Opportunities

Selling Products and Services

This section is for people that already have a product or service to sell OR for those interested in creating a product or service to sell.  I honestly believe that whoever YOU are, this information will prove to be VERY valuable!

The Funnel Model
To start, anyone who is SERIOUS about making money online MUST understand the following business model that I'm about to describe.  (In a previous eNewsletter I mentioned the *Funnel* model, however on this page, I'm going to go a bit deeper with it!)

• This model offers a BIG PICTURE approach rather than a shot-gun-lets-get-a-website-up-and-hope-we-make-money approach.  Let me list some benefits:
   
  • Potential for huge income
     
  • Ability to generate reoccurring revenue
     
  • Opportunity for passive income (i.e. you do something once and then get paid over and over again for it - and example is eBooks)
     
  • Generate a *Life-Time* value from a customer (this means that if you get someone to buy once, they will be more apt to buy again and again).
     
  • AND this is a BIG ONE:  Once you understand this model and do it once, you can repeat it over and over again and make more and more money!
     
• The Funnel approach is also called the 'Two Step' approach or having a 'Back End'

I'm going to now explain the actual steps that you need to take to follow the model and then show you various examples that are currently out there.  I don't know about you, but I need examples so that I can understand how to apply it to my situation!! 

Steps to follow the Funnel Approach Model

1. Decide upon a industry, topic or hobby that you're interested in.  Keep in mind that you're going to be creating a product or service around the industry, so pick something that makes you very EXCITED as you'll need enthusiasm and passion to create a masterpiece!
    
2. Do some research and see what products and services are out there.  Do you see a whole in the market?  Or perhaps you see a great product/service but the seller is doing a terrible job and you can do much better!  Or you find something that with your touch might just be an incredible product!
    
3. Without going into too much detail, do a bit of research and discover if your Industry is popular on the Internet. You can do this by checking keyword searches on Overture and just plugging key words into Google to see how many sites there are! (NOTE:  you still don't know what your product or service is yet, but now have ideas of what is out there).
    
4. Take out a blank sheet of paper, section it into thirds and put the following labels:
   • Free Offering
   • Under $50.00 Price Point
   • $500.00 + Price Point
      
5. Under each heading, list all the products that you've seen during your research that *competitors* are offering (they'll have items that fall into some or all categories).  For example, if you're interested in the industry of Finance, you could find a Free 10-page eBook on how to 'Rid yourself from Debt', a $50.00 eBook on the secret to Lasting Financial Security and for $500.00, a 1/2 day seminar with a Financial Guru!  The idea, is to find products out there that fit into the three different price points.
    
6. Then list all the products that you haven't yet seen, however they would make potential candidates for an offering!
    
7. Once you get 10-20 options under each of the three categories, go to sleep and let them roll around in your head as you doze off!
    
8. PAY ATTENTION HERE - This is the KEY.  Once you have all your ideas, pick something from the $500 Price point that you want to create or package AND then engineer the $50 product to offer all the features and benefits of the $500 product.  Following on, the free eBook will offer the features and benefits of getting the $50 product.

Have I lost you?  Let me give you an excellent example:

• You're a Web Design and Database expert and your $500+ price point product is an online service that allows people to create websites Online...All they have to do is enter a web address and login and away they go.  Making websites is as easy as creating a Word document!  You charge $300 every 6 months for this service and request a minimum contract of 1 year.
   
  • Aside from allowing people to use your web design service, you also offer domain registration, hosting, search engine submission, pay-per-click services and other goodies that enable the user to get everything in one place!
     
• Your $50 product is a packed-full-of-information eBook on how to create, manage and market your own website from scratch.  You discuss writing HTML or using an HTML editor.  You discuss finding and getting a host, picking domains, uploading files...etc.  all the way through to submitting sites to the search engines and how to market. (This is all labour intensive stuff and takes ages to do yourself!)
   
  • THE KEY is that your $300 product takes all the HASSLE and PAIN of doing the *Labour-Intensive* stuff yourself.  The eBook points out how to do everything while at the same time showing how the $300 product will do them for you.
     
  • The eBook is offering great information and will show anyone how to create an online presence themselves, however it is also showing how long and time consuming it will be!
     
• Your Freebie is a 7-day eCourse on how to pick a theme for your website, finding content and deciding on the 'Look and Feel' of your future site.  And GUESS WHAT - if you buy the $50 you'll be taught exactly how to take the site you've designed and put it online!
   
• Each product, even the freebie, are designed to lead the customer to the next purchasing level.

How about another example?

• How about Day Trading - that's a popular topic!
   
• $800 for a one-on-one phone consultancy between you and a proven Day Trader for 2/hours week and 4 weeks.
   
• $50 for an audio recording of interviews on Day Trading experts where they offer their biggest Tips and tricks.  (After listening to this you would BEG for the opportunity to have a one-on-one discussion with an Expert...)
   
• Freebie - weekly eNewsletter offering the 'Tip of the Week' along with promoting the $50 product.

Is this making sense?

The KEY (yes, I am repeating myself) is to find the BIG TICKET product first and then back engineer the entire up-sell or backend system.  This model WORKS and now that you know it, you'll start to realise that tons of people use it!

Let me now walk you through the benefits of this system with a bit more explanation!

• Potential for huge income - on average 10% of the people who buy your $50 product will buy your $500 product.  If you sell 1000 $50 products, you'll get $50,000 from those sales and then 1000 * 10% = 100 and thus you'll get 100 people to by the $500 product which equals another $50,000.  NOT BAD considering that this system can carry on and on and on...
   
• Ability to generate reoccurring revenue - If you offer a service that charges a monthly fee, you have reoccurring revenue - see example of web service above ($300 every 6 months).  This is very good for Cash Flow - or having a set amount of money coming in guaranteed each month.
   
• Opportunity for passive income (i.e. after setting everything up, you can put your feet up and watch the money role in OR go out and create the same model with a different product...OR why not offer affiliate products or other joint ventures to your eMail list?)
   
• Generate a *Life-Time* value from a customer - once a customer buys one thing from you, your ability to sell takes a giant leap.  Provided that you offer what the customer is looking for, you are filling a NEED or ADDING VALUE to their life and they will continue to buy.  It's easier to sell to people that have already purchased from you!!!
   
• Once you understand this model and do it once, you can repeat it over and over again and make more and more money!  Need I say More?  How cool is that?

I sincerely hope that I've clearly explained this approach and I welcome any questions that you might have.  Send me a note to mailto:kim@moneyonlinereview.com

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