Income Report for March 2017 – A Failed Product Launch
Every month I publish an income report…why? Good question 🙂
With all the shiny objects out there it’s easy to spend WAY more than you’re earning. Luckily I realized this early on and I’ve kept detailed records of my expenses ever since. That being said, I know that there are certain expenses that are NECESSARY when running a business. As much as I don’t want to pay for them, I need to pay for my email autoresponder, website hosting, and video hosting every month. It’s just a part of doing business. There are other things that I buy as well, but I try my best to keep my expenses SIGNIFICANTLY LESS than my revenue. If I can do that then I’m ahead of the game.
On my show I ask my guests a lot of personal questions. One that frequently comes up is “How much do you make?”. I feel like I need to reveal my own income if I’m going to be asking others the same question. It only seems right.
There are a lot of online marketers out there who fake-it-till-they-make-it. In other words, they fudge their numbers and exaggerate their earnings in order to establish false authority in their niche. My goal is that by watching my income grow slowly over time you’ll realize that there is no get-rich-quick button.
Here’s my results for March, 2016
32,954 page views (+4,233 from February)
40,568 Youtube channel views (+5,880 from February)
227,145 Youtube minutes watched (+34,557 from February)
Email subscribers: 23,169 (+46 subscribers from February)
Re-Engager prizes: $2,750 – Prizes for affiliates who promoted our launch
Virtual assistant: $800 – I have an assistant help with all my promotions, including copywriting, scheduling, and posting.
Facebook ads: $318.02 – I’ve been experimenting with running ads to contests
50% of Re-Engager sales copy: $225
GoToWebinar: $199 – I use this for live webinars and training
Lead Pages: $197 – I use Lead Pages every day in my business and I pay yearly.
Aweber: $181 – This is my list building software that allows me to email everyone when there’s a new interview or review
Paypal fees: $120.29
Design fees: $60 – Some graphics for a project
Zapier: $50 – An amazing tool for automating your business
Internet: $50 – This is what I pay for my fiber Internet in Turkey
ZenDesk: $50 – Brett and I use this for our helpdesk for our launches
Gusto: $36 – This is the company I use for my SCORP payroll
Monthly phone fees: $30
Food Blogger Pro: $29 – A course I purchased on setting up a food blog, something that I’m interested in
Amazon S3: $20.22 – I use this to host images and videos
ManyChat: $20 – A service that I use to build a Facebook messenger list
Resell Rights Weekly: $19.95 – Reoccurring membership fee for the bonuses I add from my interviews and reviews
Jvzoo seller fees: $19.70
Audible: $14.95 – Business books to further my education
iCloud: $9.99 – I use this to store my documents online
Skype: $9.99 for premium – I do all my interviews with Skype and Ecamm call recorder on a Mac.
GoDaddy: $8.06 – I bought a domain name for a side project
Vault Press: $5 – A quick and easy tool that I use to backup my website
Total expenses: $5,223.17 (-$1,577.28 spent compared to February)
Script Doll: $20 from customer asking for a link
Total revenue from interviews and reviews: $32,180.80 (+$13,363.25 from February)
Re-Engager: $5,927.04 – My earnings from a launch I did with Brett Rutecky and Tim Verdouw
Affiliate Trax special: $1,285.17 – My earnings from a private webinar I did with Brett
Re-Engager launch expenses: $1,442 – Brett’s share of Re-Engager launch expenses
Re-Engager launch expenses: $916 – Tim Verdouw’s shared expenses for our launch
Mail It: $909.36 – My earnings from a private webinar I did with Brett
Review Wizard: $565.87 – My earnings from a launch Brett and I did in February, 2017
Affiliate Income Secrets: $380.50 – My product teaching how I make money from affiliate marketing
Resell Rights Weekly: $140.40 – This is a website that has a ton of products that you can use as your own
Profit Canvas Unlimited: $128.70 – My commission from a private webinar Brett Rutecky and I did
Mail It: $123.17 – My earnings from a launch I did in August, 2016 with Brett Rutecky
Group Traffic Profits: $103.05 – My earnings from a launch I did in December, 2016 with Brett Rutecky
Google Adsense: $91.99 – Earnings from Youtube Adsense
Keyword Suggestions JV commission: $59.91 – This is my cut from a launch I did with Radu in September, 2015
Social Robot JV commission: $28.06 – This my cut from a launch I did with Joshua Zamora in early 2015
SociSpot JV commission: $27.58 – This is my cut from a launch I did with Lee Pennington in November, 2015
Profit Canvas Pro: $18.36 from a product Brett Rutecky and I launched in 2015
Affiliate Trax: $13.91 – This is my cut from a launch I did with Brett in May, 2016
Udemy: $11.42 – Earnings from a course I have on Udemy
Total from OTHER streams of income: $12,172.49 (-$15,102.57 from February)
Total Revenue: $44,353.29 (-$1,739.32 from February)
Total Profit: $39,130.12 (-$162.04 from February)
This is a LONG DUE full income report.
In 2017 I’ve been so busy with business and personal stuff that I’ve just fallen behind. Every time I think to do a report, something else comes up that is more time sensitive, or I don’t feel in the “mood” to write a report. I’m sure you can understand that 🙂
But the longer I wait the harder it will become, so I’m just going to get right into it.
A “Failed” Launch
Last month Brett Rutecky and I partnered up with Tim Verdouw to help him launch his Re-Engager software. He actually brought this to us to promote as affiliates, and we both liked the product so much that we asked him if he’d like some help bringing it to market. He had some things set up correctly, but the sales funnel needed to be tweaked a bit and the general offer made a bit more exciting.
Brett and I had both promoted a similar product called Profit Tab, and done fairly well with our promo, so we figured this would do well also. However, what we failed to look at was its general sales of the Profit Tab launch. Profit Tab did approximately 500 front end sales, which in our launch space is not a spectacular launch. If we had seen that we probably wouldn’t have launched Re-Engager.
But we did launch it.
And it didn’t sell very well at all.
We ended up doing about $37,000 in total sales. For us, this was our WORST launch ever. And it definitely was a slap in the face that we needed to rethink our launch offers.
Why did it fail?
There are a few reasons:
- The offer wasn’t SEXY enough – The unfortunate truth with the Internet marketing community is that people want products that get INSTANT results and require little work. They want a push-button solution. Our job as ethical marketers is to sell them something that will actually help them, but “sexy” it up so that they’ll see the value in it. Customers vote with their wallets, and over and over again the “hypey” products sell better than the “boring-you-have-to-do-some-work” products. Re-Engager was actually too useful a product, and not sexy enough for our audience. It required that people have a website, which is a big objection for a lot of our customers because it requires having a domain name and hosting. The product also required that people have traffic in order to use it. Unfortunately most people in our market place have little or no traffic, so how were they going to multiply the traffic that they didn’t already have? Zero times 1,000 is still zero.
- We were CHEAP with the prizes – We decided to only give away $2,750 in total prizes. This isn’t much. And it doesn’t get affiliates excited. I’ve found that the best way to keep a launch alive and affiliates promoting is to give decent daily prizes so that one affiliate doesn’t run away with all the prize money on the first day.
- We launched on a Saturday – In my experience as an affiliate, Saturday is the SLOWEST day of the week for sales. A lot of affiliate marketers also take this day off…including their customers. I’m not saying that having a successful launch on this day is impossible as I’ve seen it done, but it definitely didn’t help our launch.
I also want to make it clear that the product was excellent. And we got support from our affiliate partners. And conversions were good…people were buying it. However the INTEREST in the product was low. When the interest is low, it means that affiliates get less clicks on their email links because people aren’t even interested enough to take a look at the sales page. When that happens, it’s an uphill battle.
A Public Apology
So this launch definitely didn’t go the way we wanted it to go, so we had to fix it. We decided that the best thing to do would be to offer affiliates 100% instead of 50% on the front end offer as a way of assuring them that we will always do our best to make them money. If your affiliates don’t make money then YOU don’t make money.
Below is a video apology I put on Facebook:
But one comment under that apology really caught my attention. Tiffany Rae Lambert said the following:
I mean it’s a good sign when a $38k launch is a failure. That means that we have high standards and won’t settle for mediocrity. However, if we repeat the same mistakes in our future launches then this lesson will be for nothing.
Learning From Mistakes
As I’m writing this it’s the middle of April. We are in the second day of our launch of a software called Board Commander, and so far it’s going MUCH better than the Re-Engager launch. I’ll give you a full report on it in the next income report.
A New Apartment
So we decided to buy a much nicer apartment in a nicer neighborhood. It was a bit more expensive than I would have wanted, but our quality of life will be much better. Currently we’re living in a decent apartment, but it’s far away from the city center. If we want to go out for a walk or go to a restaurant it means that we need to drive. However with our new apartment we’ll be a minute’s walk from downtown, and just 5 minutes from the shore.
Unfortunately we haven’t moved in yet. In Turkey when a foreigner buys an apartment the sale needs to be approved by the ministry of defense to make sure that the land isn’t in a strategically military area. This process can take up to 2 months, and it’s been a month so far, so I’m hoping that in my next income report I’ll be able to post some pictures 🙂
I also cooked some meat “Turkish style” 🙂
Thank you so much for reading and following along. Let me know if you have any questions and I’ll be back soon with my income report for April.