The golden rule?
An interesting article was published a couple of days ago over at Vitamin, written by Freshbooks.com CEO, Michael McDerment. Here, he discussed what seems to be a golden rule of internet, the 1% rule. Two weeks ago, or so, the discussion that 1% of the users are contributing to the majoirty of the content at social networking sites was presented, and now, it is shown that the same rule can be applied for internet business…at least when it comes to subscription based web apps. Of all the traffic generated to your site, about 1% of those will turn into paying customers, that is if you have a “decent” layout of your site. McDerment also talks about the importance of focusing on the top of the funnel visitors, those who just look at the site and don’t sign up, this is where you can actually increase your revenue immensely. So, everyone interested in the business of a web app or thinking about starting one up, have a look! But to me, the part about doing the sign-up page, the public facing website as easy as possible, and the importance of handling form errors in a “friendly manner” were the most interesting.
But a good read for anyone who’s interested in internet business.
[tags]internet business, web 2.0, applications, thinkvitamin, freshbooks, 1% rule[/tags]
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