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!

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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 personalevolution@outlook.com

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

Your friend,

Greg

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