(Part 2): Evaluating Online Traffic: Two Metrics That Matter When Arbitraging Media
16912
post-template-default,single,single-post,postid-16912,single-format-standard,bridge-core-2.9.8,qode-page-transition-enabled,ajax_fade,page_not_loaded,,hide_top_bar_on_mobile_header,qode-child-theme-ver-1.0.0,qode-theme-ver-28.8,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.7.0,vc_responsive

(Part 2): Evaluating Online Traffic: Two Metrics That Matter When Arbitraging Media

Eric Beer Performance Marketer media arbitrage metrics

(Part 2): Evaluating Online Traffic: Two Metrics That Matter When Arbitraging Media

Hey Performance Marketers, 

I’m still on a mission to obsess over the customer and make an impact on the lives of people who need help in this stuff. Last time we started talking about the process of evaluating media and determining if a specific media buying campaign works for us. 

There was a lot of maths, and we’ll continue the calculations today. Well, it’s better to say that we’ll be playing with numbers to figure out what’s the most profitable for us. Don’t you roll your eyes – numbers tell us everything. 

I just need several numbers to tell you what’s going on in a business – I don’t even need to look at its ad or landing page. And I want to teach you the power of data in a simplified way. 

I could be diving into these things for days. But I’m trying to keep it simple and share the essence of the business – to filter what’s really important so you don’t have to waste time on the noise around the core metrics. 

So, let’s dive into optimizing and scaling the business, some more mistakes people usually make when buying media, and a tip or two on how to take a calculated risk.

Well, you better stick around!

 

Playing With Numbers

 

When talking about media buying last time, we had an example of a campaign with an amazing 90% net margin. (Check out the full episode or its blog.) 

Although the super net margin seems like something you wouldn’t like to change, we said that if we increase volume, we could make more money with a lower margin (and make our publisher happier in the process).

And how do we scale the business? Like I said, numbers tell us everything. So, let’s play with numbers to see what could make sense for us to do. 

These are the numbers we know: 

– we have 18,244 total clicks a month

– we’ve spent $307.65 to get those clicks

– we generate $3,193.19 (total gross revenue)

– we have $2,885.54 net revenue (wow!)

– we’re making $0.18 on an impression/click 

– we’re paying $0.02 for that impression/click

– we’re getting 589 clicks per day

The question is how to get more clicks if we can maintain the same quality of traffic (if click rates, conversion rates, backend conversion rates… remain constant). We take the media CPC allowable increase percentage and start playing in our Excel sheet. 

Let’s say we have a 100% increase. In that case, our cost per click/impression is 3 cents ($0.0337 to be precise). Because of that, our new projected spend is $615.30. 

However, we have to keep in mind that maybe it’s the maximum traffic we can get. In that case (if our traffic doesn’t increase), why would we pay more for the same amount of clicks? We already make a 90%. 

But if there’s more traffic, we’re going to spend more money and get more clicks. So what does that look like?  

 

Let’s Project

 

If we play with numbers and increase our bid by 600%, we’re spending $0.1180 to get a click, and our projected media spend is $2,153.55. In this case, we’re making $3,193.19 gross revenue, and our projected net revenue is $1,039.64, which makes zero sense.

But why would we do that? Because we expect some increase in traffic. Let’s say we got a 10% increase in traffic. So now, after increasing our bid from $0.02 to $0.11, our clicks go from 18,244 to 20,068 clicks.

So, how to figure out how much money we’re making at that point? (We’re assuming that everything’s gonna stay the same). We’ve said we’re making 18 cents per impression. This is the calculation:

20,068 x $0.18 = 3,512.51 (projected gross revenue)

20,068 x $0.1180 = 2,368.91 (projected media spend)

3,512.51 – 2,368.91 = 1,143.6 (projected net revenue)

Does this work for us? 

We said at the beginning that we have the WOW $2,885.54 net revenue. With increasing the bid by 600% to see a 10% increase in the number of clicks, we are losing $1,741.94

So it doesn’t make sense to increase the click price if we won’t get a higher increase in traffic. 

Now you can play with the numbers and increase the number of clicks to 20%, 30%, 40%… and calculate the rest of the parameters. I’ve done that already and found out that even a 50% increase doesn’t work for us.

We can conclude that the 600% bid increase doesn’t make sense for us. Then, let’s have a homework – try a 150% increase of the sum we’re ready to pay for a click with a 50% increase in traffic. 

(Calculate the numbers yourself and then check the full episode to see if you are right.) 

 

“What If…”

 

In this example, we only increase the percentage we’re willing to pay to get a click. As you see – these are just projections. We’re playing with various scenarios and asking “What if…” to figure out if our business is profitable or not. It’s math. 

And math is everywhere – everything backs out the numbers.

The bottom line is we’re trying to make more money. Our goal is higher profit, not a higher margin or any other metrics. As long as we’re making more money, we don’t care if our net margin is lower. 

But what if we pay to get a click more than we make per click? Does it make sense to pay $0.22 per click to get more traffic if we make $0.18 per impression? It seems obvious that this is a loser deal. But not necessarily! 

If we find a way to make money on the backend, then it doesn’t matter if we lose some money in the process. This is another thing that people make a big mistake on – they give up such deals. 

Let’s say you’re paying $0.22 a click and you drive traffic somewhere. (Actually, you’re trying to break even in this stage because if you can break even, you have backend things where you’re generating revenue.)

 

Spend More to Get a Way More 

 

Let’s say it’s a survey funnel, and you lost money (in our scenario, you still make the $0.18 a click). So now you’re negative $0.04 on that trip. But you got the person into your database, which is the real value. 

Now, let’s say you send them emails on a daily basis. You’re nurturing this person, talking to them, introducing them to things, giving them value… Maybe you make some money in the process – day #1 $0, day #2 $0.01, day #3 $0.03, day #4 $0.02…

And on day #5, you decide to go and give them a higher offer. You want to try to ascend the potential buyers up the ladder. On that day, you may make $5 per person. (It’s an average cause someone might spend $50k, another person may spend $0.15). 

How much have you earned in 8 days? $5.06 + $0.18 = $5.24 per click

How much have you spent in the same period? $0.22 per click

What’s your net revenue? $5.02 per click

The bottom line is, that’s a killer business! And you’re making money in the backend. 

So there are a lot of different things going on here. And I’m painting this picture for you. I hope you recognize the value I’m talking about. I encourage you to watch the full episode and the previous one as well. 

I think you got to watch them multiple times and take notes. 

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!

🕵️‍♂️  Sign up for the SurveyDetective VIP Waitlist HERE

I’m looking forward to hearing from you! 

See ya next time!

 

Listener Love…

  • Awesome
    by Nevareze William from United States

    Very interesting show.

  • FANTASTIC!!!
    by cucklord101 from United States

    My life changed after I discovered this podcast, 100% the number one on the platform.

  • Great Podcast !!
    by Olivia Cousta from United States

    I listen several days a week and am excited to have taken action with my first few steps. Thanks Eric!

  • Best Podcast
    by faz12548 from United States

    Thanks for everything. This show has been an amazing resource.

  • My favorite podcast
    by Alison Riah from United States

    This is my favorite podcast. I look forward to every episode and share it with everyone I know.

  • Awesome!!
    by Brads Hook from United States

    Love this show

  • Inspiring
    by stevie h b from United States

    Eric’s energy, wisdom and experience get me pumped up to do more.

  • Eric changed my life, thank you
    by Nicole Aliba from United States

    Anyone who has a chance to listen, do it. Subscribe, download and listen. Eric is authentic, he truly cares about the people he comes in contact with. I know eric, I’ve tried to be around him and learn from him any chance I get. He’s been successful in every stage of his life. Getting the opportunity to hear from him direct, how he thinks, how he goes about achieving his success, his strategies, his tactics, his outlook on life. I’m thankful he started this podcast and I’m thankful I get the chance to learn from him. I have no doubt the lessons he delivers each and every episode will help me continue to be succession my journey. Thank You Eric for making an impact on my life and making me realize I’m capable of so much more than I ever realized. Your support fuels my success. Good luck with the podcast!

  • Wholly Cow!!! Eric Is The Real Deal!!
    by Supreme Dragon Slayer 69 from United States

    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!

  • Dave
    by Rothbone from United States

    One of the best podcasts in a long time. Very insightful, had me at the first 2 minutes kept me for entire podcast. I am a entrepreneur myself and found it very interesting.

  • Eric Beer is a genius.
    by Raera29 from United States

    I've only briefly met Eric - but listening to his podcast (as well as his YouTube videos) - it's clear to me that he has an in depth understanding of how marketing should work. Brilliant podcast!!!

  • Beer podcast
    by Bghbhhhggghugyhjjgtjporws from United States

    So excited to get more info from Eric Beer to help further my career.

  • Great Stuff
    by Dr TBA from United States

    I have been a business owner and entrepreneur for over 25 yrs. I found the information both interesting and informative. I am a fan! Dr Todd Askenas

  • This dude is the real deal...
    by gossjoh1 from United States

    I’m in the internet marketing space and have heard about Eric Beer from other entrepreneurs and it’s always about how much he crushes it. Over $100,000,000 in revenue... no joke. I had the good fortune to meet him this weekend at an event and he couldn’t be more humble and genuine. Just listened to the first episode and it is awesome! Can’t wait to learn and grow from you Eric and thanks for sharing your wisdom and experience with all of us!!

  • Awesome
    by Archmatic from United States

    Thank you Eric for all your motivation and confidence! This is a must listen. Eric is always on his game and ready for a challenge!!!’

  • Informative and relatable
    by srg1113 from United States

    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.

  • Outstanding!!!!
    by casino exec from United States

    This is an excellent podcast for entrepreneurs in any industry. Hearing Eric interview and discuss proven success stories is like getting a motivational fix within 24 minutes. Can’t wait for the next episode!!!

  • High Five
    by chris drazek from United States

    This is good! Guy is well known industry veteran. In the age where it's hard to get 15 minutes with someone like that on the phone, these episodes have a permanent placeholder on my calendar. Well done and keep up the good work!

  • Amazing
    by Rtfdghf from United States

    Walked into the office inspired and motivated! Great listen.

  • Just discovered a GOLDMINE of information!
    by ericamerica from United States

    This is next-level marketing that EVERYONE needs to know. SO much value here! This is information people would be willing to pay BIG $$$$$$ to have, and he’s just laying it all out here.

  • Insightful
    by lonestar1818 from United States

    Incredible insights from one of the best!

  • Entrepreneurial Gold
    by girlfriendwithnutallergy from United States

    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.

  • Knowledge bombs!
    by Sheree Trask from United States

    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!!

  • As Smart As they Come
    by Lgoldberg1976 from United States

    Eric Beer is a tremendous listen. His story telling and motivation have already driven me to work harder. Can’t wait to hear what he has to say next.

  • Great content
    by Sensei Victoria Whitfield from United States

    Eric is a great guy, gives from the heart and is a wealth of powerful, profit-positive information. Rock on, brother!

  • So informative and easy to understand
    by bergbusiness from United States

    If you are serious about starting in this business this is the podcast to help kickstart your career. I highly recommend tuning in.

  • Powerful
    by reebcire from United States

    Never realized how mich money performance marketers make without taking much risk. Get excited to learn more

  • Eric Nailed It...
    by Mark Duke from United States

    You do not want to miss out on this podcast. Eric is absolutely brilliant at his craft. A MUST listen or anyone who is wanting to ethically up their game in the business + affiliate marketing space. Cheers!

  • I loved this podcast!
    by DPG...123 from United States

    I just listened to this not knowing what to expect and it was FANTASTIC! I am hooked and can’t wait for more episodes. Looking forward to learning a ton from Eric 🙂

  • Eric’s trainings will up-level your life!
    by SwayBuckley from United States

    Eric’s level of transparency and REAL value is not only rare but transformative! Don’t sleep! He’s the real deal!

  • Got me hooked from the start
    by Doc bus from United States

    Hearing Eric’s story and why he is looking to share his knowledge of starting a business was so motivational. Looking forward to hear what he comes out with next. Hoping I can use his coaching to take my own life and business goals/ideas to the next level.

  • Eric is a genius!
    by Golden Oracle Ministries from United States

    I had the pleasure of meeting Eric Beer in a high level mastermind that we are both a part of. I must say that every time he opens his mouth marketing gold falls out! I’ve made millions both online and offline, so when I hear someone talking about marketing I’m not usually that impressed, but with Eric I’m beyond impressed. I’m blown away!!! Learn from Eric, do what he say and watch your business grow.

  • Excellent
    by JLRPS22 from United States

    Very motivational!

  • Awesome content
    by NickTheGreek83 from United States

    I don’t normally write reviews but this is a must listen for anyone considering starting a business. Eric thank you for taking the time to give away some of your secrets! Look forward to future podcasts.

  • Legend!
    by Daxy111 from United States

    SO excited for your content to come. You're advice and results is authentic which is rare now a days!

  • *****
    by acrygvbh from United States

    Fantastic relevant info !!!

  • The real deal
    by Erin_Verb7 from United States

    Eric Beer is one of the smartest media buying minds I know. Take this chance to learn everything you can about affiliate marketing from him. He will teach you an ethical way to make your life and your family’s lives better through affiliate marketing. He’s the real deal.

  • Genius marketing knowledge
    by Nick349731 from United States

    I can’t wait to continue to learn rom Eric! So skilled and such a genuinely good person too. Keep putting out the great information Eric!

  • Great story and great info
    by R-Rot from United States

    This was a very interesting podcast. It was honest, informative and motivational. Eric has a great story that, everyone who is interested in starting a business, should listen to. Highly recommend!

  • Amazing
    by Billion Dollar Cowboy from United States

    I can’t wait to learn more!! So so good!!

  • Awesome
    by Eric X 2 from United States

    Eric Really enjoyed listening to this. Keep up the great work!!!

  • Let’s Market!
    by hjdvikes from United States

    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.

  • Invaluable information!!
    by lpro1111 from United States

    Invaluable information. Can’t wait to dive in.

  • Great information, tons of useful tips
    by jonnygal77 from United States

    These are great, so much useful information that I can use immediately and effectively. Thanks Eric

  • Great listen
    by Xtra Medium from United States

    I love listening to Eric’s podcast on my way to work. Looking forward to applying some of these principles to my career.

  • Definitely worth a listen
    by SBS776 from United States

    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

  • Game Changer
    by Jay Heydt from United States

    Eric Beer is a game changer for your business. I had the privilege over the summer of taking an online marketing class with him. The daily interaction with Eric made me believe anything was possible as well as opened my eyes to an entire world that is online that I was missing. You will learn and earn with Beer. He is one of the best business coaches out there!

  • Performance at its best!
    by Shm722 from United States

    Eric has great ideas and insights!

  • Listen to a visionary....
    by RobH60 from United States

    Eric is a genius and visionary. Always looking to get ahead through hard work and drive to success yet he is super down to earth and willing to spend the time to share the secrets of his success with others.

  • Finally, coming out to teach the world
    by RogerSmith! from United States

    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

    I can’t wait to learn from Eric so I can level up my marketing!

 

Transcript…

Read Full Transcript

Eric Beer 00:00

The more risk you take, the more margin you should make, the more money you should make. If you’re taking less risk, if somebody is going to run out for you and do it and be aligned with you on, you only make money when they make money, right? That kind of concept, well, then you, they should get more for that.

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.

This is powerful stuff, guys, I get it. I could dive into this. I love it. Like numbers tell me everything. I need to see numbers to understand what’s going on in the business. Right? I can look at numbers and tell you things about what’s going on in the business. Without looking at the ad without looking at the landing page, I can tell you where the problem is - in the flow by looking at that, if I just have some data, right? And it’s just not the data, right? You need something that you compare it to, right? A lot of people will look at stats, and they’ll say they’re looking at it and trying to figure out is that good or not? Well, how do you know if it’s good or not, right? You got to be able to compare it to something, right? If we’re getting 18 cents per click here. Is that good? Well, oh, 14 cents, 14 cents, 10 cents, 13 cents? 10 cents? Yeah, it looks OK. That’s pretty good. Based off of the data that I have on this page, so this offer is the best offer. Or if this is the same offer on this on this spreadsheet, and these are all different sources for running traffic to my offer, well, then this source has the best traffic. So, I want to know what’s going on. I want to I want to dive in deeper on why am I getting 18 cents per click, when over here I’m getting seven cents two cents, two cents, nine cents? Like what what’s going on? Right? Are we running the same ad, same landing page for everything’s the same? Well, then the only thing that can be different is the source. And that type of traffic and who’s coming to the page and why they’re doing what they’re doing. Right? It may be that you got to optimize it, because the platform that they’re coming from is different than this. And the people are gonna respond differently. Right? It could be as simple as, but as an example of people when they’re consuming content that some people like to read. Right? So, you would look at a book or a blog, right? Some people like to listen, right? If you listen to podcasts, and some people like to watch videos, right? So, you know, if you’re selling something, if you can identify how they like to consume content, right? If someone likes to read books, are you going to sell them? And send them over to your podcast? Or would you try to sell a book? You try to sell a book, right? Because they’re telling you that’s how they want to consume your content. Right? If someone saying I love to watch videos, right? I love to listen to books. I don’t want to read a book, right? I get tired when I read the book. And it’s just hard for me holding it. I love to, to go to audible buy a book and listen to it. I can I can speed it up on how fast it is. I can skip around. And I can be doing other things while I’m listening. I could work out, right, I could be doing some busy work anything. And I love it. Right? So, if you’re going to try to sell me a book versus selling me the audible version, you’d want to some of the audible version. And to me that’s worth way more money. Right? I like having books. I like having them on shelves I like I like how they look. I’ll dive into books from from time to time to look at certain things. Right. But I don’t like to sit and read a book from front to back. So, my thing, right, I’ll listen to it front the back. I probably wouldn’t watch a video on it of somebody reading the book to me. Right? They I mean there have to be more to it. Right movies, right? It has to be more entertaining for me to watch it. But I like to listen to it. Right? So, you got to understand that that there’s a lot of different things that go into why stuff happens, right? But at the end of the day, the value per click Oh comes down to, if somebody clicks to our page, right? Somebody clicks this page, you’re looking at what the conversion rate is. So, a click to whatever the action is you need them to take, right? So, that is the click. Rate, percentage, right? So, here you have your clicks, right here. And now what is your click to conversion? Rate? Percentage, right 100 clicks 10 people take the action you want, fill out your form, take a survey, subscribe to YouTube, subscribe to podcast. So, if they get 100 clicks, you get 10. Calls to Action. CTA that is a 10% conversion rates. Right? Everything’s numbers, guys. Everything backs out the numbers. And I wasn’t even I don’t even love math. I never was a math guy. Like in school. Like, that wasn’t my thing. I love math in what I do. And the more I live life, the older I get, I just I recognize that math is just like, everywhere, everywhere. It’s like, you know, even like looking at, let’s say, God forbid somebody got into an accident. Right? Well, at two o’clock, if you are at the supermarket, and at 330, you end up getting into an accident where you’re going through a green light. And someone runs a red light and smashes your car. And you survive. You’re OK. Everything’s OK. It’s just scary, right? Well, let’s hypothetically say at two o’clock. You, you dropped your wallet, and everything splattered everywhere, right? So, now you got to, you know, bend down and pick up all the change in the money. You’re embarrassed, people are helping you. And it’s just a disaster, like you just you just disaster. You go you do it, you pick it up. Now, it took you about three minutes to get everything back together. And now you’re back to doing what you’re doing. So, by well. You’re not getting to intersection now till 333. Right. And if you’re getting there, 333 you’re going to get there. And the accident already happened. It’s math. Right? It’s It’s freaky, right? It’s just, you know, as silly as you know, how long does it take to get to Florida? Well, how fast are you driving? How many miles? Right? And this is all like school stuff that like I could never appreciate because I didn’t understand the value of it. Right. But now, when I can use it for for real life. Wow, man. It’s exciting, right? It’s really cool. You could predict a lot of things, right? We’re trying to predict here what we can afford to pay to make it worth our while. Right? So, if right here, we increased our bid by three cents. Now we got more clicks, we made $4,700 versus the 3100. We’re paying $900. So, we made 3866. The delta here is this minus that. Let’s make sure the maths right. OK, so we made $981 more. So, the projected net margin now is 19%. We’re making 19%. So, we lost 71%. From the 90%. net margin. Now I’m going to ask you this question. What’s better? What’s better? 90% net margin, or 19%. net margin? Well, obviously 90% net margin is better. But not in this case. Right? If you and I are or are doing the same thing. OK. Let’s pretend this on a daily basis, you’re making 90%. And I’m making 19%. net margin. I’m spending more. I’m making less. Right. If that’s if that’s correct. Right. 81%. Yeah. I don’t know who what numbers those are. So, in 81% is still less than 90%. Right? So, let’s go here. 200% 400%. Right. So, at 400%. Is it making sense? No, not really. But we’re increasing 150%. We’re paying four cents per click. We’re making 76% net margin versus the 90 which is worse, but we’re getting more traffic. And by getting more traffic, we’re making more money. We’re making 70 $50 more per day, right? So, if you looked at it like that, right? Well, if we did it were, let’s hear 90%. net margin. OK, and they are gi n, let’s pretend like we’re doing that. So, we’re netting out that times 31. So, we make $89,000 a month, if that was on a daily basis. Now, let’s look at it at the 76%. net margin, right, we increased how much we are willing to pay per click, which is going to, in effect, get us more clicks, at the same value per click. Right? So, in that scenario, right, we’re netting out the 3600 times the 31. And now we’re making $112,000. Right? We’re making less margin, but more money. And at the end of the line, that’s why I call it the bottom line. Right? The bottom line is, we’re making more money by working on less margins, right? And that’s it simple as that, you got to understand that that’s the mistake that people make they stop. So, in this scenario, we can increase our traffic to try to get more traffic, right? And play around with these numbers. If we’re, if we’re up 150, we can increase by 50%. Right? What happens if we now go up to 400%? Then let’s say, you know, 600%, like we said earlier, right? We’re negative, we’re losing money, like we said, but this time, now, we get a 250% increase in revenue in traffic, right? A 400%. increase in volume, right? Maybe a 600%. increase in volume. Right? So, what is happening here? Well, on 600% increase in margin, we’re paying 11 cents, right? Almost 12 cents per click. But we’re making now we’re now we’re getting 127,000 clicks, the it jumped up from 18,000 clicks of what we’re getting here. 227,000. Now we’re generating $22,000 in revenue. Our spend is 15. Grand, but we’re now making $7,200. Right? We’re making $4,300. More for scaling our business. Right? So, right here, we’re looking at 33% net margin, which is fair, right? Like, that’s normal, right? Obviously, you’re gonna have other costs, you might want to work at a little higher margin, because you have all your operating costs and all the things that are going on your cogs, cost of goods sold, right, and we’ll get into that right now. Right. But the difference here is, we’re now losing 50% of the margin, right? So, we’re making 33% instead of 90%. But look at the difference here, guys, right? Now, on 33%. net margin, which is here, we are making $225,000 a month versus 89. It’s huge. It’s a game changer, right? If you multiply that times 12 months, right? times 12. Right here, we have a million-dollar business. And here, we have a $2.7 million business. That’s guys a massive difference, doing the same thing. And the only difference here is we increased what we were willing to pay to get more traffic. I mean, it’s pretty simple, right? You didn’t You didn’t have to change anything. You didn’t have to change your ad, you did not have to change your landing pages, you changed nothing. On the backend, you didn’t have to optimize a thing. But you recognize that you’re working with a big amount of margin. You’ve identified that where you’re buying the traffic, there’s a lot more potential, right. And while the margins are great, you’re so willing to work on lower margins. If you can get more traffic, the more traffic you get, the bottom line grows, if everything remains the same, right? And that changes everything. So, all we really did here was we increase the percentage that we’re willing to pay on getting a click right 1000 Now we’re paying 18 cents, right? So, now, what has to happen right now we’re paying 18 cents a click That makes sense, huh? Nope. Right Why? That’s really important. All right, let’s see. Let’s see what happens if we get 1,000%. Let’s see if we get 5,000%. Let’s say we got 10,000%. How come? It’s not changing? Guys? Why is this going up? What’s going on? Hey, now we’re getting, you know, 50,000%. It’s way too big. Right? And we’re losing more and more money every time I do that, why? Guys? Remember, there’s two things we had to worry about. What are we making? On our on on here? What are we making on our revenue per impression? And what are we paying to get that impression? cost per impression? What are we making on the revenue per impression? Right? What are we paying on a click? And what are we making? on that? Click over here? Right? What are we making? on that? Click? Right? This is the click. These are the impressions the eyeballs when people land there, right? They equate to the same thing. It’s just a question of how you model out your business. Well, let’s go and look, right? The reason why this is negative is look, the new cost per pub click is now point 1855. Right? Remember, what are we making on gross revenue per impression? What are we making on the revenue per click 18 cents, I don’t care how much more traffic you get. If you’re making 18 cents, and you’re paying 18 and a half cents to get it, you’re going to lose all day long. Because nothing’s changing. All that is changing is you’re increasing the amount of traffic to a loser. Right? In this scenario, what would you need to do? Well, the simple thing is, obviously, you got to scale it back. Right? You can’t pay that much. Right? You can’t pay 18 cents, if you’re making 18 cents, right? You could pay anything under that, right? 1716 1514 13, whatever, right? As long as you’re paying less than 18 cents, you’ll make some money, right? Obviously, you want to spend the least amount of money to get the most amount of traffic, right? You want to scale it, but yield the highest amount of margin you possibly can get. OK, really, really important, guys really important? Well, we’re not going over this today. And I’m not going to go into all the data that goes into this. But what would need to happen if we want to pay 18 cents a click is we’re going to need to figure out how to increase our revenue per click, or revenue per impression. Well, how do you do that? Right? You know, the end of the day, you got to figure out how to make more money on the back end. If you guys ever see, right, like, you know, show you something that people miss. This is why data is so important. On the backend, right? So, let’s say that you do that. Let’s say this is on that visit. So, the ad a click, so your revenue per click is 18 cents. Let’s say your cost per click. Now let’s increase this traffic to 12 150. Right. So, now we’re paying 22 cents. So, now the cost is 2277. Right? So, right now, we’re losing. Negative. We’re losers here. This business is done. Ah, we got we’re going home. We’re not making any money. Loser. Not necessarily. Not necessarily. This is another thing that people make a big mistake on. OK. So, let me show you. Maybe you’ve seen this in the market before when people show you. Let’s use this. Right, right. You ever see. They’ll use an example? Where OK, let’s say you’re on a boat. And you see say this is an iceberg. Oh, terrible. I’m a terrible artist. I’m an outer J iceberg ice brj. Who knows? From above the water. Right? You see this tip? tip of the iceberg is right there. Right? Well, here on the back end is a gigantic, huge rock. Right? There’s huge thing like ice just to huge, huge, but you don’t see you just see the little tip. Right? That’s the concept of if you’re making now 18 cents on that first visit, right? So, if you look at it as a funnel, let’s upside down that right? Let’s say first visit, second visit, third visit. Fourth. OK. Well, in this scenario, what I’m showing you here is you driving traffic somewhere. And you’re trying to they call this like the slow the self-liquidating offer, you’re trying to break even, right? Because if you can break even, you have backend things going on where you’re generating revenue, right? That’s the business. That’s the concept, you don’t have to always be profitable on the front end. Right? The front end, right? So, there’s a funnel, whatever that is. That’s funnel one. So, it’s a survey funnel, and you lost money. Right? So, here, you made the 18 cents. Now, you paid no revenue, per, per click, you paid 22 cents, CPC. So, now you’re negative four cents on that trip, right? But you got the person into your database. Now, right? Now, let’s say you send them emails, right? Day one day to day three. You’re nurturing this person you’re talking to them, you’re just introducing them to things you’re giving them value. OK, well, even so let’s say you make $0 Here. Here, you make two cents. Here, you make two cents. Here, you make a penny. And on day five, you decide that you’re going to go and give them a higher offer the people that are buyers here, you’re going to now try to ascend them up the ladder, right? So, on day five to that list, maybe you make $5. Right? If you add that up, you paid 22 cents to get there. But you’re 18 cents, you have to add you have to attribute this revenue. Right? That’s another mistake people make. And they lose a lot of business because of it, because they think that they have a losing business. When if they if they do it the right way. It’s a homerun business, right? You’re making $5 here and a penny to Penny for $5.05 plus your 18 cents, right? So, what is that $5.23? Right total value that you’re making on somebody minus your 22 cents. The cost? So, you making $5 in a penny per per person in your entire list, right? Someone might spend 50 grand another person may spend, you know, 15 cents, but we’re just averaging it out. Right? So, it’s all based on now volume, because you’re backing it out to everybody, you’re doing an average, yes, you optimize you, you do all those things, but I’m just making it super simple for you. Bottom line is, that’s a killer business. And you’re making money in the back end. So, there’s a lot of different things that are going on here, guys. I’m painting this picture for you. It’s beautiful. I mean, there’s so much value here what we’re talking about, I think you got to watch this like 1000 times, but slowly washes and follow along, take notes. This is it. This is all the stuff. It’s so fun. I could geek out, I could sit here and talk to you for another five hours about so much stuff. There’s so much stuff here. But you know, sometimes you just got to simplify stuff. And the simplest way to do it is by looking at these two metrics, what are you making on a revenue per click? And what did it cost you to get that click? Or what are you making when someone lands on your front page? Revenue per impression? What did it cost you to get that impression? Or, right? Just going down that theme? If you’re generating leads, what are you making on a revenue per lead? And what does it cost you to get that lead RPL revenue per lead, CPL cost per lead. It’s all relatively the same thing, a little bit of a different dynamic, right? And how you’re backing it out. But the beauty is you’re looking at your business in a way where you can now reverse engineer things and buy traffic right. I can make money by selling leads. But I can buy traffic on a CPC right Now how does that work? You got to figure that out, right? You got to figure out the numbers of what can you afford per click to generate elite? And what’s that lead worth to you? And if you do that, you’re taking risk. Right? You’re out there and you’re buying, let’s say you’re competing with 10 other companies, and they’re all buying leads exactly like you are, well, they always say, Whoever can afford the most to buy media will get that traffic. Right. And that’s true. But in some cases, there are other reasons why someone might run your offer instead of somebody else’s. If you’re making the conversion to get paid easier. Some people just want to get paid on a click, some people want to get paid on, on sending on a CPM cost per 1000. So, when they send to a million people, if they charge you $5 1000, right, that means you are spending $5,000. Now, doesn’t matter how many people click doesn’t matter, you will fill out their form for them. They got paid $5,000, they’re happy with that, right? And if you were testing that, you’d have to figure out, can I afford that? You’d have to back it out to see, can I afford to pay for those and you’d run these numbers, all these numbers to kind of figure it out. But the thing is, is that, Let’s hypothetically, say, when you’re doing that, you need to figure out what is your revenue per 1000. If you’re going to pay $5 1000, you need to figure out what is your revenue per 1000. Right? Even if I’m out there, and I’m buying leads for $10 a lead, right? If somebody wants to charge me a CPM, I need to back out that $10 per lead to figure out what am I making on a revenue per 1000 to be able to figure out if I can afford that, or if I’m willing to test that. Right. If you do that most people don’t do that. Right. So, when you’re arbitraging media, it’s a I mean, it’s such an advantage to understand this stuff, guys, because now, it seems like you’re taking risk, but it’s a calculated risk, you are taking risk. And that’s why you should make more margin, right? I’ll say, the more risk you take, the more margin you should make, the more money you should make, right? If you’re taking less risk, if somebody is going to run out for you, and do it and be aligned with you on, you only make money when they make money, right? That kind of concept. Well, then you they should get more for that. Whatever they need to make, you should make sure they’re making it. But if somebody is like, I’m not, I’m not, I’m not running your offer. Unless you pay me on CPM, right? Well, what happens if you’re paying $5 1000? And that $10 lead backs out to $100 1000? So, you can afford to pay $50 $1,075 1000? Well, you’re gonna keep $95 1000 that you made $95 1000? That person wanted five, that $5 1000 That’s what they wanted. They’re happy with it. Great. Now, why would you pay them more to get more traffic? If they have more traffic, than perhaps you would increase the price? Right? If they have that traffic? And you want to outspend your competition? You might be like, Hey, listen, if you got me a million emails to send, if you can get me 20 million emails to send over the month, I’d be willing to pay you $7 1000 The person’s like, well, I’m making photos 1000. So, I’m increasing to $2. More on that 20 million. Hmm, no brainer, right? If they’re currently selling it at $5 1000, right? 20 times, at five grand there’s, they’re making 100 grand a month. Now, they’re increasing it by an extra 40. So, now they’re making $140,000 a month from us. Right? We’re paying seven. Now we need to make sure that quality stays the same. When you increase volume. That’s really important. Sometimes it happens when you increase some volume. It’s just there’s it’s ultimately you got to you know, think about impressions, traffic, those are people, right? Those are real people taking actions, that conversion rate needs to stay the same that that revenue per impression needs to stay the same, that revenue per lead needs to stay the same. If it changes, you need to calculate that to see are you profitable, are you still profitable? It could change it probably is going to change. Right? But if you’re at the end of the day, bottom line, making more money, you don’t care. You don’t care if your revenue per lead goes down. You don’t care if your net margin goes down, right or your revenue per impression goes down you don’t care because bottom line is you’re making more money. So, guys, that’s it. I mean gold right there. I hope I hope you guys you know stayed for the end here through this video. If you did, you’ve got a tremendous amount have information that you can now use for your business. Listen, subscribe, please, it helps share this thing with anybody you think could need it. Subscribe to my text, community 917-636-1998 ask me any questions you want, comment, ask me questions. I’m happy to help you, I’d love to help you. And look out man, I just finished a chapter my books coming out the launch is April 9, Million Dollar Identity and with a bunch of awesome other authors, I talk about media arbitrage, I talk about survey funnels and survey detective and all that good jazz. And that’s also like, putting like a kicking my butt to, like, do so much more stuff that I’m pretty excited about. I’m gonna announce it yet, but is pretty close to writing my own solo book all around, you know, Survey Secrets, and how to use surveys to generate leads and increase your profit margins and make more money and be more relevant and kick butt on the internet. And that should coincide with launch of our server detective software. So, a lot of cool stuff up ahead. Really excited about it. So, stick around, like, you know, keep your ears open, and we’re going to be doing some coaching and training. So, if that’s exciting to you, and you want to be hanging around with me more in my community, subscribe to everything, because it’s going to be announced. And you know, hopefully, you guys can be there. You know, my goal is just to obsess over you, obsess over the customer, I’m taking a page out of Jeff Besos book, that is my goal. I just want to obsess over the customer. Yeah, my technology needs to work. Yeah, my strategies need to work, right. But how I want to be differentiated from everybody else is that the people that are in my community, know that I care. And everybody in the community cares for one another, and we’re all helping each other. And if that doesn’t align with what I’m doing, then you don’t belong in that community. I entrepreneurship is lonely, right? We’re all alone. We’re on our own wherever on companies. But it doesn’t have to be right it you just have to find places where you’re with other entrepreneurs that are similar to you doing similar things. And we all want to help each other. Right, we all want to help each other to get our messages out into the world. So, that we can help people that need our help. And we can make an impact on their lives. And in return, you’re going to grow your business. And we’re going to start to build legacies. And it’s going to be a beautiful thing. It’s already happening and let’s just keep the momentum going. So, with that said, guys, I appreciate all of you. I hope you’re all well. I hope you’re all safe out there with what’s going on in this world. And until next time, be blessed. Talk to you soon. All right, I’m out.

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.