Your $100k A Year Business Blueprint Part Two
Follow the three simple steps here to learn how to upgrade your customers to those more lucrative high-end products. In the first part of this plan, I gave you a general run-through on how, by following a few very basic and simple principles, you can turn what you thought was a ‘distant dream’ into something perfectly realistic and do-able. In this second part of the blueprint, I am going to give you some more specific info on the kinds of products you’ll want to concentrate your efforts on, what prices to ask, and to which customers to focus on, in order to work towards that $100k a year. So, let’s get down to creating your basic business plan for success.
First, back to that calculator! Tap 1,000 into the calculator and multiply it by 500. What do you get? Well, it should come to 500,000… or $500,000 as I like to think of it! That’s how much you would earn if you sold 500 copies of a $1,000 product or 1,000 copies of a $500 product. Now clear that calculation. Tap 10 into the calculator and multiply it by 500. This gives you $5,000. That’s how much you would make if you sold 500 copies of a$10 product.Now answer me this: Do you want to work towards making $5,000 a year or $500,000? (Don’t write in to tell me your answer by the way …. I think I can probably guess.)
Assuming your answer is $500,000 a year that means you need to be thinking about selling high-end products costing around $500+ a shot AND finding 1,000 customers a year with that kind of money to spend. By finding the right customers, I mean those customers who are willing to pay $500 plus for a product – now or soon. Better still, customers that have already paid $500 or more for products like the ones you’ll be selling. (These people are called qualified customers by having the desire to buy high end products AND the ability to pay for them.) Of course, a $500 product is a big ask for a new or small business. So, you will make things a whole lot easier for yourself by leading in with a $50 product.
Before you do that you want to be pretty certain the customers you are looking for will be able to afford $500 products, that is once you have them available. Another important point – you need to find customers who will want your products over the long term, ideally for a period of years. You need to avoid, at all costs, products that are bought once only, or very rarely. Customers who only need this product once in a decade will never be repeat customers. That means every customer you find will have to be a new one, which take it from me is hard to do. I’ll explain more about finding these qualified customers in a future article.
Your aim should be to find some $50 (or thereabouts) products that your customer is going to need regularly long term, and which can gradually evolve into a $500 range of products. Remember, the main purpose of the $50 product is to allow the customer to get to know your company and the products you offer. Once they get to know and trust you it will become relatively easy to sell them higher value products costing $1,000 or more.
What sort of products are suitable for this purpose? Well I would say, without a doubt, products like books, online video courses and subscription/membership style websites are ideal. Then as your customer base grows, you will begin to expand your product line to include higher end products.These will generally be more comprehensive, higher quality versions of your $50 products. For example, things like training workshops, and multiple product and software packages.
Next, we’ll take a look at a blueprint for how all this might evolve within your business, starting out with lower priced products and gradually weaning your customers onto the highly lucrative $1,000 products. Online video workshop & eBook > $50-$75 approx. Followed eventually by. . .Subscriptions (newsletter, subscription website, etc) > $10 – $50 per month. Followed eventually by. . .Multiple online video courses > $150 approx. Followed eventually by. . .Tools, software, accessories > $150+ Followed eventually by. . .One day live training workshops > $500 approx. Followed eventually by. . .Video recording of the workshops > $400+Followed eventually by. . .Two day training workshops > $800 approx. Followed eventually by. . .Video recordings from the two day workshops > $600+ Followed eventually by. . .Resale rights for your video training, software, eBooks, etc. selling at $1,000+!!!
Now remember what I said earlier: To make $500K a year you only need to find 500 customers for that $1,000 product. But feet-on-the-ground time again. You can still generate $100k a year from just a fairly small range of $50 products and finding 2,000 customers! If you think that’s a bit of pie-in-the-sky, I can assure you it’s not. I know of a business, very much like the one I’ve been outlining to you, that will gross over $3.5 million this year. Yes – three and a half million dollars and that is just from selling information products. How do they do it? Well, they only sell premium priced products over $895 each. (Most are priced at more than $1,500.) Sure, there aren’t millions of people with $1,500 to spend on an info product. But you don’t need millions and millions of customers with a business plan like that. You only need to find a much more realistic two thousand or so a year. I know $3.5 million is way too much for us to be targeting right now. But worth thinking about, surely?
Now let’s be totally realistic and look at how long all this might take you. I’m not saying for a minute it will happen overnight. Building a business starting with zero products toward the sort of exciting (and higher end) product range I’ve outlined above will take time. Giving it an educated guess I would say it will take 2-3 years before you’re ready to run with your big $1,000 product. To me, that makes this blueprint all the more exciting. It tells you one thing: THIS IS NOT A GET RICH SCHEME. [But that doesn’t mean you can’t take a fast-track route and license a $1,000 product in the mean time during years 1 & 2 … or even Joint Venture with other marketers that ALREADY have these kinds of products.]
The exciting thing, of course, is that as you’re working towards that $1,000 product your income will still be building by the day, week, month and year.In fact, you can reasonably expect to reach the $100k long before the end of year two. It’s perfectly achievable if you work through the structure, I’ve outlined above… and stick with it. (Not easy I know, but you’ve read this far, so I suspect you’re not a quitter.)
What also excites me is that this is a proven moneymaking strategy used by some of the world’s biggest businesses. Take Ford Motor Company for example. Years ago they sold low priced cars for the punter on a budget …. like the trusty old Fiesta. They followed that with better quality premium models aimed at more affluent customers. The Land Rover and Jaguar were added to their portfolio. We can’t forget the lucrative super-luxury car market by mentioning the beloved Aston Martin.
If you look at Ford’s business plan, you’ll see that it’s totally focused towards getting customers in at the cheap end and gradually building them up to more expensive models. Very clever! And you can use the same strategy. Start with one basic product and create a whole range of related (and more expensive) products. This strategy is an integral part of the $100k business blueprint.
In the next special report, we’ll go through the process of identifying customers who can afford to spend $500 or more on your products and how to make sure you give them what they want. We’ll look at product ideas and examples and, finally, put together a complete business plan.
Until then, here’s to your continued success.
Shelia Lirette
