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Decrypt the 1:3 wealth formula:E-commerceProjectProduction ratioHow to calculate to make money?
E-commerce entrepreneurs (entrepreneurs) worry about whether money investment can generate corresponding returns?
But anyway, most SMEs want to doWeb Promotion, invest 1 USD in exchange for 3 USD, 5 USD or more.
- I hope that the advertising that spreads all over the sky will become a precise target.Wechat marketingad.
- In order to achieve the goal of "every bullet can destroy the enemy".
- Only then doPublic account promotionThe cost of advertising is "putting your money where your mouth is".
What does project production ratio mean?
The production ratio of an e-commerce project is the calculation of the input-output ratio.
Input-output ratio, also known as return on investment.
Input-output ratio abbreviation
- Return on Investment Abbreviation: ROI.
- The full name of the return on investment in English: Return On Investment.
Why calculate the input-output ratio?
- When a large number of investment decision-making bodies and decision makers use the "input-output ratio", its meaning should be understood as "the ratio of project input funds to output funds".
- That is, how many units of capital can be produced by investing 1 unit of capital into the project.
- This number is usually expressed in the form of "1:N", the larger the value of N, the better the economic effect.
What is the input-output ratio, is it a normal and reasonable profit without loss?
Although the "input-output ratio" is a static indicator, there is a one-to-one correspondence between the input-output ratio and the internal rate of return when determining the project construction period and operating life.
- Therefore, referring to the benchmark internal rate of return, it can be used to estimate the input-output ratio of the benchmark.
The benchmark input-output ratio is 1:3
- "Benchmark" Explanation: It generally refers to the basic standard.
- Small projects may be slightly lower;
- Larger projects may be slightly higher.
a lot ofSmall trade和new mediaEveryone wants to know: what is wasted "half the ad"?
In fact, no one has found the answer to this question after nearly a hundred years of exploration...
But someone uses this "computation formula for production ratio" to decipher this question and answer.
The answer is:
Production ratio calculation formula 1: 3
If you've read a book, "12 Months of a Millionaire," Vincent, the author of that book, is his only book.
- Vincent was a student of Jaya Braham.
- His annual income before the age of 30 exceeds the combined income of several chief executives.
- Just relying on a pen, a piece of paper and a bottle of medicine can help 28-year-old Vincent earn $2 million in 1 years.
In fact, Vincent's method is simple and effective.
As long as you learn to think, you can use it immediately and become as powerful as Vincentperson!
A case of making money with the conversion thinking of the production ratio
How does Vincent do this?
The core idea is two words - conversion.
- This is the formula of wealth he found through testing—— 1:3
How does Vincent test?
- He first bought 9000 lists of similar products that he had purchased, and divided them into three groups of 3000 items each.
- Calculate the cost per letter is $0.6, 3000 is the cost of $1800.
- There must be 30 orders to break even.
Then wrote three different promotionsCopywritingLetters, 3000 copies were issued:
- First batch of 10 orders, lose money
- The second batch of 15 orders, lost money
- The third batch of 30 orders, flat
Then, put the 3rd batchemail marketingThe copy is further optimized and sent at scale, with an average response rate of 2%.
Repeat purchases (lifetime value) were calculated and found that each customer purchased an average of 4.4 bottles over a six-month period.
After deducting costs in this way, each client pays him $180 for six months.
Calculate the input to output ratio:
- 1000 letters 20 x 180 = $3600 – cost $600
- Get 1000 letters and earn $3000.
- In other words, the calculation result of the production ratio:You will earn $3 for every letter you send.
- This is the wealth formula that the conversion produces: the 1:3 profit formula.
Calculate the production ratio, and wealth will soar
This formula is mathematically uncertain, and only those who have done the calculation of the production ratio can know the mystery:
- This will be easy to follow once the commissioning ratio is calculated;
- After a lot of copying, your wealth will skyrocket!
Summarize how to calculate the production ratio of e-commerce projects
Input-output ratio:
- Return On Investment
Total transaction amount:
- Promotions
- user experience
Total cost:
- SEOflow
- Advertising
Production ratio = transaction ÷ cost
- The essence of "conversion thinking" is to calculate the "production ratio (input-output ratio)"
- Input-output ratio, also known as return on investment, English abbreviation ROI
- It is the money you make by doing something, divided by the money you put in.
- The higher the input-output ratio, the more money you make.
For example, the wealth formula of this conversion thinking (production ratio):
- Input-output ratio = present value of investment project income ÷ project investment × 100%
- 600 ÷ 200 x 100% = 3
Creating wealth is a process from 0 to 100:
- Going from 0 to 1 is the hardest.
- Once you convert your wealth formula to 1:3
- After that it is very easy to go from 1 to 100.
After reading the above, do you understandWhat does project production ratio mean?Yet?
How to calculate the production ratio of e-commerce to be qualified without loss, have you figured it out?
How to improve the input-output ratio?
So, how to improve the input-output ratio (ROI)?
- One of the methods:Improving the conversion rate of copywriting can improve the production ratio.
What if the production ratio is too low?The following methods can help you increase your conversion rate▼
If you don't know how to calculate the conversion rate of e-commerce orders, please click the following link to view ▼
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