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Discover the Profit Models That Can Dramatically Increase Your Income and Position Your Business for *Massive* Growth!
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Discover the Profit Models That Can Dramatically Increase Your Income and Position Your Business for *Massive* Growth!
By Derek Gehl
How would you like to seriously ramp up your profits and launch
your site to new levels of wealth online? You can... joining the ranks
of other successful Internet marketers who are making in excess
of $100,000... $500,000... even MILLIONS of dollars per year!
To start creating this kind of mind-boggling wealth online, you just
need to ask yourself one simple question: "How?"
Too many Internet marketers make the mistake of focusing on
what they're going to sell, instead of how they're going to make
And the answer to how to generate massive wealth
on the Internet lies in choosing the right profit models.
That's why I want to look at some of the most straightforward ways
to make money on your site... and then dive into the more advanced
(and lesser-known) strategies that can catapult your business to
new revenue levels -- and create real wealth instead of just "income."
The three basic models
for generating income on the Internet
Let's start at the beginning, with the basic ways you can get online
and start making money:
1) Sell a product on your
web site: Becoming an online
merchant nd selling a product on your web site is by far the most
straightforward -- and obvious -- way to earn an income online,
which is why it's also the most common.
With this profit model, every time you make a sale you earn a
profit... and the more sales you make, the bigger your profits grow.
The key to success with this model is to sell as much product
as you can while maintaining a healthy profit margin.
2) Sell a service on your
web site: If you provide a service rather
than a physical product, you can absolutely make money selling it
online -- even if that service can only be delivered offline (e.g.,
landscaping). Your web site will allow you to reach a much wider
audience and give prospective clients loads of information about
yourself, your experience, and the service that you offer. And if you
offer a service that can be delivered online (e.g., web design), so
much the better -- you won't be limited by geography.
The main disadvantage of selling a service online is that your
income is limited by your ability to take on new clients and the
time it takes you to deliver the service. There are only so many
hours in the day!
3) Generate leads from
your web site: If you already have an
existing offline business, then you should act right away to develop
an online presence for it! Using your web site as a way to drive traffic
to your brick-and-mortar business is a great way to expose your
business to a broader audience and beef up your offline sales.
The benefits of advertising online for your offline business is that
you can capture a much wider audience. More and more people
are first turning to the Internet to get information about a product,
service, or company -- and to help them make informed decisions --
before going shopping offline. It's also much cheaper to advertise
online than it is to advertise offline!
In this profit model, your revenue comes from leading your site
visitors to your offline location.
You can definitely make money with any of these three models --
and they're an excellent starting point -- but if you want to get
fantastically wealthy, you
need to have more than one way to
make money from your site.
Most web site owners focus on "transactional" income -- the
income from a one-time sale of a product or service. But the
problem with this type of model is that the relationship ends
with the sale of your product or service.
To really explode your profits -- and turn income into long-term
equity -- try adding more TYPES of income to your business...
ADVANCED PROFIT MODEL #1:
Rapidly multiply your
profits with a "recurring" income source
An extremely powerful way to make serious money online is to sell
a product that will generate a steady
stream of income -- from
every customer who purchases from you!
There are a number of powerful methods for incorporating recurring
revenue into your existing model...
"continuity" income: With the continuity model, your
income comes in pre-authorized payments on a schedule for an
ongoing exchange of goods and services.
Membership to a gym or a members-only web site falls under this
category. Once you create an initial interest in your product or
service, you'll have a nice ongoing revenue source.
"renewable" income: Renewable income is generated
when your customers agree to repurchase your product at a later,
agreed-upon date. Here's why this type of profit model is so powerful:
A subscription guarantees you income over an agreed period of
time. Plus, it's very often renewed when that time is up. If you sell
a monthly magazine, for example, a yearly subscription guarantees
the sale of every issue over a year... and if your subscription item
is valuable to your subscribers, there's a very good chance that
the subscription will be renewed over and over again.
Do you see how this is more beneficial than the one-time sale of a
single product, service, or lead?
products: Generate an income source that will
always be replenished by selling products that need to be refilled at
regular intervals (e.g., ink for a printer, or vitamins). If you sell
for photocopiers, for example, your customers will need to buy more
toner as long as they want to continue using their photocopiers!
And as long as you can convince your customers to keep purchasing
their refills from your web site, you've got yourself a nice source
of recurring revenue -- without having to constantly put in all the
time and effort of acquiring first-time customers.
"ascension" income strategy: This strategy (made
famous by American Express) involves charging for different levels
of membership or "premium" programs. This is an extremely effective
way to ramp up your income for a couple of reasons. For one thing,
it rewards your best customers publicly -- not only appealing to
their ego, but also providing a basis for a stronger relationship with
those customers over time.
And the other major benefit is that you can capture sales from people
who, for whatever reason, are not ready to commit to a higher-priced
membership level. Maybe they aren't familiar with your site, so
they're understandably cautious about spending large sums of
money on your products or services. Offering a lower price point
lets these customers "test the waters" before diving in to purchase
your big-ticket items.
Once you've impressed these customers and they're sure of your
credibility, they'll be much more likely to upgrade to a
higher-priced membership level at a future date.
Can you see how, right off the bat, incorporating these strategies
provides a revenue stream that far exceeds the profits of a
When you only sell one product or service, you always need to be
focusing on getting first-time sales if you want a steady income.
But if you can add a replenishable income source to your business,
those first-time sales become an ongoing source of increasing wealth!
ADVANCED PROFIT MODEL #2:
Increase the purchase
value of first-time customers…
BEFORE they leave your
Now let's look at a quick and easy way to immediately increase
your revenue from
first-time customers by 20% to 30%...
It's called "upselling," and it's a highly effective strategy of
one or more products at the point of sale that will enhance your
customers' main purchases.
You've already convinced your customers to purchase from you --
so it requires very little extra effort on your part!
And generally, once people have made the decision to buy, they
are much more receptive to other offers... if you catch them while
they're in a buying mood! In fact, our testing shows that a whopping
30% to 55% of people will
purchase a second product!
However, in order for this strategy to be effective, you must make
sure that what you're offering is related to your main item. By all
means, offer some specialty tea if you're selling a tea pot -- but
don't try to sell tea to someone who's purchasing Mustang motor
As long as you offer something that's directly related to your main
item, you can easily -- and instantly -- increase your revenue from
ADVANCED PROFIT MODEL #3:
Maximize the value of
your existing customer base
to skyrocket your revenue
Remember: Your first-time customers always cost you the most.
Instead of spending all of your time, money, and energy drawing
more first-time visitors to your web site, devote more time to the
relationships you have already established with your current
Your current client base is a gold mine… In fact, "backend"
to your existing customers can increase
your revenue by 30%
That's why it's so important that you follow up with
everyone who purchases from you!
So how do you reach your existing client base?
One excellent follow-up strategy is to use automated sequential
offers to draw buyers back to your site. E-mail your customers
after the initial sale, thanking them for their order, asking them if
they have any questions... and offering a related product.
Another strategy is to use e-mail to to send new offers and special
promotions. You can target your e-mail communications to
customers based on their history with you.
For example, you can send a special promotion to all your first-time
customers. Or, you can send a "thank you" promotion to your
long-term repeat customers. In each e-mail, include an offer for a
product or service related to their initial purchase.
Not sure what you can offer as a backend item? Here are just a
~Offer a related product they're likely to be interested in
~Offer more of the same product
~Offer an upgrade to the initial product
~Offer a service that assists with the use of the product
~Offer a service to apply the product for them
~Offer information to improve the use of their product
~Offer other people's products for a commission
Make sure you time your offers for maximum success. Send out
your follow-up offers 3, 7, and 10 days after the initial purchase.
These are the times when new clients are most likely to make a
If you're not following up with your customers, you are literally
leaving 30% to 50% of your revenue on the table!
ADVANCED PROFIT MODEL #4
Expand your reach on the
'Net, rocket up the search engines,
and generate massive
revenue by starting an affiliate program
How would you like to improve your search engine rankings and
exponentially increase your reach on the 'Net -- and your revenue?
Well, if you start an affiliate program, you can do just that.
Developing an affiliate program is an incredibly powerful way to
market your product or service online. If you aren’t familiar
how an affiliate program works, it involves allowing other people to
promote your products or services for you. And the best part is that
you don't have to pay them a penny unless they send you a sale!
It’s not difficult to set up an affiliate program, and the
of doing so are enormous:
-Your affiliates can send you a great deal of traffic. Using banner
ads, text links, and e-mail promotions, your affiliates can send
droves of people to your web site.
-Your site can skyrocket to a top ranking in the search engines. Not
only will you acquire a host of inbound links from your affiliates,
your content will spread to the far reaches of the 'Net... resulting
in a drastic rise in your search engine rankings.
-You can reduce your advertising costs. Since you'll have reams of
highly motivated affiliates selling your products for you, you won't
have to spend money driving traffic to your site.
The key to getting the most out of your affiliate program is to
attract the attention of highly motivated affiliates by offering lots
of incentive: generous commissions, and tools and resources that
will help them to succeed.
ADVANCED PROFIT MODEL #5:
Form strategic alliances
with other businesses to ramp up
your profits, expand your
skill set, and offer your customers
high-quality products and
Forming partnerships and joint ventures with other businesses for
a share of profits is a great way to ramp up your income in a major
way. For one thing, when you combine your skills, products,
services, and resources with another business, you create new
streams of revenue and profit... and expand into new markets.
You also bring added value to your existing customers. The key to
getting the most out of a strategic alliance is to seek out products
or services that complement yours and will benefit your visitors, and
then approach the companies that provide those products or services.
Ask them if you can recommend their products or services on your
web site for a portion of the profits. Most companies will gladly
agree to this arrangement. After all, it’s no risk for them
have to pay you only when you refer a paying customer.
One of our clients, Bert Ingley of VGSportsInc.com,
experienced huge success with this model.
Bert sells video game strategy eBooks, and he recently entered
into a lucrative joint-venture relationship with the company that
makes the video games many of his strategy eBooks are based on.
The video game company is going to advertise his strategy guides
on its site in exchange for a small cut of his profits.
It’s a win-win situation that’s going to generate a
LOT of extra
revenue for Bert!
ADVANCED PROFIT MODEL #6:
The most profitable thing
you can sell online...
All of these strategies are surefire ways of creating wealth
online... and now I'm going to tell you how you can increase your
profit margins even MORE in ALL of these revenue streams.
The most profitable thing you can sell online is INFORMATION!
An information product could take the form of a "how-to" eBook,
members-only resources, or even sofware.
Why are information products such a hot commodity?
>They're easy to create
>They cost nothing
>They can be delivered instantly
>They can be set up to be delivered automatically
>Information is the #1 reason people come online!
>Just think. It doesn't even cost you anything to ship or
In fact, once you have your information product, you can fully
automate the entire sales and delivery process using software like
Pro and Mailloop.
Then, just sit back as the orders roll in, without you lifting a finger!
Your business model is your lifeline to bigger profits on the Internet.
So by all means start out by selling a product or a service, or by
driving traffic to your offline store. But don't stop there…
Take advantage of recurring income and think of ways you can
incorporate a refillable or renewable product into your business to
create a steady stream
Offer related "upsell" products at the time of an initial purchase
to increase the base price of your main product or service.
And whatever you do, don't miss the opportunity to generate up
to a 50% increase in your revenue by following up with your
customers and getting those backend sales! Focus on building
strong relationships with them that will encourage MULTIPLE
purchases in the years to come.
Lastly, harness the power of selling information online! Info products
are a perfect fit for all of these business models -- whether as your
main product, an upsell product such as an eBook, a follow-up
product, or a renewable product. It's not only the most profitable
thing you can sell, you can also automate the entire reproduction
and delivery process... and literally walk away!
Don't be afraid to mix it up. Create a diverse blend of income
streams that will add up to one MASSIVE revenue stream...
he kind that will keep growing and building wealth.
About the Author:
Derek Gehl specializes in teaching real people how to start
profitable Internet businesses that make $100,000 to $2.5 Million
(or more) per year. To get instant access to all his most profitable
marketing campaigns, strategies, tools, and resources that he's
used to grow $25 into over $40 Million in online sales, visit:
******************** Additional Resources ********************
241Leads.com's Lead Doubler™ - build your lists.
Stop Those ClickBank Refunds ! - reduce your refund rate.
ClickBank Vendor SuperTips - answers questions about ClickBank.
33 Days to Online Profits - step-by-step roadmap to an internet business.
Mike Chen's BizAutomator - task automator: "answer emails, design web pages, write programs, post on forums".
The Money Browser - direct to desktop stream of money making information.
Best wishes for your online success!
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