That does seem high.
40% does seem awfully high, but that depends on what's being counted.
If you're seeing 100 visitors per day, have the length of time between pages set too low, you could easily account for 20 - 30 of those per day. Are you excluding your own IP from the reports? How about competitors? I personally see a lot of IP's belonging to Amazon in our stats, and those are all directly entered.
The only other possibility I could see at the moment is that you've just got a great domain name that people are typing just to see what's there, or it is a misspelling of some other popular site.
One of our sites sees a 40% return visitor rate, but even so it's only 23% direct request. I find it's typical that 1/4 to 1/2 of our return visitors are direct requests. If that holds true for your site, you'd need to have around 80% to 160% return visitors, which isn't real likely. You've got to have a first time visitor in there somewhere for them to return.
What's the domain? Maybe that'll lead to clues.
Brian.
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