Do You Have a Product or a Business?
One of the most heard phrases for an internet marketing coach is, “I have this product, how do I sell it online?”
If that’s your attitude, you may find yourself in a difficult situation.
While it’s possible to make a very good living with only one product, you’re going to find it is getting harder and harder to do as the internet grows.
For example, let’s say you use Google Adwords for traffic. You will find some of the longtail phrases produce profits on the very first sale to a customer. Not too difficult to do this if you’re choosing the right terms.
BUT that’s only a small amount of the traffic you can generate. If you want to expand your business and advertise on the higher traffic terms it’s likely you will NOT make a profit on your first sale. You’re much more likely to simply break even or even lose a little of money on every new customer.
When you see competitors in many industries spending $2, $3, or more per click, how are they doing it?
They’re doing it because of the lifetime value of each customer. They don’t just have a product. They have a business.
This means they have immediate upsells. They have an email follow-up series to generate more income from their other products/services. Maybe they promote some affiliate products for additional income.
I know several very successful marketers who have their BREAK EVEN point from their Adwords advertising at 3+ months. This means their goal is to get people on a list. They sell multiple low cost products and promote a higher ticket item regularly to the list.
On average they don’t break even on each new subscriber for AT LEAST 3 months (one of them is pushing close to 9 months before he is profitable off his leads).
It’s easy to get spoiled with just the “easy terms.”
You might say, “Well I don’t spend money on my advertising. I just use free techniques.”
That’s fine. Hopefully it isn’t only you doing all the article writing, press releases, affiliate marketing, etc. Part of being a business means you’re outsourcing this work to others. And the moment you outsource…you’re now paying for your advertising. Those free articles are costing you money to have written and distributed.
What if you do all the work yourself? Well even then I hope you’re earning a good wage off your work. Everything has a cost…either in money or time. So nothing is really free when you’re looking at it this way.
That’s why I tell clients I never want to be in a business when I have to make a profit from my first sale to a customer.
The goal is to create a strong lead generation system:
1. Freebie offer to get people on list.
2. Low Cost Lead Generation Item Where You Overdeliver
3. Immediate Upsell Again to Try Earn Back the Money On Your Advertising
4. Follow-up Emails and Related Product Offers (your own or affiliate offers)
5. Mixing in high ticket or continuity related items.
As your business grows you may find you create SEVERAL of these types of systems (multiple lead offers and lists) which you then cross-sell the products and lists.
I always think at least a couple of products ahead. So while I’m writing an ebook for Life Coaches and Business Coaches I’ll be thinking about what comes next in the series for those customers. It may be a 6 week coaching eclass that I’m considering while creating the ebook. The ebook itself is simply a lead generator for what comes after it.
Some of my clients can tell you that I’ve looked at their product outlines and I’ve had them break up their outline into separate products they’re create. We create a beginner version to get people started and then we expand out into the other related products and services.
I know this may NOT be what you’re used to hearing. The “common wisdom” is to just create a product or grab an affiliate product. Promote it like crazy using free techniques (which don’t really exist because you spend time or money). And watch the dollars roll in.
The real truth about making money online is you choose a group of customers to serve. You look at all the competition…and figure out how you can serve customers better, quicker, and/or lower cost. Then you create a SERIES of products for that market or you create an initial product while promoting affiliate products in addition.
You’re building a business…instead of just a product.
If you’re interested in each and every step you need to build this profitable business online (without all the hype), check out The Truthprints which I did with Glenn & Sharon Livingston, Fred Gleeck, and Mr. D.
It’s unique because all 5 of us had ONE goal in mind…putting together a complete solution for you to run your internet information business. Each of us taught about some of our best subjects, but here is where we didn’t just break the mold. We obliterated it.
As each person was speaking, the rest of us took the role of your advocate. We asked questions. We interrogated the witness. Each of us made sure everything shared could be understood by beginners…AND applied to those already doing millions online.
That’s something you won’t find anywhere else.
Related Entries:- Price Point Strategy
- 3 Types of Websites…Which Ones Are Right for You?
- 5 Ways to Boost Profits Today
- Are You A Prolific Product Developer?
- Sell High Ticket Items For Big Profits
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Interesting, I like this post. I have an email list growing and put out a poll asking my readers what produce they’d like. A majority of them said eBook, and I was working hard on a members site, so thats a wake up call. Never sell your readers something they don’t want. Anyways, I’m just wondering if you have any posts on market research. Basically I need to know when and how to launch my product. Should I ask my readers what topic to write about? Or should I just write and launch and hope for the best?
Thanks,
– Parth
Hi Parth,
You definitely want to ask your subscribers (and even better any current buyers) what they want. I have a few past articles on research:
http://www.terrydean.org/jay-abraham-shares-his-amazon-secret/
http://www.terrydean.org/10-research-sites-you-should-bookmark/
http://www.terrydean.org/becoming-a-market-mind-reader/
Great insight, as always, Terry.
And thanks for saying the TRUTH. I always know it isn’t that easy to profit and retire. They make it as if using AdWords you can start now and profit tomorrow. 3-9 months to get things right just sounds more feasible.
Hi Terry, thanks for the great tips with your great effort!
My opinion is, always create product that bring benefit to the customer, and always think in the customer’s stand point.
I agree with the difference between a product and a service but am not so sure about the need to outsource as a standard strategy.
Certainly outsourcing things like your accounts makes sense unless you are an accountant but when it comes to marketing your product(s) or business there is no one out there that has more passion for, or knowledge about, your business than you.
Sure outsourcing will mean you can produce more promtional material or coverage but you can also miss out. For example I would never outsource my PPC as I would miss all the information that I can learn about my customers by looking at the keywords they choose, the response to advariants and a lot more ….. Likewise doing my own SEO teaches me more about my customers and the response to my media releases means I understand even more about where my profits are coming from.
For some people outsourcing is an option but think carefully before loosing control of your customers’ thoughts and actions.
Does my strategy work? Well it does for me. My profits grow year on year and I have high value clients worldwide. Many of them are worth six figures per purchase …. but I will be the first to admit that if I were selling a $5 item my strategy might not work.
The main thing is to keep in control of the work by doing it yourself or ensuring that you thoroughly understand what your outsourced work is accomplishing and teaching you about your customers.
Oh, by the way my average spend on marketing is three figures per year and the ROI is huge because I understand my customer and do the marketing work myself.
To your success however you market.
Hi Terry,
Insightful article you got there.
It’s all about building a BUSINESS, just like you said. Putting prospects and customers through our marketing funnel to generate profits long term.
When I was first just starting out, I also fell for the get rich quick scheme with one ebook or affiliate product.
This is definitely a must-read for beginners and seasoned marketers alike.
Cheers!
Welly Mulia
Hi terry
I notice your blogg is your front page and want to do the same for my site
Have you written an article on how to set up your website?
I really appreciate you emails – full of useful tips
Thanks very much
Nicholas
Internet network marketing is about people first not business plans or profits. Build people and people will build your business. You must be able to identify the needs and frustrations that your potential clients face. Then you should develop an attractive and personal business identity. This is the concept of attraction marketing, a new system where you develop ongoing relationships with clients by educating your buyers first and then moving them along the buying path in your communications. Making yourself an indispensable source of information can establish your reputation, credibility and identity as an authority networker and help build your downline fast as more and more prospects get to trust you and join your program.
This aritcle is great although I also have to agree with Authority Networker. True enough, you don’t ‘serve’ your products, you serve the people coming to your site. I think that it isn’t always about your product or business, instead it is about how you do business successfully while making your service satisfactory for your clients and readers. Apart from that, I also think that factors that affect SEOs can help you a lot in your business as well.
Great Post! Full of insight!
We have a new service that we are coming out with and this post has me rethinking on how we are selling it. Thanks a lot!
Thank you for that sound advice! You’re right on when you talked about choosing a group of customers to serve, look for the competition and create a series of products etc. I have done well with my pitching grips 101 product because, although many competitors offer “free” advice for pitching grips I offer a “hitters perspective” , what hitters think when they are facing you, and nobody else has. So you can find a niche within a crowded market as well.