Here is one of the most common reason people fail at building a successful marketing campaign! If you want to avoid a lot of pain and loss of money on testing advertising check this out:
I want to share with you for free 100% one of my tools that I use in my business which helps me tremendously in establishing a successful marketing campaign by calculating and forecasting key money numbers that will ensure success.
It’s very simple if you’re NOT doing this you will most likely fail at building a successful online business, so sit back relax and lets dive in together.
I know your smart enough to understand that making money online is just like in the real world which at its root involves the trade of money for value! A visitor to your website will eventually have to give you money in exchange for some kind of value weather it’s affiliate product or your own regardless if it’s a physical, intellectual, or some kind of service … this has to happen in order to create profit.
Now you can imagine you have to have visitors before any sales can happen … there are two ways to get traffic. First, there is FREE traffic which takes time to develop because you would have to spend countless hours implementing SEO tactics which can take weeks, months, even years before seeing results … and even then all the hard SEO work can be completely wiped out by the search engines changing their algorithm. If you think about it’s really not FREE traffic anyway because as the saying goes “time is money” and how much time are you spending on all these SEO tactics?
The Second method is paid advertising! Paid advertising is great because you can see results literally overnight, but the problem with paid traffic is … well … it costs money, and if you’re doing it like most people trying to start a business online you’re probably doing it wrong and failing because you’re spending money with out seeing result’s!
Here is what a failing advertising campaign looks like … someone will buy traffic online from a service like facebook or google for example and then send that traffic to their sales page in the hope of making a sale to make a profit. But what usually happens is they will not sell enough of what they are selling to cover the advertising expense.
To illustrate this here is the tool I mentioned about at the beginning … It’s FREE to download so click and download it and use it in your business, I use it to forecast the key metrics that I must achieve in order to have a profitable advertising campaign!
Whats really cool about this excel spreadsheet is that all the formulas are built in so when you change a metric and it will reflect through out the spreadsheet from the initial campaign to the follow up all the way to the bottom line. The advantage of this is being able to see and forecast where you can make changes to turn a losing campaign into a profitable one!
For example, someone will buy advertising form Facebook let’s say at a starting budget of $10 per day to test a campaign, and they might achieve a $0.15 CPC (cost per click) which is kind of a really good number to achieve … and it all varies on what’s good … depending on the market, competition, audience etc. I for example have ads continuously running since May last year and it’s almost February now some are getting as low as $.07 CPC and some are getting over $1.00 CPC in various different niches Aviation, Photography, Business… to name some… But that’s what this spreadsheet is all about! Ok, so now they take this traffic and send it directly to a sales page that converts at 0.20% (because it’s cold traffic) for a $47 product. Calculating all the math this results in a negative ROI (return on investment) -37% to be exact . Now, this is a loosing campaign because you are not making enough sales to cover the advertising expense. It’s a sinking ship even if you improve some of the metrics it’s won’t be enough to see a real substantial profit! This is where most people fail … they stop here!
In contrast, what a successful marketers will do is implement a follow up campaign! They will send that traffic to a lead capture page instead which might convert at 30% and then send them to the sales page which really results in less traffic seeing the sales page initially and maybe even getting a worse ROI -81% for this scenario! But that’s OK, because now you’ve captured that traffic as a lead and are able to follow up with them to build a relationship. If this is done right the result is higher conversion rates at you sales page because there’s a relationship now … not just cold traffic!
So that’s how, a losing campaign has turned into a profitable one … 110% for this scenario with a 7-10 part e-mail follow up at standard open and click-through-rates! At this point when this is achieved the problem really becomes just getting more traffic … increasing daily budget for example because you are getting a positive Return on Investment at 110% ROI you’re doubling your money … for every $1 dollar spent advertising you’re making $2 back!
Changing your daily budget form the $10 to $100 now turns $4000 per year to $40,000 per year in profit … which is a real income!
This is how it’s done … the key is in building a relationship!!!
That’s it thank you click on the link go download this spreadsheet and apply it to your projects if you haven’t done something like this before! I realize this video goes fast and some of you starting out might not know all these terms but don’t worry because there’s another instructional video covering how to use this spreadsheet in detail.