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All figures are rounded. Initial state is conversion rate at the level of 0.5%, resulting in gross profit 5,000 EUR.
Use the Conversions Slider and see, how it impacts your results!
Traffic at the level of 100,000 users per month. Initial conversion is 0.5%, resulting in 500 transitions per month.
Gross margin per cart is 50 EUR. Multiplied by number of transactions equals gross margin.
There are fixed costs as well, like office, data centers, etc., which is assumed to be at the level of 20,000 EUR. Gross profit = gross margin - fixed costs.
Gain from conversion!
We are earning additional money, on top of initial 5,000 EUR. It is a pure cash, generated from the conversion optimization. No additional traffic bought.