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Suggest You - The Mathematical Formula For Making Money
Having something tangible to strive towards can work wonders for your money-saving efforts. To those of you that have already been actively implementing money-saving tips in order to lower your monthly bills, for added inspiration, establish a meaningful goal along with a specific dollar amount.For those of you just starting your money-saving quest, having a goal to strive towards will help keep you focused whenever you may get a feeling of quitting.What goal should you decide on? This is a very important question that should be thought about carefully. The answer can only be found in you.To help come to a decision, make a list of the five most important things you need or would like to have. Keep in mind not to merely dwell on the most popular, innovative contraptions hitting the market these days.These tangibles will come and go.A conscientious, thoughtful mon
Case #4: Improve all 5 levers by 100% each.
Net profit = $640,000
Profit to Effort ratio = 6.20:1
Observation: As you continue to improve all five levers the magnification factor on your net profit increases at an exponential rate.
In this example we see that when we doubled our effort from case #2 to case #3 our leverage increased by 61% (i.e. ((2.64 - 1.64) ? 1.64) x 100). But when we doubled our efforts once more from Case #3 to case #4 our leverage increased by 135%
This has to be one of the most magnificent realisations you could ever make in business.
Conclusion: Never stop improving all five levers of your business.
A Tragic Habit - And How To Fix It
Clearly these two examples demonstrate the power of leveraging all five variables in your business.
Tragically, most businesses seem to care about only one of these levers - the number of leads. To make matters worse, of all the levers this one will cost you the most to improve!
So if you're stuck in the 'drive-more-traffic-to-my-business' trap - STOP! Instead, harness the multiplying power of all five levers and you'll find that your profit to effort ratio will skyrocket.
Or to put it another way, by applying all five levers to your business (instead of only one) you will m
Over the years, eBay has introduced all sorts of different auction types, in an effort to give people more options when they buy and sell their things on eBay.For every seller who doesn’t like the idea that their item might sell for a far lower price than they intend, there’s another who wants to shift hundreds of the same item quickly. eBay tries to cater to all tastes. This email gives you an overview of the different kinds of auctions and their advantages for you.Normal Auctions.These are the bread-and-butter of eBay, the auctions everyone knows: buyers bid, others outbid them, they bid again, and the winner gets the item. Simple.Reserve Auctions.Reserve auctions are for sellers who don’t want their items to sell for less than a certain price – a concept you’ll know about if you’re familiar with real auctions. They work just like normal auctions on eBay, exce
Embrace this truth and profits will flood your business.
Disregard this truth and financial-cancer will eat you.
What is this truth?
Quite simply, the size and speed of your entrepreneurial success is directly proportional to your understanding of The Mathematical Formula For Making Money.
Despite serving as the corner stone of every single commercial success since the dawn of commerce most businesses neglect its power. Being so familiar with the diluted version of the formula these businesses overlook the enormous profit-potential held within.
The Formula
Mindful of this blind-spot, let's now take a close look at the Mathematical Formula For Making Money:
Leads x Conversion Rate = Customers
Customers x Average Dollar Sale x Sales Per Customer = Gross Profits
Gross Profits x Profit Margin = Net Profits
Please pay close attention to what I am about to tell you: your number of customers; your gross profits; and your net profits are the least important figures in this formula.
Why?
Because they merely represent outcomes. They tell you how good or bad you're doing without telling you why. And without knowing why you're doing so well (or so bad) you are in no position to fix the cause with speed and accuracy. All you can do is guess and implement random strategies in the hope that one day your results will improve.
The real power of this formula is stored within the five highlighted variables (a.k.a. levers).
A Demonstration Of Power
Quite literally, when you apply these levers to your business your profits will increase exponentially.
Allow me to demonstrate.
Assume for the moment that your business currently operates under these circumstances:
Leads Per Annum = 10,000
Conversion Rate = 0.1 (10%)
Av. Dollar Sale = $50
Sales / Customer = 2 per annum
Profit Margin = 0.2 (20%)
Plugging these into the formula gives you a net profit of $20,000 per annum.
Let's now demonstrate the impact of improving progressively more levers without increasing your overall effort:
Case #1: Improve leads by 100%
Net profit = $40,000
Profit to Effort ratio = 1:1
I.e. for every % increase in effort you get the same % increase in profit.
Case #2: Improve leads and conversion rate by 50% each.
Net profit = $45,000
Profit to Effort ratio = 1.25:1
I.e. for every % increase in effort you get a 1.25% increase in profit.
Case #3: Improve your leads, conversion rate and average dollar sale by 33% each.
Net profit = $47,052
Profit to Effort ratio = 1.35:1
I.e. for every % increase in effort you get a 1.35% increase in profit.
Case#4: Improve all levers except profit margin by 25% each.
Net profit = $48,828
Profit to Effort ratio = 1.44:1
I.e. for every % increase in effort you a 1.44% increase in profit.
Case #5: Improve all five levers by 20% each.
Net profit = $49,766
Profit to Effort ratio = 1.49:1
I.e. for every % increase in effort you get a 1.49% increase in profit.
Observation: By simply increasing the number of levers you improve you magnify your leverage. In other words, for the same amount of effort, the more levers you improve the more your profits improve.
In this example we see that by spreading your effort over all five levers you increased your net profits by $29,766. Compared to the $20,000 increase gained from improving only one variable we see that your profit growth is almost 50% greater for doing nothing more than spreading your resources over all five levers. Imagine all the extra money you could be generating right now without any extra effort. All it takes is a simple change in focus.
Conclusion: To leverage your efforts for maximum returns you must focus on improving all five levers in your business.
An Even More Powerful Demonstration
Next, let's demonstrate the impact of improving all five variables by progressively larger amounts:
Case #1: Improve all 5 levers by 10% each.
Net profit = $32,210
Profit to Effort ratio = 1.22:1
N.B. Here's how to work out the Profit to Effort ratio. First of all work out the % increase in profit. This is derived by taking the original profit of $20,000 away from the new Net Profit and dividing the result by $20,000. In this instance our $12,210 increase in profit represents a 61% growth. Next, determine the relative effort by simply adding the % increases in each lever. In this example our relative effort is 50% (i.e. 5 x 10%). Finally, divide the % increase in profit by the % relative effort and you'll have the Profit to Effort ratio.
Case #2: Improve all 5 levers by 25% each.
Net profit = $61,035
Profit to Effort ratio = 1.64:1
Case #3: Improve all five levers by 50% each.
Net profit = $151,875
Profit to Effort ratio = 2.64:1
Case #4: Improve all 5 levers by 100% each.
Net profit = $640,000
Profit to Effort ratio = 6.20:1
Observation: As you continue to improve all five levers the magnification factor on your net profit increases at an exponential rate.
In this example we see that when we doubled our effort from case #2 to case #3 our leverage increased by 61% (i.e. ((2.64 - 1.64) ? 1.64) x 100). But when we doubled our efforts once more from Case #3 to case #4 our leverage increased by 135%
This has to be one of the most magnificent realisations you could ever make in business.
Conclusion: Never stop improving all five levers of your business.
A Tragic Habit - And How To Fix It
Clearly these two examples demonstrate the power of leveraging all five variables in your business.
Tragically, most businesses seem to care about only one of these levers - the number of leads. To make matters worse, of all the levers this one will cost you the most to improve!
So if you're stuck in the 'drive-more-traffic-to-my-business' trap - STOP! Instead, harness the multiplying power of all five levers and you'll find that your profit to effort ratio will skyrocket.
Or to put it another way, by applying all five levers to your business (instead of only one) you will ma
If you have decided to write your own ebook you may be wondering which type of format to use and how it will effect the way you sell it. Its important to know the difference between the two main formats so that you know which one best suits your needs.After you have created the content for your ebook you will want to make sure that you maximise your profits by using the best format. The worst thing you can do is limit your target market by using a format that is not compatible with certain types of computers.PDFBy far the most popular and reliable format for ebooks is PDF because its compatible with all types of computers and the documents always look exactly the same for all senders and receivers regardless of the hardware or software used.PDF documents are great for presentations as they can be navigated by keyword search, table of contents, or hyperlinks which great
The real power of this formula is stored within the five highlighted variables (a.k.a. levers).
A Demonstration Of Power
Quite literally, when you apply these levers to your business your profits will increase exponentially.
Allow me to demonstrate.
Assume for the moment that your business currently operates under these circumstances:
Leads Per Annum = 10,000
Conversion Rate = 0.1 (10%)
Av. Dollar Sale = $50
Sales / Customer = 2 per annum
Profit Margin = 0.2 (20%)
Plugging these into the formula gives you a net profit of $20,000 per annum.
Let's now demonstrate the impact of improving progressively more levers without increasing your overall effort:
Case #1: Improve leads by 100%
Net profit = $40,000
Profit to Effort ratio = 1:1
I.e. for every % increase in effort you get the same % increase in profit.
Case #2: Improve leads and conversion rate by 50% each.
Net profit = $45,000
Profit to Effort ratio = 1.25:1
I.e. for every % increase in effort you get a 1.25% increase in profit.
Case #3: Improve your leads, conversion rate and average dollar sale by 33% each.
Net profit = $47,052
Profit to Effort ratio = 1.35:1
I.e. for every % increase in effort you get a 1.35% increase in profit.
Case#4: Improve all levers except profit margin by 25% each.
Net profit = $48,828
Profit to Effort ratio = 1.44:1
I.e. for every % increase in effort you a 1.44% increase in profit.
Case #5: Improve all five levers by 20% each.
Net profit = $49,766
Profit to Effort ratio = 1.49:1
I.e. for every % increase in effort you get a 1.49% increase in profit.
Observation: By simply increasing the number of levers you improve you magnify your leverage. In other words, for the same amount of effort, the more levers you improve the more your profits improve.
In this example we see that by spreading your effort over all five levers you increased your net profits by $29,766. Compared to the $20,000 increase gained from improving only one variable we see that your profit growth is almost 50% greater for doing nothing more than spreading your resources over all five levers. Imagine all the extra money you could be generating right now without any extra effort. All it takes is a simple change in focus.
Conclusion: To leverage your efforts for maximum returns you must focus on improving all five levers in your business.
An Even More Powerful Demonstration
Next, let's demonstrate the impact of improving all five variables by progressively larger amounts:
Case #1: Improve all 5 levers by 10% each.
Net profit = $32,210
Profit to Effort ratio = 1.22:1
N.B. Here's how to work out the Profit to Effort ratio. First of all work out the % increase in profit. This is derived by taking the original profit of $20,000 away from the new Net Profit and dividing the result by $20,000. In this instance our $12,210 increase in profit represents a 61% growth. Next, determine the relative effort by simply adding the % increases in each lever. In this example our relative effort is 50% (i.e. 5 x 10%). Finally, divide the % increase in profit by the % relative effort and you'll have the Profit to Effort ratio.
Case #2: Improve all 5 levers by 25% each.
Net profit = $61,035
Profit to Effort ratio = 1.64:1
Case #3: Improve all five levers by 50% each.
Net profit = $151,875
Profit to Effort ratio = 2.64:1
Case #4: Improve all 5 levers by 100% each.
Net profit = $640,000
Profit to Effort ratio = 6.20:1
Observation: As you continue to improve all five levers the magnification factor on your net profit increases at an exponential rate.
In this example we see that when we doubled our effort from case #2 to case #3 our leverage increased by 61% (i.e. ((2.64 - 1.64) ? 1.64) x 100). But when we doubled our efforts once more from Case #3 to case #4 our leverage increased by 135%
This has to be one of the most magnificent realisations you could ever make in business.
Conclusion: Never stop improving all five levers of your business.
A Tragic Habit - And How To Fix It
Clearly these two examples demonstrate the power of leveraging all five variables in your business.
Tragically, most businesses seem to care about only one of these levers - the number of leads. To make matters worse, of all the levers this one will cost you the most to improve!
So if you're stuck in the 'drive-more-traffic-to-my-business' trap - STOP! Instead, harness the multiplying power of all five levers and you'll find that your profit to effort ratio will skyrocket.
Or to put it another way, by applying all five levers to your business (instead of only one) you will m
With the huge glut of resale rights on the Web these days, it's easy to get addicted or just be downright gullible. After all, great deals appear to be everywhere, but sometimes they are not really so great. Before you buy the latest new package with resell rights for just $197 (today only!), here are 10 ways to tell if you have become a resell rights junkie (and a pretty gullible one, too).10. It's 3 AM but you won't go to bed yet. You're waiting for a reply on a support email you just sent five minutes ago, asking what the password is for one of the zip files in that package of 3000 master resale rights products you just bought from someone on eBay. You figure you will probably hear back quickly because the seller had positive feedback about the coffee mugs they sold last week.9. You have calculated that you should make over $60,000 this week on eBay alone if you break up th
Case #3: Improve your leads, conversion rate and average dollar sale by 33% each.
Net profit = $47,052
Profit to Effort ratio = 1.35:1
I.e. for every % increase in effort you get a 1.35% increase in profit.
Case#4: Improve all levers except profit margin by 25% each.
Net profit = $48,828
Profit to Effort ratio = 1.44:1
I.e. for every % increase in effort you a 1.44% increase in profit.
Case #5: Improve all five levers by 20% each.
Net profit = $49,766
Profit to Effort ratio = 1.49:1
I.e. for every % increase in effort you get a 1.49% increase in profit.
Observation: By simply increasing the number of levers you improve you magnify your leverage. In other words, for the same amount of effort, the more levers you improve the more your profits improve.
In this example we see that by spreading your effort over all five levers you increased your net profits by $29,766. Compared to the $20,000 increase gained from improving only one variable we see that your profit growth is almost 50% greater for doing nothing more than spreading your resources over all five levers. Imagine all the extra money you could be generating right now without any extra effort. All it takes is a simple change in focus.
Conclusion: To leverage your efforts for maximum returns you must focus on improving all five levers in your business.
An Even More Powerful Demonstration
Next, let's demonstrate the impact of improving all five variables by progressively larger amounts:
Case #1: Improve all 5 levers by 10% each.
Net profit = $32,210
Profit to Effort ratio = 1.22:1
N.B. Here's how to work out the Profit to Effort ratio. First of all work out the % increase in profit. This is derived by taking the original profit of $20,000 away from the new Net Profit and dividing the result by $20,000. In this instance our $12,210 increase in profit represents a 61% growth. Next, determine the relative effort by simply adding the % increases in each lever. In this example our relative effort is 50% (i.e. 5 x 10%). Finally, divide the % increase in profit by the % relative effort and you'll have the Profit to Effort ratio.
Case #2: Improve all 5 levers by 25% each.
Net profit = $61,035
Profit to Effort ratio = 1.64:1
Case #3: Improve all five levers by 50% each.
Net profit = $151,875
Profit to Effort ratio = 2.64:1
Case #4: Improve all 5 levers by 100% each.
Net profit = $640,000
Profit to Effort ratio = 6.20:1
Observation: As you continue to improve all five levers the magnification factor on your net profit increases at an exponential rate.
In this example we see that when we doubled our effort from case #2 to case #3 our leverage increased by 61% (i.e. ((2.64 - 1.64) ? 1.64) x 100). But when we doubled our efforts once more from Case #3 to case #4 our leverage increased by 135%
This has to be one of the most magnificent realisations you could ever make in business.
Conclusion: Never stop improving all five levers of your business.
A Tragic Habit - And How To Fix It
Clearly these two examples demonstrate the power of leveraging all five variables in your business.
Tragically, most businesses seem to care about only one of these levers - the number of leads. To make matters worse, of all the levers this one will cost you the most to improve!
So if you're stuck in the 'drive-more-traffic-to-my-business' trap - STOP! Instead, harness the multiplying power of all five levers and you'll find that your profit to effort ratio will skyrocket.
Or to put it another way, by applying all five levers to your business (instead of only one) you will m
Article directories are another very popular form of web directory, and provide a successful method with which to increase back links to your site. Authors simply have to write an article (generally around 500 words) on a topic of their choice, and submit it to any of the large number of article sites on the net. The articles need to be completely original, but fortunately there is no need to have an expert knowledge base on the subject – by doing a little bit of research, or purely using your own expertise, you can easily come up with an interesting, worthwhile article. Original content is always preferable, as there is nothing worse for readers to come across yet another article on a widely covered topic. Authors have to also be careful that they are not using plagiarised material, as this will be frowned upon heavily and could cause future articles to be bypassed by browsers. The articles can
Conclusion: To leverage your efforts for maximum returns you must focus on improving all five levers in your business.
An Even More Powerful Demonstration
Next, let's demonstrate the impact of improving all five variables by progressively larger amounts:
Case #1: Improve all 5 levers by 10% each.
Net profit = $32,210
Profit to Effort ratio = 1.22:1
N.B. Here's how to work out the Profit to Effort ratio. First of all work out the % increase in profit. This is derived by taking the original profit of $20,000 away from the new Net Profit and dividing the result by $20,000. In this instance our $12,210 increase in profit represents a 61% growth. Next, determine the relative effort by simply adding the % increases in each lever. In this example our relative effort is 50% (i.e. 5 x 10%). Finally, divide the % increase in profit by the % relative effort and you'll have the Profit to Effort ratio.
Case #2: Improve all 5 levers by 25% each.
Net profit = $61,035
Profit to Effort ratio = 1.64:1
Case #3: Improve all five levers by 50% each.
Net profit = $151,875
Profit to Effort ratio = 2.64:1
Case #4: Improve all 5 levers by 100% each.
Net profit = $640,000
Profit to Effort ratio = 6.20:1
Observation: As you continue to improve all five levers the magnification factor on your net profit increases at an exponential rate.
In this example we see that when we doubled our effort from case #2 to case #3 our leverage increased by 61% (i.e. ((2.64 - 1.64) ? 1.64) x 100). But when we doubled our efforts once more from Case #3 to case #4 our leverage increased by 135%
This has to be one of the most magnificent realisations you could ever make in business.
Conclusion: Never stop improving all five levers of your business.
A Tragic Habit - And How To Fix It
Clearly these two examples demonstrate the power of leveraging all five variables in your business.
Tragically, most businesses seem to care about only one of these levers - the number of leads. To make matters worse, of all the levers this one will cost you the most to improve!
So if you're stuck in the 'drive-more-traffic-to-my-business' trap - STOP! Instead, harness the multiplying power of all five levers and you'll find that your profit to effort ratio will skyrocket.
Or to put it another way, by applying all five levers to your business (instead of only one) you will m
In the mid-90’s, index funds, mutual funds that invest passively in stock market indexed, began increasing in popularity. They presented arguments that most actively managed mutual funds do not beat the indexes, so if you can’t beat them, join them. Actively managed mutual funds shot back, advertising impressive performance numbers and talking about the advantages of active management. The debate rages to this day, which are better, index funds or actively managed mutual funds? There are good arguments for both sides, but for most individual investors this is the wrong question. Individual investors need to consider whether they should even try to beat the market, for most people the answer is no.American’s have a fascination with trying to beat the stock market. From time to time prospective clients will ask me if my firm’s investment performance beats the market. If it doesn’t, th
Case #4: Improve all 5 levers by 100% each.
Net profit = $640,000
Profit to Effort ratio = 6.20:1
Observation: As you continue to improve all five levers the magnification factor on your net profit increases at an exponential rate.
In this example we see that when we doubled our effort from case #2 to case #3 our leverage increased by 61% (i.e. ((2.64 - 1.64) ? 1.64) x 100). But when we doubled our efforts once more from Case #3 to case #4 our leverage increased by 135%
This has to be one of the most magnificent realisations you could ever make in business.
Conclusion: Never stop improving all five levers of your business.
A Tragic Habit - And How To Fix It
Clearly these two examples demonstrate the power of leveraging all five variables in your business.
Tragically, most businesses seem to care about only one of these levers - the number of leads. To make matters worse, of all the levers this one will cost you the most to improve!
So if you're stuck in the 'drive-more-traffic-to-my-business' trap - STOP! Instead, harness the multiplying power of all five levers and you'll find that your profit to effort ratio will skyrocket.
Or to put it another way, by applying all five levers to your business (instead of only one) you will make more money with less effort.
Right about now you may be thinking to yourself, "That's all well and good in theory but how could I possibly increase all five levers by such large amounts?"
Although there are over 200 ways to amplify these levers space restrictions preclude me from discussing the how-to's here. What's important for now is that you understand the magnifying potential stored within this formula. With this understanding achieving a 100%, a 200% or even a 1000% increase in profit is well within your grasp.
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