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I remember reading somewhere that your bounce rate should be under 35% and that has kind of been the rule of thumb that I started with. Our site generally has a bounce rate around 30% and the average time on site around 3 minutes as well. We have a good website conversion rate so it has been a good rule of thumb for us.
I've noticed that the bounce rate for organic searches is around 20% so I really try to research which sites are driving the traffic with the higher bounce rates. If it is consistently higher from a site that we are advertising on then we analyze our advertising campaign and make revisions as we see fit.
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