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| Finding The Best Internet Marketing Strategy For Your Business |
Tuesday, October 9, 2007
Most people are aware that a marketing budget is essential to a business; without a budget to guide you it is virtually impossible to do anything well in business. Every basic business course teaches that planning your marketing budget is one of the most crucial things you must do for your business to succeed and that most businesses that fail to make an adequate marketing budget will most likely come to grief; usually before they've even had a chance to get fully established.
So, what exactly makes a good marketing budget? Well, reducing it down to first principles any budget that has inflows to cover the publicity outflows is a good start. The inflows need to be at least equivalent if not in excess of the outflows and the marketing outflows combined have to create something that is competitive to the business itself. In short, your marketing expenses need to perform by bringing in enough extra sales to at least cover the cost of the marketing campaign.
THE COST EFFICIENCY PRINCIPLE
A good rule of thumb when it comes to making a marketing budget is to refer to the cost efficiency principle. According to the cost efficiency principle you should be willing to spend X dollars if you get Y dollars in return with Y being at least equal to X if not greater (X = Y<). However, many people would point out that it is simply not reasonable to expect a new business to see a return of "X = Y<" because a new business needs to spend a lot to get itself off the ground. The objection is superficial at best when applied to traditional business models, and seriously flawed when applied to the most cost-efficient Internet marketing budget models available today, which I will talk about in more detail in a moment. Continuing, for a moment with the traditional analysis, while each item X may not bring in a gross income of Y, you can always combine several X items together in order to receive that result. Thus, if you have X1 + X2 + X3 resulting in A + B + C and both of those equations are equal to Y, then there is really nothing to worry about because overall you have realized the cost efficiency principle in your budget. The trick, of course, is to get sufficient results, and that is where many marketing campaigns are exposed to most risk. Nevertheless, a typical marketing budget planning involves identifying where you need to spend your money and then making sure that you do so in accordance with the cost efficiency principle. Don't ever spend money in a business unless you expect to get an equivalent return out of it.
CAUSES OF INTERNET MARKETING FAILURE
In the case of a home business internet marketing campaign, the expectation, or hope, is that the extra business brought in by the campaign will cover the costs of the campaign itself and boost profits. Needless to say, it doesn't always work out like that. Advertising is an expensive liability, and unfortunately, for a lot of people who start up an Internet business, marketing is the chief obstacle to success. Internet marketing failure has two chief causes:
- Failure to set a marketing budget and stick to it.
- Lack of marketing expertise.
Many people fail to set a proper budget and then run up unsustainable debts on failed publicity efforts and quickly go bust. Others, aware of that danger, fall into the opposite trap of being unwilling to commit any money at all on publicity, but don't know how to draw enough traffic to their website to make it viable.
The problems of budgeting and marketing are interrelated because it is difficult to draw up a realistic Internet marketing budget for your business if you lack Internet marketing know-how. On the other hand, a person who is familiar with effective Internet marketing techniques will understand why it is important to set a budget and also how much it is necessary to allocate to achieve a certain level of profit and a high degree of cost-efficiency.
Just now I promised to discuss a technique which is ideal for home business Internet marketing and which, if applied consistently over time will enable even inexperienced Internet marketers to turn their marketing budget into an asset in its own right irrespective of the results of their marketing campaigns.
TWO ESSENTIAL, BREAD-AND-BUTTER MARKETING TECHNIQUES
There are basically two ways of getting people to view your pitch on the Internet. One is to legitimately capture prospective customers' email addresses first and then send them your information. The other is to get your information out in front of people first and then capture their email addresses when they respond to your advertisement. Once you have captured an email address (called a "lead"), plug it into your autoresponder, which is loaded with a series of direct-marketing emails that will be sent out in the hope of turning the lead into a customer.
Ideally you should use a combination of both lead-capture and advertising techniques; they are the bread-and-butter of Internet marketing campaigns. The first is a much more targeted method and the leads your campaign generates are more likely to respond to your copy, but the second technique has the advantage of numbers - a far lower percentage of people will read your copy, but you should get a regular flow of subscribers who sign up to your autoresponder campaign or customers who buy your products. Both marketing techniques cost money, so let's set a basic monthly budget (in addition to your web-hosting expenses and other business expenses).
BASIC MONTHLY MARKETING BUDGET
- Autoresponder: $20
- Lead package service: $200 (for 400 leads)
- Advertising service: $200 (exposure of your ad to 40,000 readers)
The total basic monthly marketing is $420. That gets your sales pitch delivered to 40,400 potential customers, four hundred of whom are highly targeted leads who will receive regular postings direct to their e-mail inbox.
With this model, you have to hope that your advertising and your mailings will be effective in generating the number of sales you need to break even.
What do you do if it doesn't work? (Remember, there are no guarantees in marketing!)
Obviously you will have to test the results against a different set of ads and mailings until you find an advertising formula that sells. Unfortunately, this could take several months of trial-and-error and mounting losses as your marketing program fails to deliver. Let's face it, $420 is a lot of money to tip down the Internet marketing drain every month...
INTERNET MARKETING LEVERAGE
What you need is some Internet marketing leverage; you need to find a way of covering your marketing expenses even if your advertising campaign is a complete failure.
You need to find a way of converting your marketing expenses into a business asset irrespective of the number of sales your marketing campaign generates.
Imagine running an advertising campaign secure in the knowledge that you would still make a profit even if it turned into a real stinker that failed to sell a single product.
Incredible as it sounds, it IS possible.
In fact it is an entirely legitimate and thoroughly tested marketing system that hundreds of experienced Internet marketers are using with great success on the Internet today.
The system is called "Empowerism" and was developed by Janet Wilson, CEO of Life, Education And Prosperity Inc., in 1998. Members pay a monthly fee of $24.95 in exchange for which they gain access to an impressive range of Internet marketing resources and training tools. The most impressive resources are two programs called "REVENUE SHARING VALUE PLAN" (RSVP) and "MARKETING VALUE PLAN" (MVP). With these two plans, even if you do not take advantage of any of the other business building tools or advice available through Empowerism, your subscription and marketing budget will be repaid several times over. Let's look at the plans in more detail.
"REVENUE SHARING VALUE PLAN"
When an Empowerism member buys an RSVP leads package, the funds from that order are paid into the RSVP revenue pool. From there, commissions are paid out to the next qualified RSVP customer in line. Since May, 2004, more than 32,000 RSVP orders have cycled, paying commissions to thousands of customers. They have collectively earned more than TEN MILLION DOLLARS, making Empowerism the most successful business model of its kind, surpassing and outlasting all others and paying out commissions every day.
HOW IT WORKS
Every leads order goes into a revenue sharing pool in the form of a straight-line matrix where EVERY ORDER after yours is placed under your order in the matrix. As more orders are placed under you, the funds from those orders pay commissions to the orders at the top, which then move back down to the bottom so they can cycle again. As the orders from the top pay out and cycle, your order moves up in the matrix until it reaches the top, then pays out, then cycles down to the bottom again to start the process over.
There are four leads packages: 50 leads for $25, 100 leads for $50, 200 leads for $100, and 400 leads for $200. When an order value of less than $200 reaches the top of the matrix and cycles, it doubles in value when it cycles back to the bottom of the matrix, but does not pay commissions on that cycle until it cycles as a $200 or $400 order. In other words, $200 is the lowest payout available.
For example, a $25 order cycles and becomes a $50 order, then cycles again to become a $100 order, then cycles again to become a $200 order. When that $200 order reaches the top cycles, assuming the income option is "Recurring Income = $200", $200 is paid out and the $200 order cycles back to the bottom again. It remains a $200 order for a total of TEN cycles until the total of $2000 is paid (10 x $200). However, if the income option is set at "Recurring Income = $400", when a $200 order reaches the top and cycles, it does not pay out. Instead, it becomes a $400 order, cycles to the bottom on the matrix, then when it reaches the top again, it pays out $400! When it cycles, it remains a $400 for a total of FIVE cycles until the $2000 is paid (5 x $400).
"MARKETING VALUE PLAN"
Turning now to Empowerism's Marketing Value Plan, it is a system that places your advertisement in front of 20,000 to 40,000 people AND puts $200 to $400, (or double your advertising fees), back into your pocket. Since December 4th, 2004 Empowerism has paid out $1,823,750 in MVP commissions.
What happens is that when MVP advertising packages are sold to Empowerism members 75% of the funds are paid into the MVP pool and 25% into the RSVP pool in the form of a straight-line matrix where EVERYONE who buys after you lands UNDER YOU in the MVP matrix. As more orders are placed, your order moves up in the matrix, until it cycles at the top. From there, the commissions are paid out to the participating members. As with RSVP, there can be no guarantee of how long it will take to receive the pay-out, but where else are you going to be able to place your advertising copy in front of 20,000 to 40,000 people for just $100 or $200, and walk away with TWICE as much cash as you spent? With a monthly Internet marketing budget of just $100 you will be able to purchase one MVP order and get your message seen by 20,000 people every month, and you will double your money even if you don't sell a thing. Once your MVP orders begin to cycle you will receive a stream of income every month. This is an impressive Internet marketing leverage technique and a great way to turn what is traditionally a business liability (advertising fees) into a business asset (MVP commissions).
THE POWER OF MONTHLY BUDGETING
The power of the RSVP and MVP systems will be felt if you allocate a portion of your marketing budget to purchasing an RSVP package and an MVP package, month in and month out. Then, even if it took five years for your RSVP and MVP packages to finish cycling you have made between $1,800 and $1,975 on EACH AND EVERY RSVP package and doubled your money on every MVP package you purchased and you would start receiving that profit month in and month out, even if you never got a single sale off one of the hundreds or thousands of leads both systems would have provided you with.
Now that is marketing leverage on a grand scale - and it shows the power of taking consistent action over time. Let's have a look at our new Monthly Internet Marketing Budget when we incorporate a regular purchase of RSVP and MVP into it:
EMPOWERISM MONTHLY MARKETING BUDGET EXAMPLE
- Autoresponder: $20
- Lead package service: $200 out, $2,000 in
- Advertising service: $200 out, $400 commission in.
- Empowerism subscription: $20
Total = $2,000 + $400 - $20 - $200 - $200 - $20 = +$1960 profit.
CONCLUSION
I hope I have shown that while it is important to set a monthly Internet marketing budget, your marketing budget does not have to be a liability.
Indeed, rather than crippling your business at the outset with expensive and ineffective advertising costs, your Internet marketing budget can now become a second source of residual income, quite apart from the use to which you put the many hundreds of leads and many thousands of targeted readers of your marketing campaigns.
Empowerism has been tried and tested many times since 1998, and has grown in almost a decade to a major factor in Internet marketing success for many of the Internet's best entrepreneurs such as Stone Evans, Ewen Chia, Michael Glaspie, Shawn Casey, and Bob Wilson. What it requires is consistent budgeted action on your part, month in and month out to guarantee your Internet success.
Find out more about Empowerism here.
David Hurley
Grasp-the-Nettle.com - Ordinary people are making extraordinary money on the Internet.
See also:
Japanese-Games-Shop.com - Japanese games and goods delivered worldwide direct from Japan.
Japanese-Mahjong.com - Everything you need to know about the Japanese version of mahjong.
100-Word-Book-Reviews.com - Get to the heart of a book in just 100 words.
Labels: advertising budget, Empowerism, home business internet marketing, marketing budget
 
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| Harness The Power Of Article Marketing - FREE! |
Article marketing is one of the most powerful and economical ways of establishing your business on the Internet.
Now, Janet Wilson, CEO of Empowerism, has just published a comprehensive e-book packed with useful information and resources: Harnessing the Power of Article Marketing!
This is the all-inclusive, #1 RESOURCE on Article Writing and Marketing - a MUST READ!
And best of all, it is FREE to download. Just click the book cover for an instant free download of the book in pdf format.
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Here Are Just Some Of The Things You'll Learn When You Download
"Harness The Power Of Article Marketing"
- ... why THIS is the most important part of an article... p. 12 & p. 36.
- ... three key elements of the resource box... pp. 13-14.
- ... master THIS technique and make a fortune online... p. 18.
- ... which is better, natural or artificial keyword density? See page 19.
- ... developing this is the FIRST thing you should do... p. 20.
- ... where to find 24 useful SEO tools... p. 21.
- ... never underestimate THIS if you are looking for a professional writer... p. 23.
- ... manual submission versus submission software - pros and cons explained here: p. 27.
- ... make sure your blog article has this... p. 29.
- ... get paid for submitting your articles to these two places... p. 31.
- ... doing THIS is an excellent way to get free promotion... p. 32.
- ... why leaving your article in the hands of article directories may NOT be the best thing to do... p. 36.
- ... 7 things to consider when turning articles into e-books... pp. 37-41.
- ... And much more!
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