Superintelligence CouncilСовет гения · sim.im

Gary Halbert · whole document (52)

zjlk personal computer

But basically, it's all the same formula.
Inexpensive lead-generating ads followed by long, intense,
detailed sales presentations.

Let's do a little math: Say it costs you
$100.00 to run your lead-generator ad. Say it works pretty
well and you get 100 replies. Say it costs you about two bucks
to capture each name, print, get all the lettershop work done
and mail out your sales letters. Alrighty, now you've spent
$300.00 so far. Let's say you are selling your report for
$19.95 plus $3.00 shipping and handling and, after all
fulfillment costs, you have a gross net of $15.00 per sale.
From your 100 sales letters, you get five sales or, after
fulfillment costs, $75. Deduct that from the 300 smackers you
shelled out to buy the leads and mail your letters, you're in
the hole $225.00.

Well, shit, that sucks, doesn't it?

Let's double the response from those
100 letters. Now, we've got 150 fungolas after fulfillment
costs and we're only down $150. Still no good. Let's triple
the response to where we are getting 15 orders from those 100
sales letters. At a net of $15 per order times our 15 orders,
we've got after fulfillment $225 which, when subtracted from
our inescapable $300 "get going" costs, we're still
down $75.

Let's jack up our response once again. Now,
we're getting 20 orders from our 100 sales letters. At $15 per
order after fulfillment costs times 20 orders, we've got $300.
Not counting our time, we are finally at break-even. Do you
understand the significance of what you've just read? Don't be
too sure. Maybe you've got it but, just in case you're a true
dimwit like Brad Antin or someone like that, please let me
make it perfectly clear...

We Are Still Not

Making Money Even

Though We Are Getting

A 20% Response!

Let's change things: Let's pretend, for a
moment, it doesn't cost us anything to send our sales letters.
We've still paid out $100 for the lead-generating ad. This
time, however, since there isn't any cost for mailing our
sales letters, when we get our 20% (20 orders) at a net gross
of $15 per order, we've got $300 after fulfillment, and when
we subtract the $100 we paid for the lead-generating ad, we've
got $200 left as profit.

We would've also made a profit with a 15%
response!

We would've also made a profit with a 10%
response!

We would've also made a profit with a 7%
response!

Now, if you really, really honestly want to
make money on the Internet with all the bullshit taken out of
it, here's what you do: (1) Run a good, cheap little
lead-generating ad, and...