5 Bucks a Day

I believe Internet marketers are among the most fortunate people on the face of the earth.

Once they “get it”, their return on investment can be phenomenal. Let’s look at the big picture.

If someone put their money into a safe money market fund, and put in $100 at the beginning of the year, at 5% simple interest (just to keep the exercise simple, we’ll forget about the small advantage of daily compounding), if the account had gotten up to $105 by the end of the year, the ROI would be 5%.

You calculate ROI by dividing the end value (105) minus the beginning value (100), then dividing the result (5) by the beginning value (100), times 100 to yield percentage.

So (End – Begin) / Begin X 100

The ROI in this case would be 5%.

Many banks pay much less, so some people are very happy to get a safe 5% return, or a little better with a little riskier investment.

Day traders can work all day looking for higher returns, but the risk is greater.

Now let’s look at Internet marketers.

Let’s say someone has an eBook that they sell. If it sells for $27, what’s the ROI?

That’s a difficult question to answer until you know the cost of selling it. First of all, it’s not a physical product, so there is no cost of paper and printing. It’s residing in cyberspace, so the cost there is very low, just the cost of hosting per month divided by the number of sales per month.

So for the sake of argument, let’s say it cost $1. If sold for $27 after Clickbank fees, the ROI would be 2600%. But if you sold one a day, it would be 2600% per day, not per year!

So those of you who have your own products, consider yourself very fortunate. Those of you that don’t have your own products, does that motivate you to make one?

Let’s take another scenario. Let’s say you’re an affiliate marketer, promoting products for other people. If you have a web site that’s receiving free search engine traffic, and you promote that $27 eBook, and receive a commission of maybe $13.50 after Clickbank fees, what’s your ROI? Answer: 1250% for whatever period of time it took you to make the sale.

But those figures aren’t fair because you really aren’t investing anything to earn your income. A better scenario is if you are making an investment, and no longer waiting for a sale. What if you can cause a sale to happen by paying for it?

Like using pay per click advertising …

If you know your market, through testing and tracking, and you can consistently earn $1.50 in affiliate commissions for every $1.00 you spend on AdWords ads, then your ROI is 50%. That’s huge, but it’s typical, to be honest, many do much better.

As an AdWords advertiser and an affiliate marketer, the trick then becomes to see how many dollars you can spend. If you only spend $1.00 per day, getting back $1.50 isn’t so exciting.

However, if you can spend $500 a day, and get back $750, you’ve made $250 for your day’s efforts. Plus if you put that campaign on autopilot, and make sure you have enough money available on the credit card that Google will charge for the advertising expenses, you now have an income stream that will make you wealthy.

Ask a day trader how he’d like to make a 50% ROI every day and he’ll salivate all over the floor. Internet marketers do that consistently, once they “get it”.

The next problem, once you’ve found a way to consistently make $750 income from spending $500 daily, is figuring out how to spend more.

Ah, yes. Donald Trump may be able to spend 10 million dollars on a real estate deal that will net him a 20% ROI, but can you? Can I?

Not really. First of all, I don’t have a credit line that large, and 2nd of all, no matter how many ads you purchase for a niche market, there are only so many searchers looking for that particular item, and even if all of them clicked on your ad, you could only spend a finite amount.

So then, the trick becomes finding another market. And another. And another. Thereby building the amount of money you’re able to invest in advertising.

If someone told you they’d sell you ten dollar bills for $7, how many would you buy? Answer: as many as he’d let you buy, right?

Once you exhausted his supply, the next step is finding another person to sell his ten dollar bills for $7 or $6, or even $8. Heck, I’d pay $9 for a $10 bill any day of the week, wouldn’t you?

That, my friends, in a nutshell, is what 5 Bucks a Day is all about. It doesn’t mean you have to advertise with Google AdWords to get your income, but it means that bit by bit you find more and more people (figuratively) to sell you their ten dollar bills for a lower price.

Find a new seller every week (a new “project”, I call it), and after enough weeks, you’re doing very well.

5 Bucks a Day. It’s an incredible strategy meant to not only increase your ROI, but to maximize your total returns. You see, if you make $5 for every $10 investment you have a 50% ROI. If you make $500 for every $1000 investment, you still have a 50% ROI.

Which would you rather have? The return on investment doesn’t matter so much in this case as the magnitude of investment.

And yes, it’s even better if your investment is approaching zero, as many Internet marketers with their own products find.

Won’t you join us? Internet marketing really is a marvelous occupation. Nothing is guaranteed, but once you “get it”, it can be addictive.

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