Building a MoneyMaking Machine / Blueprint / 5 / 1
Welcome to part 5. In this reading, I`m going to look at the 2nd element of the digital business.
That is... you must have a product that sells. The trick is to build a predictable income.
So in this first reading. I`m going to focus more on the formula for?a predictable income.
I would like to share that with you. So let me give you a formula that you can use or that you actually?must use if you want to create not only?a profitable but also a predictable and?sustainable income.
So this is the formula.
First of all, there must be traffic.
Traffic X Conversion = Income +?Upsell/ Downsell + Repeated Business + Referrals = Exponential Income + Systems = Exponential & Predictable Income
So let's take it from the beginning If you want to have income. It is very simple.
That is where most of us will start. In other words, when you start with a digital product. You only got 1 product, it is maybe an E-book or a?podcast or something like that.
That you can go out and sell. So you do not have a lot of other products or upsells or down sells. So that is where you are going to start. Now you need to be able to drive traffic. That traffic is going to depend on 2 things.
First of all, unless you`ve got a website. Then on the internet, you are not going to draw the traffic. The 2nd thing is unless you`ve got a product. There are no ways that people will look at what you`ve got to offer.
Because you`ve got nothing to offer. So in terms of the traffic. The stronger and the better you position your product. The easier it will be for you to attract traffic. Now it is one way and one thing to attract traffic. The problem is how on earth do I convert that traffic.
And this is the reason why I want you to go through the canvas and the prototype. So that you should understand, how and what you should include in your marketing material.
By the way, the next module will be on marketing. So what is going to be included?
Because of the way that you approach your niche market, and the way that you present your product to them through your sales process.
That's going to determine if they are going to buy?and how much they are going to buy of the product that you`ve got to offer.
That we call the conversion. So the trick is to get a lead. From a lead to a prospect. Then to convert them into a client.
That is going to give you the income. But that is only the start of it. That is normally where we start when we are new in the game. In other words, when I started off I had an e-book and that was it. So that is what you can offer to the market. I`m going to show you a little bit later in this lesson. How quickly it is to develop more products, by simply listening to what the market tells you that they want.
And also the way that they want it. Because of the modalities, the learning modalities. Right, so the next thing that you need to do is. You need to start creating products.
This time we are going to call them upsells and downsells. And then another thing that we want to do, is to get the clients that have already bought. To get them back into this profit loop that we are going to create.
We call that repeat business. So there are actually a couple of ways that we?can get repeat business.
I`m not going to go into that. That is a portion that we should look for and go out and actually create that through systems.
Then the last part is your profitability. Or the exponential profitability that you are going to build into the system will also depend on referral.
So included in the system that you will build, you have to make sure that you include referrals there as well.
Ok and this then is going to give you the exponential. So you are going to make a lot more income than just selling one single product.
But then there is another element that we need to add, and this is to make it predictable. And that is to bring in a system.
Now unless you`ve got a client management system. This will not be done. And it is for this reason that I advise you and that I?suggested that you look at WordPress.
Because we know from stats that more than 70% of all business websites. Do not make use of a client management system.
That means that they cannot put the automatization or the systemization into play. Which means that they are going to work?for their business for the rest of their lives.
In other words, they are going to work in their business instead of on their business.
So make sure that when you start, you start on the right platform. Something like for example WordPress.
Ok, and the moment that you do that. That is when you start creating a business. Build around your product or a range of products. That is going to give you an exponential and predictable situation. The emphasis should be on the predictable income.
Because we want to create this business so that it?is not an up and down story the whole time. But that you know more or less what you?are going to receive each and every month.
Now how do we do that?
What do we need to know about income and?about our clients? Well, you need to know what the lifetime value of your client will be. Now, in the beginning, it is going to be difficult, especially if you`ve just got 1 product.
But as you start and getting more and more advance. This becomes crucial to understand this. So what is the lifetime value?
The lifetime value refers to the amount?of income that you can expect to generate over time you expect to do business with your client.
That of course includes referrals. Because referrals can really increase the lifetime value of a client dramatically.
So there are certain things that you?must know. In order to determine the lifetime value, and as I`ve said in the beginning.
You don't need to know this but keep this in your mind. Because you want to develop the products and the upsells and the down sells.
And the side sells to such an extent that you can get to this. Because the higher the lifetime value of your client will be.
The more money you can use in order to buy media. The person who buys the most media most effectively will be of course?the most successful.
So here are the pointers.
There is something that I really want you to understand. It`s quite logical but a lot of people don't get it. That is without the income you do not have a business.
We can take it actually 1 step further. Without a profitable income. Because a lot of people get income, but their expense is more than their income and then they?do not have a profitable business.
So the ideal and the situation should be to build?a profitable business.
So without income and the income must be more than the?expenses. You will not have a business. Now, what on earth then drives income?
Because the moment that we know that then we can?start to plan for it.
Well, I`ve got a surprise for you because there is only one thing that can drive income?that is a product.
Unless you`ve got a product. You know you will not have income. So if you do not have a product, no income or sometimes you may have a product.
But if people do not buy that product, or they want the product but do not want to?pay for that product.
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Then you are also not going to have a business.
So the question then is.
How do you go about creating this digital product? or the informational product?
Let me give you an outline that you can use. We as human beings have got 5 ways to learn. I call it the 5 modalities.
The 5 modalities are actually what we see, hear, feel, taste and smell. But from a learning experience, we can see stuff and learn through seeing.
Through hearing. Through seeing and hearing. Through experiencing something. And also through mastering. This is how you build your competencies so these are the ways that we can?go about in order to make sure that we learn.
Now if this is the way that we learn. If you develop an informational product, you should use this as the basis in order to?teach.
So let's see what we can do with this. So from seeing and reading?you can develop e-books, you can develop or create blogs, or articles.
Or instructor manuals in terms of the e-book just as an example.
What about the hearing?
Well, you can create Mp3 courses, you can do teleseminars and podcasts just to give you a couple.
What about seeing and hearing?
Well, it is very simple. We are busy with a course. a Digital course, an Mp3 course, right now at the moment.
You see me, you hear and you learn in the process. But you can also host webinars. Just as an example.
What about experiencing?
Well, there is a couple of ways in which you?can experience it.
And one of the ways, I`ve developed many, many years ago. A product called BOSS calculator. That was simply to show people how much they can save by using certain techniques in terms of their property.
In terms of paying for their property. In terms of interest that they can save. Also, the property pro-investment course is actually an experience where I`ve built?the whole experience by using the program you can see feel, and actually experience what will happen and what growth you will get, and how your risk will come down.
So that is the way that you can experience. Another way that you can experience, or that you can present an experience to the people that want to learn is through?a live seminar or live streaming.
Where you can have a live seminar, and stream that directly to them.
Through some digital medium that you`ve got available. What about mastering?
Well mastering what you can create in terms of? Digital products, will be online subscriptions.
You can use internet masterminds. Create that platform for them. You can use coaching, mentoring, coamentoring.
You know what about membership sites. So hopefully you can see that, that all of these are ways?where we can bring the digital part in.
In order to enhance or to roll out more products. There is something that I want to emphasize. I know that you understand it already, and that is that you don't ever create informational products or digital products.
What you do is...You create solutions. And then you package those solutions into informational products.
Now, why is this so important?
Well, let's get back into this digital packaging. You see you are going to identify the need?in other words the problem.
You are going to create a solution to that, based on what they need. And now you suddenly sit with a pot of gold. The only thing that you need to know then is...
But how do I develop these products?
So the moment that you`ve got that. You can roll out an e-book or even an instructor's manual on a guide on how to use the e-book or how to get the most value from that or a manual in terms of explaining the?e-book.
That is for those people that see. That wants to learn through visualization through their eyes at least. But you can use exactly the same thing, the same product, and instead of putting it in an e-book, you can do an mp3 file on it. Or an audio program.
That I can present. It is exactly the same material. I can take that?and I can put it on a platform?called a podcast.
And I can do a series of teachings based?on my ebook. It is the same information. Exactly the same information to the same need, to the same problem.
So I hope that you see where we are going to go with this. And another thing that you can do is.
What about membership sites?
Where you put all of this information into membership sites. And you open it where they can get it weekly or monthly or bi-weekly.
What about if you take the same information and you present it in a webinar?
The 10X foundation as well as the property investment series that I had.
Where there were a series of webinars where people actually?paid to come and listened.
I used those webinars to create articles?and I used those articles as part of the books. So you can see that it is one concept on one problem and it is one solution but the way that we can present it is basically endless.
What about tools and templates?
I`ve already mentioned that to you. Or mindmaps. You can actually sell these mindmaps.
So I personally love to use mindmaps, to lay out my course as an example. But then I can literally go and take that mindmap and sell the mindmap with a quick explanation to that something else that you can do.
You can use that?and instead of just giving them a book you can roll out an online course?or a mentoring or a coaching course around exactly the same problem.
Or you can create mastermind groups?where people start engaging.
You create like a tribe. You know a lot of people start to help each other and that is the reason?why it is so easy once you understand the need.
And once you know what they want in order to create a digital product around that In order to solve that problem. So you can create different digital products?from exactly the same solution?to address the different modalities in terms of how people learn.
And this is the reason why I absolutely love informational products. I can use the same information to create different streams of income.
In the next reading, I`ll give you more product development tips.
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