Module 9 – Win/Win For Web Sites!

All Without Any Up-Front Costs

Now let me give you a quick education in marketing.

Any business and especially a business with a Web site can increase revenue in two different ways:

1. They can get a piece of the profit from other Web sites by introducing and selling non-competing products from those Web sites
2. They can make money as well as get new customers by letting other Web sites introduce their product and then splitting their newfound profits with these Web sites

In this section let’s talk about how to show potential Web sites how they can get…

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• New customers, as well as
• Make more money, with their existing customers, all

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Without Any Up-Front Costs!

In other words, If you tell a business with a Web site…

“If I Can Show You How You Can Get More Customers And
At The Same Time Make More Money In Your Business,
Would You Be Willing To Split
Any Profits I Make For You 50/50?”

Any business that realizes the value of what you just proposed would be foolish to turn you down.

Of course the 50/50 or 50% split is not a hard or fast rule. If you can only negotiate 30%, that’s OK too. It’s better to get a small percentage of something than 50% of nothing.

There’s really nothing difficult in this, most businesses will “see the light” after a few minutes. This is pretty easy to explain in an e-mail, in a fax or over the phone.

Once they “see the light” they’ll quickly realize the value of what you have to offer.

Also, a business needs to realize that any money they earn from the endorsements is “found money”. Money they would never have received otherwise.

For example, take a business that operates on a 100% markup. They might think that they’re making $50 on every $100 product they sell. But that’s not the case at all.

They fail to realize that in order to sell a product they have marketing costs such as advertising that they have to pay for up-front… without any guarantees!

But if they have a Web site doing the endorsing for them…

They Only Pay For Actual Results!

As you can see this is really a “no-brainer”.

In order to generate a sale, a business has to spend money on some form of advertising. So actually they might be putting as much as 50%-60% or even more of the product profit back into the business in the form of advertising.

So one way or another they have to pay to acquire new customers. They can either pay…

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• Up-front through advertising, which can be very expensive, without any guarantees, or

• They can pay an Endorsing Web site a part of the profit on any sales that site sends their way. But only after a sale

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In other words, in the first instance, the business might not get any new customers, but they’ve already spent the money on advertising.

Now, if you owned a business, what would you do?

You have the choice of either…

1. Spending $10,000 upfront in advertising costs in an attempt to bring in $20,000 of new business, or
2. Getting $20,000 profit in new business without risking a dime and then splitting that profit 50/50 with an Endorser that sends business your way without any upfront costs.

I think you can easily see that the choice is now crystal clear. You have to be a moron not to see the value of this!

Even if a business has to split the profits with an Endorser they still have the life-time value of these new customers that they can continue to sell to over and over again and make 100% of the profits themselves without splitting it with anyone.

As we’ll talk about later in the manual, a lot of businesses are willing to lose money on the front-end sales. They are willing to sell their first product to a new customer at a very small profit or even at a loss, because they know that on an average, if they treat the customer well, he or she will come back and spend much more with them in the future.

So, even if the business owner is only making 30% of his usual profits by doing a joint venture deal with you, he should realize that he will reap all the benefits of the return customers it creates.

Also, in an endorsed mailing the Supplier can afford to give away most of the front-end profit by gaining a new customer because:

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• He doesn’t have any up-front costs
• He doesn’t pay for any advertising
• He gets new customers for free
• He gets to keep all the back-end profits from his new customers

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Splitting The Profits
Now, let’s look at the profit breakdown of a product that has a 50% markup. Let’s see how the numbers work out between the Supplier, the Endorser and Yourself, if you were doing this joint venture deal.

The Endorser has to get the majority of the profits generated because, without the Endorser generating the traffic and the sales, there wouldn’t be any profit to split.

But the rest of the profits can be split between you and the Supplier any way you agree on.

For this example, let’s assume we have a $100.00 information product with a 5 to 1 markup or a 400% markup.

Here’s how the profits will break down, assuming the Endorser will get 50% of the profit and you and the Supplier will split the rest.

 

 

Here is the actual profit breakdown based on different percentages. For example if the Supplier is only willing to pay you 10% of the profits, you’ll end up with $8.00 for every product sold.

However, if you can negotiate a commission of 25% you’ll get $20.00 every time a product is sold.

 

Your profits in %	10%	25%	40%
Total profit	$80.00	$80.00	$80.00
Endorser’s profit	$40.00	$40.00	$40.00
Supplier’s profit	$32.00	$20.00	$8.00
Your Profit	$8.00	$20.00	$32.00

So even if a business paid out 50% of the markup profit on a product to the Endorser and paid you 40% in a joint venture deal they would still end up with 10% profit and they would have gained a new customer absolutely free that they can continue to sell other products to over and over again.

All this without any up-front advertising costs or any other up-front costs. And remember, all back-end profits from these new customers are all theirs.

Again…

Remember, if you don’t get anything going something terrible happens…

Nothing!