Money Goals: How to Turn Your Money Goals Into An Activity Plan That Flat Out Works
This is probably one of the most PRACTICAL and DOABLE newsletters you'll read from me.
First of all, if you shared or liked one of my past few newsletters and didn't get the PDF go back and check now. I initially forgot to put the code in for the PDF. But I fixed it quickly. They all work now. And yes, miraculously, I have the PDF here:[sociallocker id=”4862″]http://marlonsvideos.com/mmm2/IncomeMethod.pdf[/sociallocker]
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I'll start by saying I got the idea from a fantastic book called Ready, Set, Sell by Don Mastrangelo, which is actually a book for sales people. And if you own Book of Secrets, you KNOW how I borrow ideas from other industries and fields.
Don trains sales people who are brand new to selling.
He developed a method to translate your lifestyle goals into sales goals. And from sales goals into a specific activity plan. Here is why this will help you:
1. Without it, you'll lack the motivation to follow through
2. You won't have an urgency for what you want to accomplish in a month
3. You'll bounce from thing to thing without any real plan
What Don found was that most sales people just had a goal of “make cold calls and get sales.” They didn't have any real big picture. He developed a formula that said for every 100 contacts with potential decision makers, he'd get 4 hot leads and 16 warm ones. The hot leads should buy within 30 days. The warm leads go into follow up.
With this knowledge, a sales rep realizes it's a numbers game and doesn't get so discouraged by no's. He also found that only about 20% of sales reps would stick to their activity plan. Then they'd wonder why “it wasn't working for them.” When he checked their numbers, he found out it wasn't the system, it was simply that their activity level wasn't on target.
To translate this into Internet marketing, requires some tweaks.
1. Translate Lifestyle Objectives Into Monthly Money Requirements
Example. You want to take a vacation with your family this year that will cost $5,000. Divide $5,000 by 12 months and you get $416. Call it $400 a month.
Let's say you have a $7000 balance on a credit card you need to eliminate. 7,000 / 12 = $583 per month
You want to buy a widget that costs $1500. Divide 1500 / 12 = 125 / month
Just as an example here are some numbers. You obviously need to plug in YOUR numbers and translate them to monthly requirements.
* House payment: 1800 / month
* Food: $500
* Car: $500
* Vacation: $400
* Pay off debt: $600
* Insurance: 200
* Health insurance: $300
* Buy new laptop: 166 / month
Right there we have $3516 but the list isn't complete. Let's say you total up your lifestyle objectives and they come to $8,000 / month. Yours may be less or more.
2. Translate your monthly money requirements into sales objectives
We know you need 8 g's a month. Fair enough.
Next you need to figure out how much stuff you gotta SELL in order to give you that income.
First let's assume you have your OWN products AND you have sales data. Don't worry. If you have no sales data at all, I'll show you what to do in a second. Just hang with me.
a. Add up total number of purchases for a year or however many months of data you do have.
b. Divide by your number of sales for the year or the number of months under consideration.
c. That gives you the AVERAGE $ amount per purchase.
For example, if you had $50,000 in sales and 714 transactions total, you divide $50,000 by 714 and you get $70.
Goal: $8000 / month
Average sale: $70
Divide $8000 / 70 = 114
To hit your sales goal of $8000, you need 114 sales per month. That is 28 sales per week.
HOWEVER, you don't NET $70 per sale. If you run an affiliate program as your main source of new customers, you *probably* net out an average of $50, meaning that 30% go to commissions. The reason is, even though you pay out 50%, you sell some products that don't pay a commission. You also have sales based on word of mouth and referrals.
You need to calculate this for YOUR business. In general, it'll run 15% to 30% commissions as a % of gross sales.
In this case, we'll use $50 as the figure. $8000 / $50 = 160 sales needed
You also have to take into account overhead and such. If your business has a 50% overhead, you need 160 sales x 2 = 320.
How to Run The Figures If You Have No Sales Yet
What do you do if you have no numbers yet?
You can ask others in the business what their averages are. Or you can just make assumptions and see how they play out. If you're selling one product that is $100, it's pretty obvious your average sale will be $100. If you sell a $10 product on JV Zoo and pay out 100% commissions, you don't count those sales since you net nothing.
But let's say for every 100 buyers you estimate 10% will sign up for your recurring billing coaching @ $100 a month that you pitch after the launch via a webinar (which means you owe no commissions).
Your unit of sale would be $100.
How to Translate Your Sales Objective Into Monthly and Daily Activities
In the above example, we guestimated we need 320 sales a month that net us $50 but also provide an extra 50% towards overhead. Fair enough.
Goal: 320 sales per month
Think about this:
1. If ou have 100 sales a month from your list by DEFAULT just from promoting your standard things and affiliate products with broadcasts
2. If you have 100 sales a month from a membership / recurring billing / widget of the month
3. You only NEED 100 new sales per month to hit your goal, and this is pretty darned easy to get, as you'll see
You can pretty easily make 100 sales from a really, really mediocre product launch only promoted by 1-3 affiliates. That's something people do every day on JV Zoo and the Warrior Forum. It's not even a particularly good result.
And you can do the SAME thing from paid media or an affiliate program outside the Internet marketing niche.
Let's Drill Down Further
It's really not that hard to create and sell a $49 product. I'm not saying you can do it with little or no skill and a halfway effort. I'm going to assume you know that in business, you've gotta be good at whatever you do. Having said that, thousands and thousands of people have created and sold $49 products and much higher.
If you dispute that, sign up as an affiliate on JVZoo.com and on the Warrior Forum. Their sales figures and conversion percents are public information.
JV Zoo just hit $100 MILLION in sales. So if you're the skeptical type, it's ok. But get over it. There's 100 million in sales that says it CAN be done by normal people who aren't exactly rocket scientists. Talented? Many are. Hard working? Some are. Rocket scientists? No.
Enough said. You do NOT have to launch on JV Zoo. If you're in a non-IM niche, you use affiliates. Or you can accomplish the exact same thing by buying ads.
Now, hitting 50 to 100 sales on JV Zoo or Warrior Forum isn't exactly a hat trick. True, some people launch stuff that only sells 10 copies. But there are also a lot of people that sell 250, 500, 1000 and more copies. If you're chosen as JV Zoo offer of the day, that'll probably give you an extra 250 sales right there. Every single day of the month people are doing 1,000 units in sales. Again, all the numbers of public info, so I don't expect you to take my word for this.
Let's say you launch ONE product a month that brings in 100 sales. You now have 100 buyers you can make other offers to.
Do that for 6 months in a row and you have 600 BUYERS.
What you do is start running some numbers:
* 100 sales from launch
* 100 sales from buyers list broadcast emails
* 100 sales from $50 a month membership site / coaching program / widget of the month
There are your 300 sales right there.
Let's say you have a $500 product and sell SIX copies the whole month.
6 x $500 = $3000.
That leaves you with needing only another $3000.
$5,000 / $49 = 102
Now you do one launch that is pretty darned average and you do 100 sales, 200 sales, 300 sales. You crush that number.
Or maybe instead of a $49 a month membership site you have a $300 a month coaching program. One of my friends pushed launches hard the past 3 months. From his post launch webinars, he has 85 people on recurring billing @ $300 a month = $25,500 per month.
Here's a Scenario For You
Let's say you've launched one product a month for 6 months.
You now have by DEFAULT 3 sales a day from your list. That is 100 a month.
Now you only need 200 more.
You could have 100 @ $50 / month.
That leaves you needing 100.
You do a very, very average launch that only does 100 units and you met your goal. Plus, you'll put 10% of 20% of those onto your monthly program. As you get BETTER, you might find yourself doing 200, 300 or 500 units a month on your new product launches.
Does that make sense?
If you follow launch groups, you'll see BRAND NEW people will OFTEN do 500 or 1,000 units on a launch. Again, I'm not talking something here that normal, reasonably average people don't do almost every day.
That does NOT equate to being lousy at what you do and making it. You have to be SKILLED and GOOD at what you do. This is a given in business. I don't care the business. There just aren't many businesses out there where you can be BAD at what you do and survive and thrive over time.
But the SAME is true for jobs. If you SUCK at your job, you probably won't keep it for long. Even people working at a fast food job get fired if they suck *too* bad!
If over time you develop your relationships with affiliates and you work your way up to averaging 300 sales per launch AND you average $50 in NET sales per new customer 30 days (this is very doable), or around $70 to $150 gross sales per customer, you hit your goal.
If you continue to build some relationships with affiliates and develop better skills, you might start averaging 400, 500 or more per launch and crush your goals.
The thing to keep in mind on launches is the $ from the launch go to the commissions and affiliate prizes. It's PROBABLY a break even thing for you. HOWEVER, those people all go into your 30-day autoresponder sequence. AND in addition, while the buyers are still hot and love you, you hold a webinar and sell your $50 or $100 a month recurring billing something or the other. Could be coaching, a membership site, widget of the month, software access or service. Whatever that little ol' mind of yours can dream up.
How To Accomplish The Same Thing Via Paid Ads
In the Internet marketing niche, the ONLY people I personally know getting new customers from paid ads as their main source of new blood (new customers) are selling big ticket coaching programs. I've seen people claim otherwise but my research showed they weren't actually doing it as they said. There may be some guys or gals in the Internet marketing niche out there doing it. I don't personally know them.
I know John Lee Dumas sells a $1000 product from Facebook ads via a weekly live webinar. But most people are selling a $2000 up coaching program. I think this is because of the cost of clicks in IM are higher and the conversion rates are lower.
HOWEVER, in niches it's very different. There are often TONS of paid ads, banners and so forth available. And they're 10X cheaper than in the Internet marketing niche.
I have a friend running a very successful business off banner ads on only about 3 or 4 websites with decent traffic in his niche.
If you need 300 buyers @ $49 per month, and you figure you run the numbers. The average click through rate on banner ads depends on the country. But in 2013 (I just grabbed the first data I could find on Google) in America, the average rate of clicks was 0.08%.
I grabbed some data for 2013 that shows an average cost per click of .92, average conversion rate of 8.8% and average cost per conversion of $10.44. As a starting point, you can take industry data like that and run your numbers.
Your GOAL is to break even on your initial sale. Let's say the person opts in then goes to a $10 offer. You pay $1 a click, 40% opt in. On 100 people you spend $100. You get 40 opt ins. If 4 buy x $10, you get $40 back. You'd need to recoup the $60 on your one time offers (upsells) after they buy the $10 thing. You may have OTO 1 for $37 and OTO 2 for $97.
Your goal is to break even so they customer is FREE. If not, then you go into your email sequence to recoup the cost of the customer. At some point, those customers are free.
Then you run a test and find out how long it takes before you get your $50 profit.
As an example, let's say that after 30 days, you NETTED $50 from your banner ad folks.
It simply becomes a matter then of BUYING 320 new customers a month who you know will net you $50 after 30 days. If you mail the list every other day, that's 15 emails per month. At the end of the 30 days, those 15 emails need to produce an average of $50 per person.
You probably get them on a webinar and sell a $500 something or the other. You mail an offer for a $50 a month widget / coaching / membership.
You experiment with the emails and formula to hit your numbers.
What you KNOW is this:
For every 100 people, you need $5000 in sales. That could be:
1 $5000 coaching client
10 @ $500
100 @ $50
5 @ $1,000
How to Apply This To YOUR Lifestyle Objectives
a. Make a list of your income needs
b. Translate those into monthly $ amounts
c. Translate the monthly $ amounts into a sales objective
d. Brainstorm a list of ways you could meet the sales objective
If you don't have figures based on your own experience, ask others, look at industry averages and make an educated guess. At LEAST you have a starting point and clear goals.
e. Track your sales objective
If you don't have sales yet, you may start by tracking opt ins, THEN start tracking daily sales as they come in. If you ALREADY have sales coming in fairly often then keep a chart that tracks your daily SALES vs. your objective for the month. That way you know on X date you have 63 sales and you need X more to meet your goal for the month.
This is how you keep your FOCUS. Of course, if you're using the Profit Planner, you're also tracking your customer value as well as # new customers. But if you don't have that or don't WANNA GET IT or whatever, then just stick some paper up on the wall and create a tracking system.
f. Translate everything down to daily activities
If you know you need to launch a new product monthly, then this has to translate INTO your weekly and daily activities. In the Profit Planner I call these injections. And we keep a list of the top 10 injections each month. But however you do it is good. You just have to translate things into daily ACTIVITIES.
g. If you're not coming close to making the sales you need, then FIRST make sure you're doing the ACTIVITIES required. If you ARE and it's still not working then THIS is what you do…
Normally, a new sales goal or a sales goal at ALL requires SKILLS and KNOWLEDGE. Figure out what it is you don't know or what you know HOW to do but haven't practiced enough to acquire the skill. Getting the knowledge or skill becomes your most critical GOAL for the month. The question you have to answer is if your issue is a lack of the activity needed or is a skills and knowledge gap. A lot of times people *think* it's a knowledge or skills issue and the flat out truth is they haven't met the ACTIVITY goals.
If you have a goal that is a stretch, then part of it is what knowledge do you need to get and skill do you need to develop to REACH the goal. Hopefully this is fairly obvious and apparent. You need knowledge and skills to DO the activities it takes to generate the SALES you need to create the INCOME that funds your LIFESTYLE. If you have no desire to obtain new knowledge and skills, you probably should look at doing self development because there's a gap in your understanding of cause and effect. Knowledge begets SKILL begets ability to generate sales begets ability to meet income goals begets lifestyle.
PS: Your likes, COMMENTS, Facebook and Twitter shares are GREATLY appreciated and noticed! It'd be interesting if you shared what you came up with as your monthly income need, and your monthly sales objective.
RESOURCES FROM MARLON
Book of Secrets: This is a collection of some of my best all time marketing secrets. Great reading!
The Road Not Taken
Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other, as just as fair,
And having perhaps the better claim
Because it was grassy and wanted wear,
Though as for that the passing there
Had worn them really about the same,
And both that morning equally lay
In leaves no step had trodden black.
Oh, I marked the first for another day!
Yet knowing how way leads on to way
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I,
I took the one less traveled by,
And that has made all the difference.