08-08-2015, 08:22 PM
Stage 1 day 21
Another of those lightning bolt moments of insight…
My current project using free traffic in my email business is fine for these next 30 days or so, but I need to think bigger. How much bigger? I need to switch to paid traffic and a far more aggressive sales/ product funnel.
Sales come in through the front end, via my funnel, then that ideally pays off my traffic spend.
Let’s say $100 spent on traffic and $110 gained in revenue up front from my funnel. So that’s $10 profit immediately.
But that isn’t all. As I gain more subscribers I sell ad space in my newsletter. Each click would be worth roughly 40 – 65 cents, depending on the geo-location of the subscriber and whether or not they are a customer rather than just merely a subscriber.
As I brand myself more that 40 – 65 cents per click jumps to 65 – 90+ cents. If I have 10,000 subs with a tiny click through rate of about 1 – 1.5%, that means roughly 100 – 150 clicks to my advertisers.
If you do the math, that revenue and thereby profit, adds up VERY quickly and as long as I keep my front end revenue high in the profit zone, it won’t matter if I sell my advert clicks for 40 cents or $1.50. It’s all profit in that case.
I must admit that paid traffic used to scare me. I’ve only used it sparingly for my businesses. To be fair, though, my first business was in SEO which is all free traffic. So I sort of programmed myself to love free traffic.
This is a huuuuge step forward for me. I’ve only ever been the small guy in a big pool, but now I’m transitioning to be one of the big guys in the ocean. I’ll have to keep tabs over time (meaning a year and beyond) to see how this really pans out.
Another of those lightning bolt moments of insight…
My current project using free traffic in my email business is fine for these next 30 days or so, but I need to think bigger. How much bigger? I need to switch to paid traffic and a far more aggressive sales/ product funnel.
Sales come in through the front end, via my funnel, then that ideally pays off my traffic spend.
Let’s say $100 spent on traffic and $110 gained in revenue up front from my funnel. So that’s $10 profit immediately.
But that isn’t all. As I gain more subscribers I sell ad space in my newsletter. Each click would be worth roughly 40 – 65 cents, depending on the geo-location of the subscriber and whether or not they are a customer rather than just merely a subscriber.
As I brand myself more that 40 – 65 cents per click jumps to 65 – 90+ cents. If I have 10,000 subs with a tiny click through rate of about 1 – 1.5%, that means roughly 100 – 150 clicks to my advertisers.
If you do the math, that revenue and thereby profit, adds up VERY quickly and as long as I keep my front end revenue high in the profit zone, it won’t matter if I sell my advert clicks for 40 cents or $1.50. It’s all profit in that case.
I must admit that paid traffic used to scare me. I’ve only used it sparingly for my businesses. To be fair, though, my first business was in SEO which is all free traffic. So I sort of programmed myself to love free traffic.
This is a huuuuge step forward for me. I’ve only ever been the small guy in a big pool, but now I’m transitioning to be one of the big guys in the ocean. I’ll have to keep tabs over time (meaning a year and beyond) to see how this really pans out.
