? You Don’t Have to Be a Star, Baby ?
With apologies to Marilyn McCoo, Billy Davis Jr. and their songwriters, those lyrics reminded me that there is a common misconception about achieving online financial success.
The internet has brought some very dramatic stories to popular culture in the last few decades.
Teenage millionaires and “unicorn” start-ups that are soon worth a billion dollars to the market and to their owners.
Instagram “influencers” and YouTube stars will millions of followers that enrich them for goofy, superficial reasons.
To a newbie, it can seem like achieving his own success in that environment is on the order of picking the right lotto numbers.
But you might be amazed at the thimble-sized amount of attention you need to attract in order to make a nice living from online income.
What it Takes to Make $5,000 Every Month
Allow me to walk you through some fundamental, easy to understand numbers illustrating how most small online businesses actually work.
First we need to make some assumptions for this example. So let’s assume:
A) You have a product, service, course, consultation, or other thing for sale and it makes you $100 per sale.
B) You need to make $5,000 every month in order to live the way you want.
(Obviously, you can multiply or divide these assumptions if they are way off for you.)
The first calculation is easy. If you make $100 on every sale you’ll need to make 50 sales every month in order to hit $5,000.
How Many Prospects?
But fifty people won’t just spontaneously visit your website and pull out their credit card on their first visit.
Almost all of those sales typically come from people who have joined your mailing list because they are interested in what your website is about and they want to have more information in order to make an informed decision.
People on your mailing list are your very best prospects. They are called “prospects” because they are interested but haven’t yet become paying customers.
If your email messages are well written and constructed in ways that move prospects to the point of realizing you can solve their problems, you would have no problem turning 4% of them into customers. And 4% is a conservative number.
So, if 50 new customers represents 4% of the people on your list. It means you need 1,250 people on your list this month who decided it’s finally time to buy the solution you are offering.
If 1,250 prospects joined your mailing list last month, (or 6 months ago, it doesn’t matter how long ago in the long run) then it actually doesn’t matter if 1,200 of them never buy anything from you – as long as 50 of the 1,250 people eventually become your customer and pay $100 for your product or service.
When that happens you make $5,000.
But, how many people need to visit your website in order for 1,250 new people to decide to join your mailing list each month?
How Many Visitors?
Well, a person who does a terrible job at his site might not get anyone to join his list.
But a reasonable effort using very established tactics would easily yield 6% conversion from visitor to prospect.
Again, that a safe, conservative number.
So 94% of visitors can decide “Nah, this isn’t for me” and the remaining 6% will be all you need to join your mailing list.
So, to get 1,250 new prospects you’d need 20,833 visitors. (1,250 / 0.06).
Let’s just call it 20,000 visitors in a month. And that’s less than 700 per day.
So, 20,000 visitors to your site yields about 1,250 new people who join your mailing list.
You educate those people over time until they realize that you really do have something of value for them.
Well – 4% of them realize it – and those 50 people take action to pay you $100. There’s your $5,000.
Next month, same thing.
700 visitors to your site each day, which is about 20,000 per month – 1,250 of them join your list – 50 of those become your customer.
Filling Your Thimble at Niagara Falls
Getting 700 visitors per day from the billions of people who are online is not a difficult task.
There’s always a massive ecosystem of people in niches, sub-niches, and sub-sub-niches that are interconnected in a thousand ways. This is what virtually everyone does. It’s very well proven and delivers reliable results.
This level of success is utterly invisible compared to the “Instagram influencers” and “Shark Tank millionaires” in the popular culture.
. . . Wait, There’s More
Most people just don’t realize the best part about all of this.
First of all, the operation of all the elements – visitors, prospects, customers, and your prices – are all 100% under your control. Your efforts and creativity can be brought to bear on improving and refining every important element.
Here’s what your efforts can do:
- Suppose you improve your mailing list messages so that instead of 4% of prospects deciding to buy, 8% of them decide to buy. That means your monthly income goes to $10,000. Every month. Just from improving your email messages.
- Or, suppose you improve your pitch for visitors to join your email list. Instead of 6% of visitors becoming prospects, 12% decide to join. Perhaps because you include a terrific freebie that people can’t resist. Well, double the prospects means double the sales. Again, one tweak can move you from $5,000 to $10,000 every month.
- And. . . if you made both of the above improvements it would move you to $20,000 per month from the SAME amount of traffic every month.
Double your traffic and your entire operation doubles in size again.
Plus you have total control over your pricing, and the ability to add addition products and services that increase the value of each customer.
All from a tiny, almost invisible operation that can deliver more personal income than many top professions. Without you needing to be anything close to a high-flying ‘star’ who has massive online visibility.
And again, all of this is under your control. You don’t need a consensus among co-workers, you don’t need to pitch it at the monthly management meeting, you don’t need a clueless boss to say ‘yes’ to it.
This can be one of the most liberating, empowering feelings you ever experience.
What would it take for you to double your current salary at your job? For most people (especially in their late career) it’s not even remotely possible.
Yet, with your own online business you have (at least) four major control knobs that you totally command:
- How many people visit your site every month
- How many join your mailing list
- How many convert into paying customers
- How much can you receive from each customer
And you can do all of this at your own pace, without leaving your current job, (that’s the “safely” in Safely Leave The Rat Race) and you can do it without spending a small fortune on a traditional business like a franchise or other brick and mortar enterprise that’s forever tied to the financial health of your local town.
Plus your income is spread over thousands of tiny sources instead of one giant paycheck. That means more “safety” for you and your family.
We are all very fortunate to live at a time when opportunity like this is available to everyone, without becoming a highly visible ‘star.’
You owe it to yourself to learn more about how you can do this.