How To Maximize Profit From Every Product You Create
In 2007 I launched a program called Blog Mastermind, which as far as I could tell at the time, was the first blog training program created by someone who had a profitable blog.
Of course there were many other bloggers out there at the time who made money blogging – many who made more than I did – but most weren’t in the business of teaching how to do Internet marketing. They focused on creating content to feed their hungry audience in whatever niche they targeted, monetizing with methods like advertising and selling affiliate products.
Even those bloggers who where focused on teaching others how to make money online, hadn’t adopted the idea of creating a products or even building email lists. Everything was about earning more from AdSense, or how to increase your pageviews so you could charge more for advertising.
In my case I had spent the previous two years studying the work of Internet marketers, who didn’t blog, but instead used landing pages to build email lists and then drive that traffic to sales pages to sell products. Up to that point I was like every other blogger, making a solid almost-full time income thanks to sponsors and promoting affiliate products like ebooks, DVD courses and live workshops.
I won’t go into detail about what happened after I released my own product as that story is well accounted for in my free report – The Membership Site Masterplan – and in the video on my Membership Site Mastermind sales page, so check out those two resources if you want the details.
In short, creating Blog Mastermind and doing a full launch campaign for it, changed my life because it pushed my income above six figures for the first time.
The Lifecycle Of An Information Product
Horizontal Or Vertical Business Models: Which Is Right For You?
I recently received this unsolicited email from Craig Shinney (slightly edited to protect identities) –
I just wanted to write to tell you that about one year ago, I started getting into Internet marketing and experimenting with all sorts of different methods of the various types of blogs and tools that all the different marketers recommend. It was an amazing journey.
The reason I’m writing is to say that you were the first “expert” to catch my attention. I read through your archives almost religiously before branching out to other marketers. After putting up a bunch of crappy websites (that did in fact make me some money), I have since completely abandoned reading anything by those other marketers and have remained a faithful reader of your blog.
I’ve since come to the conclusion that it’s all about creating quality content, as you instruct your readers to do, not “trick” your visitors into buying something you’re not at all an expert on, written by Filipinos who can’t even use proper English.
Obviously Craig is generalizing when he talks about Filipinos, as there are no doubt plenty who can use proper English and are subject matter experts. The point he’s making is that many marketers teach a business model that relies on using outsourcers, who often don’t have English as a first language, to create ebooks and other information products, which are then sold online using clever marketing.
The quality of these information products is sometime suspect, yet with the right marketing process, including some good copywriting, sales will come.
There’s nothing inherently wrong about this model. You find a need in the market, then use other people to create products to meet that need. Your job is to wear the marketer’s hat, do the research, find demand then put the pieces together to serve that demand, then rinse and repeat.
I call this a horizontal business model because instead of going deep in just one industry, the strategy is to move from market to market, creating websites and products to sell to unrelated industries until you have a small army of small income streams. If each website you set up can make $200 a month in profit, then you only need ten or twenty successful implementations of this system to reach “quit your job” money.
This model has proven very successful for many people and is taught in various forms as an entry strategy into the world of Internet marketing.
I’ve promoted many courses that teach a version of this system, with the most successful from my point of view being Nice Profit Classroom. If you want a much more detailed breakdown of this strategy, check out my interview with Adam Short, the creator of Niche Profit Classroom.
Why I Chose To Go Vertical
Industry Shift: What The Armada Music Label Can Teach Us About New Media Marketing
You may not know this about me (unless you follow me on Twitter where I tweet music video clips from time to time), but I’m a huge fan of the progressive and vocal trance scene. That’s dance music for the uninitiated, although the genre of dance is massive in terms of all the categories and sub-categories, which includes genres like techno and rave music, which you might be familiar with.
In the case of trance music, the leading DJ, at least in terms of a popular vote run by DJ Mag, is Armin Van Buuren. Armin has been number one for three years running and as DJs and trance producers go, he’s about as prolific and talented as they come. I’m a fan, that’s for sure.
One of the things I enjoy often late at night when I’m in the mood for music is to trawl around YouTube watching video clips of the latest and classic trance tracks. There’s an absolute library of great music in YouTube, and of course it’s all free.
Armin Van Buuren is not only the number one DJ, he is also co-founder of a music label called Armada Music. One of the very smart things I’ve noticed Armada is doing is making heavy use of YouTube as a marketing channel.
At least 50% of the tracks I listen to on YouTube come from Armada, especially if I follow a music trail going from one track to the next following the “similar video” recommendations provided by the YouTube algorithm.
Watching Armada use YouTube is interesting, because the music is free, but obviously the company makes money. I believe Armada, and labels like them, are pioneers in adopting new media, rather than fighting it. There’s a lesson in this case study for any of us who want to leverage the web for exposure of creative output, even if their is a profit motivation behind it.
The Profit Model For Music Has Changed
How To Find Focus When Drowning In Opportunity
It was post-lunch, and I was sitting on my couch trying to find my productive energy, with the air-conditioning on during a particularly hot Australian summer day (35 Celsius to be exact). Sitting opposite me was Gideon Shalwick, my partner in crime in the Become A Blogger Premium program, equally struggling to find his mojo due to the combination of a full belly and a hot day.
We had come together to discuss our next big project – a live event to be held in Australia during the first half of 2010. However our conversation managed to balloon beyond our initial subject limitation and we were jumping from topic to topic, with each new issue opening up something else.
As the afternoon progressed it became clear that we weren’t going to reach any specific conclusions that day, although the discussion was certainly helpful.
As Gideon pointed out, decisions made now, will impact where you will be in six months. The start of a new year is a particularly important time as most people start new projects, or begin new phases in the development of their business.
In our case we’ve reached transition points, where we face a huge array of opportunities. Gideon and I don’t face the same decisions on all levels since our personal lives are different, as are the stages of development of our businesses. Since we share projects, some of the decisions we make must be made together, and when that happens, we need an extra level of clarity because what we do impacts not just ourselves.
It’s easy to change things when it’s only you in charge, but when you are in a partnership, each shift requires involvement of your partner, or you risk creating confusion and even conflict (read of this article on partnerships for more on these kinds of issues: Is A Partnership Right For You?).
Many of the new opportunities open to us, such as the live event, are projects that we have very little experience with. We’ve attended live events before of course, but never hosted one ourselves, hence we’re wary of what we don’t know that we need to know and prepare for.
Making the decision process even more complicated are the existing projects we have, which could be optimized and expanded, if we choose to follow that path.
To put it simply, this isn’t a simple decision. There are many interrelated issues, conditions and decisions that have an impact on other decisions.
Normally I pick one major project and focus most of my “new creation” energy there, while working to keep the regular processes, like blog articles and email content flowing as usual, but this time it’s challenging because all my new opportunities really are new.
In my case I already made the decision to launch a private coaching program, and if you’re already one of my paying members you should have received an email with a link to the invitation page to check it out. If it doesn’t sell out to my private members, I’ll offer an invite to the public, so stay tuned for that.
The rest of my decision making for the next six months is still a work in progress. This is of course not the first time I’ve faced this kind of “problem” and it’s a very common one for entrepreneurs.
Even as you become more stable, develop cash flow and determine what projects are worth pursuing and what should be scrapped or avoided, it doesn’t make the decision making process any easier. In fact it usually becomes even more complicated, since success tends to open doors to new opportunities, and you always have the opportunity to improve on what’s already working.
So how can you find the answer to the too many opportunities problem, especially when you reach major transition points in your business life?
When Is The Right Time To Launch Your Product?
During the last coaching call I did with my members the question of when is the right time to launch your product online came up repeatedly from different people.
The question isn’t about timing in terms of day or night, or what day of the week, or time of the year you should launch, rather what conditions need to be in place to expect a successful opening campaign. Here’s what we’re talking about…
- How many subscribers do you need on your email list?
- How many RSS subscribers on your blog should you have?
- How many unique visitors to your websites do you need?
- How many affiliates do you need?
- How many sales should you expect given certain numbers?
All these questions and many more make up part of the answer to the overall question of when you can consider yourself ready to launch.
It is difficult for me to answer this question with anything concrete because every market is different. However I understand the need for ballpark figures and some sort of reassurance from someone who has launched before, especially if they are your coach and mentor.
What Are The Benchmarks?
Inside Membership Site Mastermind I alluded to the number of around 5,000 subscribers as a good target to aim for before launching, which ideally should be email subscribers if possible.
You can include RSS subscribers, Twitter followers, Facebook friends and fans too, but generally these contact points are less responsive and less targeted than email. Email subscribers, especially when they come through from a targeted incentive like a free report or email course, are more qualified, hence more likely to buy.
Another metric you can look at that is relevant is the open and click through rates of the emails you send. While it’s nice to have 10,000 email subscribers, in most cases you are lucky if 25% of them even open the emails you send. If you’re getting 10% or more of them clicking your links, you’re doing very well.
Given that opening an email is easier than clicking a link, which is easier than making a sale, you can see why it’s important you understand the reality behind the numbers you currently get.
If you don’t track the open and click through rates on your emails, you should start. Outside of this data you can look at unique visitors to your blog or website as another estimate of how much traffic you can expose to your offer, but understand knowing how many people read your blog content is difficult to correlate to how many people will buy from you.
