Investment return on trust seals

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The Fantastic Return on Investment from Trust Seals

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The Big Secret
There is a pretty closely guarded secret among the top online sellers and it can only be revealed and proved when you dig out some pretty amazing statistics.

It was recently reported by the Internet Retailer that "Trust seals are used by over 80% of the top 100 ecommerce sites. Trust seals and website certification are by no means new to ecommerce sites but the yearly fees, which range from $1,300 to as much as $25,000 depending on the size of the merchant website, can be a hurdle for smaller businesses."

Now why on earth would any company, especially top ecommerce companies pay up to twenty five thousand dollars for website seals ?

Simple - they get fantastic returns on that expenditure.

The same returns apply to the more reasonably priced trust seals.
What I am going to show you now is very relevant to YOU.

We are going to run through three examples of typical online businesses who are selling eproducts or services and see how product trust seal invstment works out for them

Let's Check Out the Maths
OK let's look at the maths for this "investment".

We will take a scenario which will be familiar to many.

Say that you have been testing out a niche and had good results, you have got your product ready and you are justifiably proud of it. You have started marketing it a couple of months ago. You set a price of $27 which is lower than the competition and you have found some good long-tail keywords that are getting results.

You don't have a huge budget and you want to be careful about spending. You are already buying traffic with PPC advertising and getting a modest revenue of $1600 per month. With advertising costs of $850 it's not great but at least you are in profit and you have something to build on.

When you check your web stats you find that out of every 1000 visitors that you get, only 22 are actually buying your product. (this a common enough figure).

At present you are driving only about 2700 visitors to your site, and that is resulting in the 59 sales. Your long tail keyword costs are running at about 30 cents per click, so things are looking good for expansion.

Now is it worth you getting a trust seal and if so which one?

Trust seals cost anywhere from $900 up to $25,000 in annual fees.
And even the expensive ones may not provide you with what you really need.
Clearly picking one where you have to sign up for a year and pay over a thousand dollars is going to be risky and would wipe out your profits fro a couple of months.

But if you select a less greedy trust seal company you will see how the return on investment works out.

Back to our example
You pick a trust seal and it's a good one. You go for the Diamond membership as you have some other products on the way and this membership level gives you up to ten product seals.

It only costs $40 a month.

Now a trust seal that addresses your customers' fears and makes them feel comfortable is going to get you an average of just over 20 % improvement in sales from the same traffic flow. In fact for new websites and not very well known products or vendors, the increase can be much higher.

Let's be conservative and say you get just 15 % increase in sales.

15% on the top of your $1600 is an extra $240

The Result:
A truly great investment - put in $40 and get back $240.
A net additional income of $200 every month.

Lets now fast-forward a couple of months. You have recognized that you have a good niche and after a couple of months of re-investing, you have pumped up your PPC advertising. You are now doing five times the advertising spend.

Your advertising costs are now running at $4200
This is not a small amount of cash but you have proved your model and built it up to this level over several months.

Your cost per click has gone up a bit because you are having to move into more expensive keywords to get the extra traffic.

But your income is just over $6000 pm so you are pretty happy.
If you had not taken up the trust seal from Support-Focus before, look at the difference that you would be missing out on now:

Again let's assume the same conservative 15 % increase in sales
15% on top of $6000 is $900.

On the Diamond membership to Support-Focus that is an amazing 2250 per cent return on the investment of $39.95

The Gold membership which allows up to 3 product seals would return 3300 per cent return on the $26.95 fee.

Where else can you get such a terrific return on investment?

In fact, if any webmaster in this position doesn't go and get the Support-Focus seal straight away, then they will be leaving close to a thousand bucks on the table every month.

Ok now we want to look at someone who is really just starting out with no capital. With no PPC spend, just freebie bum marketing he is making 3 sales a month of his $27 product.

To get those three sales he is driving 230 people to his website. His conversion rate is not great because he is so new and people have not heard of him much (yet).

If he can prove his trustworthiness and his commitment to customer care by subscribing to the and displaying the seal, he can comfortably expect an extra 1 or two sales. This is because a trust seal has most effect on the less trusted sites.

Lower Status = Higher Potential Gains
In other words, the sites that have lower conversion rates due to low status always gain the most from applying trust seals. This effect happens because although visitors may like the product and want to buy it, they are put off by not knowing or recognizing the vendor website. When they see a recognized trust seal, it immediately comforts them.

Now when we look at the math, we can see that anyone who is selling a product with a price of more than the monthly cost of the seal, only has to sell one additional product in order to reap rewards from their investment.

This particular webmaster could subscribe to the Gold membership for $27 a month and could see a possible 100 % return on that investment.

The entry level to is just 17.95 so practically all online businesses will gain a positive cash inflow when they take up membership.