
28 Oct Online Media Math Explained (Risk – Reward)
What’s up, everybody?
Are you willing to do some math … for a change!?
I know the numbers I present may be confusing for some of you … or maybe all of you.
To be honest, they were for me.
It took me several years to truly understand the things related to affiliate marketing and media buying. But it was worth the time and effort!
Now I know how to make offers no one else is willing to and achieve huge margins taking such a risk!
And I’m glad to share my knowledge with you guys.
In this episode, I explain how the numbers work when measuring any media buy.
If you tune in, I’ll show you that the metrics are the same regardless if it is backed out into a CPM, CPC, CPL, or CPA.
At the end of the day, it all comes down to the RISK each side takes when doing a deal.
So, if you’re willing to risk acquiring some more numbers,
Let’s dive in!
I told you last time that I was at the Funnel Hacking Live. As usual at these conferences, I talked to many people, not only those I know but also those I’d never met before.
One thing I noticed surprised me a bit – even the people I’ve known for a few years still don’t get what I do.
Some of them said they understand direct response marketing and how to generate leads. However, when I started diving into the details, I realized that they actually know it at a very high level on the surface.
In addition, as they were talking about their businesses, it became clear to me that they needed help.
See – you’re not alone. There are many people out there who need help with these things.
But the best part is the fact that once you master the art of performance marketing, you’ll also be able to help many of them – and make some money in the process, of course.
Media Buy – Four Basic Models
This time I’m explaining how the numbers work when measuring any media buy. I show people that the metrics are the same regardless if it is backed out into a CPM, CPC, CPL, or CPA. As I said, it all comes down to the risk each side (advertiser or affiliate) takes when doing a deal.
And if you watch the episode on YouTube, you can see the board I’m going to draw while explaining what is happening in the media buy and calculating if an offer may be profitable.
The good thing about online marketing is that everything is measurable. It means you’ll almost immediately know if something’s working or not.
I’ve mentioned the four basic models on how you can look at media buy (It’s always good to repeat the basics.):
– CPM – cost per 1000 (you get views);
– CPC – cost per click (you get clicks);
– CPL – cost per lead (you get leads);
– CPA – cost per acquisition (you get sales).
No matter how you’re buying media – whether you’re working with an affiliate, or paying on a CPA, or buying CPM traffic with an emailer, or paying for click on Google – all of these numbers will always exist. Also, the business wouldn’t be possible without the advertiser and the publisher.
You may be a publisher affiliate looking to get deals from advertisers. Then you’ll probably be in a situation that the advertiser wants to pay one way, and you want to get paid another way.
Now we come to the part when it all comes down to one thing – RISK.
Who Takes the Risk?
When an advertiser is paying on a CPA to an affiliate, the risk is on the affiliate. It’s because the advertiser pays when the sale takes place. The affiliate makes nothing until that happens.
In the following scenario, let’s say that the affiliate has an email database of a million records and wants to charge the advertiser $2 per 1000 ($2 CPM). The risk is on the advertiser. Because the advertiser pays just to send that email – no matter how many clicks/leads/sales happen.
In the case when Google or Facebook (or any platform you’re buying media at) is the publisher, you need to pay either a CPC or CPM. They won’t let you buy on a CPA because they want to take some risk off the table and make sure to get paid when they show your ad.
It’s PPC (pay per click) – you pay every time somebody clicks your ad. But you’ll get the money only when a sale happens (after people sign up for your lead form).
Conversion rate is the essential variable here. It’s the percentage of users who have completed the desired action (click, lead, sale). It can change the numbers and ultimately increase or lower the risk.
This is what I meant when I said that it’s all about risk-reward. Once you understand the metrics here, you’ll be able to take advantage of this. The only question will be, Are you willing to take the risk?
Easy Numbers
We said the offer is $2 per 1000 ($2 CPM) for a million names mailed. Then you need to know the click percentage – how many clicks you got for $2,000 spent.
For instance, you get 10,000 clicks. It means the cost per click is $0.20.
Let’s say that you have a 20% opt-in rate on a lead form, and you get 2000 leads. In this scenario, the cost per lead is $1.
Now 2000 leads come in, and you’re looking to sell something. You need to know what the sales conversion rate is. For example, if the sales conversion rate is 1%, you get 20 sales.
What does the CPA look like on these 20 sales? That would depend on what the 20 sales are worth to the advertiser.
But if you’re spending $2,000, then you can afford to pay $100 on a cost per acquisition.
When you look at this, you’ll find out that all this math is the same. Whether you’re paying $100 CPA, or $1 per lead, or $0.20 CPC, or $2 CPM, you’ll always spend $2.000.
The whole point here is that no matter how you’re buying media if you understand your numbers, you can take some risks and get traffic in a way where no one else is willing to do so.
When you buy tons of traffic in the marketplace, you figure out the conversion rate averages. Over time, you realize that the numbers don’t really bounce around too much.
And you learn there’s not so much risk when you know your numbers.
If you’d like to get more helpful examples, learn what to be careful about, and find out how to make an offer no one else is willing to, make sure to watch the full episode here!
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If you have any questions or you want to suggest a topic for the podcast, shoot me a message on social media or in my text community (917-636-1998) and let me know!
If you’d like to get bonus Performance Marketer content, sign up for my SurveyDetective VIP waitlist!
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I hope you have an awesome day. See you next week!
Listener Love…
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Wear a helmet when you listen to the podcast. Eric will leave you feeling like you can run through brick walls. In all seriousness, this podcast is the absolute best!
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Seriously.. Affiliate Marketing has been around for a LONG time.. However, it’s always been associated with scams, and fly by night marketing tactics that are shady l, illegal or unethical at best. Until now. Eric runs his entire business (which is ultra successful btw) the same way he runs his life.. On pure integrity. Finally, a podcast that is teaching Affiliate Marketing based on being.. Ethical and Transparent. But the best part? This podcast is soooo much more than just Affiliate Marketing.. it’s about running a successful business and successful life. So far Episode 3 is my favorite and I look fwd to each episode as soon as it comes out. Highly recommend this to anyone, regardless of where they are in their business!! Straight Gold Beb!
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I've listened to the first two episodes and found them useful and entertaining. Eric gives a lot of background to how he got to where he is in his career and the challenges he encountered and overcame along the way. He also shares his knowledge in a way that's easy to understand and would be useful both to people new to Internet marketing, and to people like myself who have some experience but are looking to expand their knowledge. I'm subscribed and looking forward to future episodes.
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This podcast is amazing an a must have for anyone looking to take their entrepreneurial endeavors to the next level. Whether you are interested in becoming involved in affiliate marketing, or are just a student of life looking to learn about one of the largest and least discussed industries, this podcast is for you. Eric makes his passion for entrepreneurship available to all with this podcast, and for that reason it is a must listen.
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Eric is a wealth of knowledge, not to mention, incredibly humble! He's got the proof to show that determination, grit and perseverance pay off... and I love that he's shedding light on the world of performance (affiliate) marketing with tangible tools anyone at any point in their online journey can apply. Thanks for all you do, Eric! Excited for more!!
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Eric Really enjoyed listening to this. Keep up the great work!!!
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As someone who has networked and marketed more over the past 2 years than ever before in my career, this Podcast is an absolute MUST listen for me. Eric makes it easy to listen, learn and apply.
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Invaluable information. Can’t wait to dive in.
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These are great, so much useful information that I can use immediately and effectively. Thanks Eric
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I love listening to Eric’s podcast on my way to work. Looking forward to applying some of these principles to my career.
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I have had the pleasure of working with Eric and this podcast is a roadmap to success. He is a professional with years of experience and delivers results
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I've known Eric for quite some time and he has been the guy who is quietly CRUSHING it. I'm glad he is coming out to the masses to share all his knowledge!
- Can’t wait to dive into these!by Arushi-315 from United States
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Transcript…
Eric Beer 00:00 The people you talk to, that are out there buying traffic, they do understand that they’re gonna realize you understand it. And so you start walking them through the whole process and explaining to them. And it’s all mindset, right. But now, at the end of the day, there might be advertisers that are willing to pay on a cost per lead or cost per click right to you to your traffic that you have, you just got to walk them through it, right. And if they don’t want to do it, then you take the risk. And you should be making more margins. You know, the more risk you take the more margins you make. I spent the last 17 years building my eight-figure performance business without using any of my own money, working with some of the most brilliant direct response marketers in the world today. Now I’m looking for entrepreneurs to join my affiliate army built on ethics, transparency, and good old hard work. Join me to change the perception of how people view the greatest business in the world, affiliate marketing, and follow along as I learn, apply, and share performance marketing strategies, working with some of the brightest people on the planet. My name is Eric Beer, and welcome to the Performance Marketer Podcast. What’s up? What’s up everybody? How you doing? My name is Eric Beer, and welcome to the Performance Marketer Podcast. I just got back from Funnel Hacking Live. And every time I go to one of these conferences, I meet a lot of people. I jump in and have conversations with people that are either someone I’ve never met before. And they’ll say, Hey, what do you do, and I start explaining some of the things that I do, or I’m speaking to people that I’ve known for a few years now. And they still don’t really understand what I do. And as we get talking, and I’m hearing things that they’re doing with their business. All of a sudden, it’s very clear to me that they need help. And well, a lot of people are out there saying they understand direct response, they understand how to generate leads. When I start to dive into the details of how you go about doing this, they know it at a very high level on the surface. But when you dive deeper, now they need help, they need help. And I found myself talking to a few different people about different things that I wanted to bring on to the show, because I thought it would be helpful how you go out and buy media, whether you’re buying it yourself like a Facebook ad, or you’re buying a Google ad, which is PPC, native ad, whatever, right? If you’re out there, if you’re buying it in that respect or if you’re buying it through an affiliate, the models on how you’re going to purchase media are all exactly the same after you run traffic, OK? And I’ll explain to you what that means. We we talk about all the different models on how you go out and you buy media, right? Like we know, online marketing, is measurable, everything is measurable, we track every single thing, that’s what’s so powerful about what we’re doing. In a very quick period of time, we’ll know if something’s working or not. Right? If you are at the Funnel Hacking Live, you saw one of the first presentations from Russell was all around the average cart value, right? And he talked about what is your CPA, which is pretty much your allowable, what it costs you to get the customer. And then what are you making, when the customer goes through your entire funnel, the average cart value, right and the perfect world, you want the average cart value to be more than what you’re paying to get that sale, right? There’re other things involved where you get the data, and then you make money on the back end. So, there are times where you may not necessarily have to be profitable on the first visit. But that’s just the high level like very general concept of how mediamath works, right? But so what I wanted to do was I wanted to draw something out, I used to do this a while back and I haven’t done it in a while but I’m gonna I’m gonna put this on the board. And I’m going to kind of talk through what is happening in the media buy so that everybody understands what’s going on here. And then your mindset can maybe think of things a little bit differently when you’re out there trying to generate leads China get new customers, because I talked to a lot of people that tell me that they don’t work on a performance basis. They don’t work on any sort of CPA model, right? There’s a lot of people that are just, you know, these agency buyers that buy media they’ll charge you know, a certain fee with you know, a percentage of spend, but then I’ll find out that they’re also generating signups for you know, some partners like ClickFunnels right? ClickFunnels is as performance as it gets, you don’t get paid until you drive a user, right? Whether it’s you driving somebody to buy his book, or to take a challenge, or to whatever end game is they get a trial to ClickFunnels, and then when they sign up, that’s when your commission starts to kick those people are generating signups for ClickFunnels. And they’re doing it on a performance basis. Would you like to learn how I built my business using other people’s money? If so, then join my 21-day challenge at performancemarketersecret.com. I look forward to meeting you and welcome you into my family. And remember, results don’t lie, but the people who don’t have any do. Thanks for listening.
So, what I wanted to show you guys, though, on the media side of things, is how this works. OK, so first, I want to show you the four basic models on how you can look at your media buy, right? There’s the CPM, that call that stands for “cost per 1000”, there is the CPC, which is the “cost per click”, there’s the CPL, which is the “cost per lead”. And then there’s the CPA, which is the “cost per acquisition”, right? So here is when you get views here is when you get clicks here is when you get leads, and here’s when you get a sale, OK? No matter how you’re buying media, whether you’re somebody working with an affiliate, and you’re paying on a CPA, or you’re out buying CPM traffic with an emailer or you’re paying for click on Google, all of these numbers will always exist, no matter what, because there’s always a view, there’s always a click, then the question is, is there a lead? If you don’t have a lead form? it skips right over to the CPA, which is, what are you backing it out to on a cost per acquisition, OK?
So, the thing here is, the difference right from this is ultimately, there’s an advertiser, and then there’s the publisher. So, if you’re, if you’re somebody that’s part of a network, or you’re a publisher affiliate, looking to get deals from advertisers, right, the advertiser is going to want to pay one way, and you’re going to want to get paid another way, right. And it all comes down to one thing. Risk, who was taking the risk in this scenario, right? When an advertiser over here, is paying on a CPA to an affiliate who’s a risk on? The affiliate, right? They have to drive the view, if you get a click, if you get a lead, and if they get us out. So, until that sale takes place, this affiliate makes nothing, right, this guy over here doesn’t pay till the sale happens. On the flip side, if, let’s say the affiliate has an email database of a million records, and they want to charge the advertiser $2 a 1000. So, it could be a $2 CPM. Ultimately, the risk here is on the advertiser. Right? The advertiser is going to buy the million names to get a million views, they’re going to send it to a million people, right? They’re going to get that email, right? So now they’re paying just to send that email. These guys are getting paid. When they send that email, no matter how many clicks happen, how many leads happen, how many sales happen? It’s all the same no matter what, it’s just the question of who is taking the risk? Is the guy that’s buying the traffic taking the risk? Or is the publisher taking the risk? OK, the same way this is an affiliate is also on Google as a publisher, right? The way I look at publishers, right? Facebook is a publisher, right? Anywhere you’re buying media is a publisher. If you go on to Facebook, are you buying on a CPA, I don’t believe they let you do that. For Facebook, you need to pay either a CPC or CPM. So, what they’re doing is they’re trying to take some risk off the table, and make sure that when they show your ad, they get paid. OK? Same thing with Google, right? It’s PPC. Every time somebody clicks you pay, you’re not paying on the view. So, someone searches and then your ad shows up, you’re not paying them that view you’re paying when someone views it and then clicks. Right? When they click it, you’re still gonna see how many people signed up your your lead form, and then how many sales did you actually get? Right? So it’s, it’s all the same thing. And when you’re, when you’re able to understand the metrics here, you get the biggest opportunity to create upside, right? It’s all about risk reward. Right? It’s all around Are you willing to take risk? Well, if you have a good feel for what’s going on and you understand the metrics, well then you can go out to the marketplace and be able to take advantage of this right. So, let’s see. Easy numbers. OK.
Oh, by the way, one thing I need to add, before I get into any of this the variable here, the one variable that can change all of this, OK? It is just the conversion rates, OK? It’s conversion, right? Because views to clicks, what’s the right that the click percentage clicks to leads would be the lead, opt in percentage leads to sales. So, sales conversion percentage, right? That’s the thing that’s going to change these numbers as you continue to buy media.
But the point is, is that if you’re out in the market, and you’re looking to buy media, it’s always going to back out to be the same. So, if it’s $2 a 1000, here, like we said, $2. CPM. And we get a million names mailed, well, then it comes down to what is the click percentage? And that’s going to tell you how many clicks you got $2,000 spend, and 10,000 clicks, what does that equal? 20 cents a click? All right. So, right, so we have the cost here of 2k. We’re doing 20 cents a click. Ok. So, we have 10,000 clicks. Now we’re going to land on the lead form on the lead form. Now, let’s say that we have a 20% opt in rate, right? So on 20%, right, we’re going to take the 10,000 times point two, and you’re going to get 2000 leads, right? So on the 2000 leads, what is the cost per lead? Right? How do you figure it out? Well, you spent two grand, right? So you take the $2,000, and you divide it by 2000, to pick up the calculator and that one equals $1 per lead right? Now 2000 leads come in, and you’re looking to sell something, well, now you need to know what the sales conversion rate is, and what the cost to the consumer will be. to back it out to the revenue, right? And then that’s how you get the CPA. So, for example, if the sales conversion rate is 1%, OK, well, we take the 2000, leads, multiply times the 1%, you get 20. sales. OK. Now on this 20 sales, what does the CPA look like that would all be based on the back end? For the advertiser on what is the 20 sales worth to them? And then from that point on, what are they going to then be able to pay out based off of what the cost of media is to them make sense. So, for example, if they want it to be buying on a lead basis, right, and they’re backing it out to $1, on a cost of 2000. If you know your cost is 2000, you’re making $1 per lead, right? You take the $100, CPA multiply times 20 equals 200. If you’re spending $2,000, then you can afford right to pay one hot $100 on a cost per acquisition. Right? That’s what a backout two. So, if you look at this here, whether it’s a CPM, CPC, CPL or CPA, it’s all the same. All this math is exactly the same. Whether it’s $1, CPA, which is $100, CPA, $1 per lead, 20 cent CPC, or $2, CPM, all of these metrics are exactly the same. OK,
I want to, I want to be really clear here because it, whether the advertiser is buying traffic at 20 cents a click, or $100, PPI, same thing, you don’t know that yet, right? But the whole point here is that no matter how your bomb media, if you understand your numbers, you can take some some risks and get traffic in a way where no one else is willing to do so. But there’s not as much risk when you know, you bought tons of traffic in the marketplace. You know what the conversion rate averages, usually what happens is when you’re when you’re running traffic to your forums, it’s similar traffic sources, the numbers don’t really bounce around too much, you know, over a period of time, you’re going to come to a number and if you don’t change anything, if you don’t change the creative, if you don’t change the landing page, you’re just buying media with your control, your best performing ads, lead forms, sales pages, the conversion rates are going to stay pretty constant, that you can use these to model out numbers. So, When, when, when a guy like me starts to do this, and I understand what’s happening, it’s just a question of how much risk I want to take. Right? I might want to get paid on a cost per lead basis, but the advertiser doesn’t want to pay in a cost per lead basis. They want to pay on a CPA. They want to pay me $100, CPA. So, what do I do? What if I want to go get traffic out in the marketplace? If I wanted to go buy traffic on on Facebook? Here? You think I can go buy traffic paying $100? CPA? No, Facebook will never let me do that. No way? No. So, how do you do it? Well, you’re gonna have to go buy traffic and test. Right? So you got to figure out Alright, well, if this was the data that you have on a media buy through Facebook, well, then you can’t bid more than 20 cents CPC, are you gonna lose? Right? So if you want to work on 25% margins, now, you can afford 15 cents? CPC, right? Because you’re only making 20 cents right now. If everything holds true, which is 20%, lead form 1%, sales conversion rate used to pay $2 a 1000, you’re going to break even, right? So if you were out there, and you wanted to buy media, with some mailer, right now, you don’t want to pay more than $2 a 1000. If you do the calculator risk doesn’t look good in your favor. Unless there’s something that changes, right? Doesn’t mean it won’t work. OK, you can go buy a list for $4 a 1000. All right. But the only way that’s going to work is if one of these numbers change, right? If you paid for dollar CPM, then an email to the 1 million, that means that your cost will equal 4k, right? Well, if we convert 1%, we’re gonna get 10,000 clicks. If we get those 10,000 clicks, when we convert 20%, we’re gonna get 2000 leads. And if we convert 1%, then we’re gonna get 20 sales. Those 20 sales are gonna be $1 a piece, so we are going to make two grand. Two grand minus 4k doesn’t work. So, what has to happen for this, to make sense? Well, first of their charging $4 a 1000, then the list is more valuable. So, they say, right, may not be more valuable to us. But to this publisher over here, this, this this this, you know, let’s say, CNN, you know, breaking news list. Thinking to mail our offer there? Well, $4 1000, I guess people are buying it from them. So, you can’t argue with them on what they say their value is. So, you can test it, does the click rate increase? What does the click rate need to get to, for us to make 4k? Well, if this is gonna remain the same 20% opt in, and the 1% sales conversion, you’re gonna have to double the click percentage, this 1% Click rate is going to have to be 2%. Right? So if we got a 2% conversion rate on the click, and that would equal 20,000, clicks, right? Then 20% lead opt in. So, 20% of that would be 4000 leads, and then a 1% sales conversion rate would be 40 sales. And if we’re getting paid $100, CPA, we would make $4,000. We paid 4k $4,000 in revenue, we breakeven. In this scenario, if this were the metrics that you see, well, if we went back to these people to buy it again, we tell them that based on the data and how their audience responded to your offer, you can’t afford $4 a 1000. But you’d be willing to do it for $3 a 1000, you’re willing to still pay on a CPM and take risk, right? You could pay $3, if this still continues, and you’d make $1,000 on the send, maybe $2, right, whatever the margins are, that you want to work on. But the point here of what I’m trying to just demonstrate for you guys, is that you can take this into your own hands, direct response marketing. You get aggressive, you’re the one that’s able to go out into the market.
All the placements on the internet, every placement, whether it’s an email drop, whether it’s buying Google ads, or a display ad or a pop, anything, it all has a value, right? It has a value to you from a cost perspective, right? What’s it going to cost you. And it also has a value to what the value the offer is to you. What’s happening through this journey’s linear path, have a view to a click to a lead to a sale, what’s happening there? What’s the conversion rates based on all those conversion rates is going to determine what you’re making. It’s gonna determine what the values are to you. Right? If you know, right, if you’re out there, and you’re trying to arbitrage some people’s offers, you want to be a middleman, a lead gen guy, right? If you want to go generate leads for people, well, let’s say you take my survey platform, right, and you want to start generating leads so that you can now one, help an advertiser, and two, you can build the database. You’re going to generate some revenue, the advertiser is going to do it for you, and you’re going to build the database. Well, in this scenario here, your goal, if you’re going to start to do it and base it off of a lead, is you’re going to try to generate leads for under a buck, right? That’s your, that’s your allowable at the very best. OK, if you want to be profitable, then you can’t spend $1 to get a lead. If you do, you’re going to break even. When you start generating leads that go into your database, and you’re selling them to your partners, your those leads, so you have the ability to remarket to them later. But if you want to be profitable on the first visit, you need to now buy traffic and generate leads for 80 cents, 75 cents. So, that’s what you’re looking for. Right? Once you know what your numbers look like.
But what I wanted to demonstrate here to you guys was just so you understand, these numbers are always the same. After you run traffic based off of the click percentage, the lead opt in percentage and the sales percentage, you’re going to get a number for the cost per 1000, you’re getting a number for the cost per click, you’re going to get the cost per lead, and your cost per acquisition. And it really just comes down to the risk that either the advertiser is willing to take, or you as an affiliate is willing to take. So, in this scenario where you’re arming it, you now can go out and buy traffic, you could buy traffic on Google, go buy traffic on Facebook, and you know, your metrics here, right? You can go pay other affiliates, right? if let’s say there’s an offer in the marketplace, and it’s paying $100, CPA, nowhere on the planet is someone paying for leads for this offer this $100 CPA, you know, you could pay $1 per lead, if you go out to the market and say I want to pay 50 cents, there might be people out there that will run traffic to your forum to get paid 50 cents a lead, it may be more exciting to them than running $100 CPA, because they don’t know what’s going to happen. Once they send the lead over to the sell side. And they don’t want to take that risk. There’s a lot of publishers that don’t want to do that. But they will on a lead because they know in real time if somebody signs up, they get paid right there in that, right. If the lead is going to go into a call center, and people are going to call on them, you don’t know when that leads going to take place, right? It’s really important you guys to understand this whole concept, because once you do, you really can take advantage of the internet. And the arbitrage is massive, right? The one you’re taking riskier, and I call it calculator, if you already know what you’re making, well, you could get into a situation where if you were able to do this, you’re gonna make 50% margins. Dude, that’s, that’s serious. That’s a serious number. But at the end of the day, you’re taking risk, you can let the partner runner that 100 of CPA you wanted to write if they want to want to 100 of CPA, then do it. But if you’re not willing to run a CPA, and then I’m gonna pay you on a lead basis, this is what I’m willing to pay you. They may say, No, we don’t want to run it. But that’s where you get into the conversation with with your partners and try to talk to them. I mean, if no one in the marketplace is buying on a lead basis for this offer, and you’re out there paying 50 cents, my guess is you’ll be able to to get some traffic.
Now the question is, where is the traffic coming from? OK, it’s really important, you’re basing this dollar per lead off of the media that you bought previously, right? If you’re going to be looking at data from when you sent an email to a database, and then you go, and you buy a display ad on, you know, some run of network, all these sites, I don’t know, you don’t know what that that is gonna look like very different value. If you’re going to be in some flows and you know, you’re going to be getting some leads you’re gonna buy leads from from somebody else, you don’t know what that’s gonna look like. It’s very different traffic. So, yeah, the dollar per leads a good starting place. If you wanted to, you can go test it, but you really got to think about where the traffic’s coming from, and get a good idea of is the quality of that traffic the same because if it is, then I’m going to make good money. But if it’s not, maybe the leads there are worth 50 cents, maybe they’re worth 25 cents. So, yeah, I can go and get the 50 cents per lead, right, which will get me 4000 leads instead of the 2000, when I send it over to my partner, are they still converting 1% of those leads, alright, if they are going to kill it to break even, they’d have to convert half of that point 5%, right, because we get 4000 leads at $1 per lead, we get 2000 leads at 50 cents, we get 4000 leads. So, in that scenario 4000 leads, we’d have to convert at point o 5%, to breakeven, right? That would get us our 20 sales, but we’re hoping that we convert at the 1%, that would get us our 40 sales. And that’s where we make their scent. Boom, beautiful, it’s beautiful.
So, guys, I just wanted to like, walk you through this a little bit, I don’t know if it’s confusing or not for you, maybe you got to watch this 10 times. But this is powerful stuff. Understanding this is one of the smartest people on the internet, by far, the people you talk to, that are out there buying traffic at this at the highest level, get it, they do understand it, then I haven’t realized you understand it. And so you start walking them through the whole the whole process and explaining to them, and it’s all mindset, right. But now, at the end of the day, there might be advertisers that are willing to pay on a cost per lead or cost per click right to you to your traffic that you have, you just got to walk them through it, right. And if they don’t want to do it, then you take the risk. And you should be making more margins. You know, the more risk you take, the more margins you make, I hope this was helpful. I wanted to go through this and kind of walk you through this concept of how to understand this, how to understand media buys, understanding that all of these numbers have the same once you back them out. Once the campaign is run, they’re all the same, they all lead up to the same exact thing, right? And now it’s just a matter of the risk, right? If you’re buying media, once you know your data, who’s taking risk, the advertiser or the affiliate. So, with that said, Guys, I’m gonna go start my day, I just wanted to kind of talk you through that a little bit. And if you have any questions, let me know. Comment below, ask me questions. You can shoot me a text at 9176361998? I answered, I go through it. And I answer directly to you guys. That’s my text community. Doing it, it’s great. This is how some of the ideas I get for helping people. When I do some of these podcasts. Like, you know, someone asked me about the advertiser contract. So, I did that, right kind of talked about how to go about creating the advertiser contract. The business decisions you make that was all from someone in my text community asking me to do that. Yeah, let’s get in touch, love to hear all about you and your business. And you know how we can work together. So, with that said, I’m out. Keep working hard. This is worth the time and effort you guys, it’s worth it. It’s worth it. If you’re confused. Just hang in there a little bit at a time. And you will get it. I promise you took me a few years to really get it. But it was well worth the wait. So, you know, don’t freak out. Like, oh my god, I don’t know any of this stuff. That’s OK. I promise you, it’s OK. This is all just you learning. It’s not me who was born knowing this. I learned it over time. I have experienced doing it. You can 100% learn this. And I guarantee that you’re, you’re like, smarter than I am that when you do get it, you’re going to be able to do way more than I ever did with it. So, that’s the exciting part. So, with that said, hang in there guys. Keep working hard. Be blessed. And I will. I will see you soon. All right. Thanks for watching.