How To Calculate Profit Margin – Easy with 100 Percent Profit Products

 How to Calculate Profit Margins – Easy with 100% Profit Affiliate Products

Patricia Sweeney with SnagALife.com talks about how to calculate your profit margin with amazing affiliate products. Most affiliate products only offer a 10-20-30 % commissions – if you are selling something at 100% commissions the WOW, that can really explode your profit margin.

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The math is really simple. In the video Patricia Sweeney explains how to utilize your email lists to promote great affiliate products and how using 100% pure profits is the easy way to calculate profit margin for you today.

 

The gross profit margin is a measurement of a company’s manufacturing and distribution efficiency during the production process. The gross profit tells an investor the percentage of revenue / sales left after subtracting the cost of goods sold. A company that boasts a higher gross profit margin than its competitors and industry is more efficient.

When talking about E-Products and any type of E-Goods, the profit margins can really sky-rocket.  When calculating your profit margin for E-Goods you should take the amount of money it costs you – in development and advertising – and subtract that from the total gross sales.  If you have direct costs related to this particular product such as overhead (rent, utilities, insurance, etc) if you’re running an office or have a real business setup, then you should deduct these from your profit as well.

To calculate gross profit margin, use this formula: Gross Profit ÷ Total Revenue

To simply determine how much cash you made on a specific product – Net Profit – then just do this;

Gross Sales of said product – Actual Expenses = Net Profit.

Now to calculate the profit margin: Net Profit  ÷ Gross Sales Total

How to maximize your profit margins

If you’re seen any of my other videos, then you know that I really enjoy affiliate products.  There’s not support, there no product creation.  It’s something anyone can jump into and begin making money from day one if you know how to market something online.

So how do those ‘internet guys’ send one email to a list of 12,000 people and make tens of thousands of dollars?

Simple – they sell an E-Product that they own.

There is not packing and shipping.  There is no more creation/manufacturing overhead.  Once all their product creation is behind them, once they recoup those expenses, then every single sale after that point is 100% pure profit.

Do you think you will have your very own product to sell anytime soon?

If you’re new to “online income generation” then the answer to that question is probably no.  That’s because not only do you have to know something other people want to know (have added value) but you’ve got to know how to:

1) create a product

2) get it online for E-Access

3) know how to launch it

4) know how to setup a membership site

5) know how to get all the ecommerce junk integrated

6) be able to provide refunds and ongoing support as needed to your customers.

 

See – this is why I would rather not bother right now with all of that – especially when I can get access to a wonderful array of products that range in price for 7.00 all the way up to 400.00 usd, that I can sell as an affiliate and keep 100% of the sale.  Sounds pretty good huh?

My 100% Profits Tools: http://snagalife.bizbuildermastery.com/
Get Free Website Course; http://snagalife.com/training/build-your-blog-101/