Scale and magnitude – How to make big money

To make big money, you have two options: reach a lot of people or charge a high price. How will this help you online?

This idea of scale and magnitude isn’t a new concept.euro-318482_640

Businesses have known it for years.

In the post I show you how to apply it to your own ventures.

The basics

For a business revenue is the term used to describe how much money they bring in:

Revenue = Units Sold x Unit Price

So to increase the money you make you can either increase how many units you sell (scale) or for how much you sell them for (magnitude).

Lets apply this to a situation.

If you have an e-book that is priced at $0.99, it sells 100 units a month.

Your revenue will be:

Revenue = 100 x 0.99 = $99

How can you increase your income?

You can either increase your scale i.e. sell 200 or increase the price i.e $1.99.

This will be obvious. So now I will give you some ideas applied to a blogging situation.

Tips for increasing your Scale and Magnitude blogging

Scale

Guest posting – The drafting technique 

This is a great way to boost your site views, and with more people, comes more potential sales…

  • Look at the top blogs in your niche (Use Alltop.com) – Below is what I look at…
  • Look at the previous posts they have done, and the ones with the most responses…
  • If you can write about something similar or that builds upon their posts
    Screenshot 2015-02-07 11.09.33
  • Email the owners with an intro to what you would like to write about
  • Wait for a response

Pretty straight forward right?

I recently did a guest post, and here are my traffic results:

Screenshot 2015-02-07 11.52.47

Now this was just on a small site, if you land a gig at a bigger blog, this technique works even better.

I didn’t get any positive responses…. 

Ok the first few times I tried this I didn’t get any responses… so I went back to the list of top blogs and went further down…

Online the A-Listers won’t have time for you, so why not try the B-Listers? Going back to alltop.com I find:

Screenshot 2015-02-07 11.11.20

Which led me to this:

Screenshot 2015-02-07 11.13.53

Using this list I now have many more people to email!

WARNING: Do Not Spam!

signs-38587_640

Word will spread that you aren’t to be trusted.

Buy Advertising

The most common form of advertising is Pay Per Click advertising.

As I am not the expert here, I will let Kyle from Wealthy Affiliate explain the ins and outs of PPC campaigns

Screenshot 2015-02-07 11.42.51

 

Bing gives you a $75 coupon so make sure you claim it.

WARNING: PPC Campaigns are tough!

I have tried a few campaigns, not to much avail, so before you begin make sure you know what you are getting into and how to use these PPC campaigns effectively.

Wealthy Affiliate (Review here) has excellent training on this front so I would strongly advise checking it out before you dive in.

Magnitude

So after attracting more people you may want to increase the price of your e-book.

I would suggest selling it for a low price first i.e. $0.99 and asking for feedback, so you can improve the product.

As your traffic grows, put the price up to $1.99, watch how this affects your revenue over a month say.

If the revenue stay relatively constant increases, keep the increased price, if its lower scrap it.

There is no definite way of setting the price so try a few different prices.

More Info

If you would like to know or have a question more please email me at greghannam@personalevolution.org

Or drop a comment below any post and I will get back to you asap

Your friend,

Greg

Click to jump onto social media: pinterest /// facebook /// twitter ///g+

cropped-PersonalEvolutionLong.jpg

30 Replies to “Scale and magnitude – How to make big money”

  1. Hassan

    Hi Greg, I love it. I have never heard of the drafting technique, and guess what I’ll be working on this week? Researching about journalist who are established and seeing how I can help them. Thanks for being informative. I am ignoring making money now and concentrating on quality content. Thanks again!

    Reply
    • Greg Hannam

      Hi Hasan, quality is always the best way to attract people which then brings in money for life, rather than a short term sale, you get long term repeat customers.

      Reply
  2. Peter

    Hi Greg. Really good advice here. My site is around 4 months old so I was thinking of building it up a bit more first to gain some authority before branching out into alternative methods to grow – such as guest posts. Thanks for the warning about the A-list rejections! The key I suppose is not to give up. Best of luck.

    Reply
    • Greg Hannam

      I don’t subscribe to that anymore, I think you should do what you can now to gain views, likes, shares and traffic. It will help you later. Greg

      Reply
  3. Nicole

    Great article! I’d never heard of alltop.com before and now I’m going to try it! I’ve thought about guest posting before but now, I’m thinking, is the right time to finally go for it. Thanks for the great info!

    Reply
  4. Floridalma Jimenez

    Awesome site here, you are definitely generating some great traffic.You did a fantastic job of implementing the training you received at WA into your site. Keep up the amazing work.

    Reply
  5. Chris

    Some great information here thank you.

    It is great to have all the information in one place rather than searching the web for ways to set up an online business.

    The Paid Advertising is not something I have pursued yet but will look into it.

    Thanks

    Chris

    Reply
  6. Ken

    Greg this was some great information and extremely helpful tactic. I am heading to Alltop now to do some research of my own. Thank you so much for the awesome post.

    Reply
  7. Sarah

    Hey Greg,
    great advice. I am currently trying to reach more people, so I found the Alltop.com site very useful for finding similar blogs and articles. Bookmarked for the future 🙂

    Reply
  8. Neil

    Great site Greg, very informative with lots of useful information. I’ll make sure I come back and read more. Cheers, Neil

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*