What’s Your “Magic Number”?
Your “Magic Number” is the number of purchases or downline recruits that it will take for you to get to your financial goals in your Affiliate Marketing or Network Marketing activities. It is the only meaningful number to you as it’s what will pay your bills when you are successful in your chosen business.
With an affiliate marketing business, the magic number is derived from the number of unit sales on a daily basis times the number of affiliate programs you represent times the amount of commission, minus any refunds.
With a network marketing program, it is the number of direct downline members times the group income from product sales times the commission on sales less any product returns. This is a generic model that assumes that you get paid on product sales with an increasing commission for leadership of business recruits and assistance in their business development.
You want to take a look at starting an affiliate or network marketing business that can earn at least a part time income of $1,500 per month with further income above that to replace your existing job. What are the numbers that you need for each model to attain the $1,500? In an affiliate marketing model, it is almost impossible to build a generic model because of the many options available; software product, ebooks, consumer products, industrial products, services. And, ways to engage with the marketplaces offering products to affiliates, Commission Junction, Clickbank and Amazon to name the most well known.
Most importantly with an affiliate marketing business, you must start with a website that draws a sufficient amount of traffic. This requires a fair amount of online marketing expertise, web design and copywriting experience. Most of that can be purchased through outsourcing sites like elance and rent a coder but it adds both expense and time to your start up timing.
But, here’s a tip for which niche to choose in an affiliate marketing business, the biggest marketplace for software products and ebooks is “How To Make Money in Affiliate Marketing” and How To Make Money on Clickbank”! That should tell you a lot about the entire marketplace for reselling products and services online.
With network marketing companies, the magic number is somewhat easier to get to as they will publish their compensation policies and all you need do is to apply it to your income goals. And, network marketing, or MLM companies are in a wide range of market niches, so you can generally find a marketplace to suit your interests and ambition. Additionally, there is a wealth of support in MLM companies as you can only join one through an existing member, or business leader. He or she can explain their success strategies and the company itself will typically have their own product and business recruiting literature in addition to their corporate website available for your use. That makes for a good base to start your personal marketing efforts.
So, what is a reasonable “magic number” to achieve your personal goals? The smaller the better! The fewest number of downline recruits in a network marketing company indicates to me that it has a generous commission policies and a long lasting user community.
As an example of how small the “magic number” can be, mine is two to earn a minimum of $1,500 each month. And, it scales to 10 to earn a typical income of $50K per month! Those are the kind of numbers I like!
In summary, both article marketing and network, or MLM marketing, can offer a good to great income for you if you are interested in making the commitment to the effort involved. Affiliate marketing requires a greater degree of technical expertise and possible expense for a greater effort to get to a minimum income. Network marketing offers more company and personal upline support and, potentially a smaller “magic number” to get to that same minimum income. Which one will you choose?
If the idea of a very low “magic number” with a high earnings potential appeals to you, click here to contact me!
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