What does Vonage stock, Commission Junction, and conversions rates have in common?

It seems to be a down day, or at least a day of changes. Sad enough, Vonage share prices fell below the IPO price. I'm a big VoIP fan (though I used Packet 8 not Vonage). Not surprising, given that they are not now, and by their own admission may not ever be, profitable. Hardly something that gives stockholders comfort.

Then there's the story of conversion rates. According to the Persuasion Architect Blog Shop.org's 2006 numbers weren't rosy. Conversion rates were at 3.2% in 2002. It dropped to 2.4% in 2003. Then to 2.6% in 2004. Last year they were at just 2.4%. They seem to think it's because we're not good at presenting information and marketing just doesn't work well. I'm not sure that's it (care to chime in?). People who get it right see much higher conversion rates, but there are few who are.

Affiliates are debating Commission Junction's decision to change affiliate links from HTML to javascript. Some say it's not a positive sign. I think overall, though initially painful, it is. (Wait, isn't this supposed to be a downer post?). It gives CJ control to track links more precisely. That means they can keep the quality of affiliate links from their network higher. At least that part is good news. Overall looks like a lot of headaches and extra work for affiliates. Long term though it may be good news. As usual, stay tuned…

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