Empowering you to live a life of total freedom, unlimited prosperity, and infinite possibilities… click here to begin!

1200% ROI Case Study… And The Reason Most Fail With Paid Traffic

Those that have read some of my other blog posts already know that I talk a lot about the importance understanding the metrics of your business model… but in this post, I’m going to add another factor into that as well… POSITIONING.

For the last 3 days, I’ve been testing a new PPC Traffic Network… one that I’ve never used before.

1. I did some initial keyword research and grabbed about 120 keywords to start.

2. I added the keywords into the network with 2 ad variations, and hit go.. with a daily spend cap of $50

*All keywords were setup to track individually using a conversion pixel (super important!!!)

3. At the end of each day… I removed the network’s non-performing traffic partners, and paused keywords with 100+ clicks with no conversions.

At the end of 3 days.. I had 4 Trial sales, 1 cancelled… 3 stayed active.

Here’s the breakdown…

Total sales commissions after 3 days = $16.80 (1 refunded)

Total ad spend with PPC network = $148

Cost per sale = $37
Revenue per sale = $5.60

Now… most would look at that and say…. “Man… that’s a big loser!!”

Right?…

WRONG!!!

Here’s why …and if I didn’t have a solid understanding of my business metrics… I would be the “Big Loser”

I got a notice this morning that one of those Trial sales is taking their business seriously and upgrading to position themselves to win…

…and that is an additional $2,000 in commissions to me!

Because I’m positioned in my business and understand my metrics… This is a HUGE WIN

So, let’s take a closer look at these numbers again…

4 Trial sales at $7 (pays a $5.60 commission)

Total Trail sales revenue: $16.80 (1 refunded)
Additional upsell revenue: $2,000
————————————–
Total Revenue: $2,016.80
Total Ad spend: $148 –
————————————–
Net Profit: $1,868.80

That is a 1262% ROI!!!

In addition… of those 3 Trial sales I will begin to earn a $40.00 per month residual on one of them after 14 days, and the other 2 upgraded to our Elite membership which will begin to pay me $90.00 per month each ($160 per month) after 7 days, not to mention the continued team volume income potential from future sales of those members.

…And we can do this All Day Long! 🙂

So the important lesson here is this…

If you’re in business…. BE IN BUSINESS!

Understand your business model… and make sure you’re positioned to win.

I see so many people that get started with the “dip in a toe to test the waters” mindset… and they NEVER make it. That mindset is the quickest way to lose your money. The above example is the case and point that proves that…

Had I not had the ability to receive monthly residual income, and additional higher-end sales revenue… I would have been simply throwing my money away… which is what I see the majority of people in the online marketing industry doing every single day.

“Many people are out there every day, spending money trying to make a bunch of money from just a front-end offer alone… their plan is that once they are making money, they will then invest further in their education, their business… position themselves better. The problem with that should now be quite obvious… That day will likely never come for them.”

So, here’s what you need to do next if you want to prosper…

1. Make sure you understand your business model, and your positioning within that model. Most business models I’ve seen, don’t really support the ability to do any paid marketing… there’s just not enough money in them being paid out to affiliates, reps, associates, partners, etc. (this includes almost all network marketing companies)

If you’re in a model that does not support paid marketing… you either need to learn free traffic strategies, or get into a business model that works.

2. Invest in yourself and your business. People who do this are the ones that prosper. If you have a really tight budget… do what you can… but do it with the mindset that you are going to continue to invest in your success no matter what it takes, and treat your business as if you’ve already fully invested.

If you’ve been struggling to hit profit in your business, I hope this post has opened your eyes bit and perhaps revealed some important changes you need to make… both in your business and in your mindset.

Please share this post with anyone else you know that can benefit from this information. 🙂

To Your Online Success!

~ Jon Ochs

P.S. Click here to see the business model that I personally use and that was illustrated above… you can get in and get started for just $7.00

9 comments… add one
  • That is a great way to see things. I ran 300 clicks last week and got 4 trials, 2 paid sign ups and those two upgraded to where I received a total of 80.50 for all of those 300 clicks.

    Reply
    • Right on Larry… that’s fantastic!! 🙂

      Reply
  • Great post Jon.This reminds me of Proverbs 4 v 7 which reads:
    ”Wisdom is the principle thing therefore get wisdom and in all your getting get understanding”.Nuff-Said..(-:

    Reply
    • Thanks Ricardo! …appreciate your comment 🙂

      Reply
  • Thank You!

    Reply
    • You are so welcome Ivana. Thanks for visiting 🙂

      Reply
  • Thanks Jon for the awesome blog! It really helps me understand how important it is to actually track conversions and remember that my business is “long-term.” And serious customers will continue to pay for more products in the long run.

    Reply
    • You’re so welcome Justin! Exactly right 🙂

      Reply
  • Hi Jon,
    thats great. Can you please make a video of this. Its a great info and will sink in more if it has a video to it.

    Reply

Leave a Comment