Product Launch Success
There is a lot of hoopla being made about product launches right now and that is because Jeff Walker is getting ready to release his Product Launch Formula 3.0. He is talking a lot about these million dollar launches and while you might not be making that kind of money, you still should know whether your launch could be considered a success or not. Let's take a look at the factors to consider besides just the total amount of money brought in.
One thing that you have to realize is that these experts are talking about revenues, not profits. When someone is talking about making $40,000 per month or $1 million per launch, take it with a grain of salt. How much are they spending to make that amount? With a typical product launch you are going to have a lot of expenses. The first is credit card fees, which account for 2.5%-4% of your sales. Affiliates can take the biggest chunk, with some programs offering from 50% all the way up to 100% these days! Of course, you have to actually pay for the product to be made, either with your own time or by outsourcing. If you do a physical product there are shipping and fulfillment costs. Plus there are the customers who want refunds and returns, which unfortunately can come in around 5%. If you take all of that into consideration those revenues get dwindled down quite a bit to the point where the final profit can average around 25%-35% of the total sales.
How else can your product launch be considered a success if it doesn't reach the $1 million mark in revenues? The answer is simple, don't just focus on the short-term. With each launch you build a bigger list of (hopefully) happy buyers. You can then market to these buyers later with updated, revised, or similar products. Even if someone didn't buy, they should have been added to a free email list. Did you pay a lot out in affiliate money? While that might hurt your bottom line this launch, you made a lot of partners happy who will then want to promote what you are selling in the future.
Each launch builds on the previous launch. It doesn't matter what niche you are in. A successful product launch will help you build towards the next, and the next, and in no time at all you will be making big money yourself. Maybe even one of those million dollar launches.