Micro Niche Marketing Projection


Parameters
Ad Impressions Per Month  
Click Through Rate   %
Cost Per Click $
Selling Price $
Conversion Rate  

%

Credit Card Processor

 
 

This is not 100% accurate especially after the rounding calculation. Use at your own risk, thank you.
 
Results
Total Visitors    
Credit Card Processing $  
Gross Profit Per Sale $  
Total Sales    
Total Gross Profit $  
Total Advertising Cost $  
     
Net Profit $  
     
Net Profit Per Sale $  
Cost Per Sale $  
Total Investment $  
ROI    
 

This projection is obviously a simple projection calculation. There are some other costs that incur regarding your Micro-Niche business. Consider that list below.

- compelling web site copywriting
- ebook cover design
- writing your ebook
- instant niche products
- web hosting

Last words, consider joining Money Clicking Newsletter.

         

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How to use the Micro Niche Calculator

Let me try to help ... but first let me explain what is it that you would have to key-in into the calculator.

I'll put an example for you ...

Ad Impression
This is where you estimate how many ad exposure that you will get per month. When using Overture Search Term Suggestion Tool and let say that you searched for - 'cookie recipe', and you see that there's 37,820 seaches done on Overture's network ... well, when you start an ad campaign where and you rank number 1 for that term, maybe you'll get about 37,820 ad exposure ... so you can use that estimate.

Now ... put that figure into the ad exposure - 37820

Click Through Rate
This is where you estimate your ad exposure vs how many clicks that you get. Let say that your ad is not really compelling. Let's just estimate, out of 200 people, 1 person will click on your ad. That is 0.5% click through rate.

Now, put that in Click Through Rate - 0.5

Cost Per Click
This is where you estimate how much you are paying for a click. Putting in 0.05 means that you are paying 5 cent for a click on your ad. Let's just say that you are paying about 20 cents for a click on you are ... so here you need to 0.20. If you want to estimate that you are paying $1.00 for an ad click, put in 1.00.

For this example, let's just say you are paying 20 cents. Put in there 0.20.

Selling Price
This is how much you want to sell your ebook / software for. If you want to charge people $25 before they can download your ebook, put in there 25. If you want to charge people $27.77 before they can download it, put in 27.77.

For this example, put in 27.77.

Conversion Rate
Conversion rate is about how well your website is selling. If you are estimating that your website is able to sell 2 ebooks to every 100 visitors, your website has a 2% conversion rate. If you are estimating that your website is able to sell 1 ebook to every 200 visitors, your website has a 0.5% conversion rate.

In this example, let say that you website has a conversion rate of 2% - Put in there - 2.

Credit Card Processor
Now you can choose which third party credit card processor you want to work with. The most famous would be ClickBank. Then there's 2CheckOut but 2CheckOut does not have a builtin affiliate feature. Other's are RegSoft, RegNow, Plimus and Share*It. Each of these company charges differently to accept the payment on your behalf. I have no say which is good or which is bad. You make your own decision.

Just for the sake of this example, let say that you go with Clickbank. Select Clickbank from the drop down list.

Now click Calculate

You should be able to get the following numbers

Total Visitors 189.1
Credit Card Processing $ 3.08
Gross Profit Per Sale $ 24.69
Total Sales 3.78
Total Gross Profit $ 93.33
Total Advertising Cost $ 37.82
 
Net Profit $ 55.51
 
Net Profit Per Sale $ 14.69
Cost Per Sale $ 13.08
Total Investment $ 49.46
ROI 1.12

Total Visitors
From the number of Ad exposure and being able only to get 0.5 click through rate, you should be able to get only 189.1 visitors. (37820 x 0.5%)

Credit Card Processing
For going with Clickbank and selling your ebook at $27.77 each, for each sale Clickbank will take $3.08 from you.

Gross Profit Per Sale
After Clickbank takes $3.08 from your $27.77 selling price, you are left with $24.69 for each sale.

Total Sales
Because being able to bring 189.1 visitors to your website and your website is able to convert 2 people into buyers for every 100 visitors, you get about 3.78 sales for that month

Total Gross Profit
This is Gross Profit Per Sale multiply by the Total Sales

Total Advertising Cost
This is your total advertising cost for that month. Because your ad has a 0.5% click through rate, with 37,820 ad exposure, you should get about 189.1 clicks. Paying for 189.1 clicks at $0.20 each, you are paying a total of $37.82.

Net Profit
This is (Total Sales x Selling Price) - [(Total Sales x Credit Card Processing ) + Advertising Cost ]. This is your total net profit for the month.

Net Profit Per Sale
Now this calculates how much net profit you are making on each ebook sales. This is Net Profit divided by Total Sales

Cost Per Sale
This is how much you are spending to get ONE sales.

Total Investment
This is how much you are spending that much on Credit Card Processing and on advertising

ROI
Now this is return over investment. How much you make vs how much you spend. In this case, you spend $49.42 to make $55.51. (55.51 / 49.42)

OK .... I think this should explains it.