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In episode #583, Eric and Neil explain how you can boost your conversion rate by accepting bitcoin as a payment option. Tune in to hear if your business can handle a shift towards cryptocurrency payments.
TIME-STAMPED SHOW NOTES:
- [00:27] Today’s Topic: How to Boost Your Conversion Rate by Offering Bitcoin as a Payment Option
- [00:45] On average, bitcoin has a daily fluctuation rate of 5%.
- [01:15] There are a lot of people who use bitcoin, so even though most people don’t, you could open up your business if you offer bitcoin as a payment option.
- [01:40] You will lose money in the short-term, but in the long run, you will make more.
- [02:06] Eric spent the most marketing dollars on Coinmarketcap.com and they only accepted cryptocurrency as payment.
- [02:28] Bitcoin has gone up in price, meaning that Coinmarketcap.com made money just by hanging on to it.
- [03:05] Stripe recently removed bitcoin as a payment option, because they didn’t think it was practical.
- [03:20] However, bitcoin is still popular.
- [03:45] If your margins aren’t that large, don’t accept crypto, because you may suffer cash flow issues.
- [04:08] You can always sell some off to pay for costs, but don’t accept crypto if you don’t have high margins.
- [04:21] That’s all for today!
- [04:25] Go to Singlegrain.com/Giveway for a special marketing tool giveaway!
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The post How to Boost Your Conversion Rate by Offering Bitcoin as a Payment Option | Ep. #583 appeared first on Marketing School Podcast.
Full Transcript of The Episode
Eric Sui: Welcome to another episode of Marketing School. I'm Eric Sui.
Neil Patel: And I'm Neil Patel.
Eric Sui: Today, we are going to talk about how you can boost your conversion rate by offering Bitcoin as a payment option. Neil, what are your thoughts around this?
Neil Patel: So Eric, do you own any Bitcoin?
Eric Sui: I do.
Neil Patel: Okay. What have you noticed with your price of the Bitcoin that you own?
Eric Sui: For the most part, it goes up, except until recently.
Neil Patel: Alright, but on a daily basis, what happens to the price?
Eric Sui: Well, it fluctuates.
Neil Patel: How much does it fluctuate by? What percentage point, if you had to take a guess?
Eric Sui: I think if you were to average it out, it could be around a 5%, or so.
Neil Patel: Sometimes 10%, sometimes 20%, there's really drastic swings. If you're a believer that Bitcoin is going to rise in the long run, you're in a good position if you're willing to take it. If you don't believe it's going to go up in the long run, then you shouldn't take it. But there's a lot of people out there who have Bitcoin. And, yes, I know the majority of the world doesn't have Bitcoin, but there's still a lot of people, millions and millions of people, who own some Bitcoin or, at least, one Bitcoin.
If you can add Bitcoin as a payment option to your checkout, and there's a lot of payment processors who will help with this, you can end up making money in the long run, as long as you're willing to hold. In the short run, I believe you're going to end up losing money, but in the long run you should end up making more money. Adding other payment options to your checkout page, usually doesn't hurt conversions. People will either select it or they won't. But if you're a holder, you'll do well.
Eric, I know you were running advertising for a company called Polymath. Right?
Eric Sui: Right.
Neil Patel: I-C-O. What was the number one site that you guys spent most of your marketing dollars on?
Eric Sui: Coinmarketcap.com.
Neil Patel: Okay, and when you pay CoinMarketCap, what do you have to pay them in?
Eric Sui: You pay them in crypto, either Ethereum or Bitcoin.
Neil Patel: Yes, and CoinMarketCap, they've made millions, and millions, of dollars, maybe even hundreds of millions. What's funny is, people are like, "Oh, their ads aren't that expensive. How do they make all this money?" It's because Bitcoin has gone up in price. If Bitcoin hasn't got ... If it never went up that much in price and same with Ethereum, they wouldn't have made as much money. The reason they lucked out is because they held onto it.
Eric Sui: Yep, so on my end, I mean, just practicality, just to give you guys some things you can do. Coinbase actually added the ability to take crypto as of recently. As Neil said, he's completely right, sometimes people want to pay in cryptocurrencies. Sometimes people want to pay in PayPal. Sometimes people want to pay through a credit card, so you have that option. Then there's some other options you can find too. I can also say that Stripe, as of recently, removed the Bitcoin payment option, but that's not to say that they won't be back. Just because they don't think it's practical right now, but they might bring it back in the future, who knows.
I think it's important because there's people around the world that are just ... they call it HODL, now in Bitcoin. So it's basically another version of hold. It's basically ... It's gamer speak.
Neil Patel: What does this stand for?
Eric Sui: HODL, it's H-O-D-L. It's just hold spelled wrong, but the people that are [Farens 00:03:35] are ... that's how they break it down.
Neil Patel: If you're a big believer, do it, if not, don't do it. I'm a believer. Eric's a believer. You're not going to end up making money in the short run. If your margins on your product or service aren't that large, I don't recommend taking Bitcoin or Ethereum, because you may end up having cashflow issues. If you're flush with cash and you don't need to worry about money or you have really high margins, such as like 70, 80%, by all means, take some Bitcoin. Yes, you can sell some off to pay for your costs so that way whatever is left in Bitcoin is just your "profit." But don't do this, unless your margins are extremely good. The volatility can really crush your business if you don't have high margins.
Eric Sui: Yep, so that's it for today. There's not much more to add, but before you go, go to singlegrain.com/giveaway to check out our daily giveaway. We will see you tomorrow.
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