4 Income Streams in Every Business
What is your plan for multiple streams of income from your business? What is your lead item? This is the item you sell first to most of your visitors.
It’s the irresistible offer you create to turn prospects and free subscribers into customers. It’s the item you’re selling right after someone subscribes to your list…and the item you offer the highest commission rates to your affiliates to promote. Most people think of this item as their business, but it’s not. It’s simply your lead item…your big upfront seller.
What are your bread and butter income streams? These might be your normal products and services. These are the ones you sell continually and offer in your autoresponder messages after someone buys your first product. I consider my multimedia courses part of this option. What do you offer for your bread and butter income stream?
What do you offer for a continuity income? This is something that people pay for monthly. It could be something you personally offer such as a monthly service or a membership site. It could also be an affiliate program you’re a part of which pays monthly commissions whenever you refer clients. I always try to work in some type of continuity income into every business I deal with.
What is your high ticket product or service? This is a product or service with a high margin that earns a great income for your business. You don’t have to sell a lot of these to earn a good income from them. For a business that sells books for $20, they might sell a distributorship for $997 at some point. They might not sell a lot of these, but it takes 50 book sales to equal the same level of income.
A lot of authors miss this, but the big income from most authors comes from the backend. Go through a list of business books you have, and you’ll notice the authors providing very high ticket backend items such as seminars, coaching, copywriting, etc. What is your slack adjustor?
Who can you affiliate with or joint venture with for additional income streams? Find other products and services your clients want, and offer them through others for a share of the profits. This brings us back to making sure anything you offer is top quality and something you want to stand behind. Who offers something that you know your clients will love? Answer that question first. Then find a way to get the deal done.
One more question you should be asking yourself is how can you add upsells and additional offers to what you’re currently offering? Let’s say you have a product that sells for $197. What can you put together to offer for $47 or $97 as a potential upsell to that product?
If you’re not currently offering an upsell, you must find a way to do so. It will increase your income dramatically without costing you any sales. These upsells can be offered right from your shopping cart or as a basic and deluxe option on your main sales page. It’s your choice, but find a way to add upsells to what you’re doing.
How Else Can You Package What You’re Offering?
A lot of people give me a blank stare when I start talking about multiple streams of income in their business. They say they only have this one product. They have no idea how to add more products or services to their mix.
Let me clarify this a little bit. It’s possible to earn an income from one product or service, but you’ll never earn the kind of money you really want from just that one item. You have to find ways to expand your product offerings to build a real solid business.
If you’re in the information business, you can copy some of what I talked about. You might have an ebook right now. Well who could you interview about the subject to create CDs? Could you show me how to do it by producing a DVD?
What if I want to talk to someone about it? Could you offer a series of group coaching calls? What about a seminar, conference, or workshop? Could you teach me there? Could you offer one-on-one support if that’s what I want to pay for? Think about all the different types of learning formats people use. How can you offer something that would fit all your possible clients?
A physical product business such as someone selling toys would be even easier. You’re obviously not going to build a strong business with only one toy in your store. You’ll offer other options. You’ll offer different types of toys. You might offer 20 different versions of the same toy.
The biggest problem you’ll have is figuring out your continuity income and your high ticket income. Your continuity income might be some type of “club” you create where the newest, most exciting toy is automatically shipped for a discount price to all club members. The high ticket income might be the “Platinum” collector’s version the toy company puts out.
Let’s take one that would be considered “hard” for this example. What about a local service business such as an accountant? They are selling accounting services.
How could they put multiple streams of income into their business? They could create a tax tips CD they sell, or they could turn it into a monthly continuity program where they mail it out. They could also offer their individual services. Or they could create a package of multiple services. You could put them on retainer for monthly income.
They could also have a high ticket service where they come and work at your office to help you reorganize your entire bookkeeping system.
No matter what business you’re in, you can find a way to apply these rules to what you’re doing. They’re the key to earning a great income from your business and from your lists (your free, customer, and segmented lists).
5 Questions to Ask Yourself
1. What is your lead generating item to turn prospects into customers at a low cost?
2. What are your “bread-and-butter” income streams that produce a majority of your company profits?
3. What do you offer that can produce a continuity income for you (consistent monthly profits)?
4. What is your high ticket product or service with high margins?
5. What else do your clients want that you don’t currently provide…that you could affiliate or JV for?
The above article and questions come directly from Email Marketing Mastery. This is just a short excerpt from one of the sections. The entire course will teach you how to build an opt-in email list, grow your relationship with that list, and turn it into income month after month in your business. If you haven’t already purchased your copy, make sure to pick it up today…Related Entries:
- Continuity is King
- Price Point Strategy
- 10 Tips to Earn More Affiliate Income
- Easy Profit Increase
- Sell High Ticket Items For Big Profits