Seems like this should be a no-brainer, right?
Let’s take a look at what’s actually needed though.
It’s the same ingredients whether you have an online business or an offline business.
You only need two things.
- A starving market
- A high converting offer
The starving market is the most important thing because if you don’t have a market that has a specific need, then you won’t have anyone who wants to buy what your offering.
A good high converting offer is usually something that’s almost impossible to refuse at the price where it’s offered. The value delivered by the product or service behind the offer is so overwhelming that the price seems ridiculous.
When you have a high converting offer that a specific market wants, you have what’s called “product/market fit”.
This is where you start making sales and getting customers.
Many people start with the offer or product and try to find a market that will buy.
It’s actually easier to find a specific market with a specific set of problems and put an offer in front of them that’s going to solve those problems.
Your primary job as a marketer is to put targeted offers in front of the right market.
So, this can be the tricky part for some.
You know the market, and you have the offer that will help them.
Now, you need to get that offer in front of your target market.
Online this is called “sending traffic”.
There are many ways to get traffic online, but before I talk about them, there’s something else I need to tell you about high converting offers.
The main thing to know about your offers is how the backend works..
You may have heard about the backend.
Every company has a backend.
McDonalds has a backend.
I’m sure you’ve heard it before – “Would you like fries with that?” or “Do you want to supersize?”
Apple has a backend – “Do you want to buy the 3 year AppleCare coverage?”
The backend is basically what helps to maximize your customer value and increase the average lifetime of every customer.
This means you can offer someone a $49 product, then offer them a $497 upgrade, then offer them a $1,997 product, then offer them a $4,997 product, and so on.
Of course, not everyone is going to upgrade. That’s a fact, and it’s totally okay.
But here’s the way to think about it.
If you’re only selling a $49 product and only 1 out of 100 people who see the offer buy, you’ll need 1000 people to see the offer to get 10 sales.
That means you’ll make $490.
But you paid $700 to get those people to see the offer.
If a $49 product is all you have, you’ll never make any money no matter how many people you get to see the offer.
Now, let’s say you have some other offers on the backend.
Out of those 10 $49 customers, 4 of them upgrade to the $497 product, out of those 4 $497 customers, 2 of them upgrade to the $1,997 product, and guess what?
1 of them upgrades to the $4,997 product.
In this example, instead of making $490, now you’ve made…
$490 + $1,988 + $3,997 + 4,997 =
You can easily see how $11,472 is much much more than $490.
And this additional revenue all came from the same 10 customers.
When you don’t have anything else to offer your customers, they’ll NEVER be able to spend more money with you.
I hope this makes sense.
I think not getting this is the biggest thing holding people back from actually making money because the dollar amounts are often outside of most people’s comfort zones.
There’s some more I need to tell you about making sure you have a good backend, but I’ll save that for the next post.