Heres a good way to get a WSO for $20 Instead of $40

If you can find a partner you trust, neat idea!

Creative, but that really isn't a partnership. It is an investment opportunity.

And I'm not sure if the risk analysis makes sense ...

If the WSO is a flop and doesn't sell at all you saved yourself $20.

If the WSO is a hit and sells a hundred you cost yourself several hundred dollars.

It's not about reducing risk by 50%. You need to look at the dollar amounts.

.

Would be just as easy setting it up in Warrior Plus. You're talking about risking an additional $40, but sharing all sales 50%. I'd rather pay the additional $20 and get the sales myself.

I think there are lots of high profiled trustworthy guys here

Terry,

Its a nice idea, but I think $20 (or $40) is really a small price to pay for launching a WSO. I think it is relatively easy to recoup $40 (if anyone is launching a product, I really hope it is good enough to release and earn the money back).

Imagine if your WSO makes $1000. Would you really be willing to give away that $500 because you didn't want to lose out on $20?

Just my thoughts...

Nice idea but if you can't make more than the cost of running the WSO from the WSO then I think a rethink is in order

Kickin it on Amazon

Gaz Cooper.
Amz Training Academy

Also JVzoo has the facility to add JV partners. So no need to go the affiliate route.

Have to agree with other comments though. If you don't think you make back your money should you not be releasing it in the first place.

^^ What Gaz said. If your WSO is not making even $40 - then it's so crappy that it shouldn't have been released...

Altogether, it's a very bad and risky business decision what you are proposing here. Think again: would a normal business person give up their profit's 50% for a mere $20?

If you think that was "risk management" in your business... then some re-thinking is in order.

But if you stick to this idea, read on:
1. I'll invest $20 in every future WSO of yours - who knows, I may make thousands
1a. If you want, I can pay the whole $40 fee and we split the revenue 10/90% (10% would be yours, of course)
2. Even technically (JVZoo) is not correct what you described: there is a special JV section, no need to get the partner as an affiliate!

If you think that in running a WSO you are "risking" $40 then
maybe you should rethink the offer and the sales copy.

A WSO should sell because it's really a SPECIAL DEAL apart
from being a valuable product. If it cannot sell as a WSO
then maybe it wouldn't sell at all.

If you are really testing out the market then $40 is a small
investment for a trial run.

And if it doesn't sell as a WSO maybe you can try Fiverr
as you risk next to nothing in that market place.

-Ray Edwards

Rubbish idea, sorry :/

Why would you split the small $40 costs for half of the money when you would have spent time and possibly money on creating it. As what was said above if you can't recouperate your $40 it must be pretty poor IMO.

If you are considering this I urge you to consider not releasing the WSO.

Yes, I was serious about my "offer".

However, it is time to some to go and learn the business basics 101.

E.g. expenses occurred while doing business and getting sales (Paypal fees; marketplace listing fees = a.k.a. $40 WSO posting; Clickbank listing fees) are EXPENSES... just ask your accountant: there is the Income column (+) and the Expenses column (-).
The difference is the profit.

In this process the only "risk" is not understanding that you are running a business... not gambling with your $40 starting 'capital'.

I wouldn't sell half rights of my product for $20. There needs to be another incentive, such as promoting to both our lists. If you're only asking for $20 you need to rethink your product and approach.

i`ll put up the $40 for a 50/50 split on your next WSO. I`ll take the risk :-)

Also, to those that are analyzing risk v. reward, keep in mind that is really the decision of the parties making the contract. Not our decision.
Grats if your WSO is successful, but I have a feeling it would be a mistake to split 50/50, although probably a mistake you'll only make once

Especially good if you find a partner with a big, loyal list. Boom!

Why would you want to split the risk if you are marketing your own product, if it hits you for $40 then you would be $40 wiser and maybe your next WSO would be a whole lot better

Failure is our greatest teacher remember, so embrace it and move forwards into being a better marketer

It is fair to say you would expect a WSO to at least cover costs though

All the best
Steven

Okay...a lot of this post involves math, and it will hopefully show you why this particular type of "risk management" isn't a good idea.

(I am using straight numbers here, so nothing like PayPal fees are taken into account, though the overall conclusion is the same)

Let's say you have a $7 product and make 10 sales.

If you split the cost, here is how much money you will have after each sale.

Sale #1 -16.50
Sale #2 -13.00
Sale #3 -9.50
Sale #4 -6.00
Sale #5 -2.50
Sale #6 +1.00 (Hooray, Sale #6 puts you in profit)
Sale #7 +4.50
Sale #8 +8.00
Sale #9 +11.50
Sale #10 +15.00

You have made 10 sales and have a profit of $15. Your first sale that resulted in a profit gave you $1.

Now, if you have the same product and make the same number of sales, but pay for the full $40 yourself, here's how it breaks down.

Sale #1 -33.00
Sale #2 -26.00
Sale #3 -19.00
Sale #4 -12.00
Sale #5 -5.00
Sale #6 +2.00 (Hooray, Sale #6 puts you in profit)
Sale #7 +9.00
Sale #8 +16.00
Sale #9 +23.00
Sale #10 +30.00

Notice that you have made a total profit of $30 after 10 sales, and that your first profitable sale gave you $2 instead of $1.

In this example, you haven't SAVED $20, you have LOST $15.

And that's only for 10 measly sales of a $7 product. You stand to lose much more as sales go up, or if the product is selling at a higher price.

The sale that brings in the profit will vary depending on the price of your WSO, BUT the sale # will always be the same whether you pay for the whole WSO or split the cost 50/50. For example, a $20 will break even at the 2nd sale and result in profit starting at the 3rd sale. (If you spent $20 on the WSO, you would make $10 profit on the 3rd sale, and $80 profit on the 10th sale. If you spent $40 on the WSO, you would make $20 profit on the 3rd sale, and $160 on the 10th sale)

These numbers would continually scale upwards for every sale.

The only time I would split the cost, and the profits, is if I was doing an actual partnership in creating the product. In fact, I have done several WSOs this way. Other than that, just having someone else "reduce your risk" doesn't make sense.

Another downside I see to doing it the way described in the OP is that it brings in the failure mindset to the WSO. There must be an underlying expectation of failure for somebody to want to do this, and that expectation will come through in many unforeseen ways.

So...with that being said, it would be foolish for somebody to "invest" the $20 because it would an almost-guaranteed failure right out of the gate.

All the best,
Michael

No offense meant whatsoever here... I seriously don't think you should be considering doing a WSO if you are afraid to lose $40.

Let's say you really do sell just a few copies and barely break even. Ok, so you've covered your costs and learned a lot.

And if you have a hit? Let's say at least a hundred copies sold... what did you give up to protect your twenty? Hundreds of dollars most likely.

All I can ask is why? It makes no sense to me unless the "partner" is truly bring something worth 50% of the profits to the table, i.e. - half the creation process, an established list, affiliate connections, etc...

I just don't get why you are talking about risk over $40. No doubt you've risked more than that on finding out whether a restaurant is good or not at some point in in your life.

Sorry but this is a TERRIBLE idea.

I don't even think it is allowed either. I thought for a partnership in the WSO forum the two people had to have both invested in having the actual product created. I think this investment/profit share type of deal is actually against the rules... if my memory serves me correctly?

Regardless of that, as others have said, why would you go into things expecting to make so few sales that you are willing to give away half of your profits for $20. If you know anything about business you would know that by selling 50% of your product for $20 you are, at the same time, valuing your product at $40. Why would you do that and why would you want to sell a product that you are not confident can make more than $40.

Even if you did go ahead with something like this, do you really not have a family member who could give you the $20 for half of the profits? Why would you be willing to give all that away to a stranger?

All I know is if I had followed your advice in my first WSO, I would have blown over $4X,XXX for no reason. Worth it for a measly $20? I don't think so.

Ok, I'm still relatively new here, and have never run a WSO.
And, I don't think this has been mentioned.
BUT, I can't see why, if you are willing to pay out 50% of all profits anyway, you would want to eliminate any OTHER affiliates.
This seems to me that you would ultimately be shooting yourself in the foot.
Anyone, please feel free to correct me if I have the wrong mindset here.

Best,
Robert

What a good way to lose 50% of your revenue for $20

What is the really big trouble by just paying the $40 and get over it? Considered the costs for launching a ClickBank product is around $1,500 to $5,000 the price for launching WSO is neat.

What else is the 'investor' putting up apart from the $20?

If you are doing all the work creating a product/service, delivering it and then handling customer support then you really shouldn't be gifting someone 50% of revenues.

Even if they are putting up $20.

If anyone is going to try this (hope they don't) please post here and let everyone know how it went.

-Simon

How about the investor invest $20, But you split the profit 90% to you, 10% to the investor. Lets say your WSO cost $10, then It will only takes 20 sales for the investor to cover his cost.

Well, the investor isn't even doing anthing. IMO %10 is already good enough for someone who did nothing.

Focus making a decent quality wso - lets face it , most are very poor. Make a quality product and forget about a meagre $40 investment

nice idea

I'm with the majority here. Even with a basic risk-versus-reward analysis the numbers don't add up.

Even with my worst-performing WSO, I was able to double my initial investment (and then some) by simply participating in this forum and giving valuable feedback / advice to others.

For higher dollar amounts where the risk is greater compared to the potential return, it would make more sense because of the higher cash outlay, but for a small amount like $20, it just doesn't make any sense.

Here's something else to consider: even if the WSO didn't make it's money back, there would certainly be lessons learned that would make the next WSO much better, and to me, those lessons would definitely be worth more than the initial investment. And if you managed to start building a small list that you could build upon...........see where I'm going with this?

RoD

To be honest if they WSO is high quality I would rather risk the extra $20 and keep 100% of the profits myself.
Unless of course the JV partner is brining something more to the table than $20...like a massive list.

The thing is, the OP is highly loss averse. Which essentially means that his expected disutility from a small loss outweighs his expected utility from a large gain in this case.

If you're worried about spending $40 over $20 you shouldn't be doing WSO's in the first place.

That's my honest thoughts.

Tim

Sorry, I think this idea is insane. A WSO is only $40 and to give someone half or even 10% of your profits because they paid $20 of the $40 is a bad business decision unless you plan on creating crappy products.

I know there are some awesome WSO's that don't sell for whatever reason, and in those cases you would only be out $20 instead of $40 if you did this however, I think you would lose far more money in the end to do this. $40 is a drop in the bucket and you should keep all the profits.

Personally, I would not take on a partner that gets 50% of the revenue for a product I worked hard to create, just to save $20 worth of risk.

Instead, use a partner that will provide value to your project. Perhaps you are not good at sales copy, you could find a good copywriter that will write a killer sales page.

Maybe you lack in graphics, you could find a graphics guy to do all of the work for you.

If you are going to take on a partner, make sure he/she is adding value to your project, not just a measley twenty bucks.

Also, if you did go this route, the JVZoo affiliate process you described is flawed. JVZoo has a JV partnership feature that allows you to automatically give a percentage of the revenue to your partner or partners (up to three).

I think it will be a great idea for free WSO

no worries since they both are not making money out of it

If I didn't think I was going to make a good chunk more than $40, I don't think I'd do it. Not that I have to make tens of thousands to do it, but I mean, even if I only end up making $500, I'd want to keep all the money, not half of it, so I see the difference of risking $40 versus $20 as very minimal.

*This is all based solely on the risk of the 20/40 dollars. There might be other reasons why you SHOULD partner on a WSO, but that didn't seem to be the scope of the original poster.

Looking at this another way- if you see spending an extra $20. as a RISK, then what sort of WSO are you even planning to create? With this mindset, it seems that you would not be willing to RISK spending money or time, to even create a quality product. How many WSOs, information products, etc. have you purchased, to educate yourself on marketing and all the rest, to even have the ability to create a product worth purchasing?

With all due respect to the OP I understand that to some(most) people the idea of losing something is more motivating than the idea of gaining something ie. example:

What would you prefer:

a)To have a third arm.

b) To NOT lose your right arm.

In this example since we dont know first hand what the benefits of having a third arm are like it is not so appealing to anyone. In case B we all know how valuable a limb can be so we grasp onto it with all our might.

That is the power of fear and why it moves and controls masses. we are more motivated by a loss than a gain.

So our friend over here has the same dilemma, potentially lose $20 instead of gain 100% his profits.

When in fact a more logical or business oriented focus should be fear of potentially losing thousands on his wso if he would give half away to his jv.

Sorry bt, you were clearly looking for agreement and validation. Instead, you got a bunch of Warriors doing their best to help you, but you REFUSED, flat-out r-e-f-u-s-e-d to take that help.

You don't get it. I don't think you will ever get it, but I truly hope it eventually dawns on you.

Get your head clear.

Stop being negative.

Get rid of the losing mindset.

I hope that NOBODY is foolish enough to give you $20. I wouldn't. Why would I invest my money on someone who doesn't get it? Why would I invest on somebody who's so afraid to fail that they can't think clearly?

If somebody gave you the $20, and then said they could get you 1,000 sales...BUT you would have to spend another $20 of your money, would you?

Your business sense is seriously lacking, my friend, and we have done what we could to steer you in the right direction. Like I said, you weren't really looking for help, or advice, you were looking for agreement, and if that's the case...why start a thread at all?

All the best,
Michael

AHA!!!!

I got it figured out.

bt mentioned that he is quite savy [sic] at internet marketing, so let's run with that. This entire thread could be a clever pre-launch drumming up of curiosity about his future WSO.

That HAS to be it, becasue I simply can't believe the other stuff he's said.

Well played, Sir. Well played, indeed!



All the best,
Michael

What If your WSO Hit The Goldmind? Splitting 100k might give you a heart attack...

I think you should wait untill you can AFFORD $40? huh :confused: to launch your BUSINESS...

If you're not willing to invest $40 in a WSO then you shouldn't be running one.

Start in your sig make $20. Run a classified for $20. Then take that money and run your WSO. No risk at all.

George Wright

Let's look at this from another angle.

You aren't paying for SALES. You are paying for VIEWS.

When you post a WSO, you are paying for advertisement. And trust me, that advertisement will deliver.

You aren't risking anything. You are paying for eyeballs. And you will get eyeballs.

Whether you make any money on those eyeballs or not is a different story.

But ultimate, it's not a risk, it's an expense.

In any event, folks, let him go his insane route just once. After he makes profit and see's that money go out the door, realize that this guy/girl did jack squat and made 100 or 1000+ bucks, and he gets to manage customers, write the sales page, make the product, manage the thread...he'll change his mind pretty quick.

If not - he really is nuts.

Rob

I think he will fight to the death to defend the position... even if deciding later on his own that he was wrong. My point was that it would hardly matter how much money you make, the $20 you would save is just not worth losing 50% of the sales.

Again though, there might be some other strategic purpose to a JV for a WSO... but saving $20 is just a horrible reason to do so.

Personally i feel that WSO creator invests much more than $40. Hence $40 should not be a issue with quality wso creator because it has weight in gold.

Does anyone need $20 from me in exchange for 50% of their profits?

Just raise your hands, I got $2K to invest.

I think he might be onto something....

For Maximum Effect...Do This!

Get Someone to pay for the whole $40 and
give them 100% of the profits.

All Risk Removed!

I would be more than happy to pay $20 to get 50% of profits.

If anyone wants to do it PM me!

I would love to take that offer! If it's a great product! I would put up the entire $40 dollars! You can always know if your product will sell if you do your market research and your product, solve a problem.

I think if you have a solid plan and a great product you should get the shot paying the $40. Unless there is a strategic reason for a JV, the risk is minimal and the reward can be great. So in my experience risk is part of business, and that is the reason why entrepreneurs can make great incomes.

I like it!

Now...you just need a paypal account where you both put in 50 percent of the bump fees and voila, finished idea!

It really amazes me to see people struggle to make money on the internet since every single site I has ever created has always made money. I just do not have the time or spirit to keep creating them anymore. Plus I have a full time job where I work 14 hours per day and my successful sites make money automatically so I know longer need to focus on new sites but to try and enjoy life now.