Obvious eh?
It seems not…
I’ve touched on this before but I reckon that you have to be around internet marketing fro a while before you actually REALISE the truth of it.
It’s also the reason why many newcomers never EVER make decent money online.
I’ll give you an example.
If all I do in a certain day is send a promo out to my list – just a single promotion for another marketer’s product with my affiliate link in it – I might earn between two hundred to two thousand dollars from it. Perhaps a little more if it’s a total killer.
But that’s it.
I’m not complaining of course, but it’s important to understand that it’s the MAXIMUM reward I can earn from that amount of effort.
If all I do is that one mailing, that’s ALL I will earn.
Follow?
You only earn what you allow people to pay you.
So if I want to add another $100,000 to my bottom line I might spend some time creating a new continuity program.
If I want to add a million dollars to my bottom line I might build up a new stand alone business for a year or so then sell it.
So my point is that the money you make is CAPPED – it’s limited – by the things you do.
If you have a $17 product and you get a mailing out to 1000 people you might make in the region of $2,000 based on a decent conversion rate.
But no more than that.
To earn more than that you either have to keep promoting it – maybe by buying solo ads, doing adswaps or getting jv partners or affiliates….
….OR you have to so something else that brings in money.
Think about this:
If you want to make $10,000 you might have to (for example) take on 10 coaching clients paying you $1,000 each per month.
Not that hard to do if you have skills to sell, BUT you have to put the work in because that 10k isn’t going to drop out of the sky OR by putting a link to a $7 ebook on your blog.
Putting that $7 link on your blog AIN’T worth ten grand a month, yet some people expect it to
You following me?
You have to do the RIGHT things to make the sort of money you require.
So start from the money?
Let’s say you want an income of that $10,000 a month.
You could do the mentoring thing as I mentioned above.
Or you could start a conintuity program for $17 and get 600 members.
Again (surprisingly) not that hard if you keep promoting it.
Or you could sell 1428 ebooks a month at $7
Bloody hard work. Won’t happen unless you’re very lucky.
Let’s look at $5k a month
You’d only need 185 members paying $27 to join your PLR club or your group coaching.
You’re following this by now right?
SO many people just don’t get this.
So look at your setup
Look at what you’re offering.
If you’ve created your first product and it sells for $9 and your target income is $3,000 a month then you need to sell 334 of them every single month to hit your 3k target.
That’s over 10 a day.
That’s no easy task, even though it sounds like it is.
You could make it easier for yourself by offering a $17 continuity as the upsell – an extension of the information in the ebook.
Or a ‘done for you’ service could work too.
It might involves outsourcing but get your figures right and you could have a hefty profit after paying your workers.
So here’s what I’m saying.
If you find yourself saying ‘I’m not making any sodding money!!’
Then look at what you’re selling.
If you’re putting half-hearted afiliate links to other people’s products on a blog that gets visited by 47 people a month then that’s WHY you’re not making any money.
Donald Trump would have trouble making money under those circumstances.
You need to have a viable system to support the income you want.
Selling $7 ebooks alone will NOT bring you $10k a month. Not unless you’re VERY VERY lucky.
But adding some continuity, a bit of mentoring and an offline ‘arm’ to your business might…and probably WILL.
There’s a very REAL relationship between what you’re offering for sale and how much money you make. Money, even in internet marketing does NOT leap up and say hello.
And surprisigly not a lot of people understand that. Esecpially when they get started in internet marketing with all it’s dingly dangly riches and sexy promises.
I didn’t understand it myself when I just started out.
It was probably only when I first dabbled in continuity I thought ‘bugger me my bank balance has shot up a bit there’ that it started to really dawn on me.
Have a think about it….
Comments welcome as usual – how’s YOUR setup?
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Hi Tony
Nice to see one of your awesome blog posts again … it seems like ages since we last heard from you mate 🙂
Yea as a beginner I always wonder what the next step is and continuity always seems to be looking me in the eye and beckoning…
But I guess I can speak for others when I say that finding the right content without drying up is my main concern with this method…
Also coaching is something that I would have to be VERY confident with before I took the responsibility of leading others as I’m sure I would need more experience than I’ve got to do it properly !
I think I am halfway between the ebook on my blog and churning out decent products to build a list at the moment but scaling up is definitely my next concern.
BUT … continuity followed by coaching is definitely on the cards for the future … not sure about offline though… don’t want all those nasty business owners shouting at me if it all goes pear shaped LOL
cheers mate
xxxxcarlxxxx
Hi Tony,
I am a fairly new subscriber to your emails and Affordable Mentoring newsletter and am enjoying both very much. This article resonates well with me as I am not making as much as I need to be and I do need to check my figures.
Although I have never been under the illusion that chucking some links in an ebook would give me the desired result, I do need to examine what I want and exactly how to do it. Your recent comments on solo ads have given me a light bulb moment or two.
Thanks for the thought provoking post Tony. Looking forward to more.
A’ the best,
David
Tony,
What you’re saying is successful Internet Marketing takes work! That flies in the face of 90% of what the gurus pedal these days.
Most advertising is based on the buyer getting HUGE RETURNS for very LITTLE EFFORT. It’s what we all want to hear, right?
Who is going to get excited about methods and systems that actually pay you proportionally to the amount of effort you put in?
Steve
I suppose I am saying it takes work (didn’t think of it like that) BUT I’m also saying many people don’t realise there’s a connection between what you’re selling and how much money you make.
Also…
The more I think about this, the more interwoven it becomes.
For example if you sell two ebooks, one at $9 and one at $17 seperately you would make a certain amount of money…
…BUT if you put them into a funnel and present one as a product and the other as the OTO in my opinion you’d make significantly more because you’d be catching the buyers while theyre ‘hot’
Thanks for posting guys – interesting stuff
Tony
Great post Tony and I think you’ve pointed out one of several elephants in the room.
I think the key thing is the sales funnel (as you elude to) and having different priced products there.
I’m trying to do this more and more in my business. Not everyone wants to join my membership site, not everyone see the value in my $10 WSO, not everyone wants my higher ticket stuff etc. So having a mix in a logical order i.e., the recipe” is as vital as the individual ingredients too.
Enjoying your content and looking forward to more 🙂
Rob Cornish
Hi Tony,
Revenue’s not only a product of what you’re selling, but how you’re selling it. You’ve already mentioned the sales funnel, but theirs more things you can do.
Take Amazon. Many “gurus” tell you not to bother promoting anything selling for less than $100, because at 4% commission it’s just not worth it. But what many people don’t realise is that the commission rate often increases with the more items you sell.
So, if I sell £1,000 watch, which may take a fair bit of marketing, I earn £40 commission. But if, in the same month, I also sell six £5 books, which could be quite easy, my commission rate jumps to 6%. So now I’m paid £60 for selling the watch, plus of course the “worthless” commission on the books.
Likewise, if I can increase my conversion rate for any given product I’ll increase my revenue, even though the price hasn’t changed. I’ve just tested a squeeze page and got 100% more optins from the page with the yellow button than the one with the blue button. No kidding. Must be the same for sales pages as well?
I could also increase revenue by providing more purchasing options. So, for example, my ÂŁ297 product may be out of the reach of many, but by also offering the option of three ÂŁ99 payments, I may well get more takers.
I could go on, but I think I’ve just found the subject for my next blog post!
Cheers.
Amanda
Absolutely Amanda- spot on.
You’re creating ways for people to get money to you.
You’re creating ways to make the amount of money you desire.
Love it!
T
I’m not quite sure what you’re talking bout cool Hippy Dude.
As the “Guru’s” rightfully tell you. All you gotta do
is open your wallet, click a link and watch as money
tumbles into it.
I mean really. What you seem to suggest sounds
suspiciously like (God Forbid) WORK.
And we can’t have that, can we?
Seriously though. What you’re suggesting is
as obvious as Joan Rivers’ plastic surgery.
Anyone who only sells an ebook and that’s IT,
needs to be escorted quietly but quickly
to the nearest mental institution. Where a
comfortable straight jacket is waiting….
My point is made.
Nice post as always, Tone.
Good evening,
You are probably one of the 1% that actually care to hello us name money. I mean i have made 0, none, nada, zip. Being burned by many of the “gurus”, almost going bankrupt over it, and quitting on IM for a year, and then on my 2013 new years I went back to my computer because of all the work and stress off working so much every day. And i saw an email about the Hippie Marketer. I automatically assumed “hippie to riches, one button click, lies….” Well man was i wrong. You made my heart feel as when i first tried Internet Marketing, that smile on my face ready to work. Now the trick is to find the time again.
I am looking forward to getting your newsletters. And reading all these blogs. They are a ton of knowledge and more. As a newbe to IM, i will begin working hard to implement the strategies that you teach.
question: is going to school for internet marketing a good ou idea?