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If you have $1,000-$2,000 --> here is how to turn that into $40,000+.

Discussion in 'Media Buying' started by wasted, Sep 30, 2012.

  1. wasted

    wasted Jr. Executive VIP

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    Hey Guys,

    It wouldn't be right to call this a method, more so a business strategy. Part of our business revolves around mixing our own products with media buys, and we have really started to become pretty efficient at it. A $1,000-$2,000 ad budget is producing large results with online media buying. I'm not talking about PPV, but more so banner advertising.

    With Google stirring so much trouble up it would be smart to diversify and begin learning paid traffic methods. Let me give you an example:

    Take a glance at the below screenshot. This specific campaign was done using SiteScouts interface. As you can see we drove 243,000 impressions with only $163.77. What you can see from the shot below are the many many different banner ads that were tested. As we go through the campaign we optimize it by dropping the low CTR and low Conversions and keeping the better campaigns. You see our revenue was off the charts, and the best thing is the product is a monthly membership so this is passive.

    numbers.png

    You can see above that our conversion on our page was converting at around 26% that one ad we will now exploit and scale with it's own campaign. You can see that we are paying $.67 per acquisition. This conversion paid us $7/M,

    The above is just a example of how you can multiply your money tremendously with the right offer and ad.

    Now how do you create that?

    Instead of looking at the keywords for niche ideas. Here is one idea... look at the ad space. Look at where you can buy media at good prices and then design a product or campaign around that. The above campaign was on a site that had a great community, I'm not talking about a site like facebook, but a niched community. In the above example I used a site called www.goodreads.com , the site is a great place for readers and writers to learn about new books that are not simply main stream NYtimes best sellers...

    So.. looking at the traffic source you can now say... "What can I offer to Readers and Writers?"

    A better question is what do readers and writers want? or need?

    Our answer to the above question was "to be published". From that point we now create a product offering, it could be a standalone product or like we did a monthly membership. I personally like the recurring income of a membership which is how you really get those 7X+ multiples on your investment. The best thing about this strategy is that with RTB (real time bidding) you can test an ad space for $5-$15 to see how it's impressions are converting.

    Overall Strategy:

    Use places like:

    - Google Adplanner
    - WhatRunsWhere
    - SiteScout
    - AdPulse

    to find places to advertise.

    Develop a product specifically for that ad block, and multiple your investment. Just to make good on my title of this thread. The above campaign we scaled up and turned that $1000 into $6,000/M in recurring payments. After member retention rates kick in and all other expenses aside, we'll make around a $56,000 yearly profit.

    The key now is to be fresh and not fall into banner blindness...
     
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  2. motzart

    motzart Power Member

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    That is absolutely genius. I've been wanting to try this type of thing out for years now, just been afraid of failing on the PPC side of things. Definitely going to test the waters now.
     
  3. daserpent

    daserpent Power Member

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    Awesome idea. I am definitely gonna try this.
     
  4. reinie

    reinie Elite Member

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    I love it. Reversing the usual way of doing things... makes so much more sense
    thanks for sharing
     
  5. wasted

    wasted Jr. Executive VIP

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    thanks for the comments guys, if anyone has questions feel free to post them in the thread I'll do my best to reply
     
  6. AR!ZONA

    AR!ZONA Regular Member

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    So you developed your product once you established your clientele. Nice!

    Love the recurring subscription idea, that's great.
     
  7. bigballin6161

    bigballin6161 Jr. VIP Jr. VIP Premium Member

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    Thanks for the share man, media buys is definitely where the money is at.
     
  8. themidiman

    themidiman Power Member

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    Appreciate the insight. I'm just curious about the costs to develop the product. I assume it was a membership site?
     
  9. Bribebox

    Bribebox Regular Member

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    Very useful information. Thank you! :)
     
  10. motzart

    motzart Power Member

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    Actually I have one question. Would that kind of traffic convert on a normal online service, like SEO services?
     
  11. Gradimir Stankovic

    Gradimir Stankovic Power Member

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    Great post and a solid method :) I have a question, do you have any experience with sites like buysellads or you buy directly from website you're advertising on?
     
  12. wasted

    wasted Jr. Executive VIP

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    Product Development for us really is just a time factor and less of a cost factor. Regarding general services its all about finding the right source of traffic. SEO services can do well on webmaster related websites.

    Industry average CTR on banner ads is .02% so assume 100,000 impressions can get you on average 2,000 uniques, and if you can convert those uniques into buyers you will do great!
     
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  13. Mollowbass

    Mollowbass Regular Member

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    I think that you also have to take into consideration the amount of competition here.
    Where as a writers products is more likely to convert better then SEO service since these services are advertised and monetized at a much heavier scale. Not meantioning the quality of the salespage.

    Just my thought.
     
  14. motzart

    motzart Power Member

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    Yeah I guess that's why sales are so hard right now.
     
  15. therage

    therage Senior Member

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    Has nothing to do with competition and more to do with him failing to correctly create converting ad copy. As for Motzart, your main reason for bad sales IS your ad copy and presentation do not match the prospects you are bringing in. Find out the psychological factors, triggers, attributes to your ideal perfect customer, and then build ad copy around how you benefit them, how you get rid of their fears, give them their desires and wants for such services. Price and competition ARE NOT the main focus of a ad copy letter, unless you are selling ad copy services! Most of the time when I see people FAIL, it is a simple fix with some research, analysis, and projection for a ppc or business campaign.

    You can message me further if you wish and I can help you with actual ad copy by niche and keyword research, depth of analysis from competition, and a correct ppc projection.
     
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  16. MaverickonRoids

    MaverickonRoids Power Member

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    Will you open up a possible JV opportunity with you for people looking to invest $1K+ in this method?

    Thanks.
     
  17. Pikachoo

    Pikachoo Junior Member

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    Great Business plan. I like the $5-$10 toe in the water to preview clickthroughs :)
    After a dark day from google, thanks for the 'reboot' :)
     
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  18. wasted

    wasted Jr. Executive VIP

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    rgeczi,

    Regarding a JV. I'm not sure if I would because unless the person is handling product development and customer service there would be no benefit to me. I appreciate the thought though.
     
  19. syanto

    syanto Registered Member

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    also interested if anyone wants to do a joint venture let me know
     
  20. wasted

    wasted Jr. Executive VIP

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    therage,

    Great post btw, you are exactly correct