Let's say a sponsor ad in ezine #1 costs $100. Divide the cost of the ad ($100) by the number of sales generated from that ad (10) to get your "cost" per sale ($10). Each sale generated from ezine #1 cost you $10.
Now, let's say a sponsor ad in ezine #2 cost only $85. Divide the cost of the ad ($85) by the number of sales generated from that ad (3) to get your "cost" per sale ($28.33). Ouch! Each sale generated from ezine #2 cost you $28.33!
Do this for each of your 10 ezine ads that ran this month.
Calculate the return on investment from each ad.
I know, I know. This isn't algebra! Don't worry, we'll only be doing a few more minor calculations.
Even though the ad in ezine #2 appears to have cost less, you actually paid a heck of a lot more for each sale it generated. Assuming your product only nets you the bare minimum of $25 per sale, you actually lost money on the ad placed in ezine #2. [($25 x 3) = $75 (- $85) = -10]
Ezine #1 was clearly a better investment. Although that ad required a larger up-front investment than ezine #2, your cost per sale was lower, and your profit was higher. [($25 x 10) = $250 (- $100) = $150 profit]
Remove the five ezines that generated the least profit, and replace those with five new ezines from your list of 20.
As soon as all your ads have run and you've calculated the profit from each, place your ad again in the five ezines that generated the highest return on investment, and throw out the other five. Replace those with five new ezines from your list of 20, and repeat the ad placement process.
NOTE: Use THE same ad in all of the ezines, especially the five that initially brought you the highest return on investment. Run that ad in those five ezines until your response begins to wane. Then and only then, tweak the ad to enhance your response.
Re-invest your profit into more advertising!
Every month, use 50 percent of last month's ad profits for placing more ads. You don't have to use the money for ezine advertising, but why change what's already working? As long as you remember to re-invest 50 percent of your profits each month into more advertising, your profits will continue to climb.
Think of it this way: The more you spend, the more you make! Just be sure to use a system similar to this one, so you're constantly tracking your responses, calculating your return on investment, and spending that money on advertising that you know will work.
Seems too easy to work, doesn't it? Think again. Sometimes the most effective means of promotion are the easiest to carry out and are right under our noses. A lot of excellent, money-making promotional methods are commonly overlooked for that reason. Don't let this one pass you by! Use it, use it again, then use it some more.
This work
Harmony Major "retired" from college at the age of 19 to make thousands of dollars monthly running her full-time online business. © 2000 by Harmony Major
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