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Let's see what happens

by Randy McLean
10 replies
I've been reading this forum for awhile and here is what I notice:

Most beginners get emotionally attached to their results or lack of results.

And when things don't go their way, they stop.

And worse yet, some have that lottery ticket mindset:

"Let's take $1000, buy some traffic and see what happens."

Most of the time they just want to make "more money" without any real goals.

What you really need to do is break down your goal into realistic numbers.

How many sales do you want to make in the next 90 days?
What is your projected conversion rate?
How much traffic do you need?
How many clicks?
How much revenue?

* Example *

Let's say you want to sell a continuity product that pays $40 per month.

You have a goal of getting 5 leads per day at a 2% conversion rate.

At the end of 90 days you'll have 9 sales resulting in an "extra" $360 per month.

Doable? You tell me.

Once you figure this all out it becomes a lot less emotional and more statistical.

You'll know what to shoot for and things will become a lot more real to you.

Don't just keep this in your head. Write it down and place it on your desk.

Take action and make adjustments as you go along.

Fix whatever is broken and sharpen your skills.

And whatever you do, don't stop.

That's why most fail, because they stop.

Before you buy traffic, build a web page or build your email list you need to know your numbers.

Thoughts?
#conversion #email makerting list #goals #list buiding
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  • Profile picture of the author dave_hermansen
    You forgot to add one thing ... now that you have set the expectations for conversions and total profit, use those same numbers when figuring out how much money you can spend per day on paid advertising.

    In your scenario, you make $360/month, which means that the break even point for paid advertising is $12/day ($360 divided by 30 days). If you spend any more than that on advertising, you lose money (which sometimes is not a bad thing if yours is a site that will generate a lot of repeat business).

    Of course, you also cannot forget to pay yourself for your time and effort, so you have to factor what you are worth into your net profit figures, as well. In other words, if you make $200 profit after all expenses and you worked 100 hours to make that money, aren't you really worth more than the $2/hour you are making?
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    • Profile picture of the author palmtreelife
      In your scenario, you make $360/month, which means that the break even point for paid advertising is $12/day ($360 divided by 30 days). If you spend any more than that on advertising, you lose money (which sometimes is not a bad thing if yours is a site that will generate a lot of repeat business).
      Thank you for bringing this up. This drives me crazy! Many people from beginners a (surprisingly) many experts will say "my business generates $10,000/month of income". Everyone thinks they're amazing and praises them. What they don't tell you is that they spend $9500/month in advertising, $100 on hosting and $100 on transaction fees.

      Others will bring in 100k/month and spend 50k on expenses. They still net 50k/month, but they push the 100k figure for some reason. That never sits well with me. If you're going to make income claims, at least make the real income claim.

      Before you buy traffic, build a web page or build your email list you need to know your numbers.
      This is experienced and mature advice. Everyone wants to just get started and make that first dollar. They focus on the dollar instead of the long term vision. Have patience. Build a solid foundation for sustainable and massive growth. Grow that list and then launch the product. Well said, Randy.
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      • Profile picture of the author GordonJ
        Originally Posted by palmtreelife View Post


        They still net 50k/month, but they push the 100k figure for some reason. That never sits well with me. If you're going to make income claims, at least make the real income claim.
        Well, they may GROSS 50k a month, then take out another 30% (roughly) for TAXES. So their net might be 35k, which still is pretty decent, but if you want real income claims, then don't forget taxes. Eh?

        GordonJ
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        • Profile picture of the author palmtreelife
          Well, they may GROSS 50k a month, then take out another 30% (roughly) for TAXES. So their net might be 35k, which still is pretty decent, but if you want real income claims, then don't forget taxes. Eh?
          Ahhh taxes, yes. Why do you think I left Canada?! When businesses discuss gross and net income though, I don't think they ever factor in taxes. Technically, you're right. The 50k would still be gross as it's all taxable income. When people say how much money they make in a job, they never say "100k before tax and 60k after tax"...they'll always say "100k"

          I try not to complain about taxes because usually the more tax you pay, the more money you made. It's like someone complaining the AC in their Ferrari isn't working.
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      • Profile picture of the author Odahh
        Originally Posted by palmtreelife View Post

        Thank you for bringing this up. This drives me crazy! Many people from beginners a (surprisingly) many experts will say "my business generates $10,000/month of income". Everyone thinks they're amazing and praises them. What they don't tell you is that they spend $9500/month in advertising, $100 on hosting and $100 on transaction fees.

        Others will bring in 100k/month and spend 50k on expenses. They still net 50k/month, but they push the 100k figure for some reason. That never sits well with me. If you're going to make income claims, at least make the real income claim.



        This is experienced and mature advice. Everyone wants to just get started and make that first dollar. They focus on the dollar instead of the long term vision. Have patience. Build a solid foundation for sustainable and massive growth. Grow that list and then launch the product. Well said, Randy.
        well you can make make a million dollars a month a 90% margin selling information on how you made 100K a month selling on shopipy .. and only smart people already in business will think to ask about the net .. or even know the difference between gross and net ..

        so even if you make no net .. on 100k a month.. you are not doing that 100k a month to make money on shopify.. your making that 100k a month to sell millions of dollars in info products talkig about how you built the 100k a month in 45 days how else do you make big money in IM Internet marketing /Information Marketing.. I'm joking with that .. question ...
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    • Profile picture of the author DIABL0
      Originally Posted by dave_hermansen View Post

      Of course, you also cannot forget to pay yourself for your time and effort, so you have to factor what you are worth into your net profit figures, as well. In other words, if you make $200 profit after all expenses and you worked 100 hours to make that money, aren't you really worth more than the $2/hour you are making?
      That is true and for most taking a minimum wage job would have paid more. However, you have to pay your dues and figure out a process that works. Then hopefully you can scale it and turn it into something meaningful/worthwhile.
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  • Profile picture of the author Jonathan 2.0
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    Re: Let's see what happens
    I don't know where that "meme" comes from however, in the right context, I think it's somewhat "empowering."

    For instance when a Person has everything all in plan and complete it's time to put it out there. (And see what happens in terms of "feedback" and "results") Then learn something from all of it that will make them more successful. Then adjust accordingly.
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  • Profile picture of the author Princess Balestra
    Only thing I know 'bout GROSS an' NET is the fatass guy shops in my local store don't understand he oughta wear BIG OL' JEANS steada strainin' the hell outta oblivion LEISURE PANTS don't figure no kinda LEISURE cos he made 'em BEG FOAH MERCEH!


    Shame is, there ain't no Olympic Golds for how many french fries I can jam in his ass before he quits oglin' mine an' crosses the rubycon into ... dialog I don't actschwlly wanna.


    That is why ima practicin' slippin' WHOLE FROZEN PIZZAS down backa my yoga outfit with a view to loadin' the guy up with ... Ms Diss's favo evah peripherals.


    Tellya, guy gets lucky, ima drag him away from the sensyooly glorious FOODSTUFFS area to sumplace I can drill down on his mustache with SRSLY MOTORIZED GARDEN TOOLS.


    Brows & lashes qualify similarly for MY KINDA TOAST.
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  • Profile picture of the author DURABLEOILCOM
    Internet Marketing is not a get rich quick scheme. It takes blood, sweat and tears to succeed. If it was easy everyone would be an Internet Marketing Millionaire. You climb the thousand steps one at a time. Keep your job and work your business on your time off. You reap what you sew.
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  • Profile picture of the author sgalla414
    I think this is great advice. Too many people just see a dollar sign and aim straight for that arbitrary number they've decided on. Rather than breaking that number down in to "how many people do I need to help/ provide a service for to get to "x" amount of dollars.
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