At $10, our projected weekly earnings are $10,000. When we sell product at $50, we know that we can earn $25,000 per week. Most importantly, we know that we can earn $29,250 when our product is priced at $45.

With imaginary testing we have done on our imaginary product, we can easily see that selling our product at $45 per item will earn us more money over long haul.

Thus, when we make decision for a national rollout of our product, then we will price our product at $45.

Of course, this is a very simplistic analysis of point I am trying to make. Though simple, I believe this analogy will help you understand methods of developing a product's prices.

PROMOTION

Promotion, on other hand, is process of notifying consumers for your product or service of your availability to serve them.

Methods of promotion vary distinctly and should be arranged to meet very specific goals.

As with product, place and price, promotion should not be left to chance. You should test every ad, every media, and every price point to determine best bang for your promotional dollars.

HEADS UP!

If you are an online promoter or marketer, please factor in most important element concerning cost of your promotions.

What element is that? Your time!

Value your time at a certain dollar amount, and figure in your time into cost of your promotional accounting.

I say this because too many online promoters lose sight of this concept and spend 20 hours to generate one sale while using free advertising. Even if you rate your time at federal minimum wage, then you will have invested $105 of your time for one sale that might only net you a gross sale of $45!

ARE YOU TRULY A MARKETER OR ARE YOU JUST A PROMOTER?

Most people who run a business on Internet call themselves marketers. Yet, most of these same people are really just promoters wrapped in label of a marketer.

True marketers do not promote without a lot of advance work. They spend time planning, testing and measuring their actions and results to get most out of every dollar spent and earned.

Entrepreneurs finesse art of marketing as they build their company into a major enterprise.

If you are a promoter who does not keep an eye on total marketing equation, then you are bound to fail.

If you do call yourself a marketer, then do what a professional marketer does. Make sure that every dollar spent is spent well. Make sure that every dollar earned is put to good use. Market well so that when people of next generation look at your life, they will see a fine example of a successful entrepreneur that they will strive to emulate.

Let us return our thoughts to your home business. Have you ever gotten feeling of excitement --- when you read something or thought of something --- that you could not wait to implement this new idea? This could be one of those moments...

In every home business, there are certain processes that we do over and again. Sometimes it may be possible to trim time or expense of a process which in turn will add pennies or dollars to your bottom line. If it is a process that you do hundreds or thousands of times per month, then your savings will multiply into hundreds or thousands of dollars in monthly savings.

Imagine what running a home business was like BEFORE computer...

Before personal computer, we had to hand type all letters and invoices. Now, we can setup a letter or invoice that we send out quite often, and we can save it in our word processor so that when we need to use it again, we can print it quickly and efficiently. There is no longer a need to type document again from scratch.

The computer has simplified our business communications and has provided us opportunity to reduce our costs of doing business.

Think about all of other processes that computer has enabled us to do for far less expense than what we could in past.

In this case, computer is a tool that permits us to save time and money.

So, my challenge to you is to begin examining processes in your own home business and look for ways in which you can save yourself time and money. It is far better for you to contemplate on this matter than it is for me to do so for you. Simply put, you know your business better than anyone on planet does. Therefore, you are in a better position than anyone to find those extra dollars that will decrease your costs and increase your profits.

The extra pennies and dollars you could extract from your business could spell difference between success and failure for your home business enterprise.