by Inger Nilsson ArticleNorth.com
This article is a close review of the videos "The Challenge" and "The Little Guy" by Buck Rizvi and Brock Felt of Pipeline Profits and Supplement Millions
Regarding Brock Felt's first example in video #6 "The Challenge", you should first consider that Brock's numbers and earnings depends on that his offer converts at around 2 sales/100 people.
Brock's figures also depends on that he bought a batch of leads for around $10,000 in one order at $0.20/lead. This gave him 53,000 leads. The fact that the order was as much as $10,000 probably gives him an advantage compared to if you buy for only, lets say $1,000 at a time. It may also give him a better deal and better converting leads, compared to if you buy a much smaller amount of leads. It is like if you buy a greater quantity of merchandise, you may get a rebate.
In Buck's example for the little guy in video #7, his numbers are much lower in all aspects compared to Brock's numbers. His product does also not convert as well as Brock's - they convert at 1 sale/100 people compared to Brock's 2 sales/100 people. Buck also made a deal for an estimated $1,000 at $0.30/lead which gave him only 2,295 leads compared to Brock's $10,000 deal and $0.20/lead which gave him around 5,300 leads/$1,000 invested.
Buck got 21 sales which made him a profit of around $2,100/$689 invested compared to Brock's deal which gave him a profit of about $6,218/$1,000 invested. Buck's product sells for around $99/product according to his numbers in video 7. Brock's product sells for around $49/product according to his numbers in video 6. What does all of this means and what has it do with you and me? (Please note that the examples below are at a rough estimate):
Let's say that your product sells for $49 instead of $99 like Buck's for example, then your profit would only be around half of the $2,100 Buck earned for 21 sold products which then would be $1,029/21 sold products, if we use Buck's example in video #7. That means that you would have made a $340 profit ($1029-$689 (for the campaign)=$340 (profit).
You also have to consider all the subtractions you have to make for "invisible" costs like fulfillment house expenses, credit card processing, shipping, call centers, product manufacturing, returns + declined cards, all in all around $15/product in this case (which in total can be anything between $0-000+/product depending on your product - what the price of the product is), where in this case you have to subtract $315 ($15x21 sales) for these costs which leaves us with a profit of $25, plus the fact that you have to subtract everything from 25% - 52% (depending where you are from) in business taxes which would leave us with nothing left but greatly on the minus side of the equation. Thumbs down for this option!
If you have an affiliate product instead and do not have to pay for the small "invisible" expenses mentioned above, then if you go back to the sum of $340 net profit if the product is sold for $49, you would still have to pay taxes from anything between 25%- 50% (depending on where you are from), which would leave us with a total net profit of (with 25% tax) $83. However, this depends on that your affiliate commission is $49/product. If your affiliate product sells for $49, your commission would in the reality be anything from 2% and up. In that case your profit would be anything from minus (-) 100s of dollars - to $50 maximum in total net profit.
What we can see with Buck's deal for the little guy with the $1,000 ($689) deal - is that it is a Really bad and not recommendable deal if you only have 2,295 leads to work with and a $49 product or below that converts at only 1 sale/100 people. It would leave you no margins and on minus for future deals and you would not be able to scale up your business.
To be fair let's look at the "little guy" option, if you have a higher priced product, like Buck's example in video #7 which sells for $99 according to this video: If you then make $2,100 like Buck did for a $689 deal and your product goes for $99 instead like his did, you would make $1,411 ($2100 - $689= $1411) in profit, minus other costs as mentioned above (incudes product cost) of about $25-35/item (the expenses increases with a higher priced product) for 21 sold items which would add up to a total of about $735 in other costs, which would give you a profit of $676. You then also have to subtract taxes like business taxes, as if it is 25% you would have to pay around $360 in taxes. This would leave you with a net profit of around $316, if the campaign cost was $689. This is also a bad option if your product costs $99 and you only have 2,295 leads/$689 deal. It leaves you with practically nothing for futute deals to scale up your business.
With Buck's example with a $689 deal, you should at least have a product that sells for $150 a piece, the higher the better. This would give you a gross profit of, with Buck's example, $3,150. Minus the cost for the deal, which was $689? It would give you a profit of $2,461. Minus the cost for the "invisible" expenses, mentioned above, which approximately would be around $35/item (times 21 items in this case (=$735) which includes product costs, which will then give you a profit of $1,726. If you then subtract 25% for taxes (25% of $3,150 (the sale) = $788 - $1,726 (the profit) it would give you a total net profit of $938. Over all you should be able to get some of the expenses that you paid for the other costs back from your taxes (you can deduct certain expenses in your tax return), but they will be of lesser importance in these cases. This means that Buck's example for the little person as shown in the above video only - and Only makes sense if you are selling a product for $150 or more. $938 is in fact a very small net profit for a $150 product when you are running a real business. My suggestion here is that you at least ought to have a product that sells for $200-$300 a piece to make it worthwhile.
With Bucks example - and if you are an affiliate, and if your product sells for $150/product instead, and if your commission is 35% - you would have a commission of $52.50/product. If you have 21 sales like in Buck's case, it would leave you with a gross profit of $1102.50. When you subtract $689 for the co-registration deal, it would leave you with a profit of $413, 50. Then when you subtract taxes (25%), it would leave you with a total net profit of $137.88. This is clearly also a bad option. Let us look at some other options below.
If we look at it from Brock's numbers in a case when your product sells for $50, minus costs like $7/product, and you subtract expenses like fulfillment house costs, credit card processing costs, shipping, call centers, returns + declined cards. All in all around $8 (which in total can be anything between $0-000+/product depending on your product - what the price of the product is) per item sold, the profit for each product you sell will in that case be $43/product. If we use Brock's example and are able to get a deal with the co-registration companies for $1,200, which according to Brock's numbers in video #6 above, would equal 6,360 leads. If your product converts like his does, and if you get 153 sales as he did, you would make a gross profit of $7,650 for a product that sells for $50. In this example, it was $1,200 for the deal compared to Buck's $1,000. In the reality, the price for Buck's deal was $689. It was also 6,360 leads in Brock's case compared to Buck's 2,295 leads.
What does this mean? It means that the cost for the "invisible" expenses and the product cost alone in Brock's case, will be $2,295 (in this case around $15/item for a product of $50) that you would have to subtract from the gross profit, which will then give you a profit of ($7,650 - $2,295) $5,355. Then you have to subtract the cost for the leads which was $1200, which will give you a profit of $4,155, minus taxes of around 40% ($1,662), which will give you a total net profit of around $2,493. This is clearly a much better and in fact an excellent deal for the little person for scaling up your business.
If you are an affiliate with a product of $50, your commission is 30% for example, and you use Brock's example, it would mean that you would be left with a profit of $2,295. Then you have to subtract the initial $1,200 for the purchase of the leads = $1095 - tax $274 = total net profit = $821.
Here you can see that your profit with your own product with the above examples, compared to the profit as an affiliate is 3 times higher, BUT as an affiliate, you do not have to pay for or deal with the fulfillment costs, or the product manufacturing and costs, ot any other costs.
The difference between the earnings and the costs with your own product and as an affiliate, is according to the numbers above, $1,672 with your own product compared to as an affiliate.
To summarize it:The gross profit if you are selling your own product, is with Brock's example above, $7,650, and the costs are around $3,495. The net profit is then $4,155, minus tax of $1,662 (40%), which leaves you with a total net profit = $2493.
The profit as an affiliate with the same example is $2,295 - leads $1,200 = $1095 - tax $274 (25%) = total net profit = $821.
You also have to consider the earnings you can make with other people who are selling your products wholesale, or as affiliates. This alone could add thousand's of dollars to your account every month.
The affiliate option gives you a very small profit margin to play with. If this profit margin is ok for you and you do not plan to scale up your business, then go ahead. Just know that you will lose a lot of money over time with this option, since you obviously are making half as much as you are paying for the deals.
The earnings as a wholesaler or even as a reseller with the above example gives you an advantage: It gives you a higher profit margin for to be able to scale up your business in future deals. Please Note: Another advantage is, according to Brock, that the fulfillment costs will not be per item when you are a wholesaler and if you ship multiple items or larger quantities to the resellers. In that case these costs will be much lower and your profit margin much higher the more you sell - which makes selling your own product as a wholesaler more favorable over all and worth the initial effort of setting up your own entity and manufacture your own product.
Buck's "Little Guy" option shows us clearly that it is ONLY good for products of $150/sale and up if you are a reseller, and products of $400-$500/sale and up if you are an affiliate. 
Brock's "Challenge" option on the other hand can work if you are an affiliate even with a $50 product, although it gives you a relatively small profit and note, ONLY if you are able to make a deal similar to his.
Brock's example could be called 'The Little Guy'. It's sort of contradictory though, since the only way to be able to do Brock's kind of deal probably is if you already have made a lot of money (and deals) before with the co-registration company in question - which means that it's probably not possible to make the same kind of deals as Brock's for only $1,200 if you have not already made a lot of larger deals with that particular co-registration company in the past. Although, in a report by Brock and Buck that I have found on Google (see below info and link at the end of this article), they talk of ways on how to deal with the brokers especially if you are on a small budget. Very valuable information.
I presume that the co-registration companies would not make such high value deals with the little guy's wallet in most cases, where they throw you a batch of 5,300 leads for just $1,200. It would probably not be profitable for them to do it over all. However, there seems to be a way to get a round this, according to Buck and Brock, in their above mentioned report. This alone seems also to be The number one Reason to buy Buck's and Brock's courses and seminars in the future If you can afford it (you can deduct the cost for the course, the seminars, travel and lodging expenses from your taxes, you know - go to Nolo.com to read about deductible expenses for business owners). Buck and Brock supply their clients with the complete contact lists of the right brokers at the right companies, which exactly is what makes all the difference if you think of the time, money and effort that you will save, compared to if you have to find this information by yourself.
This alone could be the difference as well between taking years of trying to make something work, compared to getting all of the strategies, tactics and contacts you will ever need, handed to you in a neat little package to go. I only want to mention that if you get the chance for anything you want to do, and the time is right, go for it, do not procrastinate any longer!
Sometimes it is easier just to stay where we are and it is a little uncomfortable to change our ways. If you never get up and do what you really want to do, you would never know exactly what would have happened, or how exactly you would have felt if you did it. It is better to actually do something, than try to be perfect at what you do.
Ask yourself - if you actually did what you really wanted to do, for a better lifestyle, a better life, not only for yourself but for your loved ones and also for your friends - how would you have felt?
As we have seen with the above mentioned examples is that numbers are fluctuating, goes up and down, depending on your actions. This means that you have to be very careful with what your actions are. You have to make research on how your product converts and at what percentage it converts and also of how popular your product is, if the product is in demand. You also have to weigh in factors like if being an affiliate, a wholesaler, a reseller or making a private label is the right thing for you Before you roll out your campaigns so that you are certain of the numbers Before you buy your ads and your leads.
You also have to investigate the co-registration companies and talk to the brokers Before you make any deals. You have to interview them in depth about all of their terms and offers and also ask them if they have any special offers to make you a better deal. You should tell them that your plans are to stick around for a long time and if you can come to a mutual agreement, and that you plan to scale up your business as fast as possible.
The figures in the above videos all depends on the conversion rates of the offer (this asks for you to carefully test and optimize your ads and that you do a careful research on how popular a product is before you launch your campaign); the margins of your earnings/offer; the quality of the leads; the quality of the ads and on how well you have tested and optimized your ads before you roll out the campaigns. Important: Please note that the figures above in all of Brock's cases depends on the size of the deal, on how many leads you are buying at what price.
Please do not be mislead by numbers of figures alone. Look at all of the numbers and weigh them carefully against each other. It is crucial that you consider all of the small "invisible" expenses if you are just starting out with your own product, or as a reseller. Costs like fulfillment expenses, credit card processing, shipping, call centers, product manufacturing, returns + declined cards. These "invisible" expenses can be anything between $0-000+/order, depending on your product, what the price of the product is. However, if you are a wholesaler, you will be able to ship larger quantities at the same time, and therefore your other expenses will not be per item sold, but per quantity of the deal that you are making with the reseller.
The "invisible" costs above are NOT mentioned or shown in the above videos since they show examples only from their shopping cart accounts. These are expenses you as an individual must calculate and subtract from your offers and this is also one example of what the well-known expression "Take Action" means opposed to running off and advertise like crazy without doing your proper research and testing Before you launch your campaigns.
Buck and Brock are in my opinion a couple of genuine, resourceful and very productive people, that also comes with a wonderful sense of funniness, that is how they come across to me personally - but it is up to You to take action, You alone take responsibility for your own business and how much you know about these things Before you get started. It also depends on if you are just starting out or if you already have your own product or if you already are a reseller since before. Only you know what you need to know to be able to succeed.
My personal advice is to take it slow and Not jump to conclusions immediately. Get yourself prepared and go easy. If you have not made your due diligence research and optimization before rolling out your campaigns you can lose out greatly. This is not for everyone. If you are a happy "little guy" this is necessarily not the best choice for you. However, If you are able to make calculated risks and if scaling up your business gives you the thrills and you love the excitement involved, I do recommend Buck's and Brock's system. I also recommend them for their genuine, supportive and open approach. Let us hope that it stays like that once their businesses has grown even larger than today.
© 2007 Inger Nilsson. ArticleNorth.com. All Rights Reserved.
I also found another report by the same guys, as well on Google, where they describe their system in a 21 page compressed explanation Here.
Click Here to get Free access to all of the above videos at their PipelineProfits Blog
Download 10 Mp3 recordings of the videos to your own computer, and listen to whenever you have time:
Installing Apple's Quicktime player plug-in will allow you to listen to the free MP3 downloads on this page. You can download a free version of Quicktime to your computer at this web site: Here
Interview with Buck and Brock on how it all started
Presentaion of Pipeline Profits by Buck and Brock
More Info from Buck and Brock...
'Amazing Conversion Secrets' Video: 'Amazing Conversion Secrets', 42 min videocall Here
Supplement Millions Q & A Teleseminar Confirmation. Click on the following link to:
Get Buck Rizvi's FREE Trial of the Ultimate Colon Cleanse Here
Video 1
Supplement Millions LIVE Intro
Video 2
Supplement Millions Live Preflight - Market research
Video 3
Supplement Millions LIVE Pre-flight - Product Research
Straight from the "factory" Buck wrote:
"... 25 minutes 30 seconds of video fresh from our Supplement Millions LIVE seminar.
Here's just a sample of what you'll discover:
* One of the best tools for confirming there's a massive market for your health & wellness product...BEFORE you spend a penny producing it.
* 5 HOT supplement ideas with millions of targeted prospects you can access right away.
* How to deal with competition...and how to make DEALS with the competition."
Watch the first video below:
Supplement Millions LIVE Video 1
"... Brock is really my Hero... " (Buck Rizvi) Find out why in the below video:
Supplement Millions LIVE Video 2
Supplement Millions LIVE Video 3
MP3 Recording to Download of Most Burning Questions: Installing Apple's Quicktime player plug-in will allow you to listen to the mp3 downloads on this page. You can download a free version of Quicktime to your computer at the following web page Here CPA Networks for starting Your Online Business DirectTrack Product Sourcing and Tips: Click on the below image for a FREE video presentation and invaluable product sourcing info for the best and most reliable wholesale, private label, reseller and dropshipping companies on the Internet. How do I know this? Listen to and read about their references and information:
An excellent complementary is Tim Ferriss' book "The 4-Hour Workweek" to the left - and I am not just saying that. I have read it several times- and am implementing it myself. Especially useful if you are a thinking about selling your own product and/or use dropshipping. The traffic tactics that is presented on this webpage can seem somewhat intimidating if you have no, or little clues on where to start. Look especially at chapter 11 (p.182-203) Income Autopilot III: MBA-Management By Absense, in the "4-Hour Workweek", where Tim Ferriss among other things gives you the complete blueprint and map of the architecture with numericals etc. of his own business. Check it out! Click on the image to the left. It is a must read for anyone who is serious about building a homebased business and outsourcing most of it (for as little as $5/hr). Why outsource your business, you may ask? It is if you want to reduce your own work to a minimum and earn the most. Timothy Ferriss went from working 80 hrs a week for a large company, earning $40,000/year, to working 4 hrs per week and earning $40,000+ (up to $100,000 with his own product) per month with his own company. This guy went to Princeton - one can also sense that he is smart - BUT, do not judge him for that, he writes a very easy to follow, straight to the point "recipe" with case studies, a complete blueprint, charts, etc. It is also a book full of personally related anecdotes and funny stories from his own unusual, extraordinary life and lifestyle, which he calls the NR (New Rich). He means that this lifestyle is acheivable for anyone and the whole book is a proof of that assumption. It is truly a great read and I highly recommend it. Timothy Ferris uses his own product - BUT you do not need your own product for setting up his business model. You can use drop-shpping for someone else's product, which means that when an order is placed for your offer by a customer, the order is sent to you. The customer pay you the price that you are charging for the product. Then you email the manufacturer who charge you his wholesale price, and you keep the difference. You have to have your own business entity registered for this kind of operation (for example Sole Proprietorships, LLC or Inc. etc.). You can also act as a reseller for someone else's product. The earnings will be higher if you use drop-shipping and/or act as a reseller, compared to if you are an ordinary affiliate. If you use CPA networks as a publisher, or an affiliate as we usually call it, and get paid per lead generated, you do not have to use drop-shipping etc. With Dropship and/or as a reseller, your earnings are greater though. You need to register with your business entity or SSN to be accepted as an affiliate or publisher with the CPA networks. The figures in the above videos all depends on the conversion rates of the offer (this asks for you to carefully test your ads before you launch them); the margins of your earnings/offer; the quality of the leads; the quality of the ads, and on how well you have tested and optimized your ads before you launch the campaigns. Please do not be mislead by numbers of earnings alone. Look at all the numbers and compare them carefully against each other. Also consider all the small "invisible" expenses if you just start out with your own product or as a reseller. Costs like fullfillment houses, credit card processing, shipping, call centers, product manufacturing, returns + declined cards. These invisible expenses can be anything between $15-35/ order, depending on your product, what the price of the product is. The advantage of using dropshipping compared to if you are a reseller of a product, is that with dropshipping you do not have to deal with fullfillment costs and all the other costs involved when you are a reseller. Being an affiliate/publisher is the 4th best alternative moneywise. Dropshipping is the 3rd best. The 2nd best from the money side is being a reseller, and the best is your own product (licensed or/and manufactured) (this is also well covered by Timothy Ferris in his book book "The 4-Hour Workweek, (see the above info). To learn about drop-shipping and/or starting you online business either with drop-shipping or as a reseller, I also recommend you to download the ebook "Starting Your Internet Business Right" by Chris Malta, above (to the left). This ebook is also good for starting any kind of Internet business. It is a no nonsense ebook, easy to read, where he lay out the entire foundation for your online business in a nutshell. It is free of charge. Click on the image above to the left. Another Tip: How To Find Products To Sell Online They also have a ton of free videos, audios, and ebooks for you to download. Take a look and let me know what you think. Click on the link above or on the image to the left New Feature Researched Coregistration Resources + Bonus Below you will find 8 quality Coreg Companies that we have looked into and researched as far as it is possible from the outside of the sites. The links below are in no way affiliated with our website or do not have any connection of any kind with this web page. It is just their regular URL addresses. You will also get a special Bonus for visiting this web page. It has been my pleasure to have you visit ArticleNorth.com, and/or its associated web pages, and hopefully you have enjoyed your stay. The bonus you will get comes with no strings and no charge and is a cutting-edge fantastic Directory Submitter of a $247 value. Just send an email for the download link. However, if you do Not want to email us for the download link, you can Skype us at "ingernagge" and leave a textmessage, and we will get back to you as soon as possible with a link to download the software. Please do Not try to contact us via Skype telephone, we only take text messages. You can download Skype for free Here. Read below for more information on the Directory Submitter. Bonus The Directory Submitter you are getting Is SUPERIOR To Every Other Directory Submitter On The Net! This Directory Submitter is not limited... in depth or scope. It's created to use for fully unlimited postings to as many directories as you want. It has a built in quick method of filtering out pages below any specific pagerank (example, return only directory submission pages with pr5 or higher).
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The following link is a mp3 recording that you can download to your computer of The Most Burning Questions about costs and earnings of setting up a nutritional supplements business. Buck and Brock answers the most frequent questions that have been posted on their blog. Right click your mouse and click on the "open" or the "save as" button. You can download this recording to your own computer, and listen to it whenever you have time:
as an Affiliate/Publisher or Advertiser:
CPAEmpire
ClickBooth
PrimaryAds
AzoogleAds
HydraMedia
TrafficNeeds
AdReporting
Netmargin
OfferWeb
RevenueLoop
FluxAds
xy7
LevelClick
LeadFlash
IncentaClick
EMarketMakers
OfferFusion
RevenueGateway
LinkShare
ShareaSale
CommissionJunction
RexTopia
TheBizOPPNetwork
WebSponsers
DirectTrack currently powers more affiliate programs and affiliate networks than any other technology in the world. An intuitive, turn-key ASP platform, DirectTrack can easily be private labeled and tailored to meet your online marketing strategy. For access to this website, click Here
If you are interested in finding a genuine database of true manufacturers (who doesn't charge you a monthly fee) - from which you will be able to find trustworthy drop-shipping or wholesale companies and products, you've got to check out The Products Sourcing Experts. They'll show you where a lot of the top eBay sellers, Yahoo & Amazon store owners get their wholesale & drop ship products.
Product Sourcing Radio hosted by Chris Malta and Robin Cowie Live RSS Transcript Feed: Here
