by Bill Myers
http://www.bmyers.com
One of the real milestones in this business is when you reach a point where you are able to consistently generate an income of $10,000 or more each month from your product development or entrepreneurial activities.
Once you reach this point you'll feel like you've made it in the product development/marketing business. But reaching that point can be difficult . . . especially
if you don't understand exactly what it takes to consistently make $10,000 a month.
Understanding the Problem...
Perhaps the biggest hurdle to earning $10,000 a month is in understanding exactly what it takes to earn that kind of income. Most people don't understand the mathematics behind it, and as such don't develop a strategy of success.
In its most basic terms, earning $10,000 a month means you have to sell enough product to generate $10,000 in profit. That can be done by . . .
Making just one sale of an item with a $10,000 profit
Making 100 sales of an item with a $100 profit
Making 1,000 sales of an item with a $10 profit
Making 10,000 sales of a single item with a $1 profit
It's simple mathematics. But until you understand that the profit per unit dictates the number of sales you must make to reach your income goals, you may never understand why so many people fail at this.
The reason, simply stated is:
No matter what the product, it is generally far more difficult to make 1,000 sales than it is to make 100 sales.
The larger the number of sales you need to achieve your income goals, the more likely you are to fail. And the fewer the sales you need, the more likely you are to succeed.
If your product mix, business overhead, and lifestyle are arranged where you need to sell many hundreds, or even thousands of products a month to stay afloat, then chances are your boat is going to sink the moment you put it in the water.
On the other hand, if your product/business/lifestyle mix is such that it only takes a handful of sales each day to put you in profit, then your chances of success are pretty good. (That is one reason we choose to live in a low cost area, and pursue a low expense lifestyle - it makes success so much easier.)
-----------------------------------
The Strategy to $10,000 a Month
-----------------------------------
The simplest strategy to reaching $10,000 a month in net income is to work to get just four sales a day of products which generate $100 profit each. If you can net $4OO a day, you'll exceed $10,000 a month in profits.
That is the strategy we used successfully for years and continue to use (as our plan B, today).
In the past, we offered a number of products (most priced between $9O and $2OO), and we worked to get at least four sales a day. That guaranteed us a minimum of $10,000 a month income (and pretty much assures we could stay in this business forever).
But we didn't stop there. We fortified our formula for reaching $10,000 a month by continually developing new products. We knew that each new product that generated
just one additional sale a day would increase our annual income by an average $3O,OOO.
If over the course of the year we developed ten new products, each averaging just one sale a day, the net increase in our income would be in excess of $300,000 - if we wanted to work that hard.
Making the Formula Work for You...
One of the things I've discovered in this business is that it's much more difficult to get four sales a day if you have just one product than it is if you have multiple products. The reason is quite simple.
In most cases, a customer will only purchase one copy of any one product you offer (that's all they can use). Which means if you offer only one product each customer can only do business with you one time, and every new sale requires you find a new customer! And
that's about the hardest way possible to run a business.
When you offer multiple products, each customer can account for multiple purchases. A customer could conceivably purchase one each of all your products. (And in fact, most customers do purchase more than one product when other products are offered.)
Having many different products can mean you don't need near as many customers to reach the four sales a day goal.
---------------------------------------
The Secret to $10,000 a Month is...
---------------------------------------
The math behind making $10,000 a month is quite firm. You can't change it by simple wishing or desire. But you can greatly increase your chances of reaching $10,000 a month by . . .
- Offering products with higher per unit profits (even if this means making fewer sales)
- Offering multiple products (all with good profits)
- Concentrating on finding and keeping repeat customers rather than making sales
- Continually updating your product offerings to fulfill the wants of repeat customers
- Reducing the number of sales needed per day, based on increased profits This is a very simple strategy to success. One followed by most of the successful people I know.
Pitfalls to Avoid...
I recently purchased a computer disk offered on the net for $4.95. I found the disk on eBay Auction, and saw that the seller had sold over 6o copies with just one offer.
Normally, that would be great... generating 6O sales with just one $2 ad on eBay auction (www.ebay.com) is pretty impressive.
But in this case the seller is probably losing money, because the math is against him.
If you figure it costs him $2 in time and materials to fill each order, then it means the seller only nets $2.95 per sale. To make $1,OOO it'll take 300 sales! To make $10,000 requires 3,000 sales!
Imagine the amount of labor involved in processing an order - entering it into the computer, printing an invoice and shipping label, packaging the item ordered, and then shipping it - and you'll understand why this guy is in a losing proposition.
He'd be much better off selling a disk for $97.50, and getting just two sales. His profit on that would be greater than the profit he is currently making on the 6o sales at $4.95.
Another pitfall many people can't seem to avoid is locking themselves into one or two products and not having any way to react should the demand for that product suddenly drop off.
I spoke to a publisher friend who told me that up until two months ago he was consistently earning $5,OOO a month by selling three books he had written. Then, without any warning, sales dropped to zero.
Seems that the public was no longer interested in books on his subject, so no one was buying. And my friend had no backup products. He had all his eggs in just one basket. And when those eggs turned to zeros, he was out of business.
He should have been building a diversified product line. He should have been adding new products to generate new sales as the older products matured. But he did none of this. (And now he is looking for a job.)
It boils down to this . . . get your product line and profits in order so that it only takes a few sales a day to reach $10,000 a month in earnings. And once you reach that point, continue adding and testing new products so that you not only maintain the $10,000 a
month, but build on it.
http://www.bmyers.com
One of the real milestones in this business is when you reach a point where you are able to consistently generate an income of $10,000 or more each month from your product development or entrepreneurial activities.
Once you reach this point you'll feel like you've made it in the product development/marketing business. But reaching that point can be difficult . . . especially
if you don't understand exactly what it takes to consistently make $10,000 a month.
Understanding the Problem...
Perhaps the biggest hurdle to earning $10,000 a month is in understanding exactly what it takes to earn that kind of income. Most people don't understand the mathematics behind it, and as such don't develop a strategy of success.
In its most basic terms, earning $10,000 a month means you have to sell enough product to generate $10,000 in profit. That can be done by . . .
Making just one sale of an item with a $10,000 profit
Making 100 sales of an item with a $100 profit
Making 1,000 sales of an item with a $10 profit
Making 10,000 sales of a single item with a $1 profit
It's simple mathematics. But until you understand that the profit per unit dictates the number of sales you must make to reach your income goals, you may never understand why so many people fail at this.
The reason, simply stated is:
No matter what the product, it is generally far more difficult to make 1,000 sales than it is to make 100 sales.
The larger the number of sales you need to achieve your income goals, the more likely you are to fail. And the fewer the sales you need, the more likely you are to succeed.
If your product mix, business overhead, and lifestyle are arranged where you need to sell many hundreds, or even thousands of products a month to stay afloat, then chances are your boat is going to sink the moment you put it in the water.
On the other hand, if your product/business/lifestyle mix is such that it only takes a handful of sales each day to put you in profit, then your chances of success are pretty good. (That is one reason we choose to live in a low cost area, and pursue a low expense lifestyle - it makes success so much easier.)
-----------------------------------
The Strategy to $10,000 a Month
-----------------------------------
The simplest strategy to reaching $10,000 a month in net income is to work to get just four sales a day of products which generate $100 profit each. If you can net $4OO a day, you'll exceed $10,000 a month in profits.
That is the strategy we used successfully for years and continue to use (as our plan B, today).
In the past, we offered a number of products (most priced between $9O and $2OO), and we worked to get at least four sales a day. That guaranteed us a minimum of $10,000 a month income (and pretty much assures we could stay in this business forever).
But we didn't stop there. We fortified our formula for reaching $10,000 a month by continually developing new products. We knew that each new product that generated
just one additional sale a day would increase our annual income by an average $3O,OOO.
If over the course of the year we developed ten new products, each averaging just one sale a day, the net increase in our income would be in excess of $300,000 - if we wanted to work that hard.
Making the Formula Work for You...
One of the things I've discovered in this business is that it's much more difficult to get four sales a day if you have just one product than it is if you have multiple products. The reason is quite simple.
In most cases, a customer will only purchase one copy of any one product you offer (that's all they can use). Which means if you offer only one product each customer can only do business with you one time, and every new sale requires you find a new customer! And
that's about the hardest way possible to run a business.
When you offer multiple products, each customer can account for multiple purchases. A customer could conceivably purchase one each of all your products. (And in fact, most customers do purchase more than one product when other products are offered.)
Having many different products can mean you don't need near as many customers to reach the four sales a day goal.
---------------------------------------
The Secret to $10,000 a Month is...
---------------------------------------
The math behind making $10,000 a month is quite firm. You can't change it by simple wishing or desire. But you can greatly increase your chances of reaching $10,000 a month by . . .
- Offering products with higher per unit profits (even if this means making fewer sales)
- Offering multiple products (all with good profits)
- Concentrating on finding and keeping repeat customers rather than making sales
- Continually updating your product offerings to fulfill the wants of repeat customers
- Reducing the number of sales needed per day, based on increased profits This is a very simple strategy to success. One followed by most of the successful people I know.
Pitfalls to Avoid...
I recently purchased a computer disk offered on the net for $4.95. I found the disk on eBay Auction, and saw that the seller had sold over 6o copies with just one offer.
Normally, that would be great... generating 6O sales with just one $2 ad on eBay auction (www.ebay.com) is pretty impressive.
But in this case the seller is probably losing money, because the math is against him.
If you figure it costs him $2 in time and materials to fill each order, then it means the seller only nets $2.95 per sale. To make $1,OOO it'll take 300 sales! To make $10,000 requires 3,000 sales!
Imagine the amount of labor involved in processing an order - entering it into the computer, printing an invoice and shipping label, packaging the item ordered, and then shipping it - and you'll understand why this guy is in a losing proposition.
He'd be much better off selling a disk for $97.50, and getting just two sales. His profit on that would be greater than the profit he is currently making on the 6o sales at $4.95.
Another pitfall many people can't seem to avoid is locking themselves into one or two products and not having any way to react should the demand for that product suddenly drop off.
I spoke to a publisher friend who told me that up until two months ago he was consistently earning $5,OOO a month by selling three books he had written. Then, without any warning, sales dropped to zero.
Seems that the public was no longer interested in books on his subject, so no one was buying. And my friend had no backup products. He had all his eggs in just one basket. And when those eggs turned to zeros, he was out of business.
He should have been building a diversified product line. He should have been adding new products to generate new sales as the older products matured. But he did none of this. (And now he is looking for a job.)
It boils down to this . . . get your product line and profits in order so that it only takes a few sales a day to reach $10,000 a month in earnings. And once you reach that point, continue adding and testing new products so that you not only maintain the $10,000 a
month, but build on it.
