The One Secret You Must Follow To Guarantee That You Make
Money With Your Advertising
By Jeffrey D Jordan, Copyright 2002

When you read this secret it will sound pretty obvious...
it is. There are exceptions but if you are just starting
stick to this rule and you are guaranteed to make money
from your advertising.

"Never Pay More For Your Advertising Than You Will Make"

Common sense... sure it is, but you would be amazed at how
many people don't follow this rule then spend endless amounts
of money on advertising programs that are obvious money
losers or over bid on PPC keywords.

In many cases they just do not know what information to look
for or how to tell if they are making money on their ads.
Sometimes it is laziness, other times they just have not had
enough experience to realize how much money they could make
or lose.

Some advertising can be difficult to measure such as a yellow
page ad. But with the Internet you can automatically track
your advertising profitability.

The one exception to this rule is that you need to test and
optimize your product offering so that you can:

1)Make sure that your product offering is profitable.

2)Avoid wasting money on a losing product.

3)Maximize your profits.

To do this you should spend a little bit of money on testing.
This way you know what profit you can expect.

This next part may be a little analytical but please stick
with me. You will learn a simple to use measure that will be
your guide to help you make more money and cut your risk of
losing money. This is Essential For Your Long Term Success.

Your guide is to know your Websites Visitor Value. If you
pay more in advertising for each visitor than your visitor
value you will be losing money. Knowing your Visitor Value
is a simple measure you can use to determine how much
you should pay for advertising and how effective your website
is at producing profits.

Your Visitor Value is the amount of Gross Profit that you
make on average for every visitor that comes to your site.

To determine your Visitor Value you take your Total Gross
Profit and divide it by your Total Number of Visitors for a
given time period, such as a month.

So lets say you have 10,000 visitors during the month and you
have a Gross Profit of $4,500. $4,500 / 10,000 = $0.45 Visitor
Value. So on average each visitor results in $0.45 in Gross
Profit.

You should be able to get the "Number of Visitors" to
your site from your website activity report provided by your
web hosting service. If your hosting service does not supply
this information switch, there are plenty of low cost hosting
services that do.

Your Total Gross Profit is your Total Sales minus the
Total Cost to Purchase or make your product(s). Lets say your
Total Sales were $9,000 and the total cost of your products
was $4,500. $9,000 - $4,500 = $4,500 Total Gross Profit.

Ok great, but how do I use this information to make money?

Here is an example.

Lets say that you want to advertise with one of the PPC
Search Engines. The first thing your should do is determine
the maximum amount to bid on a keyword to give you your
desired profit.

In this example, you that your Visitor Value is $0.45 this
tells us the if you bid $0.45 on a keyword you will have
$0 in profit after spending $0.45 advertising. Not Good.
So to make money your maximum bid should be less than $0.45.

If you determine that you can live with $0.20 in profit for
every visitor then you calculate your maximum advertising
cost as follows:

Gross Profit - Desired Profit = Maximum Advertising Cost
$0.45 - $0.20 = $0.25 Maximum Advertising Cost.

In this example if you spend $100 on advertising you would
get 400 visitors($100 X $0.25 = 400) and make $80 in Net
Profit (400 X $0.2 = $80).

Now it's simple you bid more, you make less...
you bid more than $0.45 and you lose money. If you want to
make more money increase your visitor value or lower your
advertising cost.

You can use this approach for all forms of advertising. To
really make money you need to measure and track where your
traffic came from, which sales resulted from which traffic,
which ads worked and which ones did not.

This is where testing and tracking your advertising comes
into play. When you know which specific ads, media and
offers are working (putting money in your pocket) you can
invest more on the winners and drop the losers.

Regularly check your websites visitor value to determine if
you are becoming more effective at producing profits with
each visitor. Your objective should be to continually
increase your visitor value. If you do this you will
continually put more money in your pocket.

Now you know the secret to making money with advertising.

1) Know what each visitor is worth (Visitor Value)
2) Never spend more on your advertising than you expect to
make from the visitors that result from your advertising.

When you have a winning advertising formula, repeat
it over and over again. Then Each time you advertise you
will put money in your pocket. It's like printing money.
Give it a try.

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Jeffrey Jordan, Publisher of Net Marketing Results.
He has 20 years experience enhancing profits of Fortune 500
mid, and small businesses. Subscribe free to Net Marketing
Results Newsletter at http://netmarketingresults.com
Contact Jeff at mailto:jdj@...
Powerful Profit Strategies http://instantprofitpower.com
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