Little statistics and math and numbers.
Let’s look at a practical example. (Ankur Agrawal gives an example)
Let’s say that your ideal Lifestyle is going to run you $10K per month– which isn’t nearly as much money as you think it is if you’re currently an average middle-class wage-earner.
You will adjust to that income very quickly.
Anyhow, if you had to bring in $10K per month, that means you’l need to create $10,000 / 30 = $333.34 per day.
Heck, that’s not even very much.
So all you need now is to sell enough to generate $333.34 daily in commissions.
Say for example you are selling a $97.00 product for a 50% commission.
That’s $48.50 per sale.
$333.34 / $48.50 = 6.8, or 7 sales per day.
Now let’s say that your Sales Page has a 1% conversion rate from lead to-sale, meaning that for every 100 leads that you send to that offer over, say, a 30-day period, 1 of them buys that product. 1 out of 100…
Well, you need to sell 7 per day in this example don’t you?
In this example you’d need to get at least 700 people per day to your offer wouldn’t you?
Now, these are just hypothetical and results always vary and one day they convert better and another day they convert worse, but overall hypothetical examples is all we’re going for here.
But 700 leads per day is a ton of leads!
I’ve been doing this for years and I don’t generate 700 leads per day.
I’ve had 500+ lead-generation days, but those are not regular occurrences.
In fact, the only people I know who generate that many leads in a single day are those leaders who have created their own affiliate programs and most of the leads are being generated by their affiliates.
You see the problem here?
It’s just too darn expensive to generate that much traffic to your site in this example.
Remember, we’re assuming that you get to keep the entire $48.50.
We haven’t even considered the cost of the traffic to get all those leads to your offer page!
Add in your advertising costs and you’re totally in-the-hole.
A good lead-capture page might get a 30 to 40% conversion rate from visitor to opt-in lead.
This means that out of every 100 people to arrive at your landing page, 30 to 40 enter their email to get more information.
We’re assuming here that the next thing those people wil see is your sales page—your offer.
So in order to get 700 leads per day you’d be looking at 1,750 to 2,334 unique visitors to your lead capture page every single day on average.
That’s with 50% commission.
Many of these MLM-type companies have conversion rates of 0.02% and they pay about 20% on the initial sale.
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