Law Of Avarage

Discussion in 'Growing and Managing a Business' started by wayne1522, Jan 12, 2011.

  1. wayne1522

    wayne1522
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    Hi Everyone,

    I'm about to start a e commerce website almost like alibaba.com but with a good twist!

    I'm located in China and been doing business sourcing for a while now. I have two competitors.

    lightinthebox.com and dhgate.com

    Im trying to put my financial plan together, and sales forecasts. Been ex sales person i know we work on the law of average call 10 clients, you will have 5 response and 1 sale!

    Could someone please explain to me how i would figure out the law of logic for a online e commerce store!

    I'll be targeting the EU, USA, North America, South America, and Africa.

    Thanks allot and can't wait for some replies my head is spinning on this! i would like conservative number please!
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum Wayne1522, thanks for joining and posting your business questions. You may find this previous discussion on Jim Rohn 5 – The Law of Averages helpful and interesting. One of the messages in the video in that thread is that we can improve our average over time, as we get more experienced and better at making the sales calls we can increase the number of yes's we get per ten calls.

    The best way to find out what your own average would be, would be to start making some test calls and to record the results. Be aware of the fact that your average will improve through time and use that basis to estimate what it could be in the future. Would it be possible for you to make some test calls in that way?

    Will your site actually accept payments from visitors and sell products or will you act as an advertising platform for other businesses?
     
  3. wayne1522

    wayne1522
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    Thanks for your reply!

    My site will offer over one hundred thousand items to start of with and that number of item will grow each day.

    i will offer everything across the board for b2B and also B2C

    there will not NO cold calling only a online site! payment offers will be paypal, WU, Visa, google pay all the online payment methods which are popular.

    if i get for example 3000 unique IP clickers per day is there is estimate of what % of that 3000 will buy an item?
     
  4. Fergal

    Fergal
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    Every site is different wayne1522 and I'm afraid I don't know what kind of conversion rate percentage you will get from a site like that (I've seen estimates ranging from less than 0.1% to over 10%). It will depend on the quality of your site plus the source and quality of your website traffic. Is there any way for you to test a section of your site before you go to full launch?

    It sounds like a very exciting venture, I look forward to seeing the site and wish you every success with it.
     
  5. DamienGreen

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    Hi,

    To really get a firm grasp on the law of averages you need to understand that no one knows why it works the way it is, but then realize its a numbers game, so how do you work the law right?

    I would start by increasing the number of people you ask, but also "Go For No", this means aim to get more no's, and eventually you will get even more yes's, it's like when I'm getting people to join my business, people say no to me, and I'm really happy about that because I know a yes will be coming very very soon!

    If you work out the numbers game, you start to realize that luck plays a smaller part than you may think.

    Here are some quotes for you to think about...

    "Discipline is the bridge between goals and accomplishment."

    "Don't wish it were easier, wish you were better."

    "Effective communication is 20% what you know and 80% how you feel about what you know."

    Thanks!
     
  6. Fergal

    Fergal
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    I love that, but it would be important to keep it in a positive action orientated context. Don't just wish, ask yourself what do I need to do so that I can be better? Then do it, evaluate the results, do more of it or try something else.
     
  7. DamienGreen

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    Yep, the idea is to look at everything in a positive way, or you can never succeed, successful business owners tend to have a good positive mind set and the will power to make things happen, they look at things a little differently..

    Most people think that they are in the middle between Success and failure like so...

    Success --> ME <-- Failure


    and that it's up to them to work it right, but the successful owners realize this is a bad way to look at it, and see the following...

    ME ---> Failure ---> Success


    By learning from your failure and faults and drawing positive experience will make you a success!
     
  8. Fergal

    Fergal
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    I do like that, it's a great way of looking at things. Thanks Damien for the shot of inspiration.
     
  9. DamienGreen

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    Hey,

    I'm glad you like the things I have to say, all these things I say, are drawn from my own experience in sales, and have allowed me to make consistent sales :)

    Cheers!
     

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