 or $10,000.

We have very few customers paying that.

We have a lot of customers that were between $15,000 and $150,000.

And then we have a whole bunch in the, say, in the $2,000 to $5,000 range.

Well, I can't give that exactly away, right?