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How To Make a Fantastic Income
With Information Publishing

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Louis Allport: Okay, similar sort of model - front page is just a sales letter, you can join for free, and again there are immediate upsells via a one-time offer, and there are multiple levels of membership, and affiliate partners can send gifted memberships to their lists, and so on. So it is the same sort of model. So basically instead of just building a list you are building a free membership base, and also you have multiple levels of membership, maybe Silver Membership, Gold Membership, Platinum Membership, however you wish to do it.

I think one of the best ways to clarify how this works is just to create a quick spreadsheet. I have done this for previous videos but I did forget to save it so I will have to create it quickly from scratch. But let's just quickly go through the numbers.

Let's say you set up a site in this same model, a free membership then multiple levels of membership and then one-time offer and so on. So let's say "Number of visitors you send"... "Number of visitors traffic partners send"... let's say... "Commission paid to traffic partners"...

For argument's sake let's say 10,000 [number of visitors you send] and let's say partners send 10,000, and commission let's say you are being very generous and paying 70%. Let's quickly format this.

Okay, what else, conversion rate: 'Gifted Membership conversion rate' equals 20%. So now we actually start calculating the numbers. Actually let's be a bit more specific: "Gifted Silver Membership conversion rate". So, number of Silver Members, obviously it's 20% of 20,000. Equals B1 plus B2 times B4. 4,000 - that's correct, and actually one thing I forgot to do, I forgot to include the number for one-time offer. So let's say "One-time offer (to Gold) conversion".

For example with InstantVideoEmpire.com, the gifted Silver Membership to Gold upgrade conversion rate has been broadly, to date, 3%. So that actually works out at, actually let's not get too sidetracked I will come to that in a minute.

So, one-time offer to gold conversion, let's say 3% to be quite conservative. Number of Silver Members and then number of Gold Members - so 3% of 4,000, equals B7 times B5 equals 120 Gold Members.

So it's basically a 50:50 split between visitors you've sent to your own site, and visitors partners have sent. So we need to work out how much this has made you. We need to specify how much Gold is, so "Price of Gold Membership" - $197 let's say.

So revenue equals B6 times B9. So 23 thousand and a bit revenue [$23,640]. But then we have to work out how much commission you are paying out. "Commission to pay out" equals B2 (10,000) times conversion rate B4. So that's the first part, so 2,000 visitors from the traffic partners send become gifted Silver Members. But then we have to include the upgrade into the equation. So then times 3%. So times B5. So partners refer 60 Gold Members and then we have to times that by B6 which is the price $197 and then times the commission, which is 70%, so B3.

Let's just do a quick double check, so 10,000, yes 2,000 Silver Members partners refer, 3% of 2,000 is 60, times basically 200 dollars. 60 times $197 just under $12,000 [$11,820] and then times 70% for the commission, times point seven, so yeah that's correct [$8,274]. I just wanted to double check I had got the Excel formula right.

Okay, then profit. So profit equals revenue minus costs, so equals B10 minus B11. So just from those figures, you've made just over $15,000 [$15,366] in profit.

Just out of interest - this is actually a very useful figure for your business - revenue per visitor, then profit per visitor, revenue per Silver Member, profit per Silver Member. Revenue per visitor then is obviously total revenue, which is B10. So B10 divided by the number of visitors. So divided by total visitors, which equals 20,000. So B1 plus B2.

Okay so revenue per visitor is $1.18.

Profit per visitor. Actually let me just copy and paste that to shortcut it a bit. So profit divided by total visitors. So profit per visitor is 77 cents.

Then revenue per Silver Member equals: total revenue, so B10, divided by Silver Members B8. Okay revenue per Silver Member $5.91, profit per Silver Member equals: B12 divided by B8 again. So profit per Silver Member to you is $3.84.

And obviously this doesn't factor in at all any further sales. For example, let's say you have multiple levels. Let's say you have Silver, Gold, Platinum and Diamond. Silver is gifted but let's say it's $97 from the front of the site, but that's kind of irrelevant to these numbers. Gold, we know that's $197 or at full price, if they don't take up the one-time offer, full price is $697. But in my experience very, very few, maybe one every six months - hardly anyone - takes up, upgrades at full price. Basically, people either take up the upsell or they don't in my experience. There may be some odd exceptions but that is generally the case.

Okay, let's say Platinum, there is no one-time offer for Platinum, so let's say $997 and Diamond - once prices get high you really have got to offer tremendous value. That's true in information publishing, you want to offer value that is way above what the customer is paying - let's say $2,497.

These figures here [previously calculated revenue per visitor, profit per visitor, revenue per Silver Member, profit per Silver Member] don't include any further membership upgrades that members may take.

I can't remember whether this was covered in the interview but in information publishing very important concepts are 'front-end' and 'back-end'. And front-end is basically a term which means the first sale to your customer - because until they have actually purchased anything from you they are obviously not a customer. But once they have purchased something from you that is the front-end sale, they are past the gate, so to speak, and they are now your customer. And a lot, if not most, of your profits are going to come from the back-end, which means repeat purchases to the same customers.

For example, let's say a customer just upgrades to gold, $197, that's it. If that is all he ever buys, his lifetime value to you - lifetime value meaning as long as he is the customer how much money he spends with you... but maybe it should be something a bit more specific, let's say a five-year term.

Over five years how much does this customer spend with you? If that is all he has ever purchased, his value to you, as a customer, is 200 dollars basically. But if he then upgrades to Platinum and Diamond then immediately his value to you as a customer has rocketed to over $3,500. And that doesn't include further offers... further offers you make to him as a member.

And that is really the basis of Jeremy's model: free membership and emailing that membership base at least once a week with new offers, and Jeremy does a lot of affiliate promotions. He promotes other people's products a lot, at least once a week.

And he does that very effectively. For example, as I record this, he did a promotion to his list of a book that was being released on Amazon. It was selling for $12, so not much money there, but it was set up in such a way that everyone who purchased the book could then enter the details of their Amazon receipt on a special website and they immediately receive some free bonuses.

However, then the person who entered their details on that special site were then presented with special one-time offers and apparently: it was a one-time offer that if they say yes to that they are presented with another and if they say yes to that they are presented with another. And apparently, because there were so many one-time offers all following each other, there were up to $2,000 in possible commissions per customer.

And Jeremy promoted this, so a lot of people bought the book through his recommendation and then those customers entered the details on this special website and were marked as Jeremy's referrals. And then a lot of them took up the upgrades and apparently in about a day or two Jeremy earned several thousand dollars, if not more, in affiliate commissions.

I wouldn't give you the exact figures but Jeremy has revealed to me how much he earns in affiliate commissions on an annual basis, and it is significant. He does take his affiliate marketing very seriously, so I do suggest you get on his list and pay attention to what he does. Obviously, he has built his lists up; maybe across all his sites he has maybe got around 200,000 opt-in/free members. So that works very well.

That is really the core of his model; which is build up free membership, upgrade members and just send repeat offers to them. And obviously I am not going to talk about his numbers publicly but he has revealed private numbers about a number of his sites to me and a lot of his money comes from affiliate marketing, through the lists, but also he obviously makes sales on the sites.

For example, if you go back to SureFireWealth.com - I have no idea exactly how much income this creates but - you'll see there are lots of extra revenue sources, I think he has got some Google AdSense ads somewhere. He has lots of ads so is making more affiliate commissions there, that's an ad for his new site called Mindmap To Riches - I'll come back to that in a minute. It looks like he is just promoting his own sites at the moment.

SureFireWealth.com is slightly different to other sites such as MembershipMillionaire.com. Membership Millionaire is basically a sign-up page and then all the content is in the member area, whereas with SureFireWealth.com a lot of content is available free. So he gets a lot of public traffic as well as member traffic. A lot of people who come to his site are public, just visiting, rather than actual members. So I think he gets a lot of traffic going through all these adverts.

For example, I don't want to get too sidetracked, but if you go to Google there is the site command, "site:". You can type in a domain name, for example "site:SureFireWealth.com" and this is not an exact figure by any means but it tells you very broadly how many pages are on the site, publicly available on the site. So, approximately 2,000 according to Google.

I say don't take this too seriously because if we go to Yahoo to double check - if you go to search.yahoo.com and type in "site:SureFireWealth.com", a vastly different number appears [18,752 is listed]. So take all these numbers with a pinch of salt, it is worth checking across multiple search engines, maybe even MSN Search [now bing.com]. Do take all these numbers with a pinch of salt, but it does give you a broad idea.

What I am trying to demonstrate is that Jeremy has a lot of public pages at SureFireWealth.com so he gets a lot of traffic that way too.

Okay, I touched on this briefly before, I have mentioned this anyway as we broke all the figures down in the spreadsheet - and actually I should mention that if I have gone too fast on any of these subjects please feel free to pause the video and maybe copy down this information, or watch the video as many times as you wish.

I was going to quickly touch on figures for the InstantVideoEmpire.com gifted Silver Membership. Let's go back there...

 

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