Menace

Thursday, 7th September 2006, 1 Comment »

The 1% rule within .nz

Ever heard of the rule of 1%? It goes like this, if you had 100 people online (say visting your website), only one will create content, 10 will “interact” with it (commenting, reviewing, etc) and the other 89 will just view it.

So based on the Digital Divide report Statistics New Zealand released in 2004, they estimate that 37% of all households in New Zealand have access to the internet (which in their Dwelling and Household Estimates is around 1,558,300), therefore we have 576,571 households in New Zealand with internet access.

Cool, so say we have a new super cool consumer-content generated website which has attracted 20% of the households online in our first year (we launched really big, we have lots of billboards, the press has loved us and I’m feeling generous). This means we’d have around 115,314 households visiting the site, we’ll assume one household is equal to one person.

Now a conversion funnel comes into play.

• 10% of all visitors sign up for a trial account (11,531)
• 9% of all visitors login to their account (10,378)
• 5% of all visitors are active users (5,765)
• 1% of all visitors are paying/contributing customers (1,153)

With these kinda figures you can see why Ferrit is writing their own customer reviews.