You hear big numbers thrown around a lot when it comes to product launches. It seems like $1 million is the magic number these days…like if you don’t hit that target your launch is a failure. Well, if you have never done a product launch…if you are just learning how to make money online…those kinds of numbers sound like a lottery ticket…kind of hard to take seriously. Let’s talk about what the numbers really mean and where the real money is…the real asset.
As I said, for a lot of people $1 million dollar sounds pretty unbelievable, so we’ll start with a bit more believable number…say $100,000 launch-that’s still a pretty big number, but one most people can wrap their heads around.
So you bring in $100,000.00-that’s what you gross, right? Well, right off the top take 50{e31915232f627aba387f5fbf94f9a250ae116cee0c2da27b298f0b4ae14d446f} of that off…that’s what you are going to pay your joint venture partners. Now you are down to $50,000. That’s still not bad for a day’s…or week’s work!
Now you have to take 3-4{e31915232f627aba387f5fbf94f9a250ae116cee0c2da27b298f0b4ae14d446f} off the total $100,000 for your credit card transactions…that’s another roughly $4000 which brings us to $46,000.
Every product has some refunds…some returns…no matter how awesome the product is–that’s just part of the deal. I figure in about 10{e31915232f627aba387f5fbf94f9a250ae116cee0c2da27b298f0b4ae14d446f}, so take another $10,000 off which leaves you at $36,000.
Now if you are doing a big launch…one that generates this kind of money, you have to have a team of some sort. Even if your launch doesn’t succeed you had to have a team. Maybe your team is 3 people and you are splitting it three ways…say you have a tech guy, a copywriter and the big picture person. Now you split the $36,000 three ways and so you each get $12,000.
That is still pretty good money for a lot of people, but realistically it isn’t going to support you for like the rest of your life or anything!
So how can you use that launch to get you past that $12,000? Past however long that money lasts you?
You do that because you have now built a list! Not only do you have a list, you have a list of people who have bought from you in the past. They are responsive buyers in your niche. That is the best kind of list to have.
Your list is your biggest business asset. It is much easier to promote to your existing list…and cheaper…than to go out and get new traffic. You can work on all kinds of ways to generate traffic…and those methods change all the time…but if you have your list you have a great source of traffic that you can keep adding to, but serves as a fantastic base.
So the key lesson to take away from this is not to focus on the product launch from an immediate dollars perspective. You can see how even the really big numbers start to dwindle down pretty fast when you take in all your expenses and revenue sharing. Instead, be sure to focus on building you list…your asset is the list, not the product launch! The real deal in how to make money online is your list!