mikerobertson | mikerobertson

It's Basic Ecenomics

Aug 23rd 2013 at 7:11 PM

How’s your conversions?

 

It’s all about economics, the numbers are VERY important. The revenue has to exceed the expenses or you will go broke.

 

The difference between 3% & 4% of your leads buying can make all the difference.

 

If I said, you need to make a million dollars & I give you the two following options how to do it:

 

Option 1) Sell $10 ebooks. How many would you need to sell? 100,000

 

Option 2) Sell $10,000 coaching programs. How many customers do you need? 100

 

What would be harder: finding 100,000 new customers or just 10?

 

It’s much harder to sell a $10,000 coaching program than a $10 ebook but is it going to be proportionately harder?

 

The coaching program is 1,000 times higher but is it 1,000 times more difficult to sell?

 

Definitely NOT!

 

You need to model your business on this quote from ‘Dan Kennedy’....

 

Your front end product is not there to make you money, it’s there to get you a customer

 

Let’s say, you sell a front end product for $10 and get 500 new customers = $5,000.

 

It definitely helps but what if your back end product is a $5,000 product and you sell to just 1% of the 500 new customers. 1% of 500 is 5 x price of $5,000 that’s an extra $25,000!

 

Hope you can see the simplicity of the system and how profitable it can be.

 

You may be thinking 'I don’t have anything to sell for a back end product!' Here are a few ideas for you:

 

     

     

  • Coaching programs, you only need to know more than your customers and they will perceive you as the expert.
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  • Done for you service.
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  • Co-create a product (webinar) that builds a customer’s business.
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  • Sell other peoples high end offers.
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  • Licence rights sales.
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Once you get that first back end sale, what would it do for you and your business?

 

3 ways to make more money

 

     

     

  • Get more customers (Hardest to do).
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  • Sell more products to existing customers.
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  • Increase transaction size (Higher priced products) it doesn’t cost you anymore and out of every 100 customers you will find 5% spend more than others.
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People want to buy, ask yourself a question:

 

Will it be you selling to them or someone else?

 

To Your Success

 

Mike

 

mbrobertson.com

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