Case Study

Success University - How To Break Even Case Study

So you heard about Success University. Lets have a look at the business side of things and what it takes to break even.

You'll need your thinking cap.

Compensation Plan - Since Success University is a network marketing company, you get compensated for referring others to the company. Once you get the ball rolling with Success University, you get paid for every 6 person cycle that forms in your downline. Success University pays you well when you can get pass the initial stage. If you don't get pass the initial stage and personally refer 6 persons, then have those 6 persons stay active and also start working hard, you will not earn any profits from the 7 month on and will be losing money from the 1st month.

Here's a typical example:

Lets say you refer 3 person at the start who join the business at $149.50 + $55.00 each (if no price changes). That earns you a fast start commission (around $19.99 per pax), but you won't qualify to earn that 6 cycle commission because you only have 3 persons in your downline. When in the 4 month you don't refer anyone, then you won't earn a commission. 5th month passes and you won't earn any commissions when someone joins, while you continue to pay the membership (your upline still earns though so long as you form part of their 6 personally enrolled members), then in the 6 month you refer 3 persons, you now qualify to earn the 6 person cycle commission, because you have a total of 6 personally enrolled members which covers the 2 months you did not enroll anyone (1 person for each month until 6 months). Your commission for the 6 person cycle is about $40+, not yet to cover your monthly membership which is about $55+. In other words, for 6 months, you would have spent $149.50 + $55 x 6= $479.50. Your commissions for referring just 3 person in the 1st 3 months then 3 person in the 6th month is $40 + (4×20) = $120 (not counting the commissions you lost when you referred no one for 2 months).

So that means you've lost $359.50. (ie 479.50 - $120)

The only time you're considered "reasonably safe" is when your downline starts to get their 6 and this must be done in the 1st month you're with Success  University. Otherwise, you'll find yourself able to earn a commission this month, then unable to earn a commission the next because you're fluctuating around the 6 active members cycle.

Once you have referred 6 active persons, you get to earn a commission for life, so long as those 6 personally sponsored members don't leave your organisation.  Anyone else in your group that refers and creates a 6 person cycle earns you commissions. This is where if you have 6 hardworking members, you will continue to earn an income that just keeps growing.

6 is the magic number!

In my view, Success University is a do-or-die MLM. There is a life time to the amount of success education one can receive. So after some time, the sustaining factor is to make money from the business, rather then the products. Products that you can use for life are mobile phone subscriptions, domain names or food consumables. Education, well there is a limit to it. Once you have a degree in lets say accountancy or law, you won't need to study law again so you stop paying for tuition fees.

How You Get Paid - Success University pays using a Global Cash Card. This card if dormant withdraws money from your internet banking account. Whenever you withdraw money as well, it also deducts money from your bank account. This is another problem that I see and unless Success University finds a way to allow its members to accumulate commissions before withdrawing, many SU members will pay their tuition fees and leave after 3 months, the best will stay till around 9 months to try to get 6 front line members, which is still insufficient to pay for the membership, not to mention the banking withdrawal and dormant fees deduction which comes to around $5 per mth.

More Typical Examples: Success University fees is around $55/mth. Most actually pay around $149.95 (one time) + $55 (per mth) at the start to earn double commissions. Banking Fees where your comissions are stored costs $5/mth. Any withdrawals will cost about $5 and if you have a withdrawal fee charge, you won't be charged bank dormant fees. So yes it makes sense to withdraw your commissions every month.

In order to do this, you MUST earn more then $100/month, so you'll be in profit after all the little deductions from everywhere. Lets look at the numbers on a "per month best case scenario" basis where you actually managed to refer 6 persons in your 1st month with Success University.

Your Success University and Cashcard transaction fee cost: ($149.95 + $55.00) +($5.00) = $209.95

Compulsory 6 active members in your downline to earn the 6 cycle commissions: You earn $160 your 1st month (you get this only if you paid $149.95 for the one time business upgrade. So you earn $40 from the 6 person cycle and $20 x 6 in fast start bonus cash, assuming best cash scenario that your 6 members all paid $149.95 instead of the normal membership)

$209.95 - $160. You're still $49.95 deficit. This is not taking into account any money you spent in advertising, or adwords, or stuff like that. Its the pure business aspect of how much you made even though you referred 6 persons to Success University and met their qualifications to earn a commission with them for life. Which as you can see, its not easy if you have no existing base or contacts to leverage on.

You will succeed in Success University's business only if your downline are powerful network marketers with existing teams in other business that join this business. Or there is a proper plan to grow this business and targets to meet.

So long as you have a plan to get pass that intial hurdle within the 1st month, and those you enroll are powerful marketers, you will be safe and can expect to earn a huge commission on autopilot with the 6 person cycle compensation plan that goes to infinity.

You cannot expect to build Success University slowly, because your commissions do not accumulate, its a build 6 persons quickly and make sure those 6 start building, or you will surely lose money. This to me is the strangest part. If I referred 6 persons to a business, I should expect to break even immediately. In Success University's case, you will still find yourself in $49.95 in deficit unless your downline starts building.

Here's a target you must meet if you decide to join Success University: Refer 6 in your 1st month, and you'll still lose $49.95 in your 1st month. You MUST refer 6 in your 1st month and have those 6 refer 6 in their 1st month, only then are you safe and in profits. You'll have 42 persons in your downline and counting just the 6 person cycle commissions will earn you around $280/mth.

There is no try and see in Success University, either you build quickly in your 1st month with Success University or I would recommend you try something easier to earn your 1st 6 figures online.

To your success!

Sherman Choo

Affiliate Marketing- How to create $100,000 in affiliate revenue in a few days…

If you're looking to generate $100,000 in a few days, this post will surely interest you…but before I write further, here's a video you can watch. Its me in the background, "sounding" muffled…

Anyways, check out as I log in live to one of my specialty sites, and you'll see some very interesting stats, from $0.00 to $203.00 to…..

Click to watch $100,000 revenue generated in a few days (opens in new window)

From my experience, there're 2 ways you can generate $100,000 in a few days.

1. Have a large mailing list generated over the years. Say you have a large database of customers in the health market. Simply sending them information about a product that helped you, lets say, gout condition can earn you a repeat income this month and every month when consumers continue consuming the product. The revnue generated is thus in the numbers.

2. Have a few clients in the luxury niche. Luxury clients have alot of money to spent. Just 1 client can spend anywhere from $2000 to 100,000 in a matter of days. Not everyone is into "making money online". Some folks want to buy yatchs, diamonds, ships, etc. Close a big sale for a big client and you have yourself $100,000 generated in a couple of days.

How To Sell Online - Successful Conversion Process

Copyright 2008 Sherman Choo. This article is for my subscribers. It may not be copied, reposted or reproduced in any form.

Successful Conversion Process (Value $0 to some $9230 to those who read and implement)

Here is a breakdown of how products are sold online. Implement them in your business and watch your internet bank account grow.

1. Email Marketing.

Email marketing is simply building a list of subscribers who wish to keep in touch with you. They like what you write, your insights and recommendations. This works well inside the "make money online" and "internet marketing" niche and just as well outside it. Quick mention, most folks who join the internet circles start out in the legitmate online jobs niche, paid survey niche, internet mlm, network marketing niche, there's a whole new world outside these arenas.

If you've not found success in the Internet MLM or make money online niche, then why not try something outside the Internet Marketing, MLM arena.

Not everyone is interested in making money online or be involved in Internet MLM. They are interested in other things, such as muay thai, golf, basketball, video games, bonzai, roses, love, dating, soccer, baseball, online gambling, food recipes, dog food, fix a leaking roof, home improvement, gardening, plant fertilizer.

You'll find that going after audiences in other circles can be just as rewarding.

Coming back.

The conversion process for email marketing starts with the backend, then builds up toward the front end. You'll be searching for a good product then searching for a target market. I prefer to search for a product 1st because if there're products to sell, then there is money to be made. I don't recommend one creating a product from the start. Its safer to sell products for others 1st. Only after testing the market with a couple of sales should one consider investing further into creating ones own product line.

In short, test the water as an affiliate before jumping in head first, or you may find yourself with a product you love, but no one seems to want to pay money for.

Step 1: Setup your auto responder.

You'll need an autoresponder, if you don't have one, get one from UMC. http://www.trafficexchangeprofit.com/umc.html

You will be placing messages in your auto responder. These messages are sent out at spaced intervals of 2 to 3 days.

Find a product at linkshare.com, clickbank.com, cj.com. Only sell products that offer commissions $20 and above.

Prepare 5 to 7 messages in your auto responder, spaced out in 2 to 3 day intervals.

Your messages must take the form of a news caster. Someone who is simply broadcasting resources online.

Example.

Do not say, "This product will cure cancer, its the best health product ever!!!!"

Say, "Dr Cure has launched a cure cancer formula, click here for more information"

Get into the groove of telling something without adding in drama or emotional overtones. A diverse mix of people make up this world we live in. Every single one of us have moods and the same message we read can affect us differently based on the frame of mind we're in. What's humour to you, may be sarcasm to someone else, so its best just to tell things impartially, especially if you're broadcasting a message to a few 100 up to 100,000 people.

Another example:

Do not say, "If you want to get from Destination A to Destination B, use this bus coach service, its the best!!!!"

Say, "If you're planning to get from Destination A to Destination B, XXXXX bus coach offers good service."

While the former could work if you're corresponding with someone who knows you well, others may be put off because its human nature to contradict, and say the opposite of your opinion. And when someone gets into that frame of mind, they will not accept your recommendation. If you're addressing a large audience, its a safe bet to just provide information impartially without any emotional overtones.

Step 2: Build a landing page

A landing page is where you'll place your autoresponder's opt in box. Here you'll pre-inform a potential subscriber what to expect. People are hesitant to provide their email because they don't want to get spammed. A fat loss product to a slim guy is spam. A fat loss product to an obese person would be a god send. What is SPAM to someone, can be a gift to another. So let people know WIIFT(What's In It For Them) upfront to help them in their decision, plus a short Privacy Policy statement to increase subscriber rates.

Another method I use is the Opt-In Quiz generator tool. Its a slight variation from the normal landing page. This process requires my subscribers to do a simple survey and in order to receive their results, enter their information into my autoresponder that has a privacy policy below.

Step 3: Get traffic

Once your engine is up and running, send instant traffic.

Google Adwords

$30 worth of Adwords PPC at $0.23 a click will provide about 130 clicks. Ocassionally one may enjoy a $0.08 click but the truth is, most good niches where consumers have money to spend will require a minimum bid of $0.23 to be on the 1st page of Google because of healthy competition. A little competition is always good. If you have the budget, use Covert Conversion Pro because it allows you to track exactly which keywords are converting, otherwise, you'll want to use the free tool provided by Google Analytics that allows you to measure the opt in conversion rate.

Opt-in Conversion rate and Sales-Convertion rate are different.

Google Analytics measure the 1st. If you're an affiliate for a merchant, it can't tell you which keyword resulted in a sale unless you have the merchant paste the analytics code on the product delivery page. And not all merchants will do this. My opt in conversion rates range from 10% to 29% to 50%. (10% being not ideal so I have to tweak it)

Covert Conversion Pro measures the second. It tells you which keywords results in a sale without needing to rely on the merchant. This puts you in control of your own affiliate business.

Articles

Insightful articles are a great way to get traffic. If you have the gift of writing, you stand a good chance of making a lot of money online. I tested this strategy with a single article submitted to a single major article directory and it grew my subscriber base from 0 to 40 subscribers using Optin Quiz Generator in 1 week for FREE. Its assemble and forget, I spent 10 minutes to write a 290 word article and submit with my article submission tool (If I did it manually, the writing and submission process would have taken 20-30 minutes). In this way, I don't have to check my PPC cost and worry if im overbudget or if my keywords are still active.

So 1 article I write and post is equivalent to $36.80 worth of Adwords traffic at 25% opt in conversion at 0.23 a click. Article marketing success varies according to the skill of how you write, the thought process and how you put your ideas across, leading the reader to the resource box.

Step 4: Check your Unsubscribe rates

Checking your unsubscribe rates allows you to tweak your messages. In one campaign, I notice that I had 10 unsubscribes at my second message. Upon checking, I realised there the message did not gel well with the offer on my landing page. So I moved the product my subscribers were looking for up to the second message and the unsubscribes stopped.

This is called tweaking. If you elect to do Email Marketing, then tweaking and checking your unsubscribes are important.

Step 5: Freebie seekers

There will be freebie seekers on your list. That's just life, you can't catch fish without trawling up a few lobsters and starfish. Freebie seekers may turn into customers or they may leave the list. I go by the majority rule. If majority of subscribers buy my recommendations and respond to what I write, then all's well. If majority leave the list, then its time to analyse if the market im in is a freebie seeker market, where the problem lies with the market, or if there are any changes I need to make to my messages. And I do this by tweaking the messages, the style of writing, offer more value 1st before recommending something then, continue sending traffic and watch what happens.

Some people don't consider offering freebies upfront because they're afraid this will built a freebie list. Here's my take, you will attract people who are freebie seekers, BUT, you will also attract good people who want to know what value you're offering before they buy what you recommend. Ask yourself, would you buy something without first reading the accreditations of a product, how many people have found success with it, where it was made. Offering value upfront is a way of offering product research to the reader who through time will know that you're not a mickey mouse entity online.

The email marketing process will naturally weed out the gold from the chaff, so that you don't have to.

There you have it. Email marketing success conversion process in a nutshell. Let me know if it works out for you.

To your Success!

Internet Riches For 3 Luvly Ladies, A Success Case Study For The New Year 2008

I dropped Ada an SMS to inform her a piece of great news.

Her website (http://www.thedatingloft.com) that had near:

• Zero page rank

• Zero Incoming Links

was listed on the premium page for the most completive keyword in Google.

And that word is "Dating"

There are over 368,000,000 websites listed in Google for this keyword. If you've been in the Internet circles long enough, you will realize that Internet Marketers, (some whose seminars you may have paid $1497 to attend) speak of going for long tailed keywords. Keywords such as Dating in Singapore, or Dating for Professionals.

So I love it when something goes against the grain, 3 ladies from Singapore who knew:

• Nothing about Internet Marketing

• Zero knowledge of Viral Marketing

Created a simple, elegant website which targeted an exclusive segment of the dating community. Professionals with busy lives.

Here's a capture of their amazing page rank.

A success formula is a combination of many things.

This website has the ingredients of a winning formula, from the viral aspect to the personal branding of Ada, Kat and Beth. Behind the Internet scenes there was a lot of Public Relations, Media offline publication advertising which they emphasized on. Making money is all about marketing, and being focused on providing benefits to that specific niche market.

If you visit http://www.thedatingloft.com, you will find clues on this. Browse through the media section. Google measures the value and genuine services provided by a full blown website and will rank them high based on user interaction with it. The more users click around your site, the more real content and benefits your website is offering. And that's what Google likes.

So for all those who said "go for long tail keywords" or "SEO is a secret known only to the techy geeks", 3 ladies from thedatingloft.com have demonstrated that real service and exclusive niche marketing wins mind share and Google.

Now I hear some folks saying that hey, I don't how to design a website.

Well, just outsource it.

Happy New Year and champagne all round to Ada, Beth, Kat and to You.

Cheers To Your Success in the New Year…
Sherman

PS: Click Here to meet the Charlie's Angels of "The Dating Loft"