Can You Give Stuff Away And Make Money?
Ok I’m sure many of you have already heard about Super Internet Marketing Guru Mike Filsaimes latest product launch, Butterfly Marketing 2.0
Don’t worry this isn’t a salespitch about it 
I’m not promoting it.
For those that don’t know Mike is giving away the latest version of his highly popular membership site script and a bunch of other stuff for free. He only has 5000 of these packages to send out and he only wants you to pay the shipping and handling charges (about $30).
Butterfly Marketing 1.0 sold over $1.0 million in just 7 days so why on earth would Mike want to giveaway the new incarnation of it for free?
Has he completely lost his marbles? Will Mike make any money? Will Sheriff Woody make it to the mine in time to save Jessy?
The answers are, No, Yes and Yes.
Here’s the deal with Mikes product.
In order to get it all for free you have to subscribe to Mikes newsletter ($39.95 a month). However you can cancel at any time (and I’m sure a few will just as soon as they get the script package at their front door).
Mike is banking on the fact that most people won’t cancel, at least not straight away. So lets look at a few figures . . .
Mike has 5000 of these packages to give away. He wants $30 to send it to you. Has Mike spent $150,000 getting these packages made? Nope, I think he mentions he’s spent $75,000 having them made up. Nice one Mike that’s $75K in the bank.
Ok so from those 5000 that are lucky enough to get the free script let’s say that 200 cancel before the first payment for the newsletter.
So month one Mike will get 4800 x $39.95 = $191,760
Month Two (let’s says a few more have unsubscribed) and Mike gets 4500 x $39.95 = $179,775
Now let’s say that by Month Six Mike has 3000 subscribers, 3000 x $39.95 = $119,850
Hey these are nice monthly figures but Mike made 1 million plus over just seven days last time. . . .
Mike isn’t worried 
There are about 1 million people going to be clammering after a free copy of BM 2.0 but there’s only 5000.
That’s going to leave 995,000 unhappy bunnies. Lets say 0.1% decide to buy a copy instead (Mike’s will be selling the package for $1997).
995 x $1997 = $1,987,015.00
Kerching!
What if 1% buy the package?
Not only that but Mike still has $100K per month coming in for as long as he writes his newsletter.
Yes he has his commissions to pay out at 50% but 50 grand a month shouldn’t be sniffed at lol
This method of marketing is called forced continuity. Give away a high perceived value product in return for a monthly recurring income.
Can it be done outside of the ‘Internet Marketing’ niche?
Yes I’m pretty sure it happens in many, many niches.
If you’d like to learn more about it (and who wouldn’t for those sort of returns) then:
- Study Mikes launch and learn as much as you can.
- Grab this 98 page ebook here.
Your comments are most welcome!
Richard
It is my opinion that Mike does very well with everything he does. This gentleman seems to be well respected in the area of Internet marketing and that is great. However I find that some of the things that Mike has put out there don’t work very well for me…I am beginning to think that the problem is mine.
When I first started to work in internet marketing ‘They’ said that safe lists were great now it has come to my attention through a trusted successful acquaintance of mine that says you shouldn’t use safe lists and that surfing is not very successful. So I will have to revamp some of the things I am doing. I will have to really take a good look at some of the things that Mike as well as other ‘gurus’ have said would help me such as ‘don’t-touch-my-ads’. They simply have not. So I am going to rethink a lot of my opinions, what I use, and and how I use these things.
My reason for this shift in gears is mainly so that I can stop expecting to become a multi millionaire with the next thing be it from Mike or someone else and simply make a nice little profit from my endeavors.
Hi Ruth,
I think a lot of internet marketers can relate to your post, both new and seasoned. Instead of trying to make 10,000 dollars overnight try to make $10. Then go for $10 a day. Then try to double that to $20 and so on.
With regards to Butterfly Marketing 2.0 I think if you can afford it then go for it. It is a great script that will help to build your list and bring in profits. You still need to have a idea for what site you want to build with it though.
John Thornhill is showing all his subscribers his BM sites one by one over at http://www.bmsecrets.com/videos/bm1/
You’ll be able to see what it can really do.
Richard