When a home business owner is considering which direct marketing products they want to sell several questions should come to mind:
1. How much manual labor is involved per sale?
2. What are the operating expenses for my business?
3. If my goal is X amount per month, how does that break down?
I Didn’t Work This Hard For The Man
Running a business demands work, but the home business community all agrees that we’re after a certain lifestyle. We want the time with family and friends that our job makes impossible.
Setting aside the time it takes to set everything up, what sort of time demand will my new business ask of me daily?
Different home business opportunities will insist you only need to spend 2 hours per day but no two people work exactly the same way.
If we understand what we’ll have to do in advance, our own estimate would probably be more accurate. When we have the advantage of a working system or model it is easier to break down the daily tasks, which makes it easier to anticipate how long each will take.
Why Am I Still Losing Money?
Direct marketing products require some type of advertising either by mail, email or online. While advertising can be expensive, there are many ways to promote our products with little to no cost.
Some companies pay thousands in advertising to generate millions in profits. We can expect a ratio based on our advertising and our return on investment.
It’s important to advertise without overspending. Setting the budget limit per week or per month should prevent this from happening.
What Financial Return Do I Need Per…
We usually set our goals for a new business on a per month basis to follow billing cycles. This amount needs to be broken down into daily goals. By holding ourselves accountable to the activity necessary to reach daily goals, we’ll reach the monthly goal.
For instance if we need the business to generate $10,000.00 per month, we’ll need at least 2500 per week and 500 per day on a 5 day workweek.
If I know this prior to deciding which direct marketing products to sell, it’s easier to answer my other two questions.
The Good Products
Using an online store or website, any number of common products can be sold through the drop shipping method. This is also true for many MLM businesses.
Profits are calculated on the difference between our price and the purchase price. Shipping can either be added to the customer’s price or reduced from our profits. Either way we can calculate how many items per day we would need to sell in order to reach that $500.00 goal.
In the case where the items we sell have a wide range of prices, we might need several months to determine an average order. When we have the average we’d know how many orders per day are needed to reach our goal.
The Better Products
Any item that can be downloaded, whether we created the product or not, has a more profitable margin for several reasons:
a) No inventory costs, storage costs, manufacturing costs etc…
b) No importing, exporting or shipping costs are necessary.
c) Cost per item is usually low enough to attract more buyers.
Owners of intellectual products make it a point to tell prospective marketing affiliates the profit margin on their material.
Business for e-books is booming because most marketing professionals understand how to quickly setup campaigns to move these resources. Every one of these direct marketing products represents a unique income stream; most are capable of reaching our monthly goal on their own.
The Best Products
The top tier isn’t simply reserved for items that cost a lot and produce generous income to the marketer. These are the products that perform.
Whether in the form of a physical product, a membership or an investment, these products are typically designed for increasing wealth.
People aren’t going to buy top tier products unless they have faith that these products will benefit them far beyond the purchase cost. These products stand upon a proven track record, not the endorsement of late night infomercial actors.
Finding What We’re Looking For
The law of attraction is at work for these products for two reasons:
1. The people who want them are already prepared to meet the cost.
2. Once the marketer has managed to introduce these products to the people who want them, their work is done.
Not everyone has the self confidence necessary to act upon their desire for great wealth. Most people are too timid to overcome the purchase price. The marketer can do nothing more than bringing together the people who want a product, with that product.