Lessons from the Master

"How do I get traffic to my website so that people will buy my product?"

So let's say you have a set of DVD's about making money online from affiliate marketing which sells for £47.00.

You set up a simple website with a Buy Now PayPal button, and start your marketing.

Now, the route most people take is to do some keyword research,build up a list of keywords, open a campaign with Google PPC and start to bid on the keywords.

First problem you'll have is that you'll find that keywords in the "make money online" niche cost between 50p and £2.50.

Let's suppose you decide to bid £1.00 per click.

You let your campaign run for a day or so until you've spent £200.00 and received 200 clicks.

From this, you've received 2 orders - a 1% response rate.

So you've taken £94.00, but spent £200.00 on advertising and £10.00 on fulfilment.

Not very good business.

So what would I do?

I would write an A4 teaser letter that describes the benefits of the DVD's and includes the address for the website.

Get 1,000 teaser letters printed in a single colour for £75.00.

Rent a list of proven buyers for £100.00

Buy 1,000 DL envelopes - £25.00

Mail the 1,000 letters - £270.00 (although I pay £240.00 as I have an account with Royal Mail)

My total costs = £440.00

And from this mailing I also receive a 1% response rate = 10 orders.

So, I would not make any money from this mailing, however, I've added 10 actual buyers to my list instead of 2 that I would receive from online PPC marketing.

Now, because I've proven that this method works, I would then mail 5,000 items.

My costs would be as follows:

Printing - £250.00

Envelopes - £120.00

List rental - £500.00

Postage - £1,200

My total costs = £2,070.00

1% orders = 50 x £47.00 = £2,350.00

Now, from this 2nd mailing I'm in profit ... however more importantly I've added a further 50 buyers to my list.

I'll do the 5,000 mailing again, and build up a list of 110 actual buyers.

Then I would mail them details of my back end product which costs £197.00.

From those 110 buyers, 7 order, netting me £985.00.

My marketing costs to just 110 people was a measly £100.00.

Now, is this all starting to make sense?

Imagine you had 10 different front end products all attracting a 1% response rate, and you had 5 different back end products.

Can you see how this is now becoming more interesting?

Source: Robert Evans