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Discover the Profit Models That Can
Dramatically Increase Your Income and Position Your Business for
*Massive* Growth
How would you like to seriously ramp up your profits and launch
your site to new levels of wealth online? You can... joining the
ranks of other successful Internet marketers who are making in excess
of $100,000... $500,000... even MILLIONS of dollars per year!
To start creating this kind of mind-boggling wealth online, you
just need to ask yourself one simple question: "How?"
Too many Internet marketers make the mistake of focusing on what
they're going to sell, instead of how they're going to make
money online. And the answer to how to generate massive
wealth on the Internet lies in choosing the right profit models.
That's why I want to look at some of the most straightforward ways
to make money on your site... and then dive into the more
advanced (and lesser-known) strategies that can catapult
your business to new revenue levels -- and create real wealth instead
of just "income."
The three basic models for generating
income on the Internet
Let's start at the beginning, with the basic ways you can get online
and start making money:
- Sell a product on your web site: Becoming an
online merchant and selling a product on your web site is by far
the most straightforward -- and obvious -- way to earn an income
online, which is why it's also the most common.
With this profit model, every time you make a sale you earn a
profit... and the more sales you make, the bigger your profits
grow. The key to success with this model is to sell as much product
as you can while maintaining a healthy profit margin.
- Sell a service on your web site: If you provide
a service rather than a physical product, you can absolutely make
money selling it online -- even if that service can only be delivered
offline (e.g., landscaping). Your web site will allow you to reach
a much wider audience and give prospective clients loads of information
about yourself, your experience, and the service that you offer.
And if you offer a service that can be delivered online (e.g.,
web design), so much the better -- you won't be limited by geography.
The main disadvantage of selling a service online is that your
income is limited by your ability to take on new clients and the
time it takes you to deliver the service. There are only so many
hours in the day!
- Generate leads from your web site: If you already
have an existing offline business, then you should act right away
to develop an online presence for it! Using your web site as a
way to drive traffic to your brick-and-mortar business is a great
way to expose your business to a broader audience and beef up
your offline sales.
The benefits of advertising online for your offline business is
that you can capture a much wider audience. More and more people
are first turning to the Internet to get information about a product,
service, or company -- and to help them make informed decisions
-- before going shopping offline. It's also much cheaper to advertise
online than it is to advertise offline!
In this profit model, your revenue comes from leading your site
visitors to your offline location.
You can definitely make money with any of these three models --
and they're an excellent starting point -- but if you want to get
fantastically wealthy, you need to have more than one way
to make money from your site.
Most web site owners focus on "transactional" income -- the income
from a one-time sale of a product or service. But the problem with
this type of model is that the relationship ends with the sale of
your product or service.
To really explode your profits -- and turn income into long-term
equity -- try adding more TYPES of income to your business...
ADVANCED PROFIT MODEL #1:
Rapidly multiply your profits with a "recurring" income source
An extremely powerful way to make serious money online is to sell
a product that will generate a steady stream of income
-- from every customer who purchases from you!
There are a number of powerful methods for incorporating recurring
revenue into your existing model...
- Generate "continuity" income: With
the continuity model, your income comes in pre-authorized payments
on a schedule for an ongoing exchange of goods and services.
Membership to a gym or a members-only web site falls under this
category. Once you create an initial interest in your product
or service, you'll have a nice ongoing revenue source.
- Create "renewable" income: Renewable
income is generated when your customers agree to repurchase your
product at a later, agreed-upon date. Here's why this type of
profit model is so powerful:
A subscription guarantees you income over an agreed period of
time. Plus, it's very often renewed when that time is up. If you
sell a monthly magazine, for example, a yearly subscription guarantees
the sale of every issue over a year... and if your subscription
item is valuable to your subscribers, there's a very good chance
that that the subscription will be renewed over and over again.
Do you see how this is more beneficial than the one-time sale
of a single product, service, or lead?
- Sell "refillable" products: Generate
an income source that will always be replenished by selling products
that need to be refilled at regular intervals (e.g., ink for a
printer, or vitamins). If you sell toner for photocopiers, for
example, your customers will need to buy more toner as long as
they want to continue using their photocopiers!
And as long as you can convince your customers to keep purchasing
their refills from your web site, you've got yourself
a nice source of recurring revenue -- without having to constantly
put in all the time and effort of acquiring first-time customers.
- Create an "ascension" income strategy:
This strategy (made famous by American Express) involves charging
for different levels of membership or "premium" programs. This
is an extremely effective way to ramp up your income for a couple
of reasons. For one thing, it rewards your best customers publicly
-- not only appealing to their ego, but also providing a basis
for a stronger relationship with those customers over time.
And the other major benefit is that you can capture sales from
people who, for whatever reason, are not ready to commit to a
higher-priced membership level. Maybe they aren't familiar with
your site, so they're understandably cautious about spending large
sums of money on your products or services. Offering a lower price
point lets these customers "test the waters" before diving in
to purchase your big-ticket items.
Once you've impressed these customers and they're sure of your
credibility, they'll be much more likely to upgrade to a higher-priced
membership level at a future date.
Can you see how, right off the bat, incorporating these strategies
provides a revenue stream that far exceeds the profits of a one-time
sale?
When you only sell one product or service, you always need to be
focusing on getting first-time sales if you want a steady income.
But if you can add a replenishable income source to your business,
those first-time sales become an ongoing source of increasing wealth!
ADVANCED PROFIT MODEL #2:
Increase the purchase value of first-time
customers... BEFORE they leave your site
Now let's look at a quick and easy way to immediately
increase your revenue from first-time customers by 20% to 30%...
It's called "upselling," and it's a highly
effective strategy of offering one or more products at the point
of sale that will enhance your customers' main purchases.
You've already convinced your customers to purchase
from you -- so it requires very little extra effort on your part!
And generally, once people have made the decision to
buy, they are much more receptive to other offers... if you catch
them while they're in a buying mood! In fact, our testing shows
that a whopping 30% to 55% of people will purchase a second
product!
However, in order for this strategy to be effective, you must make
sure that what you're offering is related to your main item. By
all means, offer some specialty tea if you're selling a tea pot
-- but don't try to sell tea to someone who's purchasing Mustang
motor parts!
As long as you offer something that's directly related
to your main item, you can easily -- and instantly -- increase your
revenue from that sale.
ADVANCED PROFIT MODEL #3:
Maximize the value of your existing customer base to skyrocket your
revenue
Remember: Your first-time customers always cost you the most. Instead
of spending all of your time, money, and energy drawing more first-time
visitors to your web site, devote more time to the relationships
you have already established with your current customer base!
Your current client base is a gold mine… In fact, "backend"
sales to your existing customers can increase your revenue
by 30% to 50%. That's why it's so important that you follow
up with everyone who purchases from you!
So how do you reach your existing client base?
One excellent follow-up strategy is to use automated sequential
offers to draw buyers back to your site. E-mail your customers after
the initial sale, thanking them for their order, asking them if
they have any questions... and offering a related product.
Another strategy is to use e-mail to to send new offers and special
promotions. You can target your e-mail communications
to customers based on their history with you.
For example, you can send a special promotion to all your first-time
customers. Or, you can send a "thank you" promotion to
your long-term repeat customers. In each e-mail, include an offer
for a product or service related to their initial purchase.
Not sure what you can offer as a backend item? Here are just a
few ideas:
- Offer a related product they're likely to be interested in
- Offer more of the same product
- Offer an upgrade to the initial product
- Offer a service that assists with the use of the product
- Offer a service to apply the product for them
- Offer information to improve the use of their product
- Offer other people's products for a commission
Make sure you time your offers for maximum success. Send out your
follow-up offers 3, 7, and 10 days after the initial purchase. These
are the times when new clients are most likely to make a SECOND
purchase.
If you're not following up with your customers, you are literally
leaving 30% to 50% of your revenue on the table!
ADVANCED PROFIT MODEL #4
Expand your reach on the 'Net, rocket up the search engines, and
generate massive revenue by starting an affiliate program
How would you like to improve your search engine rankings and exponentially
increase your reach on the 'Net -- and your revenue? Well, if you
start an affiliate program, you can do just that.
Developing an affiliate program is an incredibly powerful way to
market your product or service online. If you aren’t familiar
with how an affiliate program works, it involves allowing other
people to promote your products or services for you. And the best
part is that you don't have to pay them a penny unless they send
you a sale!
It’s not difficult to set up an affiliate program, and the
benefits of doing so are enormous:
- Your affiliates can send you a great deal of traffic.
Using banner ads, text links, and e-mail promotions, your affiliates
can send droves of people to your web site.
- Your site can skyrocket to a top ranking in the search
engines. Not only will you acquire a host of inbound
links from your affiliates, your content will spread to the far
reaches of the 'Net... resulting in a drastic rise in your search
engine rankings.
- You can reduce your advertising costs. Since
you'll have reams of highly motivated affiliates selling your
products for you, you won't have to spend money driving traffic
to your site.
The key to getting the most out of your affiliate program is to
attract the attention of highly motivated affiliates by offering
lots of incentive: generous commissions, and tools and resources
that will help them to succeed.
ADVANCED PROFIT MODEL #5:
Form strategic alliances with other businesses to ramp up your profits,
expand your skill set, and offer your customers high-quality products
and services
Forming partnerships and joint ventures with other businesses for
a share of profits is a great way to ramp up your income in a major
way. For one thing, when you combine your skills, products, services,
and resources with another business, you create new streams of revenue
and profit... and expand into new markets.
You also bring added value to your existing customers. The key
to getting the most out of a strategic alliance is to seek out products
or services that complement yours and will benefit your visitors,
and then approach the companies that provide those products or services.
Ask them if you can recommend their products or services on your
web site for a portion of the profits. Most companies will gladly
agree to this arrangement. After all, it’s no risk for them if they
have to pay you only when you refer a paying customer.
One of our clients, Bert Ingley of VGSportsInc.com,
has experienced huge success with this model.
Bert sells video game strategy eBooks, and he recently entered
into a lucrative joint-venture relationship with the company that
makes the video games many of his strategy eBooks are based on.
The video game company is going to advertise his strategy guides
on its site in exchange for a small cut of his profits.
It’s a win-win situation that’s going to generate a LOT of extra
revenue for Bert!
ADVANCED PROFIT MODEL #6:
The most profitable thing you can sell online...
All of these strategies are surefire ways of creating wealth online...
and now I'm going to tell you how you can increase your profit margins
even MORE in ALL of these revenue streams.
The most profitable thing you can sell online is INFORMATION! An
"information product" could take the form of a "how-to"
eBook, members-only resources, or even sofware.
Why are information products such a hot commodity?
- They're easy to create
- They cost nothing to reproduce
- They can be delivered instantly
- They can be set up to be delivered automatically
- Information is the #1 reason people come online!
Just think. It doesn't even cost you anything to ship or store...
In fact, once you have your information product, you can fully automate
the entire sales and delivery process using software like eBook
Pro and Mailloop.
Then, just sit back as the orders roll in, without you lifting
a finger!
Final Thoughts
Your business model is your lifeline to bigger profits
on the Internet. So by all means start out by selling a product
or a service, or by driving traffic to your offline store. But don't
stop there...
Take advantage of recurring income and think of
ways you can incorporate a refillable or renewable product into
your business to create a steady stream of profits.
Offer related "upsell" products at the time of an
initial purchase to increase the base price of your main product
or service.
And whatever you do, don't miss the opportunity
to generate up to a 50% increase in your revenue by following up
with your customers and getting those backend sales! Focus on building
strong relationships with them that will encourage MULTIPLE purchases
in the years to come.
Lastly, harness the power of selling information
online! Info products are a perfect fit for all of these business
models -- whether as your main product, an upsell product such as
an eBook, a follow-up product, or a renewable product. It's not
only the most profitable thing you can sell, you can also automate
the entire reproduction and delivery process... and literally walk
away!
Don't be afraid to mix it up. Create a diverse blend
of income streams that will add up to one MASSIVE revenue stream...
the kind that will keep growing and building wealth.
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