In the How to Create Million Dollar Products! program we talk about “magic” as an element of a hit product.
Sometimes the name of the product is enough to launch a hit, as in The Satanic Bible.
Sometimes it is celebrity as with George Foreman Grill.
Sometimes it is copywriting like with The Lazy Man’s Way to Riches.
And so on.
And sometimes the magic is simple math.
The legend around Vincent James is that he hit on the math formula after running an expensive ad in a national magazine.
Mr. James was selling branded supplements – where he had contracted with a manufacturer to put a bunch of ingredients into a pill and then label the bottle.
He wrote the ad himself and laid out a big chunk of money on the advertising roulette table.
When the ball fell he counted his take.
In an interview he did years ago he said something along the lines of, “I’m rich.”
That because the cost of the ad, minus the cost of fulfilling the orders left him with a huge profit.
In his case it was essentially a mass market product aimed at the male demographic.
He knew he could keep putting money on the same number on the roulette table and he would always win.
Because he had positioned his product in such a way that the math worked in his favor that’s why he said, “I’m rich.”
This is not a suggestion to get in the supplement business out the gate. It can be done and many are doing it.
It is more an illustration of how math works in marketing.
We are in the customer acquisition business. And if you go down the road of paying money to acquire those customers the math has to work.
It is not for the faint of heart. Dan Kennedy tells an anecdote how Proactiv, the acne people “go in the hole” for 6 months to acquire a customer.
Meaning they will pay the equivalent of 6 months of subscription revenue a customer would pay in order to acquire that one customer.
You need money in the bank to do that plain and simple. You also need strong customer retention skills and realistically a back-end offer to get more money out of that one customer.
But you do need to understand the basics of math. Because sometimes you can stumble on a winner that pays out from day one and you will find yourself saying, “I’m rich.”
Remember all Mr. James had was a bottle of dust and a sales letter he wrote himself. And the money to gamble.