Last night as we were having our weekly mentoring meeting (you really need to join–it’s free, it’s fun and it will make you money) I demonstrated exactly how you can predict how much money you will make on a promotion.

It was eye opening to many of them.

Today I want to take that a step further by looking at…

“Exactly How Much POTENTIAL Profit There is in Your Blog”

You will find this to be one of the most important articles you have ever seen teaching you how to profit from your blog. Ready? Good, let’s go.

“What’s Your Product?”

Begin by asking yourself what products you offer on your blog–do you simply display Adsense ads? Then the product you sell is ad clicks. Do you sell paid reviews? Then that’s a product too. How about selling banner space or text ads? Yup, those count as well. Got an eBook or membership site to plug? How ’bout copywriting or site construction?

Keep your list going until you have all of the products you offer along with how much each one earns you when you make a sale (or in the case of Adsense, when someone clicks on an ad.)

“Figure Out Your Prospect List”

Not everyone who visits your blog or signs up for your newsletter is a prospect for all of your products. Here’s an example:

Let’s pretend you have a fitness blog. The people who visit your site and sign up for your RSS and Email list are people who are interested in the fitness tips and stories you provide. Chances are they DON’T have a product they want to advertise on your blog–at least most of them.

So if your combined RSS and Email lists–your Aaron Number–numbers 250, then here’s how that would break down in terms of prospects:

Number of prospects for the Global-Fitness.com membership you sell as an affiliate: 250
Number of Prospects for the “Negative Calorie Diet” eBook you sell as an affiliate: 250
Number of prospects for buying ad space on your site: ZERO

For the number of prospects for Adsense Clicks, ignore your Aaron Number and substitute the number of daily visitors to your site–which are the number of people who actually SEE the ads. So if you get 100 visitors a day, then your number of monthly Adsense prospects would be 30 days x 100 visitors = 3,000 prospects.

“1% of Your Prospects Will Buy”

Taking those numbers, multiply them by each by 1% (except your Adsense prospects–more on that in a second), then multiply that number by the amount of money you make with each “sale”. Using our example above:

250 prospects for Global-Fitness.com x 1% x $40 per sale = $100.00 in commission
250 prospects for “Negative Calorie Diet” x 1% x $13.16 per sale = $32.90 in commission
0 prospects for your ad spots x 1% x $30.00 per ad = ZERO

Adsense is a little different. For Adsense you want to take the total visitors for the month, multiply that by 2% then multiply that by the average $/click you earn. So if you use our example above and earn an average of $.50 per click, it would look like this:

3,000 visitors per month x 2% x $.50 per click = $30.00

So, if you total up all of your expected income from your blog it comes to a whopping $162.90

“How You Can Improve That Number”

Here’s how to create more income from your 100 visitor per day blog.

First, create your own product. A “Great Ab Workouts” eBook will bring in another $60.00 or so per month from your own list, but it will also allow you to get affiliates who will send you traffic, subscribers and sales. A good eBook can sell 50 or more per day, at $20 each that’s $30,000.00 a month gross and $15,000.00 net.

Second, create a higher dollar value product that will appeal to your niche. In the fitness site example you might want to consider adding a $197.00 personal customized fitness plan. Do that and suddenly you have an additional $500.00 or so each month. If you can come up with a package you can sell for $1,000.00, then 2-3 sales per month brings in another $2,000.00 to $3,000.00. Add affiliate sales and you are easily making $10,000.00 or more per month.

Third, sell affiliate products with higher commissions. Sure $13.88 per sale COULD add up–if you made lots of sales–but one sale where you make $500.00 is just as easy to get and will make you far more money.

Fourth, start collecting leads to sell advertising to. It amazes me how few people who are trying to sell ads are actively collecting leads. I give you a comprehensive plan here.

Fifth, sell recurring bill products. This is a great way to take a small number of prospects, get them to make a small decision then profit from them every month.

Let’s take a LifeFoc.us membership. (You are a member, right? If not, go here and sign up.) It pays $17.97 per month for each person who subscribes through your link. That’s $215.64 per year.

Taking your 250 lead blog, that’s 30 sales a year. It doesn’t sound like much until you realize 30 sales will pay you a monthly check of $539.10–that’s almost $6,500.00 a year.

“So What Are You Waiting For?”

Go out there. Put this article to work. Make some money. If you have any questions, let me know in the comments below.

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