Following on from my post last Monday (Lets not mention the Friday post I seemed to have hit a nerve with that one!!) I thought it would be useful to show just how focusing on what is actually making you money can change your business around totally. It’s often very easy to create a blog post and not follow it up with actual examples of what the topic means in the real world. So today I’ll look at what analysing my income meant to me and why I did it.
There is one rule of business that seems to always be apt in situations like this it’s called 80/20 rule or Pareto’s principle. Basically 80% of your income comes from 20% of your work. The numbers can differ but the principle is the same. The job we need to do is to identify which 20% is the one to focus on.
Last year on February 12th I got an email from a potential client who asked me several questions one of those questions made me think long and hard, the question was;
” Mark, What’s the quickest way to earn a 6 figure income”
It would have been easy to just give some bull***t answer and move on but I was actually curious , so I sat down and for 6 hours went through every bit of income I had earned for the past year. Once I had that I then estimated how much time I spent generating that income. At the end of the exercise I had irrefutable evidence of what parts of my business were profitable. I can tell you now it wasn’t what I was spending the majority of my time on.
At this point it is probably a good idea to give you some background information, I got into the make money online niche purely by accident. 4 years ago I was a member of a private forum. I was testing out a theory I had and just happened to make $600 a day from a site that was 3 days old. In the forum I started a post about how I did it (this is why private forums are better than free public ones! People share more information).
One of the guys there had done some WSO’s (Warrior Special Offer in the warrior forum ) and suggested that what I had written would make a good WSO. So I spent a couple of hours creating a 20 page report . The WSO sold very well and as a result a few of the people who bought it asked me if I was releasing a course, hmm good idea so I sat down and spent a few weeks putting everything I had learnt about building profitable websites into a book and some videos.
I was then getting questions about what I had written so the easiest way was to create a forum where I could answer all the questions at once. Now 3 years on from that the forum has about 2000 members and 50,000 posts …thats WordPress Goldmine. (The lesson there is not to use generic names for products as it’s no longer just about WordPress but understandably people think it is!)
So you see I am the “Accidental Internet Marketer”, I never really planned to make money with products.
So back to my sheet of paper with my income and time expenditure, it was obvious that the products I had created in the past were the most profitable aspect of my business. As well as WordPress Goldmine I have created several non IM Clickbank products as I prefer to sell my own products on my affiliate sites so as soon as a site starts to sell a regular amount of Clickbank products I’ll create my own product in that niche.
Once I had that information I had to work out how to maximise the income and generate more income.
I came up with a plan that anyone could follow to create a 6 figure income. On paper it looked almost too simple, build a list, by giving away good quality products or selling low cost quality products. Create products relevant to the list you built. If you have built a list by giving away tips or a guide on building muscle , then you product should be in the same niche not how to DJ or How to Valet a car.
If you price your products at the Clickbank “sweet spot” $67 /$77 you need to sell around 3000 products a year lets call it an average of 10 a day you might not do that with your fist product, but by regularly adding products you have a real good chance… Add to the products some coaching or a mastermind group and you’ll certainly make it.
From that plan I built myself a 5 point plan
1. Focus on promoting WordPress Goldmine
2 Brand myself, I’d never really though of branding in the past and I now realise that it was a mistake not to do it sooner (hence this blog)
3. Build a list
4 Create more products and provide ongoing support, the products should be regularly updated and offer unprecedented value
5. Promote my products rather than other peoples (not that I did much of that anyway!)
So last year I created 3 products the reason for this was I wanted to test out if what I learnt actually held up in the real world. Quite often theory is the same once you put it into practise. The problem is it’s not good to create products just for the sake of it. The need to have a function and a role to play in your overall business plan. So I try to create products which compliment my core business.
A report on Article Marketing which I used to build a list (I got about 8000 subscribers from that one report, 5000 in one weekend)
Video Creation Mastery – which is a guide to creating videos and video marketing
Beyond Commission which is really all about how and why you should create and launch products, and is an attempt to move experienced marketers on from just creating sites to more profitable ventures where they can used the knowledge gained for years of blog building and promotion
So one year on what has this meant to me and my business. The number of paying members in WordPress Goldmine has increased by almost 400%. I have 2 additional products in Clickbank which had very successful launches, the months they launched were my best earning months ever, although I do now need to spend time recruiting more affiliates and JV partners so they continue to make long term sales… (hence the I’M Hiring in the navbar)
This year I am continuing the trend of last year I have another product planned that is almost ready for testing , this time it’s software. I am also scheduling a series of WSO’s these will be based on my existing products and I’ll use them to generate more publicity for the products I already have.
So there you have it, thats exactly what I did to focus on the profitable parts of my business and the results… sorry it turned out to be such a long post.