Page 529 - 30 Days To Internet Marketing Success
P. 529
30 Days To Internet Marketing Success
by Joe Kumar
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Each potential buyer will have a good idea of how products
sell to their lists and via their affiliates.
Part of the negotiation will be to review the ROI (Return On
Investment). This involves estimating the *Investment*
(expenses incurred to develop, fulfill, and promote) against
the *Return* (sales revenue).
Let’s assume I have survey responses that indicate a very
good interest level in the product idea and people are willing
to pay upwards of $100 for the product.
I’ll develop a simple spreadsheet showing the following:
(The numbers below are representative and will be different
depending on the interest level of the idea, development
costs, fulfillment, potential sales, etc.)
Expenses: Purchase of Product Idea: $2000
Development Costs: $1500
Promotion (Use existing list): $0
Fulfilment (Digital product): $0
Total Expense: $3500
Revenue: Potential Selling Price of $97
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