Steal This “Profit-Predicting” Internet Business (Marketing) Calculator [DOWNLOAD]

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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.

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  • Neil

    Let it go, not interested in the quiz

    • Thanks for letting me know!  It looks like death for the quiz is imminent.

  • Hrvoje

    Hey Clay,

    Off topic regarding the quiz, thanks for the gift.. now just the question.. how i can measure “exact” conversion.. can i just set a goal in google analytics and then see from GA how many people came and which conversion it is. maybe you have some wordpress plugin for it : ))) ?

    thanks man. gotta check this marketing program of yours.

    Hrvoje

    • Hi Hrvoje!  Well, the Marketing Program comes with some easy software for measuring conversion.  But there are a lot of tools out there.  Google Analytics does provide a solution, but a lot of folks find it to be the a pain in the rear.

      • Hrvoje

        Hey Clay, thank you for the response. I appreciate it. I’ll get the Marketing Program then : )

  • Shariff

    Let the quiz go if you’re pressed for time and have relatively more valuable content to replace the quiz spot… otherwise, keep it. The quiz does offering a refreshing break from the main content for the mind to relax and have a fun a little… If the quiz can be about interesting facts that are somewhat relevant to then subject matter, (i.e. fun facts etc) and not TOO cheesy or completely off topic, then keep it. So I’m somewhat on the fence here. Let’s see what the rest have to say. Good luck!! 🙂

    • Thanks for your thoughts, Shariff.  So far folks are either on the fence, or don’t want it.  So I’m leaning towards cutting it.

  • Angeyan

    I’m indifferent to the quiz.

  • Sherice

    Love your videos! And though, they’re interesting most times, I could probably do without the quizzes too. I’ve always appreciated the fact that you’re always straight to the point, no nonsense.

  • Lauchlan

    Thanks for sharing this Clay. 

    Out of interest, why choose different price points for the products for each of the traffic sources? If I change them all to say $97 products in the spreadsheet, then (under the same assumptions for everything else) the JV product sales generates more profit ($7K / month) while the PPC makes a loss …

    But of course with the spreadsheet it is easy to model this and see what happens 🙂

    • Andre Kibbe

      I’m pretty sure Clay was just demonstrating how different price points affect the bottom line with each traffic model, as opposed to recommending that you put out different offers simultaneously. $47 might be a decent price point for SEO traffic, which is essentially free, but it could be suicide for PPC traffic depending on the cost of the keyword set and your conversion rate. You might decide not to start buying traffic until you’ve tweaked your sales page to up your conversions.

      • Good point.  AND I wanted to build flexibility into the spreadsheet.  Folks should be able to run the math for different price points for each traffic source.  So I wanted to make that an option.

    • Good question, Lauchlan.  Mostly I just wanted to give everyone the flexibility to change the price points.  It’s about flexibility more than anything else.

      • Lauchlan

        Thanks Clay.

        The other thing I was interested in with this model is the role of the list. Presumably with SEO (and probably PPC as well) traffic you would send them to an opt in page and build a relationship with people before presenting them with sales offers, which would both increase the conversion rate for sales oner just sending them to a sales page and also allow you to increase the lifetime value of the customer, as you could make multiple offers over time.

        So it would be interesting to also model how each of the approaches impacts the list building as well. Presumably JV is even better for this as people join the list warm even if they don’t buy immediately following the webinar/launch.

        But maybe that might complicate the model a little …

        • Great thoughts, Lauchlan! Thanks for adding to the discussion.

  • Tim

    Your content is valuable enough to not need a stick method like the quiz.  Really appreciate the way you do business.  

  • I’m on the fence about the quiz too! Sometimes it’s fun, sometimes I just want the main content upfront. 🙂

    • Natalie! Great to see you here.  Thanks for the feedback.  Like you, I remain on the fence 🙂

  • Mike

    kill the quizes and thanks for the spreadsheet. Awesome as always

    • Thanks for the kind words.  And I’m leaning in the direction that you’re voting.

  • Justin

    I say keep the quizzes because for me they’re fun and mix things up, but my request is to keep them relevant to learning marketing (rather than pop culture stuff like Kim Kardashian’s wedding).

    Thanks for the spreadsheet and the awesome content Clay!

    • No problem, Justin!  And good memory re: the Kardashian quiz.

  • DeniseScox

    Hi Clay. Loved this show! I’m way too new to comment on the quiz! Can’t open the doc. It says it can’t open anything that was created earlier than ’97. LOL. Any ideas on how to open? Thanks for your great info! Big fan!

    • Damn . . . I usually use Numbers, but I have an old old version of Microsoft Excel, which I used to make this spreadsheet (because more folks have Excel than Numbers).  I’ll try and get back to you with a version you can use.  What spreadsheet software do you use?

      • Lasse Jellum

         That would be great, I get that message in Numbers, you can use numbers and save as Excel 2K or something more compatible. Looking forward to putting it to work.

        • Hi, Lasse . . . are you saying that “Numbers” is the spreadsheet program that you use on your mac?

  • I like the quizzes.

    • Thanks for your vote man!

      • Random question…

        What are you using to capture audio? (lavalier, shotgun, etc.)

        • We’re using this: http://www.buy.com/pr/product.aspx?sku=213690453&sellerid=22583914

  • Melissa Pahl

    I like the quizzes when they are fun marketing tidbits. Almost like a fun way to digest split test results w/out sounding like you are analyzing stats. Regarding the video – would you know how to track your results from CCP versus media buys and organic traffic? Keep up the great work – I’m poring through videos in your Marketing Program & the Interactive Offer – GREAT stuff! Thanks!

    • Melissa! Absolutely . . . regarding your question about tracking results from PPC versus media buys and organic traffic: Yes! You can absolutely do this.  There’s software that comes with the marketing program that allows you to do this.  AND there’s a module in The Marketing Program that walks you through the process.

  • This is a great tool Clay, thanks! I had a problem getting the spreadsheet working though (I’m on a mac). The only way I got it open was to import it to google docs and open it in HTML only mode. That sucks, because the calculations don’t work in that view. 

    Would be awesome if you could upload and/or send a new version of the spreadsheet for those of us who don’t have Excel installed 😀 Cheers man!

    • Glad you like it, Juha.  What format would you want it in?

      • I got it open on my other machine (pc), so no worries anymore.

        I made this available through Google Docs if others have trouble opening the doc: https://docs.google.com/spreadsheet/ccc?key=0Av5lew1LukgodEtjWWVSSXhPbTUxSFBCYmx6c21yZEE

        Clay: Let me know if you want to share this through your own Google account instead 🙂

        Regarding the Quiz – I’ve enjoyed each quite much so for me, it would be a keeper!

        • Good deal, Juha!  Thanks for converting this.

  • Chuck

    Hi Clay, I only like the quizzes that have marketing value, but wouldn’t miss them

    Have you tried split-testing to measure completed views, shares, and unsubscribes?  The vocal few may be wrong. . .

    • Thanks for your input Chuck.  I’m just going to go by vote on this one.  There are a LONG list of things I’ve got queued up to spit test before I split test this.

  • Please get rid of the marketing quizzes it so we can focus on your awesome content!

    • I am curious where do I enter my email for the download of the excel file? I am already signed up for your email list

      • Owen . . . when you click on the link for this episode from your marketing show email address, and bar should appear below the video with the download.  Note: in order for you to see the download link, you must click on the link provided in your email.

    • Thanks for your feedback.

  • Jen

    I agree — keep the marketing quiz but make it about marketing.  You could cut down on the animated intro as far as I’m concerned.  And I’d really love it if you got rid of the plug-in that makes your share buttons flash at me spasmodically!  

    I appreciate the spreadsheet with all the calculations set up, especially that you’re giving away such a useful tool for free.  

    I have to make one point, though, about the calculations because this has taken so long to dawn on me and I think it’s a point that some online experts deliberately gloss over in order to sell their SEO products.  That is, organic search traffic for most people is not free.  It costs either in hours of your own time or in paying for link-building, content creation, software tools, etc.  

    Devise a way to calculate the hidden cost of “organic” traffic and we’ll get a true measurement of the profitability of that approach.  (One new “automated” product will do it all for $300/month; maybe that’s a baseline figure to use.  But another element to consider in the calculation is how many months doing SEO is required before consistent traffic is generated.)

    If you manage to create that equation, you will be the first, and you will help a lot of newbies (like me) understand the kind of investment they need to undertake to become successful online.

    • Great suggestions, Jen.  And now that you have the free spreadsheet, feel free to improve it with the suggestions you’ve made and send me the updated copy.  You’re 100% welcome to do so.  Regarding incorporating the cost of organic SEO, there’s no way to do that in an across the board way.  Ranking for specific terms costs more or less depending on the market you’re in, and how competitive your phrase is.

      Thanks again for your excellent comment.

  • My vote is to keep the quizzes, but keep them either about marketing concepts or intriguing/funny stuff, like “What percentage of Americans flush the toilet while still sitting on it?”  Need-to-know, life changing things like that.  =)  See you in Palm Springs…

  • Sarah

    Like Owen – there is no download link below the video. Would love to have it! I personally like the quizzes. It only takes up about 30 seconds and offers something different.

    I always look forward to your podcasts. Keep up the good work!

  • love the quiz Clay.  it’s fun, and fun is good!  You learn more when you have fun, so it actually serves a hidden purpose too :~)  
    do you have the calculator in a mac friendly format?

  • tommo_montana

    Your calculators are wrong. They should be PROFIT per unit, not sales price.

    If you sell a product for $47 and it costs $49 to make, and you spend $500k on PPC, you’re going more than $500k in the hole.

    Very important not to spend up to the equilibrium where marginal dollar on advertising = marginal dollar on sales

    -but instead-

    Spend more up to the equilibrium where marginal dollar on advertising = marginal dollar of PROFIT.

    Also, @facebook-522049210:disqus 
      it is in a mac-friendly format. .xlsx is openable in Numbers and importable to Google Docs.
    @claycollins:disqus  Please don’t use excel. Google doc spreadsheet, and people can copy/paste it easier, and access it from anywhere without opening separate apps.