OK, a show of hands, how many of you out there are working away at
your business, writing a book, creating an information product,
marketing affiliate programs, etc..
AND don’t have a revenue target pasted up on the screen in front of
you?
“Maybe a couple hundred bucks this month would be nice!”
That’s NOT what I mean.
Everyone who is remotely planning, building, improving, struggling,
succeeding or changing their business MUST have a revenue target –
6month, 12-month and 2 yrs AT LEAST.
Why?
Here’s the main reason:
So many product developers struggle with:
a) Deciding what format or kind of product to develop,
b) What they should do beyond their primary product and
c) How they should price their products.
Something we all do wrong in the beginning is to decide on a format,
business model and price without considering if it will meet the end
goal or not – and in most cases, they are shocked to find out 6-months
down the line that they are far short of where they would like to be.
Example:
“I want to write an ebook about dieting, I can probably get $27 a copy
for it given the content and competition I see”
Do you see the problem?
If this person is looking to earn anything above $40,000 with their
online business, how many copies will they have to sell.
The simple math tells you 1480 ($40,000 divided by $27)
Now, account for the fact that the book will cost $3-$4 to sell
(payment processor fees, and other overhead) AND that at least
some of those products will be sold by affiliates which you give 40%
commissions to – so the real number is likely somewhere around
2200 copies, which works out to about 180 copies each month.
In fact, I know many of you have profit goals much higher than $40K.
Is 180 copies a month feasible – that would be an extremely tough
number to reach and sustain, and would require a number of high-
powered affilaites who would take more commission off the bottom line.
So, the analysis should tell you that you either need to increase
the price of your product, or increase the “back-end” sales.
There are many ways to increase the perceived value of your product,
thereby increasing your price — that’s something we help you with
a great deal in “The Ultimate Information Entrepreneur’s Success
Package”
You can:
– Bundle products together
– Create or search for on-target freely available software
– Freelance creation of a software product
– Conduct and record expert interviews
– Add high-value bonuses
– Bundle a free introductory service with your product
– Develop your own “technology”, sets you aside from the crowd
– Develop a home video
– Identify high-value “back-end” products to offer to your customers
– Upsell to a higher priced product on order
There are many, many ways to meet a higher price target.
When you look at your online business from a revenue backwards
perspective, it will answer a great many questions on topic, format,
price and business model – not to mention protecting you from
ugly surprises down the road.
Jeff
“Create & Market Your Own High-Income Information Products”
