The Secret to $10,000 a Month is . . .

The math behind making $10,000 a month is quite firm. You can't change it by simple wishing or desire. But you can greatly increase your chances of reaching $10,000 a month by . . .

• Offering products with higher per unit profits (even if this means making fewer sales)

• Offering multiple products (all with good profits)

• Concentrating on finding and keeping repeat customers rather than making sales

• Continually updating your product offerings to fulfill the wants of repeat customers

• Reducing the number of sales needed per day, based on increased profits

This is a very simple strategy to success. One followed by most of the successful people I know.

Pitfalls to Avoid

I recently purchased a computer disk offered on the net for $4.95. I found the disk on eBay Auction, and saw that the seller had sold over 60 copies with just one offer.

Normally, that would be great . . . generating 60 sales with just one $2 ad on eBay auction (www.ebay.com) is pretty impressive.

But in this case the seller is probably losing money, because the math is against him.

If you figure it costs him $2 in time and materials to fill each order, then it means the seller only nets $2.95 per sale. To make $1,000 it'll take 300 sales! To make $10,000 requires 3000 sales!

Imagine the amount of labor involved in processing an order - entering it into the computer, printing an invoice and shipping label, packaging the item ordered, and then shipping it - and you'll understand why this guy is in a losing proposition.

He'd be much better off selling a disk for $97.50, and getting just two sales. His profit on that would be greater than the profit he is currently making on the 60 sales at $4.95.

Another pitfall many people can't seem to avoid is locking themselves into one or two products and not having any way to react should the demand for that product suddenly drop off.

I spoke to a publisher friend who told me that up until two months ago he was consistently earning $5,000 a month by selling three books he had written. Then, without any warning, sales dropped to zero.

Seems that the public was no longer interested in books on his subject, so no one was buying. And my friend had no backup products. He had all his eggs in just one basket. And when those eggs turned to zeros, he was out of business.

He should have been building a diversified product line. He should have been adding new products to generate new sales as the older products matured. But he did none of this. (And now he is looking for a job.)

It boils down to this . . . get your product line and profits in order so that it only takes a few sales a day to reach $10,000 a month in earnings. And once you reach that point, continue adding and testing new products so that you not only maintain the $10,000 a month, but build on it.


<< Previous