Monday, July 7, 2008

How to make 10,000 bucks

We will make a very simple math exercise today.

Let's suppose that your sales are going quite well for the summer time. Let's say that at the end of the day you have an average of 100 daily sales; in 30 days you will have 3000 sales; let's suppose that the product costs 29 bucks; that means that at the end of the month you have 87,000 USD in sales; applying the standard 8% processing fee will result in a 80,040 USD in your pocket.

Now, the little question is how can you generate more revenues with the same number of customers :)

The answer is quite simple: by selling additional services. For a small amount the customer can opt in to receive a backup CD along with the order or he can obtain to increase the download availability for 24 months. Now, adding a small profit of 5 USD on top of 70% of your existing 3000 sales, the final profit will be 90,540 USD - meaning that an additional 10,500 USD monthly profit just came up :)

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