Wanna know how much money you’ll make in 2009?
Punch in these 2 numbers on your keyboard calculator.
1. Revenue from your marketing
Revenue/costs = magic ratio
In a second, I’ll tell you how you can guess a magic ratio and
win something neat….
So one of my friends sends out direct mail offering a free
People request the book and he sends it.
To GET the person to request the book AND to send it out all
costs himm $15.
4% of the people who GET the book spend $4,000 with him because
the book sells a software program in the back.
Here’s how it works:
100 books sold x $15 cost of acquistion = $1500 spent
4 orders x $4000 = $16,000
Now, you take revenue/costs.
$16,000/$1500 = 10.66
That is the “magic ratio.”
REVENUE/COSTS = MAGIC RATIO
For ever DOLLAR he spends on marketing, he gets back $10.66.
That is your business slot machine.
You put a buck into the slot. And you get back $10.66.
How many times you wanna do that in a month?
My friend does it enough to bring in $100 g’s a month in revenue.
He doesn’t want to manage a business any larger than that although
he easily could.
Now, to the people who request the book, he sends 7 back-end offers,
3 for recurring billing services.
So he has automatic bux coming in also.
But here’s my point.
Do you know your magic ratio? If you do, you have a magic key to
the lifestyle you want.
You may have your head swimming with confusion about WHAT the heck
to do in this new year to pay bills or grow and expand or create
the lifestyle you want.
You may ignore almost every email you get because you’ve been
dissapointed because something didn’t work for you.
You may just not know if “this Internet deal” will work for you
or it’s a pipe dream.
You may have retirement staring down at you and wonder where
the bux will come from.
But get ALL THAT out of your mind. Dump the skepticism. Dump
the worries. Dump the past experiences.
Here’s all you need to FOCUS on — getting a magic ratio going
Now, you need to know your MINIMUM magic ratio. What’s the minimum
number you need to end up with when you divide revenue by costs
for a marketing campaign?
So let’s say you spend $100 on an ezine ad. How much do you need
to get back in LIFETIME VALUE of the customer over a period of
So if you spend $100 on an ad, how much do you need to get back
over the period of a year in customer purchases for it to be
worth your while?
What’s the minimum you should shoot for to grow a healthy
Post your answer and I’ll select the first right answer and publish
your name and url in my email tomorrow!
Submit your answer by 7:30 a.m. CST January 9, 2009.
Void where prohibited. No purchase required.