First of all, conversion rates are not directly correlated to actual sales. Many websites with tiny conversion rates are actually extremely profitable. Here’s why.
As your website grows in popularity, it attracts more visitors from a wider audience. When this happens, your conversion rate goes down. That’s because a conversion rate is actually a ratio of overall visitors to your site and visitors who performed a specific task; like signing-up for your newsletter or buying something (whatever you have decided to track as a conversion). When you expand the audience, you attract more visitors.
Not everyone is a buyer, but by increasing the shear volume of targeted traffic to your site, it becomes easier for potential converters to find you. Your website increases in overall conversion numbers. When this happens, the conversion rate usually goes down.
Watch this quick video by JD Rucker to get more facts about conversion rates.
You may also like these links: