The Mathematecal Formula For Making Money: How To Apply Its Leverage To Increase Yor Profits Exponentially.

Written by Angelo Ioanides


No matter what markets you serve; what products you sell; or what marketing tools you use, in business there's one truth you cannot escape.

Embrace this truth and profits will flood your business.

Disregard this truth and financial-cancer will eat you.

What is this truth?

Quite simply,repparttar size and speed of your entrepreneurial success is directly proportional to your understanding of The Mathematical Formula For Making Money.

Despite serving asrepparttar 106124 corner stone of every single commercial success sincerepparttar 106125 dawn of commerce most businesses neglect its power. Being so familiar withrepparttar 106126 diluted version ofrepparttar 106127 formula these businesses overlookrepparttar 106128 enormous profit-potential held within. Mindful of this blind-spot, let's now take a close look atrepparttar 106129 Mathematical Formula For Making Money: Leads x Conversion Rate = Customers Customers x Average Dollar Sale x Sales Per Customer = Gross Profits Gross Profits x Profit Margin = Net Profits Please pay close attention to what I am about to tell you: your number of customers; your gross profits; and your net profits are **the least important** figures in this formula. Why? Because they merely represent outcomes. They tell you how good or bad you're doing without telling you why. And without knowing why you're doing so well (or so bad) you are in no position to fixrepparttar 106130 cause with speed and accuracy. All you can do is guess and implement random strategies inrepparttar 106131 hope that one day your results will improve. The real power of this formula is stored withinrepparttar 106132 five highlighted variables (a.k.a. levers). Quite literally, when you apply these levers to your business your profits will increase exponentially. Allow me to demonstrate. Assume forrepparttar 106133 moment that your business currently operates under these circumstances: Leads Per Annum = 10,000 Conversion Rate = 0.1 (10%) Av. Dollar Sale = $50 Sales Per Customer = 2 Per Annum Profit Margin = 0.2 (20%) Plugging these intorepparttar 106134 formula gives you a net profit of $20,000 per annum. Let's now demonstraterepparttar 106135 impact of improving progressively more levers without increasing your overall effort: Case #1: Improve leads by 100% Net profit = $40,000

Increase in Profit(%) = $20,000 (100%)

Effort(%) = 100% Profit to Effort ratio = 1:1

I.e. for every % increase in effort you getrepparttar 106136 same % increase in profit. Case #2: Improve leads and conversion rate by 50% each.

Net profit = $40,000

Increase in Profit(%) = $25,000 (125%)

Effort(%) = 100% Profit to Effort ratio = 1.25:1

I.e. for every % increase in effort you get a 1.25 % increase in profit. Case #3: Improve leads, conversion rate and average dollar sale by 33% each. Net profit = $47,052

Increase in Profit(%) = $27,052 (135%)

Effort(%) = 100% Profit to Effort ratio = 1.35:1

I.e. for every % increase in effort you get a 1.35% increase in profit. Case#4: Improve all levers except profit margin by 25% each. Net profit = $48,828

Increase in Profit(%) = $28,828 (144%)

Effort(%) = 100% Profit to Effort ratio = 1.44:1

I.e. for every % increase in effort you a 1.44 % increase in profit. Case #5: Improve all five levers by 20% each. Net profit = $49,766

Increase in Profit(%) = $29,766 (149%)

Effort(%) = 100% Profit to Effort ratio = 1.49:1

Writing A Press Release

Written by Sue and Chuck DeFiore


News releases (also called press releases) are an important part of a public relations campaign. They are also an important part of marketing your business. They arerepparttar primary means of "selling" your story torepparttar 106123 media. All press releases are structuredrepparttar 106124 same way. Make sure you answer "yes" to these key questions when writing your next press release:

Is it easy to read?

Editors look at hundreds of press releases every day, and if your news release is difficult to read, they will throw it out. It should be on plain white paper and printed in black ink. The main body ofrepparttar 106125 release should be double-spaced and have at least a one inch margin all aroundrepparttar 106126 edges.

Your letterhead should appear atrepparttar 106127 top ofrepparttar 106128 first page to establish your identity.

Have you double-checked your spelling and grammar?

A good press release has no typographical or grammatical errors. If yours contains such errors you'll lose credibility; it will haverepparttar 106129 same effect as a badly written business letter or resume. The release should be typed. Print out (or type out) a fresh copy for each person to whom you will send it. Do not send out poor-quality photocopies with dark staple marks or blotches.

Did you includerepparttar 106130 six news elements?

Because all news articles include six basic elements-who,what, when, where, why, and how - your press release should also followrepparttar 106131 same guidelines. Putrepparttar 106132 most important facts inrepparttar 106133 lead paragraph, withrepparttar 106134 facts decreasing in importance as you go downrepparttar 106135 page. Why? Suppose you send a press release to an editor who has five inches of space open inrepparttar 106136 newspaper and your release runs eight inches long. Ideally,repparttar 106137 editor would trim your press release fromrepparttar 106138 bottom. Therefore, to make surerepparttar 106139 most important information gets run, putrepparttar 106140 less important information atrepparttar 106141 bottom.

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