From Hits to paying Customers

[belindac]

I sell online tax preparation. I also am a tax preparer and my software provider has a forum open to members only and many of us have websites. We are trying to understand who logs on and who buys and why. It is our understanding H&RBlock is also having problems with convincing online tax preparation other than those who want a free service.

Most every one on this board is comfortable with computers, loading and using software. Most of the public is not comfortable with computers and is afraid of ID thief. Could this be the reason people are not buying? Are we unrealistic in our expectations?

I'm getting about 100 hits a day and have had 48 people log in and of those 6 have paid. Our websites are very different but we are all getting about the same results. Individuals logging on to my site are usually single.

[vwebworld]

I took me some searching to find how much it cost... $19.95
is the same as H & R.

The site says 1040 for Taxable income of $100,000 or more, Itemized deductions, Self-employment Income,
Income from Sale of Property. I think that may be a little
misleading... I file a 1040 and do not have income of $100,000 or more.

I did not register and go through the return process,
does the program calculate and provide the user a
tax return results prior to them paying? If so,
then you may have people using the program to calc
taxes and using the info to fill in a return off
line.

~roland

[belindac]

<The site says 1040 for Taxable income of $100,000 or more, Itemized deductions, Self-employment Income,
Income from Sale of Property. I think that may be a little
misleading... I file a 1040 and do not have income of $100,000 or more.>Roland

Roland, I don't have a clue what this means. All Income Levels Qualify, including those under $100,000.
HR&Block has recently reduced their prices but my site includes free state returns while Block does not. I do appreciate you taking the time to respond. It looks like Block is asking people to answer a survey. I believe they are having the same problem of converting those who log on to those who buy.

[OneMoreBite]

<The site says 1040 for Taxable income of $100,000 or more...I think that may be a little misleading... I file a 1040 and do not have income of $100,000 or more.>Roland

Roland, I don't have a clue what this means. All Income Levels Qualify, including those under $100,000.

Belindac, if you don't have a clue, how would your site's visitors? The point Roland was trying to make was it is misleading because it states $100,000 or more, which implies not less. You could change it to "up to $100,000 or more" and probably clear up that confusion.

You'll just need to build confidence in visitors, since you have no long-time name recognition like other tax preparation services. I'd try working on a local level, getting people in your town to know who you are and what you offer. Write articles, give free info seminars to local groups and become known in your town.

Kathryn

[belindac]

<The site says 1040 for Taxable income of $100,000 or more, Itemized deductions, Self-employment Income,
Income from Sale of Property. I think that may be a little
misleading... I file a 1040 and do not have income of $100,000 or more.>Roland

I'm sorry I didn't make myself clear. I don't know where Roland found the above. I have never seen it and don't have a clue what he is talking about. If you know please direct me so I can fix it.

Thank you for your time.

[Duncan Pollock]

belindac: Google shows 17,800,000 results for the search phrase "online tax preparation" (without quotes).
You can therefore wonder if you aren't looking at annihilation more than competition!
In any case, consider yourself versus H & R Block and ask how long they've been in business, how many offices they have here, there, and everywhere, and how many (at least hundreds of) thousands of dollars they've spent over the years to earn their #1 position in Google.
To beat Numero Uno in any field you need to be more than their equal. You have to be umpteen times better and this is going take a great deal of time and effort and, more than likely, a ton of money.
As OneMoreBite suggests, your answer lies in promoting your site locally (offline no less than online) rather than (vainly) hoping to outdo H & R Block.

Duncan

[belindac]

Duncan, I couldn't agree more. My site is listed in the local telephone books and my hope is to pick up more local clients. There is more money to be made by doing a tax return in my office than an online website.

Those of us using my software vendor were trying to understand why people log in but do not efile. I certainly have no problem with someone using the site for information or reference. It isn't necessary to log in to use my site for research.

I do appreciate everyone's response.

[Duncan Pollock]

belindac: Well, I can't come up with a simple answer to your software vendor's question, but I am willing to venture that it lies somewhere within the AIDA formula -- or perhaps more precisely because your site isn't modelled on it.
(I'm assuming you're familiar with the four step marketing approach:
Attention: You have a problem
Interest: We have the solution
Desire: Here's the (detailed) argument in favour of it
Action: Buy it!)
And if you're looking for a guru who understands this and the whole e-commerce approach (which is what you're really involved in), let me suggest a look at Bryan Eisenberg's site ( http://www.grokdotcom.com/ ).
Otherwise, I'm a great believer in the use of AdWords as a means of succeeding as a small (but definitely recognizable) frog in a large pond. Admittedly, it's easier said than done to get the hang of AdWords, but I'll then urge you to connect with another of my favourite gurus, Perry Marshall (see http://www.perrymarshall.com/index.htm )
All in all, I'm convinced that you can beat H & R Block hands down if you focus your site on these lines.
Yes? No?

Duncan

PS. With no thought at all of patting myself on the back, you should be able to recognize that this post is itself following the AIDA formula.
Ergo, don't just read it. Get woikin'!!