How to make $200,000 per month profits from advertising on the Internet.
First of all you will need a product: what we have in mind is an
information product, similar to the printed guides available, of
which this is one. Add the number of guides also available on
computer disk and you have a choice of literally hundreds of
guides to choose from.
How would you normally sell these guides? By advertising
them in newspapers and magazines, using cheap classified
and/or display advertisments. For the sake of this example,
let's say you put together a compendium of information on
money matters: how to improve credit rating, removing
County Court judgements, money raising techniques,
offshore details etc, etc., and say the asking price is $50.
Improving their financial situation will appeal to a wide section
of the population.
Let us say you really went to town and spent $26,000 on
adverts on a national scale, advertising to magazines and
newspapers with combined circulations of, say, 13 million.
You use the "two-step" method of selling, whereby readers
are invited to send for a free report which is a type of sales
letter, whereby their appetite is wetted by the information
telling them how they will benifit from buying your financial
guide.
Let's say you get 10,000 replies: you invite them to ring a free
(to them) 0800 number which also quickens the replies
coming in and is convienient for them. What have you spent
so far? $26,000 for advertising, $24,500 for the 0800
telephone service (at $2.25 per call, administered by a
call-taking agency), $9,000 for the 10,000 "free report/sales
letter, bringing a total so far of $60,000.
Of those who requested the free report/sales letter, say,
2,000 people then ordered your $50 manual . The manual
costs $10 each to produce ($20,000), so that this excercise
has cost you $80,000 to promote. 2,000 manuals at $50 each
will bring in $100,000, or put another way, a profit overall of
$20,000. There are many if's and but's to the above, it's
merely an example - you could spend a lot on advertising and
only sell 1,000 manuals, in which case you have made a loss
of $20,000.
Now imagine, most of the overheads we have mentioned, like
$26,000 on advertising, $9,000 on the free report/sales letter
and $20,000 on the printing of 2,000 manuals no longer exist:
you are now faced not with a profit of $20,000, but a profit of
$20,000 plus $54,500 giving you $74,500. Even if you only
sold 1,000 and were facing a loss of $20,000, with most of the
overheads gone, like advertising ($26,000), free report/sales
letter ($9,000) and print cost of 1,000 manuals ($10,000), this
saving of $44,500 minus the $20,000 loss would give you a
profit of $24,500.
All well and good, but how would you possibly manage to get
rid of those overheads? The answer is advertising on the
Internet. The Internet is the internationl computer
communication network, and your adverts would be placed
on BBS's (Computer Bulletin Boards).
Some years ago a West Coast author was having problems
having his novel published and into the book stores. He had
the first few chapters "uploaded" onto a few of the local
BBS's, along with a small classified type of advert to
encourage people using the BBS's to "download" his novel
from the BBS's via their telephone link and modem into their
computers and read off the computer screen, or printer.
Bearing in mind this was a "freebie", thousands of people,
much to his surprise, "downloaded" his novel. After having
read the first few chapters and having had a "taste" of what
was being offered, when the computer readers came to the
fourth chapter, a notice came up on their screens telling them
the rest of the novel had been scrambled, and to obtain the
special code to unscramble the remaining novel, they should
ring this special telephone number and give their credit card
number for payment and the special code.
In two months, the author received over 100,000 orders for
the code. What did he charge? If he charged just $2, that's a
cool $200,000. The 100,000 codes allowed that number of
people to read his book, the equivilent of selling 100,000
novels, but without the cost of printing, finishing, distribution
etc. Now you can understand how it is possible to do away
with the overheads mentioned earlier, and how, with minimal
cost and hardly any risk, some serious money can be made.
In Britain there are over 1,000 Computer Bulletin Boards
(BBS's) and 60,000 in the English speaking USA. Imagine you
advertise on 10 BBS's and sell 25 manuals on each BBS in
one month - you have earned 250 x $50 = $12,450. Manage to
advertise on all 1,000 BBS's and sell only 4 manuals - you
have earned 4,000 x $50 = $200,000. Amazing. Whilst this is
just a mathematical projection it does illustrate the potential
of this system.
Some BBS's do charge between $20 to $30 per month to
carry an advert, most are still free. Compared to the cost of
printed adverts it is still very small change.
How to get an advert on the Internet? Look in computer
magazines and others like Exchange & Mart under the
Business Opportunity or Business Services section and
contact companies who can do the job for you on a monthly
basis. We think you will be impressed as to the relative,
modest costs involved. They can also advise you as to
whether you or a company service the set-up as far as
potential customers contacting you, or having a service look
after that part of the business.
As far as customers paying by credit card is concerned,
unless you already have a merchant account with companies
like Visa and Mastercard, it would be simpler to come to an
arrangement with a telephone answering company who have
themselvs a credit card set-up. Ask your bank or the card
companies themselvs as to what might be a suitable solution -
after all, you will be putting commission their way by
promoting credit card sales.
As regards the actual setting up and day to day running of
advertising on the Internet, you could either put a small
classified ad in a computer magazine or your local paper
asking for assistance. There should be no shortage of
computer literate people only too willing to display their
practicle knowledge in this subject, including the scambling
of codes, and at very modest cost.
