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 smile       


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)

Re: An Extremely Conservative Cashflow illustration of the APS Business

Awesome post!

Your dismal yearly income assumptions could easily be achieved monthly.

Re: An Extremely Conservative Cashflow illustration of the APS Business

theincometeam wrote:

Awesome post!

Your dismal yearly income assumptions could easily be achieved monthly.

What he said. This is a fantastic breakdown of the kind of activity required to break even over the course of a year.

And it ignores:
1. potential sales from Commission Junction and HD Publishing,
2. Step 3 residual payments,
3. Adsense revenue.

Especially over a year, that can add up if you're developing consistent traffic to your search engine and being an effective coach and mentor to your APS referrals.

Re: An Extremely Conservative Cashflow illustration of the APS Business

Also GDI and GVO downline that grow your business under you.

Re: An Extremely Conservative Cashflow illustration of the APS Business

Eden Laura wrote:

JUST 5 Referral completing Step 3  $30*5   =  150.00

     Wouldnt you only receive this money if your step 3 average is 15% or higher?

Re: An Extremely Conservative Cashflow illustration of the APS Business

chuckblade2004 wrote:
Eden Laura wrote:

JUST 5 Referral completing Step 3  $30*5   =  150.00

     Wouldnt you only receive this money if your step 3 average is 15% or higher?

You are exactly right! That's why the super simplistic assumption is that the 5 prospects were generated over 12 months but each completed 3 steps within 30 days., say on the last quarter of the year smile

Last edited by Eden Laura (2010-01-30 04:01:17)

Re: An Extremely Conservative Cashflow illustration of the APS Business

theincometeam wrote:

Awesome post!

Your dismal yearly income assumptions could easily be achieved monthly.

Yes! My point exactly! So that our prospects will be encouraged to go for it.

Derpengy, you are also right, I even left that out on purpose.  Thanks for pointing that out.  I will edit the post and include your input smile

Re: An Extremely Conservative Cashflow illustration of the APS Business

Eden Laura wrote:
theincometeam wrote:

Awesome post!

Your dismal yearly income assumptions could easily be achieved monthly.

Yes! My point exactly! So that our prospects will be encouraged to go for it.

Derpengy, you are also right, I even left that out on purpose.  Thanks for pointing that out.  I will edit the post and include your input smile

Hi Eden,

Another very helpful post to show how fruitful can this business be given your full focus and attention.  Surely your estimates are very conservative and achievable.  A powerful post to illustrate that earning in APS is very much possible plus given the best learning options of WA, Shoemoney and this Forum, how else can one fail.  Best kabayan.  Keep it up.

Re: An Extremely Conservative Cashflow illustration of the APS Business

Hi Eden

This is a very conservative income assumption based only on 5 referrals for a year and yet one is still on profit by almost $130? What if a sponsor has 10? 15? 20? 100? in a YEAR, which is not impossible at all. And since the expenses were already accounted, additional referrals translate to a more higher income. And the add ons can still greatly produce profit.

This is a picture-perfect painting that you have made so far and should be displayed as exhibit here in the forum for all to see how profitable  APS business is, especially for the new members. And to think that operating the APS business is a very tiny $1.33/day

Really a simple perspective view of one's APS business you have presented that's understandable for all.

Rod

Re: An Extremely Conservative Cashflow illustration of the APS Business

awesome post Eden..
Bookmarked!

11

Re: An Extremely Conservative Cashflow illustration of the APS Business

Hi Eden

Wow im wondering how come i've never seen this post before and I'm very active in this forum here. I cant help but feel your definitely a business student with all those financial terms? am I right ?  lol

but anyways great illustration Eden big_smile to some of us who upgraded to the lifetime membership, the $29.90 is no longer a fixed cost wink

-Brandon Sean

My Blog I teach people how to create Websites using Wordpress with Hostgator.If you need help just PM me.

Re: An Extremely Conservative Cashflow illustration of the APS Business

0b1 wrote:

Hi Eden

Wow im wondering how come i've never seen this post before and I'm very active in this forum here. I cant help but feel your definitely a business student with all those financial terms? am I right ?  lol

but anyways great illustration Eden big_smile to some of us who upgraded to the lifetime membership, the $29.90 is no longer a fixed cost wink

-Brandon Sean

Hi Brandon,

Thanks for the kind words.

Yes you are right! ----- I was a student..... years, and years and years ago.  I loved studying then (sounds nerdy huh? sad )

There has been so many changes to APS since this post. Hmmmm, I will be updating it soon

Re: An Extremely Conservative Cashflow illustration of the APS Business

I really enjoyed reading this post and seeing your breakdown of all the figures and stats etc.

Excellent post and excellent points.
smile

Yes