The straight answer is YES. It does work but not in the way that a lot of people try to make you think.

If you think that you can put an advert in a newsletter or ezine and sit back and watch the orders and the money come rolling in, you are in for a bitter disappointment. It just does not work like that.

Purchasing an advert is just the same as purchasing any other business commodity. You purchase it in the expectation of making a profit.

In business you can’t expect to purchase goods for $20.00 and then resell them for $2020.00 that kind of mark-up just does not exist in the real world. Why do people think that they should get that type of profit from an advert?

Answer: Because of all the hype surrounding the advertising business. If you are told something often enough, you are inclined to start to believe it. The trouble is that the people putting out all this hype have started to believe it themselves.

Let us look at it logically. It is all about percentages. An ezine has a certain number of readers. A percentage of them will read your advert. A smaller percentage will reply to your advert and another smaller percent will buy your product.

Now let’s look at it in numbers. We decide to place an advert in an ezine that has 20,000 names and addresses on its list. A small percentage, perhaps 5% will not even read the newsletter. For one reason or another they will just delete it without even opening it. That leaves us with 19000 readers.

A large percentage will skim through your ad’ but will not be interested in what you are saying at that time. Perhaps 85%. That leaves us with just 2850 members of the list who are interested in your offer. If your offer is a good one, about 10% of these will be interested enough to click on your link to learn more about you and what benefit they will receive by accepting your offer. That leaves 285 readers.

Perhaps 1% of these will accept your offer and make a purchase. How many actual sales can we expect from this mythical list of 20,000 names? Answer: 2.85. Let’s round it up to 3 people who actually purchase your product.

If the advert cost you $25.00 and you are selling something like an e-book valued at $29.99, You have a return of $89.97 from an outlay of $25.00 leaving you with a profit of $64.97. You have made a profit of over two and a half times the cost of the advert. 250% is not a bad mark up.

As I said earlier, it is all about numbers and percentages.

What I have just described is an actual scenario of an advert that I placed a week or two ago. It was in a ‘top spot’ ad’ at the top of the page that cost me $25.00. The only difference is that I was selling an item valued at $39.99 and I made two sales. A mark up of well over 200%

With a less expensive item you may make more sales from your advert but don’t expect to have thousands of potential customers pounding on your door desperately wanting to buy.

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