The first paragraph of this article provides a concise summary of its content. It delves into the concept of break-even marketing, a unique approach that doesn't necessarily require immediate profit from every advertisement. Instead, it focuses on promoting offers that generate residual income, thereby building a solid income stream over time. This strategy can be a game-changer for businesses looking to expand and increase their bottom line.
You've probably come across the basic formula for assessing the success of an advertising campaign: Sales from your ad - advertising cost = net profits. A positive result indicates a profitable ad, while a negative one suggests a loss, prompting a reevaluation of the ad or its placement.
However, there's another type of advertising that doesn't demand immediate profit from every ad. This is known as break-even marketing. The secret to generating income with this method lies in promoting offers that yield residual income.
Residual income is the recurring income you earn from a sale. It's the monthly income you receive as long as your customer remains a member. So, what kind of offers can result in residual income?
Let's say your offer pays $10 a month for as long as your prospect remains a member. You place an ad in an ezine that costs $20. You need two sign-ups to break even. Once you get these two sign-ups, you've broken even. But in reality, you've created a $120 per year increase in your bottom line, thanks to the power of residual income.
Consider this: just by breaking even, you've achieved a yearly return of six times your original investment. Imagine the growth your business could experience if you reinvested 50% of your profits, continuing to earn six times your investment.
Here's a little secret: a well-structured program with a carefully planned ad campaign can perform much better than just breaking even. If you're weary of "Get Rich Quick" schemes and are serious about building a solid online income, give break-even marketing a try. You might be pleasantly surprised by the results.
To your success, John
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