How to Tell If a Product Is Worth Selling
By moni kumar
Feb 28, 2009 - 4:18:09 AM
This is a question that I get asked frequently. How can I tell if it's worth my time to promote a certain product? Well, there is a way to figure this out scientifically. It's not easy and it takes a little bit of brain power and some calculations, but if you really want to zero in on the worth of a product, as far as pure dollars and cents, this article will show you the best way to do it.
The first thing that I personally recommend, and this is purely optional, is to pick a product that you actually believe in. I don't know about you, but I have a very difficult time promoting something that I haven't used myself. Think about it. For more details www.scroll-pops.com How can you recommend something if you yourself have no idea if the product is any good or not? I know, if you're heavily into affiliate marketing, you can't buy everything that's out there. You'll go broke. But you can request review copies from the owners, with the explanation that if you like what you see you plan on promoting the product heavily. Not every product creator will send you a review copy, but many will if you ask nicely.
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The second thing you have to do is find out what the commission percentage is on the product. It doesn't matter what the product sells for. What matters is what you personally get for each sale. For example, you're better off selling a $47 product where you make 70% than selling a $97 product where you only get 25%. The dollars per sale that end up in YOUR pocket is all that matters.
The third thing you have to do is figure out how much it's going to cost you to promote the product and how many sales you can expect to make for each dollar of advertising. This is where it gets tricky because there are so many variables involved. But to make this simple, what I suggest is to plan for an Adwords expense of no more than 20 cents per click, for most products in the $47 to $97 range. For more details www.firesale-automator.com If the conversion percentage of these products is roughly 2%, or 2 sales for every 100 clicks, then you can expect to spend $20 for every 2 sales or $10 per sale. Personally, I want a net profit of at least 50%. So if I'm spending $10 per sale, I want to make at least $20 per sale. If the commission percentage is 50%, then I need to sell a product for a minimum of $40 to make selling it worth my time.
I have greatly simplified this, but it should give you an idea of how to go about the process. The conversion rate of the product will either have to be given to you by the owner of the product, or you're going to have to test for yourself. Testing can be costly, just so you know.
By following the above basic tips, you should have a pretty good idea of whether or not the product you want to sell is going to be worth selling or not.
