Online Advertising Profit Calculation
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Marketing
and Deals Projections
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These results are not
guaranteed or typical!!!!!
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Monthly
Marketing Budget
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$1,000
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Craigslist 1-2-3 Punch
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|
|
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Number
of Ads to Contact / day
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30
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Average
warm response rate
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15%
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Craigslist
leads that you talk to / day
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5
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Craigslist
leads that you talk to / week
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23
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VA
Monthly Cost for Craigslist
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VA
Hourly Wage
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$3.00
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VA
Hours / Day
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2
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VA
Days / Week
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5
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|
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Total
Monthly VA Cost
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$120
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1-2-3
Punch Cost ($0.07 / unit)
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$42
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Leads
that are Wholesaling Lease Option Deals
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100%
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90
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Leads
that are Traditional Wholesale Deals
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0%
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-
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Yellow Letters (Absentee
Owners)
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|
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Yellow
letters unit cost
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$1.00
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Yellow
Letters Response Rate
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8%
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Yellow
Letters Sent Per Month
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500
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Yellow
letter costs
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$500
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Number
of leads from Yellow Letters / month
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40
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Leads
that are Wholesaling Lease Option Deals
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50%
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20
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Leads
that are Traditional Wholesale Deals
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50%
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20
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House Buyer Network /
National Aggregator
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|
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Monthly
Fee
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$0
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Ave
Monthly Leads
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-
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Leads
that are Wholesaling Lease Option Deals
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75%
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-
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Leads
that are Traditional Wholesale Deals
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25%
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-
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Postcards (Absentee
Owners)
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|
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Postcards
unit cost
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$0.40
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Postcards
Response Rate
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3%
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VA
Cost for Postcards ($3/hr x 2 hrs/wk x 4 wks)
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$24
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Marketing
budget for postcards (what's remaining)
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$314
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Number
of postcards to send to Abesntee Owners
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785
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Number
of Leads from Postcards
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24
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Leads
that are Wholesaling Lease Option Deals
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75%
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18
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Leads
that are Traditional Wholesale Deals
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25%
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6
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CONFIRM
TOTAL MARKETING $ SPENT PER MONTH
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$1,000
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Leads
Summary
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WLO
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Trad
Wholesale
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Total
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%
Leads
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Cost
/ Lead
|
|
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Craigslist
Leads / Month
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90
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-
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90
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59%
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$1.80
|
|
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Yellow
Letter Leads / Month
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20
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20
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40
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26%
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$12.50
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House
Buyer Network / Month
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-
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-
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0
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0%
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$0.00
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Postcards
Leads / Month
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18
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6
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24
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15%
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$14.35
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Total
Leads / Month
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128
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26
|
154
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$5.73
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average cost per lead
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|
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Total
Leads / Week
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32
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6
|
38
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Total
Leads / Day (5 day work week)
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6
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1
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8
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Contracts Summary
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|
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Wholesaling
Lease Options
|
||||||
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Wholesaling
Lease Option Leads / Month
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128
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Number
of Seller Leads / Contract
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15
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7%
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Contracts/mo
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8.5
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%
of Homes that You Will Sell
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50%
|
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Number
of homes sold / month
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4.3
|
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Average
Profit
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$4,000
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Total
Gross Profit
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$17,022
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Tradititional
Wholesaling
|
||||||
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Tradtional
Wholesale Leads / Month
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26
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Number
of Seller Leads / Contract
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25
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4%
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Contracts/mo
|
1.0
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%
of Homes that You Will Sell
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80%
|
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Number
of homes sold / month
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0.8
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Average
Profit
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$8,000
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Total
Gross Profit
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$6,627
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Gross Revenue / Month
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$23,649
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$2,83,786
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/year
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Monthly
Overhead Expenses
|
||||||
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Marketing
Costs
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$1,000
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FreedomSoft
- customer database
|
$97
|
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Telemarketer
Cost ($7/hr, X hrs/dy)
|
5
|
$700
|
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Buy
Absentee Leads from Listsource ($0.18)
|
yes
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$231
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Misc
Overhead
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$1,000
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Sales
Rep / Realtor
|
||||||
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Pay
per deal
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$0
|
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Or Percent of Each Deal
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20%
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Total
Number of deals sold / month
|
5
|
|||||
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Total
Cost for Sales Rep / Month
|
|
$4,730
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$56,757
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total / year
|
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Total
Overhead Expenses
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$7,758
|
|||||
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Total Profit After
Overhead Expenses / Month
|
|
$15,891
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$1,90,690
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/year
|
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Average
Leads Per Day
|
8
|
|||||
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%
of Leads that Telemarketer will weed out
|
50%
|
|||||
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Number
of Sellers that I need to talk to per day
|
4
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