Hello everyone, my name is Clay Collins, and in this episode of the Marketing Show, I’m going to give you not one, not two, not three, but four mathematical formulas for calculating exactly how much your next marketing campaign is going to make you. But you don’t have to do math. I’ve got this spreadsheet right here that I’m going to give to you that does it all for you. That’s what you have to look forward to in this episode of the Marketing Show.
So in just a second, we’re going to get into today’s show, but before we do that, it’s time for today’s marketing quiz. So here’s today’s marketing quiz, and today, it’s about the fate of the marketing quiz. So we have a marketing quiz for you about the marketing quiz. It’s kind of meta isn’t it? It’s kind of meta, right James?
Okay. So here we go. What should we do with the marketing quiz? Should we, one: get rid of it. It takes out unnecessary time and it’s something that you want to go; two: you don’t give a crap. It doesn’t really matter to you; or three: you want it to stay. You love it so much and it should absolutely stay in the marketing show. Leave us a comment below and let us know what you think we should do with the marketing quiz.
So like I said before, I’m going to give you not one, not two, not three, but four mathematical formulas for determining exactly how much your marketing campaigns are going to earn for you, but you don’t have to know the formulas at all. This spreadsheet, which I’m just going to give to you will calculate that all for you. And we developed this in-house for own internal purposes and it’s yours today absolutely free for being a loyal viewer of the Marketing Show.
So how does this work? All right. Well, let’s just go through a couple of the formulas together. It’s really just plug and play. So here we have the spreadsheet. This one is for calculating how much you’re going to earn with SEO traffic. So let’s just go to product here. Let’s say your product is $100, okay. So you’ve got maybe $100 course on learning to play golf, and let’s say your sales page conversion rate – let’s just say it’s kind of – You know, let’s say it’s kind of low. Let’s say you only get half a percent, right. So only one-half of a percent of the people who visit your sales page end up purchasing it. So one out of every 200 people or half a percent purchase your product after going to your sales page.
Now let’s say you get 300 visitors per day to your sales page. So if your product is $100, your conversion rate on your sales page is half a percent and you get 300 visitors per day for messing your traffic, two, your sales page you will make 45 sales per month and your profit will be $4,500. So this is just a really cool tool to help calculate and estimate how much you’re going to make and how much you need to charge for your products in order to make the profit that you desire with your marketing campaigns.
Let’s do this for PPC traffic. That stands for pay per click traffic. So in Facebook or Google ad words, often, you can pay for people to click on your ads, and you pay a certain dollar amount per click. So again, let’s say this time, you have a $200 product, okay. Maybe this is the enhance version of your golf product. Let’s say again your conversion rate is about half a percent, so let me just edit this here. We’ve got a 0.5%, and let’s say your cost per click is – let’s say it’s $1.5, okay. If you are paying $1.5 per click for your ad, you have half a percent conversion rate and your product is $200, you were going to lose $3,510 per month on your marketing campaign.
So you can do a couple things. One thing you can do is you can get your conversion rate up. Let’s say you do a little bit better and you start getting a 1.5% conversion rate. Well now, you are making a profit of $10,530. That’s how important conversion is. It can take you without – any of the variable’s different – It can take you from losing a significant amount of money to making a significant amount of money, and all we did was add 1% improvement on the conversion rate of your sales page.
So in this scenario, 1.5 out of every 100 visitors to your sales page ends up purchasing. That’s what this calculator will do for you. Let’s say you’re doing media buying, and some of this might be alphabet soup. I’m just going to explain it for you. Let’s say your product is $47 and your sales page conversion rate is 1.5%. If you were paying $1 or let’s say you’re paying $3 per 1,000 impressions of your ad, and you’re getting 500,000 impressions per month of your ad, and 0.5% of the people who see your ad click. That means you’re going to get 2,500 visitors to your sales page, add your conversion rate which is 1.5%. That means you’re going to have 38 sales, which means your sales earning is going to be $1,763. The cost of that traffic however is going to be $1,500, which means that you earned $263 dollars.
Anyway, that’s the overview of the media buying calculations. Let’s go over the JV traffic formula and we’ll wrap up after we do this. So let’s say again, your product is $47, and again, this is updating live as you update the figures here. So let’s say your product is $47, and let’s give you a 1% conversion rate, just a moderate conversion rate. Let’s say you get 5,000 visits to your sales page per month. That means you’re going to get 50 sales. That’s going to result in $2,350 of income per month.
If you have a JV commission rate or you have an affiliate commission rate of 25% that means that your profit each month is going to be $1,763. Of course, I do not suggest that you give an affiliate commission rate or JV commission rate of 25%, so let’s update that to 50%, which means that your profit is going to be half of the total sales because you’re giving half of your sales to your affiliate partners, right?
But here is the thing, since you’re getting affiliate traffic to promote your offer and they’re endorsing it, often, your conversion rate is going to be higher, so let’s go change that sales page conversion rate from 1% to 3%. Now, your profit is $3,525, which means that you’re getting half of the sales and you’re affiliate is giving half because you’re being generous and you’re giving half to your affiliates.
So that’s what this internet business calculator does, and here at the bottom of the spreadsheet, it adds up the money you’re making from all these different traffic sources. So in the scenarios that I just gave to you, we would make $4,500 from SEO, $10,530 from paper click advertising, $263 from media buying, and $3,525 from affiliates profit, which means that we would be earning $18,817.50 per month in this scenario.
Anyway, to get this internet business calculator, just enter your e-mail address to the right of this video. We’ll e-mail you this spreadsheet and you can be implementing this in your business immediately. Anyway, that wraps up this episode of the Marketing Show. Leave your comments below. You determine the faith of the marketing quiz. Download this spreadsheet. This will change your life.
Also, if you enjoyed this content, if you benefited from it at all, I would be incredibly grateful and humbled if you would share this with your friends on Facebook and let the world know about the work that we’re doing together here. My name is Clay Collins. I hope you’ve enjoyed this and I’ll talk to you later. Thank you so much for watching the Marketing Show.