30 Apr You Don’t Have To Be A Marketing Math Genius With This Simple Tool
Today, I’m going to share something very special. It’s a project we’ve been working on for a long time, and it was created with the sole purpose of helping you bring Performance into Performance Marketing. I’m talking about the brand-new tool called AdCalc.
Now, I often hear that people find themselves driven out of many lucrative fields purely because they don’t like maths. And even though I understand that some might not enjoy it as much as myself, it’s not a good enough reason to prevent you from achieving something great.
The tool we’ve built is simple, easy-to-use, and it will help you optimize all of your media buying strategies. So for today’s episode of the Performance Marketer Podcast, I’ve created a detailed breakdown of the software, full of relevant, field-related examples that will show you exactly why it’s so awesome.
I have also prepared a unique offer for the loyal members of the Performance Marketer Nation. Typically, the subscription for AdCalc costs $47 per month. However, I’ve set up a special offer on my website that provides you with a 60-day trial to the platform, for only $7. Sign up using the link below!
👉 Get Your 60-Day Promo Pass To AdCalc Now!
How to Optimize Your Media Buys With AdCalc
The whole purpose of performance marketing is to get the most amount of value for every single dollar that you spend. If you’re working on a campaign, you need to know exactly how much you’re getting in return.
“Knowing your numbers can allow you to optimize your media buys.” – Eric Beer
When you’re purchasing media campaigns, there is a number of essential metrics that you need to keep track of so that you’ll be able to optimize your investments. With AdCalc, we’ve put them all into a single platform and created a setting where you can quickly figure out precisely how much money you need to spend to make your campaign profitable.
By selecting a type of media buy and adjusting your estimates regarding your media budget, target margin, prices of each offer, and the expected conversion rates, you can now create different scenarios. Depending on what your goal is, you’ll be able to strategize which parameters will provide you with the highest possible value for each buck that you are willing to invest.
How Intent Affects Lead Quality (And Your Media Buying Strategy)
If you take the lessons from our previous episodes and apply them to this tool, you should be able to feel the benefits immediately. One of the most important things you need to is to understand where your traffic is coming from.
We’ve talked a lot about intent on the Performance Marketer Podcast and how it can affect lead quality. If you can categorize the clicks you’re getting and classify them in terms of higher or lower quality, you’ll be able to make more accurate predictions in terms of conversions. Subsequently, it will also help you determine the right price for that particular type of click.
“Not every click is created equal.” – Eric Beer
The Goal of Performance Marketing and How AdCalc Helps You Achieve It
I’ve said it before, and I’ll say it again – cash flow is king. Creating cash flow allows you to step into a new domain of financial freedom. You can use that money to grow your business further and build your empire.
AdCalc will help you generate cash flow because it assists you in building profitable programs that will bring you traffic all over the internet. It doesn’t matter if you’re buying media on a CPM, CPC, CPL, or a CPS – it’s all built into the software!
Once you’re able to set up a model that works, you become unstoppable. Because now, with every penny you spend, you’re guaranteed to make money off of it. The more money you pump into your program, the more you’re going to make.
“Your budget is unlimited IF you can buy media the right way.” – Eric Beer
You’ll need to keep track of the numbers to make sure they stay the same, but as long as that’s the case, you’re always going to come out on top.
Winning the cash flow game is the end goal here, and AdCalc will help you get there.
Once again, our offer is live as of today. Usually, the subscription for AdCalc costs $47 per month. By clicking on a link below, you’ll unlock a unique offer that provides you with a 60-day trial to the platform, for only $7.
👉 Get Your 60-Day Promo Pass To AdCalc Now!
Be sure to check out today’s episode for more info, and if you’d like me to test out any particular model on the show, let me know in the comments!
- Warning! ⚠️by Boz46747 from United States
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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I listen several days a week and am excited to have taken action with my first few steps. Thanks Eric!
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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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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.
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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!!
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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!!!’
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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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- Just discovered a GOLDMINE of information!by ericamerica from United States
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Incredible insights from one of the best!
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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 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.
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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 🙂
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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 startby 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.
- Excellentby JLRPS22 from United States
- Awesome contentby 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.
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SO excited for your content to come. You're advice and results is authentic which is rare now a days!
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- The real dealby 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 knowledgeby 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!
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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!
- Amazingby Billion Dollar Cowboy from United States
I can’t wait to learn more!! So so good!!
- Awesomeby 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.
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Invaluable information. Can’t wait to dive in.
- Great information, tons of useful tipsby jonnygal77 from United States
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.
- Definitely worth a listenby 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 Changerby 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 worldby 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!
Knowing your numbers can allow you to optimize your media buys. Because normally you would have just shut that media off because you're like, "Ah, this money ain't working." One, you're going to make money because you're building your list. But two is, now you can look and your first thing without making any changes to the ad, to the funnels to the price points... No changes! You're just taking that and changing what you're going to spend on a Cost Per Click.
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, 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 Performance Marketers? How you doing? Today I want to talk to you guys about how to buy media and what I'm going to do is I'm going to walk through the steps, and the numbers showing you exactly how to buy media with a free plus shipping model. I get a lot of questions on what can I pay per lead? What's going on with the clicks? What's going on... How many impressions? So what I'm going to do today is I'm going to walk you through a tool that I'm building, and it's called AdCalc. And what this does is it shows you how to be able to buy media with a certain budget and you decide what margin you want to work on. Based off of that, you're going to then put your numbers into the platform into this ad calculator. We call it AdCalc, adcalc.io is the site. And if you listen, by the way, for this entire episode at the end, I will give you something that will allow you to get this for considerably cheaper than what we're selling it for now. And I'll tell you that at the end. But so, right now, what people are doing is they're buying media, but they're not knowing their numbers. And if you don't know your numbers, then you can't scale. You need to understand when you're buying media, by every source, what is happening. When you buy a click, you need to understand what are you paying for what are you generating in revenue per click? What are you generating in a revenue per thousand, revenue per lead, revenue per sale? And then hypothetically, if you want to work on 30% gross margins, well then what can you afford on a cost per thousand on a cost per click on a cost per lead and a cost per sale. And what this tool does is it calculates all of that for you. So I'm going to show you exactly how this is done. First, I wanted to show you this is the landing page. This was something that we talked about.
This specific calculator that I created, allows you to put all this data inside and then it's going to show you what you can afford for media based on all of the variables. Based on your target margin, this is what you can pack, you're generating $166,000 in revenue, you're profiting 141,000 up to 564% return on adspend. The point is is you would use this calculator in a way that you would create estimates. And then what it'll do is it'll help you with understanding your numbers. So that you can go right now, like, if we were to go buy leads for you, the challenge was an existing customer basis. It's not scalable, right, you have a certain amount of people that follow you. And those people can, you're gonna run out of people after a period of time. So the way to scale that business is to do higher ticket, you ascend them up a ladder, so that you make the LTV of that person become higher. That's how you scale that business, right? But to feed your business, you're gonna have to bring in new leads, which is what you're doing with your Legion, right? So if we, if we back that up, and let's just change the numbers for a little bit, right? Doesn't really matter, right? Let's say it stays at the 46% on a sale per purchase on a lead, let's call it 3%. Right. And then on your order bump. Let's keep that at 17. You have to have a starting spot. And then what happens is you update your numbers right here at $1 per click, you're losing 10 grand on that medium By, so you got to come up to this calculator and say, if I keep everything exactly the same, if I pay 44 cents a click, I'll make 30% on this placement. And I don't have to do anything to optimize the play. Right right here, you could pay 95 cents for that front end play with cold traffic. And you're still profitable. Right? So like, the question is, then, on a sale, you might get 50 sales in a day. But on lead, you might get 10,000 leads a day, your business is going to skyrocket. So it makes sense. So that's the thing like when you're going out to work with affiliates, and try to get people to run your offer, right. And if you want to run on a CPA or CPL basis, on a performance basis with affiliates who can run your offer, you have to make it worthwhile for them. Sweet All right. So I wanted you guys to see that. Just because That was something that I went over with a partner of mine, and was explaining exactly how this works. So let's go in and look at this for real. So right, we're running here and you have Russell right? Russell is running his campaign. He's got his payouts on what he does for an affiliate, right? So let's hypothetically say we wanted to run an offer like that. Okay, let's come in here. And we're going to start with that my media budget is $30,000. Okay. And I want to work on 30% margins. Okay, that's my target margin. So over here, I'm going to decide what kind of media I'm going to buy. So let's for the easy numbers cost per click, I'm going to pay $1 per click. That's how I'm going to test the media in the market today. Okay. So now I come down here, and don't pay attention these numbers yet. I'll show you what that means afterwards. And you now you're going to put in all of the prices. This is static, this is what you're charging, or you're your partner, if you're an affiliate, and you're promoting this offer is charging. So right here on the free plus shipping and handling, it's $9 and 95 cents, that's what they're charging on the order bump, they're going to charge $27. On the Oto. One, they're going to charge $97. On the Oto. Two, they're going to charge $297. And on the down sell, let's change that to 17 bucks. Okay? So if you see here, this is the flow. Here's the ad, it goes into a lead form right here, we're not sending traffic to a lead form. I'm going to send it directly to the sales page to start. So this is not going to be relevant. So every click that we're going to get is gonna land on this sales page right here. And then from that point on whoever buys this is the order bump that's on the sales page. When they purchase, they will see the Oto. One, based off of if they purchase on the one time offer the first one, then they will go to Oto. Two, if they do not purchase, then we will have a down sell where those users will see the offer here. Okay, so here's the pricing that we have. Now, let's put 1% Click rate doesn't really matter right now, it's here. But then, because we're not driving traffic to a lead magnet before the sales page, I'm putting a conversion rate of 100% which means everybody's going to get to this sales page. So if you look here, on $30,000 on the spend, if I'm paying $1 per click, that means I should get 30,000 clicks that are going to land on my sales page, right. So if you look here Here's the 30,000 clicks automatically calculates based on this. So now I need to put in the conversion rate of what I'm going to see when someone lands on that page. So I'm estimating 10% of the people that land on this page are going to convert. So 10% on 30,000 clicks, is going to end up being 3000 sales, right? So that's right there. On the order bump, I'm going to put 20% Usually, it's 20 to 30% is a good number on what you can expect on an order bump when someone purchases the product. Okay, so let's put 20% there. As you start to go on in the flow, and it gets more expensive. Your conversion rates are going to drop, but you're charging more, right, so it makes sense. So in any event, let's say for Oto, one, the conversion rate is 5%. And then for Oto two, let's say the conversion rate is five percent just for easy numbers. And let's say that we're seeing a 10% conversion on the downside. Okay. So let's go and look at what happened now with this Media Buy. All right, so we ended up getting 30,000 clicks to the sales page. On those 30,000 clicks, we generated 3000 leads of those 3000 leads, because we had a 20% conversion rate on the order bump. That means 600 people ended up purchasing the $27 order bump. So now what happens is those 3000 people end up landing on the Oto one, the one time offer on the back end of this flow, okay? And on the back end of this flow, 5% of these people are going to end up purchasing the product. Okay, I'm gonna get rid of though to the downside overnight, just keep it simple. Okay, so they land on the Oto one, so we're getting 5% of the People to convert at $97. So that means that it's 5% of 3000 people that bought that purchased on the sales page for the 995. So you're going to get another hundred and 50 sales that you are going to get on the back end at the $97. So because those hundred and 50 people bought, they're going to land on the next offer, which is the Oto. And just to keep it simple, let's just get rid of that. That's it. That's the program right now. Okay, so you get 150 sales, you land on a page, say thank you. So now let's go look at our numbers and see what happened. Did it work? Did we make money? Okay, and how does this calculator work? And how is it awesome? Because it's awesome. Now, on the bottom here, it shows you that you spent $30,000, and you generated $60,600 in revenue because you spent $30,000, you're going to end up profiting $30,600, or your return on adspend will be 102%. It's awesome. If you could do that all day long you do it, you do it. Okay. So let's go back up to the top here. And you purchased media for $1. That means that if you wanted to buy the same media on a cost per thousand, you could have paid 10 cents. That's what it shows you right here in the box. If you wanted to buy on a lead, because we didn't have a cost per lead program, then you could still pay $1 because we sent all the clicks to the sales page. And if you wanted to pay on a cost per sale, you could pay $10. Okay, so that is how you got it set up in the beginning. So if you went to an affiliate and said I want to get some traffic and you want to pay them on a cost per sale, you could tell them that you want to test it out at $10. Okay, now, let's look at what this looks like what Now what this calculator does, which is really awesome is because you're saying you want to work on 30% margins, right? And everybody understands that gross margins means it's the total revenue minus your costs is your gross margin. Okay? So you want to work at 30%. So what this calculator does is it takes into account your 30% margin, and it will back out for you based on these numbers of what you're selling, and the conversion rates on what you're selling. You can afford in the media in the market, right buying media today. And what that does is it tells you right because down here, you made 102% but now you're saying I want to work on 30% margins. So you are going to be able to afford more than what these numbers show you. Okay? what this is showing you here is that you can afford to pay 16 cents, you can afford to pay $1 55 per click, you can afford to pay $1 55 per lead, that that's there's no lead form so it's not relevant. And you can afford to pay $15 and 54 cents to an affiliate to run your offer. And you would be at 30% margins. Okay, so what does that mean? So okay, let me show you on the calculator $1 55 we were paying $1 flat. Okay, now let's change that to $1 55. So I just put $1 45 as what I'm going to bid on Facebook in Google doesn't really matter. It's just what you're paying when I click. And if you see here at $1 55, your return on adspend is going to be 30%. So for every $30,000 that you spend, you're going to get back $39,096 and 77 cents, your net profit gross profit, gross margin is $9,096 and 77 cents. It's a great campaign. Right? So this calculator is doing all the math for you. And what's really important here is that most people are out buying media today on a cost per sale. Now, a lot of the people I work with, they want to generate leads and get paid on the lead. They don't want to get paid when somebody is taking out their credit card, because it might not necessarily convert as well, or they're not buying into what it's all about. So when you get somebody to sign up for a forum without taking out their credit card, it's it's an easier conversion. And that makes sense because you don't have to take out your credit card, you putting in your information, because you're interested in whatever that whatever they're offering on the lead magnet, but it isn't as big of a commitment as somebody taking out their credit card and spending $9 95 cents. With that said on the flip side, you as the advertiser The person that's buying the product for $9 and 95 cents, yes, that is a much higher quality lead, that is a warmer lead they are in your world, they just became a buyer, they've taken out their credit card, and they've purchased them from you. So you would be looking at that person very differently. The challenge I have is, for all the people that do that, if people don't buy, you're losing all of that traffic, you're not capturing any data. So in this scenario here, you're converting 10% of the people on the sales page. Okay, that means that, yes, here you're generating, let's say here, it's okay, you're paying $1 55 10% conversion 995 you're generating 1935 sales, but you're generating 19,355 clicks to the sales page. Which means that you're losing 18,000 people who will not purchase, you're not getting any information from them. So what can you do? Well, why don't we put a lead magnet in front of the sales page, okay. And what that means is we're going to drive traffic from an ad to a lower commitment, an ad to a lead magnet that perhaps you give away a free guide, or something that they want for free in return for giving you some information. So let's do that on the calculator. So here we go. Let's remove that for the moment in the lead form conversion rate. And let's stay with a stay with $1. Let's go back to paying $1. So we're going to spend $50,000 on media for the month, for the day, whatever you want to do. And I want to work on 30% margins. Right. So I'm going to pay on a cost per click $1. That's how I'm going to start testing. So that means I'm going to get $50,000 $1 click, I'm going to get 50,000 clicks. Okay? So those 50,000 clicks are going to land onto my lead form. Alright, so let's look at it this way. When someone lands on my lead form, let's say you convert 40% of the people that land on the page. So what that means is, you're going to generate 20,000 leads, okay, see, that's right here. 50,000 people land on lead form, you're converting 40% of those people. So 20,000 leads are now signing up. You just built your database of 20,000 people who are interested in your product, you've given them something in return for them to fill out that form whenever that that lead magnet is to be written. spoken. Could be audio could be anything, okay? Ideally, it's something around the information product world because you don't want to have any costs for whatever you're giving away because you don't know what you're going to sell. Right? So you also want to do it because if you're giving away something that is all around your knowledge, the only people who are going to sign up or people that care about what you're, what you're giving away, what you're teaching what you're trying to sell, this alleviates you getting people to sign up that just want the freebie and then don't care about your product. That's why you want to use something that's around your product versus giving away a $5 gift card. right because it's important who that person is that signing up. And the people that care about what you do will sign up because they see what you're offering as a value versus somebody that doesn't really understand what you do. They're gonna leave. They don't want to sign up because they don't care. And that's great because you don't want them you don't want those people on your list, you don't want people that aren't interested in becoming a buyer and purchasing your products. So it's a good thing. So we convert 40% of those leads. So now you've generated 20,000 leads. So now those 20,000 people will land on the sales page. And from that point on, if you keep everything else constant, that means that you're generating at a 10% conversion rate 2000 sales. Now those 2000 people 20% of them are taking your order bump at $27. That means that you just sold 400 order bumps at 27 bucks. And now they land on your one time offer. And at the one time offer where you're charging $97 you're converting 5% of those people, which means you're going to generate another hundred sales. So let's go see what happened. So great. So you spent 50 grand, now you generated 40,400 dollars. In this scenario, you just lost $9,600 or 19%. It didn't work, right? Well, a few things. One, we know the goal here for any free plus shipping offer is you want to break even, you don't need to make money on your free plus shipping offer. Because the end result is that you're using this as your front end low ticket to build your list. And when you build your list, now, you're going to get that person into a sequence on the back end, you're going to start emailing to that user with the ultimate goal to indoctrinate them. And then get them to purchase your core product, your higher ticket or other low tickets. But at the end of the day, you're going to start to monetize your list and you're going to start to build your asset. Now I'm not, I'm not excited about losing 90 $600 down here, right? But hypothetically, they say you should make $1 per person on your list per month. But let's say that you're not that great at this. And let's, let's cut that in half and say 50 cents. So if you start promoting to the 20,000 people that you just generated leads, and you're making 50 cents on every person, well, then the first month, you're going to make $10,000 that $10,000 is going to make back the money that you have have lost here to get those 20,000 people on your list. Now you plus $400. And now, the beautiful thing is you still have that list, and you have people that you've indoctrinated. You have people that are interested in your product in what you're selling, and what you're preaching. And now you have the opportunity to continue to promote to them over time. And yes, they are We're going to be people that are going to opt out, they're going to be people that drop off. That's very natural. But the idea is that you continue to feed the engine and you start building up your asset and building up your list. So while it may not look so great on the front end, if you were able to maintain 20,000 people per month, for an entire year, and you averaged 50 cents per month on that list, okay? That means you would make $10,000 a month. And if you multiply that times 12 months, that means that you are going to generate $120,000 on those 20,000 leads that you got when you lost money on this Media Buy of 90 $600 which you lost. But if you fast forward in a year from now, you've made 120 grand minus your 9600 bucks. Would you sign up for that? Absolutely. No doubt you would. Yes, you would. That's important to know. Understand, but so let's see how we can use this calculator to figure out how to make this work. Okay, and there's a lot of different things we could do here. The first thing we're going to do is we're going to come up here, and we're going to look at, okay, well, I want to work on 30% margins. So if I want to do that, and I'm going to keep everything constant, but it's still charged on 85 $27 for the order bump $97 for the Oto, and we're going to keep the conversion rates all the same. This is telling me what I can pay on a CPC. This is telling me right now, with the media that I'm paying $1 for, I need to be paying 62 cents a click. If I pay 62 cents a click, I will end up making 30% margins. So the question is, where am I buying this media, the dollar, if it's on Facebook, well then I'm going to take my bid, and I'm gonna bring it down to 62 cents. So I would go Come over here, I would take 62 cents, right here. And now let's look at what that did for us. Now, that's just one from me spending $50,000 I didn't change anything else, everything else remains the same. Okay? See that here, everything else remains the same. Now, I just generated $65,000 in revenue. It's a big difference, right? Huge difference. Knowing your numbers can allow you to optimize your media buys. Because normally you would have just shut that media off because you're like, I'm losing money any working. One, you're gonna make money because you building your list, but two is now you can look in your first thing without making any changes to the add to the funnels to the price points, no changes. You're just taking that and changing what you're going to spend on a cost per click, and you're doing it to 62 cents. Now you just generated $15,000 in net profit. So you made 30% return on adspend on this initial Media Buy, and you still have the 20,000 people, right? No, no, no, you don't. Haha, let's look. Well, what's happened is because you're paying less per click 62 cents versus the Dollar. Well, what that means is you're getting more volume to your lead page. So if you look at this year, you would have gotten 80,645 clicks to your lead page before, when we're paying $1 you're getting 50,000 clicks to your lead page. But because we're now adjusting our cost per click, now we're getting 80,645 clicks to our page. Now, at a 40% conversion rate, I haven't changed thing other than just changing what I'm bidding on a click OK. And let's make the assumption that we're still going to get some traffic, because it's, we were over bidding on Facebook to test. And now we've realized what the real cost per click allowable is. we're converting 40% of those people, which means we're going to generate 32,258 leads. So why did the revenue go up? Well, the revenue went up, because because you got more clicks, that means you get more leads, because you've got more leads. And if you keep the conversion, the same on your sales page, you're going to get 10% conversion rate on 32,258 leads versus what you were getting earlier, which was the 20,000. So in that scenario, you're generating 3226 sales, on the order bump that you didn't change on the 20%. Now, you're getting 645 On your Oto, one time offer, you're getting 161. So it's a huge difference, guys. It changes the entire dynamic. Now let's say hypothetically, that you wanted to go out to the market and you want to pay somebody to drive traffic to your lead form. Well, what can you afford to pay them on a cost per lead, that you know that if all of these numbers stay constant, and you want to work at 30% margins that you can afford to pay them? Now most people come to me and they have no idea. Now at this point, the numbers are crazy. People are just like, ah, math is not my thing. I can't do it. I get it. I totally get it. I love math. I think that's one of the most important things in this world. But I totally get it that people aren't loving the math and it's not their thing. They they're more a writer or somebody that is into science, so I totally get it. That's why the world was round. So well they need to do with this tool. Is that Looking here. So what this is telling you is that you can go out to the market and tell people you can pay $1 55 to somebody to generate a lead for you. And then you need to watch the back end to see, how does it convert to what you need to watch. All right? What's the conversion rate? Well, on the lead form, it doesn't really matter because you're paying $1 55. So you're not going to pay anything until somebody goes to your forum. And then they fill out that form, and they become a lead. So in this scenario, you got 32,258 leads from somebody, which means that at $1 55, that is when you start to pay out. Now, let's hypothetically say that on this traffic, we're not converting 10% on our sales page. we're converting 5%. Well, let's see what happens with that number. We just ended up generating $32,000 in 500 days. bucks, but our spend here would have been the $50,000. We just lost $17,000. How come? Because this is important guys. Not every click is created equal. That is very, very important. Every click, every media buy, every source on the internet has a value. And it's very different. Because what's happening is if you look at it from real life, it's somebody that's sitting behind a computer or on their cell phone who's clicking. So if you think about it, it's all about the intent. Okay, Google, Bing. Search. Marketing is where somebody comes in, and they're searching for something. They're writing up. I'm looking for a book about entrepreneurship. If you're bidding on that, the person that just did that has a high intent. They're the one telling You what they want to see. And if you have an ad now that jumps out in front of them, and they click, then the traffic quality is going to be higher, the value for that click will be higher, it should be higher. versus if you're on the internet, and you're scrolling around, then you're just surfing the net. And you land on a page and you see an ad on a website that catches your eye, and you decide you're going to click on it. Well, prior to you getting to that website, you weren't thinking anything about that book for entrepreneurs. But you did an amazing job of creating a pattern interruption with your head that got the person to click, well, that's great. But that click the intent from that person is different than the person that was going to Google and searching. Okay. So because of that, that is not as warm of a lead, the quality of that traffic is going to be lower, and it makes sense why right so You're going to expect the conversion rates, that you're going to get a buyer to be lower as well. So it's very important to understand where you're getting your traffic from. But with that said, Now, when we're looking here, I just want to show you what this calculator does. Now you identify, you just did a media buyer, and you paid per lead, and you just lost 17 grand. Now, when you're testing, you're not going to test $50,000. Let's say you were going to test at two grand, okay? Make an easy number. Well, in that scenario, you lost 696 bucks, stinks, right? Well, you still got 1290 leads, and we're gonna, we're going to monetize that data over time. Right? We're going to communicate with them, we're going to start to create sequences on the back end. sending them offers sending them your own offers, sending them your partner's offers, generate affiliate commissions, but we're also going to look up here and say, all right, well Based on this, I can only afford 31 cents, but I'm paying you 62 cents. So you're going to go to your partner, you're going to say, listen, here's the deal, I can either turn off the traffic, and we're done right now with where we're at and how it's converting. Or I can't afford to pay you 31 cents because that's what your traffic is backing out to. And the partner can either say yes or no. Well, if the partner says yes, well, then great. Now you just figured out where you can get traffic from another source. And you're going to be buying that media for 31 cents per click. Okay? Now, you increase your budget, right? You do that all day long. So let's go and right if you go and put it at 31 cents, it changed that. Now you're back to the 30% margins that you're making. So now, on that $2,000 spend, you're making 600 bucks you generated 2500 leads, and this media buys profitable. Now, you turn up the dial, as long as everything stays constant, spend 100 grand, spend a million spend 10 million. See, this is why when you're talking to performance marketers, you'll ask them, well, what is your budget? Well, your budgets unlimited. If you can buy media the right way, if you can get your numbers, right, and you can understand what you can afford per media source, by what metric, then you'll spend as much money as you possibly can. And that's the cash flow game. Because whatever you're spending, you're making sure that you're going to be profitable. Yes, the numbers need to stay the same. And yes, you're gonna have to watch the numbers. But by doing this, and by using this tool, you can build out a program that is profitable for you with sources that are going to have different quality of traffic. all over the internet. And you can buy media on a CPM on a CPC on a CPL and a CPS. Guys, this tool is amazing. I love it. And I'm going to continue building it out for different types of media buys. If you guys want me to put up a certain model onto this ad calculator, let me know. And I will do it. I'll work it out. And then I'll put it into this, this system. But so because you're here and you listening to my podcast, and I appreciate that and appreciate you, I want to give you a gift. So what we're doing is we're charging people on a monthly basis for this program right now, by the way, you see this year, I'm capturing the lead before I get them to my sales page, right? And this we just put up right I'm not even I don't even optimize this, this funnel right normally what you would be doing is giving away something right in return for This, okay, so then you would be getting your offer stack, right? But so right now we're charging on a monthly basis 47 bucks, or you can pay for a year upfront for $297. And that's it. Very simple. We haven't promoted this yet. But I love it every person I show it to you loves it. And I want to give you guys the opportunity to try this out. So what I'm going to do is, I'm going to set this up, where I'm going to put a link in this chain for our YouTube followers. It's going to be below the video down below. I'm going to put a link here. And what we're going to do is we're going to allow you to try this out for 60 day trial for $7. I think that's fair. We're taking off 4047 a month for two months, which would be what is that? 47 $94 so So it would be $94 or charging you seven bucks, not a big deal. You want to try it out, this should give you a return on your investment by using this tool, when you're just out in the market by us just saving you money, this should pay for itself within the first day, and your and your money. Honestly, I think I should be charging a lot more money for this, but not, not now. Maybe at some point, we'll see how this goes. But so for now, because of the fact that you're a loyal listener. You're a loyal Performance Marketer. You're listening to me, you're consuming my content. And I appreciate that you're doing that. I'm want to help you. So we're going to be giving you guys a 60-day trial for $7 bucks. The link is going to be down below. In the YouTube video below. We'll have it, we'll put it inside our blog. And we'll set it up where you can text a number. So 80800 ADCALC, and we'll send you a link that you can sign up for the $7, 60-day trial. So there's three ways you're going to be able to get this link right now, you're gonna watch the YouTube video down below is going to be a link where you can click it and you can now sign up for the 60-day trial for $7 bucks. You can find in our blog, or... And that's at ericbeer.com. Or you can text ACALC to 80800 and what we'll do is we will... We will literally trigger back to you in your phone, a link that will allow you to click in sign up for this program, $7 bucks to try it out for 60 days. And I want to hear from you guys. I want to hear what you think of it. Do you like it? Has it helped you? If anybody's using this and you knock the cover off the ball, let me know. If you want me to add more things to it, I will. I'm doing it as we speak. Right now, we built something where, when you're inputting all this data, I've made it conversational. We haven't set it live yet. And the look and feel here needs to be worked on big time. But I'll tell you guys what I'm doing and what I believe you should do, which is just get started. Imperfect action. If I wait to launch this when it's beautiful, it could take months. And I'm going to procrastinate. And I know it's not the prettiest thing in the world. I get it. But it does what it needs to do to help people in the media buy world. It helps people with understanding their numbers, so that they can become more profitable and understand where they can afford to buy media and what that looks like on all these different models on a cost per sale, a cost per lead or cost per click and a cost per thousand. So I hope this guys... It helped you. I hope I added some value today. If you guys have any questions, let me know. I appreciate you. Stay safe out there and have a good day. Thanks for listening. Talk to you soon. Bye bye.
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