I'm sure you've seen the formula for ... whether ornot your ad campaign is ... from your ad - cost of ... = net profits. A positive number means you've made a profit from
I'm sure you've seen the formula for determining whether or not your ad campaign is successful.
Sales from your ad - cost of advertising = net profits.
A positive number means you've made a profit from your ad and a negative number means you've lost money. Either your ad or where you placed your ad resulted in a loss.
You then decide to continue advertising if the ad was profitable or you evaluate what changes need to be made.
It seems fairly straight forward and logical.
Well there's a third type of advertising which doesn't require that you make a profit from every ad. As a matter of fact, using this method you can build a solid income with ads that break-even.
The key to making money with break even advertising is to promote offers that offer residual income.
What is residual income?
Residual income results when you make a sale that pays you a monthly income. So what type of offers result in residual income?
<> Monthly services such as web hosting or autoresponders
<> Private sites that charge a recurring fee for membership
<> Many network marketing opportunities
Suppose your offer pays $10 a month for as long as your prospect is a member. You place an ezine ad that costs $20.
You need two sign ups to break even. So you place your ad, you get your two sign ups and you've broken even.
Not really. You've actually created a $120 per year increase in your bottom line from the amazing power of residual income.
Think about it. Just by breaking even you've ended up with a yearly return of 6 times your original investment.
Imagine how quickly your business will expand if you just took 50% of your profits and kept rolling it over at 6 times your investment.
I want to let you in on a little secret. A good program with a well planned ad campaign will do much better than break even.
If you're tired of the "Get Rich Quick" offers and are serious about building a solid income online, try the break even method of marketing and I think you'll be pleasantly surprised.
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