Internet Marketing CalcWiz
IM CalcWiz: The Missing Link
If you know how to put up internet marketing campaigns but are not making a lot of money yet, it is probably because your math is off!
Think about it: You have spent a lot of time learning the ropes, you really know your stuff. Sure there is always room for some tweeking and improving, but this will not change the results.
The reason why you are not making (enough) money is that your campaigns are fundamentally losing propositions. They cannot make money!
[column]And the reason for that is: There are hundred thousands of people all over the world that are trying to optimize their campaigns. Although the vast majority is making the same mistakes as you are, there are a few that know exactly what they are doing. They go after the few fundamentally sound campaigns and melk them with all their might. That leaves the other campaigns that never will be profitable for all the other marketers – for us.[/column]
Why do we put up campaigns that can never be profitable?
Good question! The answer is simple: we don’t know any better. We don’t know that a campaign is not profitable, and it takes us far too long to find out.
That is where the successful marketers are different. They have one skill that separates them from the unsuccessful marketers: they have the math figured out!
The successful marketers
- know how to weed out unprofitable products in an instant,
- know the exact break even point of traffic cost
- know which aspects of their campaigns to tweek in order to change “o.k.” into “great”
And What is the Secret Key that Distinguishes the Successful Marketer From the Rest?
It is math!
The successful online marketer is either a very skilled mathematician who lives in a world of numbers and formulas or he has a tool that does all the numbercrunching for him. I will present a live example a bit further down this page, that will demonstrate the complexity of questions you need to be able to answer in a few heartbeats. If you can’t, chances are you will never bother to figure out the answers and that will simply take you out of the equation of successful online marketers.
So What Goes Wrong When We Miss the Math?
Simply put: everything!
- We don’t pick the right products that have a chance of being profitable.
- We pay more for traffic than the campaign could afford.
- We don’t know where our campaign goes wrong. If we knew we could change that part and fix it.
- We lose far too much time building campaigns that are condemned to fail from the very start.
And there are two more very important consequences:
- Vendors are in a position to offer commissions that are too low to ever be profitable, because there will always be enough affiliate marketers that promote a product even if the math does not work out. That sets the market for the vendors too low in general.
- The cost for traffic tends to surpass profitable cost limits. As there are so many marketers out there that are willing to pay any price to get some traffic, traffic cost increases. While marketers that are paying too much for traffic will not be able to sustain their business model for a long time, there is constantly an influx of new marketers not knowing any better and picking up the traffic from their failed predecessors.
So, in other words,
- the market for traffic and commissions is inefficient.
- It is biased to the disadvantage of marketers.
- If you want to make money in this kind of environment, you really need to stick out of the crowd and know what to go after.
And the only way to know is by getting your math correct!
IT IS TIME YOU MADE SOME DECENT MONEY! The likely reason why you are still spending more than you are making is because
You have mastered most of the skills required to launch campaigns?
- You do proper keyword research.
- You find a niche, and
- a product you want to markekt.
- You have created a website or a squeeze page and write copy pretty well.
- You know many traffic sources, some “free” others paid
- You have perhaps already ventured into PPC (pay per click), PPV (pay per view), and media buys and have launched advertising campaigns with several different sources.
Still: No joy! Your campaigs don’t pay off.
At the beginning for a long time you did not make any sales. You may now get some conversions, but they still don’t pay for your advertising or your time.
Why is that?
Let me make this very clear, even put it black on white:
You don’t make any money yet, because Internet Marketing is both
- Trial and Error
(test and retest many combinations)
- and an exact science
(because “make perhaps some money” is simply not gonna cut it)
A lot in life – whether we want or not – is math. And I am willing to bet my reputation that nobody has taught you properly how to figure out the underlying math in Internet Marketing.
Once you have the skills to create internet marketing campaigns, the next step is math, accurate and correct numbers crunching. There is now way that leads past it. Every successul marketer has this knowledge under his belt and applies it vigurously to any and every decision he takes.
The basic concept is really simple:
- Go where there is traffic.
- Wave a flag (or an ad)
- and pull traffic to your offer (directly or indirectly via a preselling page).
- Then convert that traffic into actions that benefit you.
The basic math is really simple as well:
- pay for traffic (remember you also pay for free traffic through your work and love)
- convert that traffic into money.
- When you make more than you pay, you have yourself a successful campaign.
The aspiring online marketer gets easily lost in the soup.
There is the jargon to deal with and the acronyms: from Pay Per Click to Click Through and Conversions Rates and from Cost per Mill to Earnings Per Clicks. Even if you know what they mean, are you absolutely positive you know how they interrelate?
And – yes – there is the math. While it may be easy for you to calculate certain formulas, turning them around in your head quickly to find out the absolutely essential information about whether or not to spend your time and money on a particular new campaign is much more challenging.
Let me present you with a concrete example, so you know what I mean
Try to follow the example and test yourself. Would you know the answer? Would you even know how to find out the answer?
But would you at least agree, that having the answers to the following questions, will be detrimental to the success of every one of your online marketing campaigns?
You will find the solutions to the questions right behind each question in parantheses. See whether you come to the same conclusions.
For this example, let’s assume, you put up a campaign where you get paid $20.50 for each time a visitor to the vendor’s website submits his mail-address. The offer converts at 0.96% (about 1 out of every visitor to that site submits the mail-address.). To get traffic, you advertise with Google Adwords and pay an average of $0.35 per click.
- Does it matter what the CTR (click through rate) is that you get with Adwords? (No. You pay Google for each click. However, if the CTR gets better, Adwords will give you better pricing.)
- Can this campaign be successful? (No. You pay more than you get.)
- How much are the EPC (earnings per click)? ($0.197. Notice: you pay 0.35 but receive only 0.197).
- What would you need to change, so that the campaign could be successful? (Decrease the CPC by getting a better quality score, change to CPM advertising, increase the conversion rate)
- O.K. So, what is the maximum CPC you are willing to pay? ($0.197 will break even.)
- If you changed to CPM and further assume a CTR (click through rate) of 0.05%, what is then your maximum CPM you are willing to pay? ($0.098 will break even.)
- Let’s say you get close, the average CPM is $.13. What does your CTR now have to improve to, if you want to at least break even? (0.066%. Now you know why split testing the add is so important. A CTR of 0.05% will lose money, CTR of 0.1% will make you money.)
- Exactly how much money will you make, when you indeed manage to increase your CTR to 0.1%? Assume you get 50’000 add impressions per day. ($3.34 per day, earn $9,84 in commissions (average) and pay $6.50 in advertising)
- This is not enough? You would like to make $100.- in net profits per day? How many add impressions do you need per day at the same price? (1’497’006 ad impressions.)
- But if you up the ad impressions like that, how much do you actually spend in advertising each day? ($194.61)
- Assume that your commissions are held back for 30 days and you get paid 30 days after that. You therefore accumulate advertising cost during 60 days until your commissions come in. How much money will you be out before the commissions covers your outlay? ($ 11’676.65)
- Are you putting this advertising on a credit card? Do you have to pay interst and finance charges? So how much is the cost for financing the advertising, assuming an average interest rate of 10% p.a.? ($ 97.31 assuming a regular increase of the balance during the 2 months. The financing cost per day is therefore $1.62 and your net profit $97.31 per day.)
- So what do you make net per month on this campaign? ($2951.35)
- Is this a worthwhile campaign? (Yes, absolutely, if you have the $11’676.65 to finance the advertising, you will get paid royally.)
- So why not melk this campaign to all it is worth. Can I make $1000.- from it? (sure)
- How many ad impressions do I need now and how much will advertising cost me during the 2 months? (Now I need to find almost 15 mio. impressions per day. So I know I definitely need to move into some heavy duty media buying, and I also need to talk to the advertisers, to get a credit line, because I won’t be able to stick the $117’000 in accumulated advertising on my credit card…)
Would you agree now, that these are questions worthwhile answering when preparing a campaign?
Would you agree that knowing the impact of a trivial change of a few decimals in the CTR is important?
So, what do we learn fom this every day example?
Once you pretty much know how to create and run an internet marketing campaign, it is really time you work the math.
And How Can We Make you an Internet Math Wizard?
No, you don’t need to learn the formulas by heart and you do not need to program a spreadsheet. We have done that for you.
This product does the math for you, – all from A to Z