If I Gave You a Marketing Budget of $10k, How Would You Spend It?

Okay Ron, I'll bite.

First, I had to do a little math. According to your figures, that means it's a
$25 commission and I'm making 3.4 sales for every 100 visitors.

For the sake of simplicity, let's just say I make 3 sales for every 100
visitors and that comes out to $75. So in order to just break even, having
to spend $10,000 a month, I'd have to make 400 sales a month. To do
that, I'd need about 13,000 visitors a month or 450 visitors a day.

I would probably break up my promotion into 4 parts, thus making it easy
for each part to generate the required number of visitors, or about 120
visitors for each segment of promotion. I would then only need 4 sales
per day, roughly, for each part.

The 4 parts would be as follows:

1. PPC
2. Article Marketing
3. Solo Ads (through Ezines, private sites, etc.)
4. Lead Generation Programs

PPC

I obviously can't spend more than 75 cents per click or I don't break even.

Let's assume I can get a 4th position for the main keywords for 50 cents
per click. 100 clicks will bring me in 3 sales for $75 and cost me $50.

So let's make my budget, for now anyway, $100 per day.

That's $3,000 per month and that will bring me 6 sales per day through
PPC. That's 180 sales for the month.

Only 220 sales left to go.

Article Marketing

To generate enough traffic, I wouldn't be able to write the articles myself
so I would have to outsource.

Now, my normal CTR on my resource box is about 20%. So, if I am going
to get my 120 visitors for the day out of article marketing, I"m going to
need 600 views per day.

Now, let's assume this is a highly competitive niche where I know that
upon initial submission, I'm only going to get about 25 views for each
article on the first day and then nothing after that.

That means I will need 24 articles submitted each day. Let's say I outsource
at a cost of $3 per article. That's a total expense of $72 per day to make
my $75 for my 3 sales. And that assumes that these articles get no more
views in their lifetime after day 1, which we know is unlikely.

My total cost is $2,160 for the articles for the month.

That brings my total cost up to $5,160

That gives me another 120 sales added to the 180 I have for PPC which
gives me 300 sales for the month.

Only 100 more sales to go divided between solo ads and lead generation
programs.

Solo Ads

I am going to assume this is a product in the MMO niche. That makes
this very easy. There are some excellent safelists online with great
memberships that offer solo ads to the contact (not list) email addresses.

The solo ads usually run about $30 a piece and go out to an average
of about 5,000 to 10,000 people per mailing. Let's assume a 2% CTR, which
is about what it is.

That means 100 to 200 people will be clicking on each solo ad we run.

So let's for argument sake asy it's only 100 clicks per day. That's 3 sales
per day for each solo ad.

Let's do the math.

$30 x 30 solo ads = $900 expenses

Add that to our previous total and we have $6,060 expenses.

Our 3 sales per day gives us another 90 sales.

Add that to the 300 sales I have so far and we're now up to 390 sales
for the month. We have almost reached out quota through just the
first three methods. Only 10 sales left to get through lead generation
programs.

Lead Generation Programs

There are about 5 good lead generation programs online that, between
the 5 of them are good for about 1 sale every other day or 15 sales a
month. that comes out to 75 sales per month for the 5 programs.

** NOTE ** Don't even think of PMing me for these sites. I don't
have the time to answer 200 PMs that I know are coming. If
you PM me about this, you will NOT be answered.

The 5 programs will cost me $150 per month. So my expenses are now
up to $6,210.

That means I have to spend $3,790 more dollars each month. I now have
to figure where that's going. I'll show you how I do that in a minute.

In the meantime, I now have 465 sales for the month, or a gross income
of $11,625.

I have spent $6,210 to make this.

My net profit is $5,415 or 46.58%

That's not too bad.

But...I still have to shell out $3,790 more dollars or I don't qualify.

So...I have to look at each form of promotion to see where I can easily
spend more money.

PPC

Forget it. I'm just about getting all the traffic I'm going to get spending
50 cents per click. I don't want to spend more per click unless I have to.
So spending more for PPC (really out of my hands) is not an option.

Article Marketing

This is where I can EASILY spend more money.

At $3 per article, I can get 1,263 more articles each month.

Let's now do some math as to the return.

1263 x 25 = 31,575 views per month

31,575 x .20 = 6,315 clicks per month

6,315 x .034 = 215 sales per month.

That's an extra $5,375 per month in sales.

Add that to the $11,625 so far and I'm up to $17,000 in sales for the
month.

I've spent $10,000.

My net profit is $7,000.

That's $84,000 a year net profit and all I've done is:

1. Set up a PPC campaign
2. Outsourced articles
3. Run a solo ad each day
4. Let lead generation programs autorun for me each day.

My total daily workload in hours is probably about 1 hour per day.

And this doesn't take into account any of the articles that MIGHT get
some views and clicks in subsequent months.

There you have it Ron.

That's what I'd do.

PS - I would, if it were MY product, build a backend product into
it at about $97 per sale.

Do the math on 2% conversion of previous customers.

James, you can tell us here in this thread - nobody is even reading this stuff . Or at least shoot me a PM. Don't keep me hanging man.

Then why can't you come up with $10,000 to pay a doctor bill?

In one month?

$100 says you can't. :p

Michael

PS, Allen, If he does then 10% affiliate commission will be fine!

Do a competition.

Every entrant has to do a video with a link to your site in the "about" and upload it to the top 10 video sharing sites (using Tubemogul). They also have to post a link to your site and the video on their own Word Press blog.

100 prizes of $100.

Should get a few hundred videos and one way links with that many prizes on offer.

Martin

$9000 on booze, the rest on phone calls and direct mail.

Tim

In your case, I'd consider...

A)

Hiring someone to do some reverse engineering on which YouTube publishers get the most views to their videos, have the most channel subscribers, etc. Then I'd hire someone else on commission to contact them and sell them on your service.

B)

Putting it up as a cash prize (or prizes) in some sort of viral video publishing contest. Then work your PR magic.

C)

Advertising on Facebook.

yeah all he was forgetting was his web url painted on the balloon

I was going to suggest that as well, but Ron's already done that.

Ron,

Without knowing the target market and the product, it's really tough to give you exact advice on what marketing you should be doing.

For some products (i.e. a new breakfast cereal), $10K would be a day's marketing budget because the market is so large. For others, $10K could be a year's worth of budget because the market is so small.

I'll partially agree with Brian... definitely look at the sales copy. Without seeing the copy, I can't say if you need a rewrite or if you need to do some multi-variate testing.

Just shooting blind here on the market and product... I'd suggest looking at both online and offline marketing weapons to hit your ideal prospects. There are still some niches that are easier to hit with offline marketing than online marketing because those prospects don't look online (yet).

If you want to shoot me a confidential PM with more specific details, then I can give you more specific advice.

Mike

I'm assuming you have a Squeeze Page set-up along with a Sales Page, OTO, etc. In my own Marketing efforts, traffic centers are set-up, would use that method, but would place 100% effort on improving the copy writing at each step.

Second, build a "Product Ladder" and sell more to the customers that are during business with me now.


Jimmy.

I've been wondering when somebody was going to bring that up.

I was going to, but I figured that most people here would be looking at it as an investment and think that I was just nitpicking. It's a good point to bring up though.