When people ask me how they can make money online, I will occasionally, rather mischievously, ask exactly how much they want to make, because I know that, almost exclusively, I am about to be given a blank look and the slightly hesitant reply …’well, erm … lots’
Now, I know it’s a few months since I’ve used the ‘planning’ word but it’s time it reared its ugly head again, and this time on the very practical grounds that if you don’t know how much money you want to make, at least initially, how can you work backwards (or ‘reverse engineering’ as it is known these days) and plan what you need to do each day to achieve it?
I’m not going to ask you to start totting up how much your ideal house would cost, and the car, and the holidays and everything else to find out exactly how much money you want to live your ‘perfect’ lifestyle (this is partly because you will almost certainly end up a huge number you could not relate to, and partly because I know from experience that once you a achieve a certain amount of things, you are introduced to a whole new level of expense that you previously didn’t know existed) 😉
Instead I’ve always looked at it more in stages … how much money do I need to pay off my credit cards … how much money do I need to get my hands on that supercharged Jaguar, or to answer the question I’m asking today … if you wanted to give up your day job, exactly how much would you have to earn ?
Let’s say you’re Assistant Administration Manager for International Consumer Widgets plc, earning £30,000 a year … but you’ve grown tired of widgets and instead yearn to earn a living from your laptop…
Less than 10 seconds of calculator work will tell you that £30,000 over a year works out at £82 a day – not, you’ll agree, the unfeasibly large amount of money you were perhaps thinking of.
Now, if you went to Clickbank and found the best converting offer at the moment … (I’ve just dispatched a Minion to find out what it is) … apparently it’s something ghastly called Commission Breakthrough and it pays $47.00 (about £30 in grown up money) to affiliates…
Or if, quite wisely, you decided Commission Breakthrough wasn’t your thing and instead you were to promote my Unitrader product or something similar, you would earn about the same, which means in real terms, getting involved in the sale of less than 3 of these items each day would make you enough to replace that £82
Now, I don’t know what the Commission Breakthrough or any other similar website converts at, (the conversion rate is the percentage of website visitors who place an order) but if it’s anything like Unitrader, you could generate those 3 sales by sending just 52 people each day to the site.
So, in principle, and put in very basic terms, if you could direct 52 people to a website you don’t even own (and does all the ‘selling’ for you), and do it again tomorrow and each day after that … you won’t have to get up and got to work anymore.
Obviously in practice I would suggest you make sure you know what you’re doing, promote several different products to cover more bases, and be able to replace your income for around 6 months before giving the boss the heave-ho, but does it really, really sound that difficult compared to that amount of effort you put into your day job?
By breaking down what you want to achieve online into more manageable chunks, and what you need to do to do each day to make it happen, that turns the possible rewards offered by your online endeavours from something that’s ‘pie in the sky’ into something you can almost touch…