Double Your Income with the Rule of 72

{ Posted on Jan 08 2009 by adventurebear }
Categories : Affiliate Marketing, BANS, Organization, Self Actualization

I recently learned how to apply the “Rule of 72″ to my internet marketing efforts.

The rule of 72 is a quick equation used to determine the doubling time of investments. IN other words, if you had a savings account at 5% interest, how many years would it take to double your money?

Divide 72 by 5(%) to get 14…14 years to double your investment at 5% interest.

The rule can be manipulated several ways. I have not checked the math on this, but recently learned how to apply this to marketing to double your income in a year from your current projects.

First determine the number of different factors that lead to your income. In my case, I used this list for my Build a Niche Store sites:

Number of sites
Number of unique articles on each site
Numbef of backlinks from article directories
Number of backlinks from blogs

So that’s 4 factors, and some of them are interrelated, but all of them are needed in order to continue getting traffic and profits.

Now you take 72 and divide it by 4 to get 18%. If I make an 18% improvement in each area, I should double my profits in the next year.

I currently have 7 sites making money on Build a Niche Store…18% is less than 2 sites. So in the next year (probably next month), I plan to put up 2 additional Build a Niche Store sites

I went through each site adn determined how many unique articles I had posted ON the site. Guess what? Only about 3 per site! I tend to get bored and move on to the next one. So…18% of 3 is way less than 1, so just 1 new article per site will get me toward my goal…that’s pretty easy.

Same story with backlinks and blogs…just calculate 18% (or whatever %age you came up with) of your current efforts adn make a plan to implement those changes.

Can I make those changes in 1 month instead of over 1 year? Sure can!

I’m not a financial math wizard, but hopefully you can see from tehse examples that it’s not too hard to DOUBLE your business by planning ahead and making small improvements across your marketing efforts.

So today I took some success focused action, posted 2 articles to ezines, put a new page of unique content on one of my sites, created a “store” page with that kewywrd and interlinked them all. EZines doesn’t seem to have a problem sending traffic to a BANS content page, only to a thin bans front page or store page.

You can apply these prinicipals to ANY model of affiliate income…

So what are YOU planning to do?

Popularity: 78% [?]

This entry was posted on Thursday, January 8th, 2009 at 12:17 pm and is filed under Affiliate Marketing, BANS, Organization, Self Actualization. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


9 Responses to “Double Your Income with the Rule of 72”

  1. By scienceofidentityfoundation on Jan 28, 2009 | Reply

    I am planning to use the rule of 72 :) thanks for this

  2. By CigArest on Feb 20, 2009 | Reply

    And I was using the 80/20 rule… 72 sounds much better, appreciate the article.

  3. By Jobs For Writers- Make $200-$300 Daily on Feb 25, 2009 | Reply

    The biggest is the number sites. This is why software like Easy blogger creator is popular because you can make multiple websites and upload post to them for more traffic. Right now, I am focusing on the backlinks portion. I know for new backlinks, I can receive at least 10 unique visitors from the search engines alone.

  4. By Christina the wealthy affiliate on Mar 15, 2009 | Reply

    Hmmm…your calculation and analysis is worth trying. Thanks. That’s so unselfish of you. Keep it up!!

  5. By CB - Marketing made easy on Mar 30, 2009 | Reply

    Wow, you almost fried my brain there, but I checked it out and it adds up. Cool.

    Great tip. Really opens up your mind to what’s possible.

    Thanks.

  6. By Kim Adair on Apr 26, 2009 | Reply

    I like the 80/20 rule as stated above.

  7. By Michael Helton on Apr 29, 2009 | Reply

    I stumbled on your blog here and after reading your post I have to say your thinking like a true analyst. Sometimes we need to see this information and the path used to arrive there.

    Good job.

    Thanks

  8. By hanji on May 3, 2009 | Reply

    Hello

    This is a great gauge to determine the ‘double’. I’ll be applying this. Nice tip!

    hanji

  9. By Definition of health on Jul 28, 2009 | Reply

    ya I understand the doubling effect using the Rule of 72. But is there a way to easily add contributions to the mix?
    For instance, I have a $1000 dollars at 12%. I know this amount will double in about 6 years. But how much faster will it double if I add an extra $100 per year?

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