Hey, thanks for joining for another week of New Venture Weekly.
The cost of advertising will always go up, meaning the cost to acquire new customers is getting more expensive every year and margins are getting slimmer and slimmer.
How do you combat this inevitability?
Well, one way is to ensure you convert as much of your traffic as possible.
That’s where conversion rate optimisation comes in.
Let’s jump in!
💡How to Start a Conversion Rate Optimisation Agency
🗂 Overview:
Conversion Rate Optimization (CRO) is all about enhancing your website to turn more visitors into customers.
Imagine you have thousands of people visiting your site every day, but only a small fraction of them are actually making purchases or signing up for your services.
CRO aims to fix that by improving the user experience, making it easier and more enticing for visitors to take the actions you want them to take.
By increasing the percentage of visitors who convert, you effectively lower the cost per acquisition.
⭐️ Examples:
Roast My Landing Page was generating $20k/m by sending people a 15-minute video breakdown on how to improve their landing page.
Conversionwise is a CRO agency run by Oliver Kenyon that helps brands improve their website conversions. He’s one of the go-to CRO experts on Twitter.
This guy optimised his landing page, offer and funnel and now makes over $1m a year using YouTube with only 400 subscribers.
🔧 Resources:
Tools:
Education:
👎 Problems:
Low Conversion Rates: Tests and improves various elements of the site to increase the percentage of visitors who convert.
High Bounce Rates: Identifies why visitors leave a site quickly and implement changes to retain them longer.
Low Engagement: Enhances user experience and content relevance to keep visitors engaged.
Poor User Experience: Streamlines navigation and improves site usability, making it easier for visitors to find what they need.
Ineffective Call-to-Actions (CTAs): Optimizes CTAs to be more compelling and visible, encouraging more users to take desired actions.
Complex Forms: Simplifies forms, reducing friction and making it easier for users to complete them.
Slow Site Speed: Improves loading times, reducing user frustration and decreasing bounce rates.
Unclear Value Proposition: Clarifies messaging to better communicate the benefits of a product or service to visitors.
Unoptimized Landing Pages: Refines landing pages to be more persuasive and targeted, increasing the likelihood of conversions.
Poor Mobile Experience: Ensures the site is mobile-friendly, accommodating the growing number of mobile users.
Inefficient Use of Traffic: Maximizes the value of existing traffic, increasing conversions without the need for more advertising spend.
Lack of Personalization: Uses data to deliver personalized content and offers, making the user experience more relevant and engaging.
📈 Stats:
The average website conversion rate across industries is around 2.35%. Top-performing websites achieve conversion rates of 11% or higher (source)
For every $92 spent acquiring customers, only $1 is spent converting them, highlighting the disparity and potential for CRO to improve ROI (source)
A one-second delay in page load time can result in a 7% reduction in conversions (source)
🧐 Opportunities:
Opportunity #1: Start an Agency
Starting an Agency is probably the best way to create a business in this niche.
With over 50 million new businesses registered every year, the demand for conversion optimization services isn’t going to go away any time soon.
Running an agency not only provides strong cash flow but also allows you to make a significant positive impact on your clients' businesses. By improving their conversion rates, you help them maximize their revenue and growth potential.
Additionally, you can streamline and scale your operations by productizing your services. This approach makes your business more manageable and allows you to deliver consistent, high-quality results to a broader range of clients.
Opportunity #2: Sell Roasts
This opportunity is a little saturated but you can definitely find an angle to make it work.
Remember there’s no such thing as saturation if you differentiate properly.
Taking inspiration from Roast My Landing Page, you can offer 15-minute videos that break down the areas customers can improve upon for their websites.
I think this would be better as a free audit service you provide for your agency but you can also sell it independently of an agency.
Some ways to differentiate:
Provide Figma templates with the suggestions
Provide a free 1-on-1 call after you send the roast
Provide a 2nd roast for free after they make the updates
Give access to an AI Landing Page Checker
Opportunity #3: CRO SaaS
Find common problems with existing CRO tools - search G2 and Capterra reviews for Hotjar and its alternatives and see what people are complaining about. Build a SaaS tool that solves those problems.
Alternatively, speak to CRO experts and determine what would make their job easier/better.
One SaaS idea would be a CRO tool that integrates with an AI landing page generator that can automatically suggest, create and test the changes for you.
This would obviously be pretty difficult to make but I definitely see something like this taking off in the not-too-distant future. So if you have the knowledge, skills and/or finances for this - it’s 100% worth exploring.
🛠 How to Build:
I’m going to focus on the agency opportunity as I think it’s the best one.
Learn CRO: Use the links in the resources section above to learn about CRO.
Develop Your Skills: Work on personal projects or offer free services to local businesses or nonprofits to build practical experience.
Website/Portfolio: Create a professional website that showcases your services, expertise, and contact information. Include any initial free or low-cost projects you completed, emphasizing the results achieved.
Testimonials: Request testimonials from your first clients, even if the work was free or discounted. Positive feedback will help build trust with future clients.
🚀 How to Grow:
Ad Libraries: Use LinkedIn and Facebook Ad Libraries to find businesses running paid ads and reach out via email or DM.
BuiltWith: Download databases of websites using Shopify, WordPress, Woocommerce, etc and outreach via email and DMs.
Create a Lead Magnet: Create a database of landing page tactics (like this one) and give it away for free as a lead magnet. Then, as Alex Hormozi suggests, sell the implementation.
Landing Page Roasts: Offer 5-10 minute landing page roasts for free and as mentioned above, sell the implementation. You can also charge for these as I mentioned in opportunity #2.
Send Personalised Videos: Enhance your cold email campaigns by bulk sending personalized videos with the prospect’s website in them. Watch here.
Referrals: Get your clients to refer you to their network. If you do a good enough job you won’t even have to ask.
Join the Community: Post about your results on Reddit, indie hackers, blogs, forums and any relevant community you can find.
Newsletter: Create a newsletter on Conversion Rate Optimisation, sharing the best tips and info on a weekly basis.
Buy a Theme Page: Purchase content on social media theme pages relevant to your niche for direct audience engagement. Example.
Use Instantly, Clay, and Apollo: Find and email leads about how your services can solve their marketing challenges.
Use Clay and Outscraper: Identify local businesses on Google Maps that could benefit from your services.
Use Genpage: Create custom landing pages for each prospect to increase conversion rates.
Social Media Marketing: Engage on LinkedIn, Twitter, Instagram, and Facebook with snippets of work, testimonials, and useful insights. Oliver Kenyon is a great example of this. Also this guy.
Create a Directory: Create a directory like this for landing page inspiration and advertise your services and/or lead magnets in it.
🔥 Free Stuff
(Bookmark these)
Want to grow your business? Here’s a database of tools that can help.
Want to promote your startup for free? Here’s a database of free places to promote your startup.
Want to turn your idea into a business? Check out this business idea checklist.
Want to differentiate from your competitors? Check out this Differentiation Strategy Guide
Want to run ads for your business? Use these proven psychological ad positioning strategies.
🗞️ Things worth checking out
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🤯 Recommendations
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