Topic: An Extremely Conservative Cashflow illustration of the APS Business
Hello APS friends, family members and guests,
Please refer to a simplistic numeric summary perspective of the APS business.
I am one to always evaluate matters on a "macro" or big picture scenario. I noticed a lot of the queries, posts and clarifications here are about..."I wasn't aware.. of this and that",...I thought it was free, etc...".
This post but "attempts" to provide a cashflow snapshot illustration.
Let me state my disclaimer foremost - this is not typical, you may earn more(most likely) or not earn at all (if you quit and not work this).
Declaration of assumptions:
Since in reality we are always dealing with variables, please know that values I assign in the table are on the conservative side - meaning if its income - it tends to be on the low side. On th other hand, if its costs, it tends to be on the higher side of the spectrum.
[u]Assumptions are for new APS prospects, hence most likely will have:[/u]
1. Very limited marketing budget
2. Excludes "mylife"; assumes minimal or no realized commissions from Commission Junction, HD Publishing, Adsense and APS residual incomes
2. Can afford only monthly payments, so will not consider savings from annual options
3. New announcement that WA is no longer required to have Super Sponsor Switch flipped
4. Step 2 is presented a Combo A for HostGator and Combo B for GDI
5. The Step 2 A HostGator option assumes "CACTUS" promo, thus hosting is free for first month
5. GVO is presented as an optional but highly recommended program
6. Wealthy Affiliate and the Shoemoney system are presented as an either/or option only
7. Month 1 represents your first 30days on each applicable step.
8. Months 2-12 assumes a 12 month account persistency, but on monthly basis
9. The annual column represents the 12 month accumulated cost of APS but only for the first year ("free" first month factored in)
10. The illustration includes only the explicit costs of the program options. (Thus, incidental fees, penalties, cost of delays are excluded- they are minor anyway)
11. The prospect completed Step 3 within 30 days of completing Step 1.
12. Since the free and almost free trial periods of GDI and GVO respectively are for 7 and 14 days only, I assume full costing on first month already.
13. Due to budgetary constraints, assumes only SEO and free methods of advertising are used.
Cashflow illustrations
REVENUES
HIGHLY,( Extremely) CONSERVATIVE ASSUMPTIONS FOR 12 MOS CUMULATIVE
JUST 5 Referral completing Step 3 $30*5 = 150.00
Just 5 HostGator Referrals $50*5 = 250.00
Just 2 Clickbank Sales $9 *2 = 18.00
Just 3 GDI Downlines $3 *12 = 36.00
The 125"motivator" guarantee = 125.00
_____________________________________________
POTENTIAL INCOME(on the"low" side) = 579.00 (This is the most pessimistic assumption I can muster
EXPENSES
Combo A Month 1 Month 2-12 Annual
Step 1 Search Engine Creation
Clickbank
HD Publishing
Commission Junction
Google Adsense
____________________________________________________
Step 1 FREE 0.00 0.00 0.00
Step 2 Domain Name 15.00 0.00 15.00
HostGator(baby) 0.00 9.95 109.45
____________________________________________________
Step 2 Combo A 15.00 9.95 124.45
sTEP 3 APS Subscription FREE 29.95 329.45
____________________________________________________
TOTAL for 3 Steps(A) 15.00 39.90 453.90 ====================================================
Combo B:
Step 1 FREE
Step 2 (Combo B)GDI 10.00 10.00 120.00
Step 3 APS Subscription FREE 29.95 329.45
____________________________________________________
TOTAL for 3 Steps(B) 10.00 39.95 449.45 ====================================================
Gross Profit under Combo A ++125.10+++ or 27.56% Annual Margin!!!
Gross Profit under Combo B ++129.55+++ or 28.82% Annual Margin!!!
===========================================================
Optional but highly recommended Add-ons
autoresponders+ more: Monthly Cost
GVO Titanium 44.95
Learn to Earn Platforms
Wealthy Affiliate 39.00
Shoemoney System 197.00
Now, notice that the income flow assumptions are very dismal! That's why we recommend the Add-ons!
These can tremendously increase your skills and when you are better at what you do, your effectiveness tends
to expand itself as well!
I won't go into it for now, but if you factor in GVO, and then either Wealthy Affiliate or Shoemoney, your
propensity to succeed leapfrogs and you are able to generate the above times a multiple of 10,20 ore even more.
Admittedly, this is not a perfect illustration. On your own, you will certainly have your own assumptions
based on your own experiences. Real situations are far from static.
This is a business you need to build and work on and it pays well.
This is a business you can succeed in, because the gross profit margins easily expand when efforts are invested into it.
Look at the number I used on the income side above, they are but peanuts! And yet, you are still in profit by end of year.
Here's the thing - The cost side (exclusing advertising is Fixed) so multiply your marketing and you'll multiply
and tap into all the income streams.
So how did I paint the picture so far?
Eden
Last edited by Eden Laura (2010-01-30 03:59:21)
