The Best Internet Business Model
A lot of people get stuck on what type of internet business to run. Most people start out with Affiliate Marketing because it’s cheap and easy. I don’t oppose affiliate marketing, but I don’t think it’s the best internet business model. The fact is, there’s a ton of different ways to make money online. But I want to share what I think is the BEST internet business model.
In my opinion, the best business model for anyone starting an online business is to create your own products and control all of your own assets. I don’t want you being vulnerable to any other businesses practices, pricing structures, etc. I want you to control your future.
Here’s the internet business model I promote, it consists of 5 simple steps:
Step 1: Determine what you like, something that keeps your interest (this step isn’t mandatory).
Step 2: Become a celebrity in your market. Plaster your face EVERYWHERE. Write with authority and develop a following.
Step 3: Give something extremely valuable away for free in return for your website visitors e-mail address.
Step 4: Survey the e-mail list you’re building and find out what they want.
Step 5: Create what they want and sell it to them.
It’s that simple. You can scale that model into a million dollar business. Sometimes it can be difficult to build a million dollar business if the traffic and market aren’t chosen carefully, but it’s still pretty simple to create a few thousand dollars per month in almost any market with this approach.
Here’s this model in action…
John likes to play chess. He buys the domain name ChessPlayingSecrets.com. He plasters his face all over the website positioning himself as the best chess player that ever lived. He has an opt-in form that gives away a free report that exposes the 5 biggest mistakes ALL chess players make and how to fix those mistakes.
Then, people sign up for the free report, therefore building John’s list.
The report is actually a disguised sales letter that give great content, but also points to John as the solution to all of their problems (This is a subtle tactic that works great, but it can also blow up in your face if written incorrectly, so be careful).
Once John builds an e-mail list, he can blast an e-mail out to his list and ask the people what their biggest problems are when trying to win chess games. Or he can simply create a multiple choice questionnaire that allows them to tell John what they want.
After he has this critical information from his e-mail list, he can then create the product to sell. He can write a report, record a DVD, create a membership club billed monthly or one time, do an interview, etc. Creating the product is the easy part so don’t overcomplicate that part.
Once the product is created, John can then e-mail the offer to his list and go from there. Another technique if you don’t want to create the product and then try to sell it is to find out what the list wants, and then setup a quick “priority notification” webpage where they can sign up to be first to know about the product release date.
This way, you can test the viability of 2 different product ideas with zero risk. Here’s how this would work.
Let’s say you built a list of 1,000 people, which is simple. Since you’ve already surveyed them, I’d come up with 2 different product ideas and name them, but make sure they are completely different and hit a different emotional spot their mind. Then, I’d setup two different URLs. One being…
ChessPlayingSecrets.com/NewCourse
and the other being…
ChessPlayingSecrets.com/Course
Each page would look exactly the same. The only thing different would be the headline that would explain the product.
You’d then blast the e-mail out and send 500 people to /NewCourse and 500 people to /Course. Whichever headline gets the best response, create that product.
Now for the bad news. Even if you do everything as I just said, you can still fail. But that’s business, it’s risky. But the chances of succeeding with this system is a million times greater than you getting an idea one day and spending time and money to create a product, that would be dumb.
Now let me wrap this up. On average, here’s how the above scenario would normally turn out.
You’d send the e-mail out and you may get 32 signups on /NewCourse vs. 71 signups for /Course. So, since the headline on /Course was…
“Never Lose A Chess Game Again! 27
Winning Chess Techniques Revealed…”
You’d create a simple DVD course revealing our 27 techniques since that signup form got much higher response.
Then, once you create this product, you’d send a blast out to all 1,000 people on your e-mail list. You’d normally see about a 5% conversion. That’s be 50 sales. If you priced the DVD course at $39 initially, you just made $1,950 of your list of 1,000 people.
The next thing you’d want to do is then test that price point in Google Website Optimizer. If it were my product, I’d test $79 vs. $39 until I had a clear winner. Once you have a solid price for your product, only then would I spend my time driving targeted traffic to that product. Once you start driving targeting traffic to the product and know your conversion rate and cost per conversion, it’s only a matter of scaling.
Here’s a simple example of scaling the offer. If I was using Google Adwords and my average click cost me .32 per click and I bought 1,000 clicks that would obviously cost me $320.00.
If my conversion rate with the Google Adwords traffic is 2% that means on average, I make 20 sales per 1,000 clicks. My average sale, since there’s only 1 product and it’s priced at $39, is $39. So I just made $780 gross off the 1,000 clicks I just bought. That leaves me with a net profit of $460.00. And the best part is, you can figure out these numbers, depending on how much traffic you can get from your Pay Per Click campaign in a few days, or a week.
From here, you would find more keywords, and cast your net wider and scale even farther.
It really is this simple. It’s a system. Never overcomplicate it. Never get emotionally attached to an idea, a product, a failure, or a success. The key is rapid movement in whatever market you’re in.
I want you to understand the importance of being in control of this entire process. You control the offer, the pricing, the product, everything! It’s hard to improve on what you don’t control. That’s why I feel creating and promoting your OWN products is the best internet business model.
Most people are too worried about organic traffic. While important, initially I don’t want you to focus on it because it’s too slow and can wear you down trying to get it causing discouragement. If you can’t convert your offer with paid traffic, it will be very difficult converting it with free traffic. So it’s up to you, find out if your product will be profitable in 15 days, or 6 months. Go the paid traffic route initially, if it works, create a SEO strategy and a content strategy to be competitive on the organic side.
