How To Spend $2 To Make $1, And Be Happy About It
How could anyone spend $2 to make $1, and be happy about it? And yet, I am going to describe exactly that situation where you will not only be happy about it but more like ecstatic.
Step 1 – Spend Two Dollars ($2)
In this first step you need to learn how you spend the two dollars. What you are going to do here, is set up an advertising campaign using pay per click (PPC) advertising and spend that two dollars with that campaign.
Step 2 – Make One Dollar ($1)
When you get someone to sign up for this particular program (more on this later) and they fill in their profile (takes two seconds) you will get paid one dollar. It’s as simple as that!
Step 3 – Don’t Worry, Be Happy!
So you spent two dollars and you made one leaving you with a loss of one dollar. And I am asking you to be happy about it! So what gives? How can I possibly be in the right frame of mind and state that you this situation could happily exist? What kind of funny juice have I been nipping at? 🙂
Consider Residual Income
Here’s the twist that should set your mind at ease. When you spend the ad money and sign somebody up and make that dollar, you set yourself up a future potential for those people to upgrade to premium membership which they pay monthly and you get half of that every month for as long as they continue paying the premium membership. Do you see now how this scenario could play out where you would be quite happy?
Is It Really As Simple As This?
In theory, the mechanism to make this happen really is that simple. But in reality, not everyone that signs up is going to go premium. So you have to figure out how many people you can spend that net dollar on in order to make the campaign profitable. Oh, and there is another wrinkle that you have to be aware of and that is not everyone that clicks on the ad is going to sign up. But the good news is that your clicks are not going to cost you $2 per click – it will be more like 15 to 20 cents per click.
What About A Single Sale?
A recurring commission situation complicates the metrics of ad campaigns because you have to figure out what the retention rate is for the program you are promoting. This is usually an average over time. For a single sale, the metrics are much less complicated. You simply figure out if you made more than you spent. So in the scenario that has been the theme of this article, i.e., spend $2 and make $1 would not be profitable for a single sale and you would abandon this campaign. If on the other hand, you spent $1 and made $2, you would keep that campaign going.
Why Should You Care?
There are two concepts at play here that you need to become more knowledgeable about before taking any action. But once you learn them, you could easily turn this scenario into a reality and start making some decent income for yourself. The first is to learn about a system that can earn you recurring commission. One great one that I have been a part of since 2009 is Wealthy Affiliate. The other concept to learn is pay per click advertising.