Let’s Run the Numbers
Trying to do “internet marketing” with no marketing budget is absurd.
Unfortunately, to do internet marketing you need a marketing budget.
Otherwise, you’re not doing anything.
NOTE: Using the internet as a communication tool to personally contact people, I would not consider to be “internet marketing.”
The way I see it, it’s either internet marketing or network marketing.
One way, you’re buying traffic, sending it through a sales funnel and collecting commissions…
The other way, you’re making contacts, communicating, qualifying them and inviting them to look at some information.
If you’re broke, you’re doing the latter.
If you have a budget, you can do the former, provided you are set up to actually convert visitors into sales.
It’s like this:
Say you have an offer that pays you $20 in commission for each sale.
You buy traffic, and you get a huge discount, so you get visitors to your landing page for about $0.50 each.
Say you order 2,000 visitors/clicks for $1,000.
2,000 visitors with a 25% lead-capture page opt-in rate = 500 new subscribers.
If you have the greatest sales video and sales funnel process in the history of the world and you can manage to convert, say, 6% of them into sales.
That’s 30 sales X $20 = $600.00 in commissions.
You paid $1,000 for the traffic.
Congratulations, you’re $400 in the hole!
And that is with an amazing 6% conversion rate (even Russell Brunson and Frank Kern don’t get a 6% conversion rate)!
More practically you’d be looking at a 1% to 3% conversion rate with a decent sales funnel.
Let’s call the reality 2%.
500 opt-ins X 0.02 = 10 sales.
That’s 10 X $20 commission = $200 income.
How many times would you like to spend $1,000 in order to make $200?
I’m guessing the answer is: Zero times, right?
But we’re not done.
You see, the average newbie doesn’t usually have an impressively high sales conversion rate.
There are a million variables, but you see where I’m going with this?
Have I completely discouraged you yet?
How do we fix this?
The easiest way to fix this is with POSITIONING.
Well, that’s what I call it anyway.
“You need bigger commissions, Dude.”
We work with something called an Ascension Model, which includes several optional up-sells (upgrades) after the initial offer.
You may have a $20 commission on your first offer, then a $100 commission on your next upgrade, and perhaps a $400 commission on your next.
$1,000 commissions would work nicely too.
In fact, at this moment that is exactly how one of our business models is set up.
The commissions ascend:
20 ==> 100 ==> 400 ==> 1,000
Does everyone buy the product that yields the $100 commission?
No, of course not.
And even less buy the next two, but some of them do.
We can’t forecast realistically if we’re being overly optimistic. We’ll assume fairly lousy conversion rates if we want safe estimates of outcomes.
Let’s run the numbers again.
You spend $1,000 for 2,000 clicks/visitors and get 500 new subscribers.
With your 2% conversion rate on the first product you get:
10 sales X $20 = $200.
And of those 10, four of them took the $147 upgrade which yielded another $400 in commission (4 X 100 commission).
And just two took the $497 upgrade which yielded another $800 in commission (400 X 2).
And only ONE went “all-in” and took the $1497.00 upgrade (which is a Hell of an incredible product, actually), which brought you another $1,000 in commission.
It was the same ad spend.
Same opt-in rate.
Same conversion rate on first offer.
But this time you earned:
200 + 400 + 800 + 1,000 = $2,400.
Your ads cost $1,000 and you earned $2,400.
Now you’re $1,400 in profit, aren’t you?
That’s a 1200% increase in return without making any more sales, without improving the conversion rate, just by being positioned.
But what do most people do?
They think, “Oh, I’ll just start with my $20 commissions and when I have earned enough I’ll think about upgrading.”
O… M… G!
Can you say “not-too-bright”?
That person never gets anywhere because they never spend anything on traffic, because they can’t.
Look, I don’t mean to offend any of you who have been trying to do it that way, but at some point someone will have to care enough to tell you that you’re fu**ing it up and keeping yourself broke.
I’ve seen people do stupid things like this for nine years straight without them ever figuring out what the problem is.
Why can’t they get ahead doing it that “economical” way?
Because no matter how much they spend, they will never make enough to cover their ad expenses.
Is this making sense?
The funny thing is I’ve been telling people this for like 10 years and still, 90% of them “know better,” and want to do it their way.
They aren’t making any money, and I keep showing my commissions pouring in (see here), but… they have a “better way of doing it.”
Folks, this isn’t a magical puzzle.
It’s very simple.
An online business takes a bit of money to get it going.
The first thing to do is to get positioned.
That means, put yourself in a position where you can actually earn on the upgrades that your company offers.
It’s those one or two upgrade sales that take you from a losing position, into profit.
So you put $1,000 in and get $1,001 (or more) out.
How many times do you want to pull that lever?
If you make just one more dollar than you spend on ads, you can just keep repeating that process forever and the worst that can happen is you build a massive email subscriber list for free.
Well, when you have a big email list, you can offer all sorts of things to them and generate tons of commissions from affiliate offers, even if none of those offers have anything at all to do with the product you were initially promoting with your ads.
The list is an income asset.
But we’re not striving to break even.
We’re striving to create profit on each ad spend.
That’s “internet marketing.”
I show you here the results that this can bring:
You can click here to get the full Insider’s Success Report for that income program. We’ve been using it for over three years, having $500+ days and $1,000+ days quite regularly.
In fact, the next morning after posting this very blog post I woke up to a $500 day just from this program. See:
And I promise you that I never tell you to do anything that I don't do.
You came to me for help.
I'm telling you what to do.
If you won't do it, I can't force you.
All I can do is point out to you what works, and what doesn't.
By the way, I mentioned earlier that your lead-to-sale conversion rate might be expected to be between 1% and 3%. I did a video a while back (see below) where I went through my actual conversion numbers for the same program I was describing above, and as you can see in the video, my conversion rate, on average, exceeds 7%:
That 7%+ is likely very exceptional. I really don't know. What I do know is that most internet marketers do not exceed 3%.
Network Marketing vs Internet Marketing
Network marketing is different.
It's far cheaper to start and takes time and work to promote, not necessarily money.
That's why people with no decent start-up capital end up joining network marketing companies most of the time. It's cheap to start.
Networking is about consistently building, and getting your team to consistently build so that over time you are earning from an organization of several hundred or several thousand, or even several hundred thousand.
For example, everyone brings in five:
Your five new members each bring in five more.
That's 25 new members, plus the five you brought in, plus yourself.
Now you have 31 people in your organization.
Those new 25 each bring in five and that's another 125.
125 ==> 625 ==> 3,125 ==> 15,625
Heck, that can happen in five weeks if everyone just gets to work and stops making excuses.
Following a, "five get five, get five, get five..." process out perfectly in theory (it will never fill out perfectly, obviously) we see that this, populated down to 9 Levels of our current network marketing program, pays out over $2 million per month in residual commissions:
**NOTE INCOME DISCLOSURE/DISCLAIMER**
Obviously, I'm not telling you that you would make $2.4 million per month if you enroll five people into your network marketing organization (or our organization). That is just a calculator that does the math. It's theoretical and hypothetical.
I'm simply pointing out that the Network Marketing business model has an entirely different focus from what most "internet marketers" are trying to do.
Do you see that that is TOTALLY DIFFERENT than the first "internet marketing" example?
These don't even seem like the same business to me, and I've been doing networking for 21 years and internet marketing for more than 10.
I like to combine them.
This way I can build a long-term network marketing organization with stable recurring commission, and I can still have enough income in the beginning to keep my life going.
And after all, why limit yourself to one income stream? I read recently that the "super rich" typically recommend at least seven.
Network marketing is based on each person using word-of-mouth to bring in a handful of contacts, who also bring in a handful of contacts, who also bring in a handful of contacts.
It's not about making 100 sales per week.
There are people in my organization right now who are holding very high-ranking positions in the comp plan, who only bring in three or four new members per month.
The world is full of people who say they want a better lifestyle, yet most of them are simply not willing to do what it takes, to take any risk whatsoever.
Entrepreneurs take risks.
That's why they get paid so much more than a wage-worker does.
If you want no risk, just have one income stream and make it an hourly wage-job.
You won't have any risk, but you'll be poor... forever.
Making money requires courage.
For those of you with a meager, or no marketing budget, click below to review the world's easiest networking opportunity: