Another reason why you’re still broke – you’re afraid to invest, probably due to the possibility of failure. Overcoming this fear is what moved me from making a living into being rich.
If you are sitting on a few thousand dollars, and thinking about how to make money in internet marketing, here’s one of the things I did to start money working for me.
Go to a place where you can find products affiliates can make money from – I like reading up at the Associate Programs site, or going to Clickbank (esp the login page) and finding items that state their conversion rates, or ones I hear tell of from top affiliates. My personal comfort zone is with ones that say they convert at 8%, which I find normally means 5%.
Don’t put all your money in the pot yet, though.
Get a professional copywriter to make some ad copy for you, and do a test run in some of the cheaper publications or in lower bids on pay per click, and evaluate if you’re getting a decent return.
For example, if a product converts at 5%, and you’re testing that theory with $200, if the product costs $50, you would need to sell 4 units just to break even. How that money is spent to get to 4 units will vary, but when you find one that lets you end up in profit, that’s the one you lean on.
That isn’t exactly common knowledge, but it’s not rocket science either. Most people don’t go wrong there. So why isn’t everyone rich?
They spend their profits instead of reinvesting them.
The amount of money I lost before I figured this out still makes me break out in a cold sweat.
Put every last thin dime of what you make on that product back into advertising it once you find a way that works in a market that works. After a few rounds, take out only half, let the rest keep rolling back on itself until sales start slipping or trends shift.
Now I’m not a master affiliate, and I much prefer doing this with my own products, since I then have total control and know what the conversion rates are first hand. But during the part of the year that I don’t work, that system has worked for me year in and year out.