Instead of asking yourself . . .

"How do I get tons of traffic for as cheap as possible or free that makes me the most money?"

What you should ask is . . .

"How do I engineer my business so that I can pay more for traffic than anyone else?"

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Here's where that comes into play.

While I was speaking to a couple individuals this week for some fun on the phone I got a chance to see true contrast in business.

One person had bought into a high ticket business and wanted my advice on how to get sales and build and team online and another had bought into a low ticket business with the same questions.

The answers I gave them were somewhat the same and reflect the GOOD line of thinking I reminded you of above.

I asked them to tell me how much they made per sale, how long the retention rate was for their customers and how many of those people duplicate.

Let's do this together now, and use a business where the marketer earns $20 per recruit in a low ticket situation compared to $1000 per recruit in an average high tier sale.

Here's how the math would play out in the low tier situation . . .

Let's say our marketer, let's name him Sam, in the low tier business earns $20 per recruit, and earns $20 per month per recruit, the average person stays for 3 months, and on average 30% of his downline duplicates and he earns $10 on each of his downline member's results..

Let's say he's good at getting people into the business and closes 10% of his leads into new distributors.

If Sam gets 100 leads, he'll recruit 10 people and earn $200 now and another $400 later because on average people stay 3 months.

That's $600, but because he got 10 people in and 3 duplicated he gets $30 now for his team members work and another $60 over the next two months.

All total that's $690, and that's pretty robust.

Sam knows that he can spend on average $6.90 per lead and break even because for every 100 leads he makes $690, so $690/100leads = $6.90/lead.

That's strong. He's going to be able to advertise in a lot of places.

Now let's look at our other friend. Let's name her Nancy.

Nancy is in a high tier business and she only makes money on a one time sale, but when she does she makes $1000 per sale.

Let's say Nancy is far less savvy than Sam and she only recruits 1 out 100 leads into a new member.

Well math for Nancy is easy, she'll make $1000 per 100 leads, so she can break even on lead generation even if she spends $10 per lead because $1000/100 leads = $10/lead.

So we see from this little example, having a business that allows you to make more per lead will allow you to spend more on advertising if you want, and be more aggressive.

But the other part of this is Nancy can be far worse of a recruiter and still make more than Sam. Nancy, although less savvy, has actually put herself in a better position to win.

She can outspend Sam and be worse and still make more.

I went through all this, not to tell you which direction to go in, but to get you to think outside of the box of your current situation.

There are more ways to win than to just be better. Making the right choice can make things far easier and more lucrative for you, but . . .

There is a balance here.

If I had $5000 on my credit card and I had a choice of what business to get into to put myself in the best position to win, I wouldn't choose the low tier or the high tier.

I'd choose something in between. I probably wouldn't spend any more than $1000 on the actual business because I want to have MORE cash available and at my disposal to use for advertising than I'm paying in start up costs.

The advantage Sam has over Nancy if they're starting out with the same amount of cash to get into business and get started is Sam's going to have way more left over to get the message out about his new business which gives him more room to succeed from a start up cash flow situation.

Also, Sam's business may have more of a long term annuity value when all the numbers play in the end. Meaning . . .

Nancy always has to sell to make money where Sam eventually will not due to his residuals.

So there are trade offs here, but . . .

Don't EVER spend more money on a business than you'll have left over to advertise with, but DO choose a business that's going to provide a robust profit margin.

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