Ask Gina Gaudio-Graves’ … About Internet Marketing & Strategic Alliances

As I said yesterday, I really want to talk about traffic here on my blog.
But I had something really important that I needed to tell you about
as well, so I’ll get back to traffic tomorrow.

What I really wanted to do today was to show you how you can evaluate
the value of a joint venture partner.

I know … you’re sitting there asking yourself, “Huh? A JV Partner has a
value?”

Absolutely!

Let me tell you a quick story so you can see why this would be important …

A few months ago, one of my students came to me very frustrated. He
said, “You know, everyone always TELLS you what to do, but no one
ever SHOWS you what to do. Can you help SHOW ME how to make
money online?”

So I decided to SHOW the group of newbies how to create a product,
develope a promotion, create a website, organize a joint venture, etc.,
all by DOING each step.

The group just released their second product and it’s absolutely
fantastic! (You can check it out at: http://www.askggg.com/2plrJV/omg)

A few days ago, as we were getting ready to release this promotion, we
were all on a teleconference discussing how we could get more JV partners
to help us promote.

We were already paying 100% commissions on the front end, so we
couldn’t offer more commissions. What else could we do?

We came up with this great idea to donate 100% of the profits from the
backend sales to charity. That should definitely help us to get JV partners
and it should also help us to get some press release exposure too, right?

Of course, we had a couple people who couldn’t understand why we
would want to give up all of our profits completely.

Do you know how you would determine whether this was a good idea or
not?

Let me show you what I taught them … it’s very interesting and extremely
powerful for your business when you start looking at everything in terms
of dollars and sense.

Ok, first, let’s look at the short term profit potential …

There are 15 people participating in this project. From the first sale they
did, they each made $131. We do these sales 6 times each year. So, we
would expect that each person would make around $786 per year.

In the last sale, the average JV Partner sold between 15 and 20 front end
sales. We had conversions of about 30% on the upsell. In other words,
of the 15-20 people who purchased the first product, another 3.75 to 6
people would also purchase the second product.

For this second sale, though, we are converting at 40% on the upsell. That
would mean that for 15 to 20 front end sales, we should make between
6 and 8 sales of the second product.

That second product sells at $19.95. So, each JV Partner would be worth
between $119.70 and $159.60 at 40% conversions, and between $74.81
and $119.70 at 30% conversions.

If we are doing these sales 6 times each year, that would mean that getting
a single JV partner could be worth between $448.86 and $718.20 at 30%
and $718.20 and $957.60 per year at 40%.

The question then becomes, how many JV Partners could we get as a
result of giving the profits to charity?

If we got 5 extra JV Partners, it would bring in an extra $2,244.30 to
$4,788 per year.

If we got 10 extra JV Partners, it would bring in an extra $4,488.60 and
$9,576.00 per year.

With 15 people participating, this would mean that each one would make
an extra $149.62 and $319.20 per year (if we converted at 30%) and an
extra $319.20 and $638.40 (if we converted at 40%) … by giving up $131
one time.

So I asked them a question: “If you could give me $131 and I would give
you between $149.62 and $638.40 paid back over the next year, would
you take it?”

Of course, their answer was yes! So that’s what we did. You can join us
now to help raise this money for the victims of the recent Florida Tornados
at:

http://www.askggg.com/2plrJV/omg

Do you see how you can do this in your business as well?

You need to get in the habit of looking at your actions in terms of dollars
and sense.

How much will it cost you per _________ ?

How much will you make per __________?

Just fill in the blanks in terms of customers, clicks, sales, subscribers, etc.
depending upon what you are doing.

The reason that you want to get into this habit is so that you can build
systems in your business to make your actions both repeatable and
predicatable.

Once you know how much you can make per JV Partner, then you can do
the calculations in reverse too.

Say you wanted to make an extra $30,000 to buy a new car. How many
extra JV Partners would you need to bring in?

Just figure out what each JV Partner would be worth to you and then divide
$30,000 by that figure. That will tell you how many extra JV Partners
you’ll need to help you.

Say you wanted to make an extra $5,000 to go on vaction. How many
sales would you need to make if you were paying 100% commissions on
the front end?

Just figure out what your conversions are first. Then plug it into a formula
like this:

($5000 divided by the sale price for the upsell)

If you sold a product at $20, that tells you that you need to sell 250 of them
to raise the $5,000.

If your front end sales are converting at 30%, then take:

(250 divided by .30)

That gives you 833.

In other words, if you sold 833 of your front end product and you were
converting at 30%, you’d be able to raise the $5,000 to go on vacation.

See how easy it is?

Feel free to leave me your comments and let me know if this was helpful
or ask for help if you’re a little stumped in how to apply it to your situation.

To Your Abundant Valuation Success!

Gina Gaudio-Graves
Founder, JVSuite.com

When you’re trying to learn something new, the best way to do it is to
just jump in with both feet. I’m sooooooo proud of what this group has
accomplished … especially with the second product they just released.

Just take a look at what they’ve done:

I have to tell you what they did with their promotion too. They’re using
a typical “dime sale” where the price starts out at $7 and increases a
nickel each hour, paying 100% commissions on the front end.

I think they started their price too low though. This isn’t just another
ebook. The package contains video software, PDF’s, an autoresponder
course, and MORE!

What this group is doing a little differently though, is that they are not
even keeping the money on the backed. They’re giving it to charity.
Specifically, they wanted to help the victims of the Florida tornados.

Why would they do this?

You’ll never guess the answer …

To DRIVE TRAFFIC !

Because it gets them more JV Partners of course!