Masako from WorldKlassRunners.com emailed me the other day and it reminded me of myself many years ago…
Here are snippets of our email communication…[quote]I was wondering if you could give me a weekly to do list? I am a little bit lost at this point and need clear step by step guidance about what to do next.[/quote]
My reply to these questions is almost always the same…[quote]What are your goals for your website in the next 3 months?[/quote]
Masako's reply was…[quote]My goal for the next 3 months is to start making some kind of money so that I can reach my initial goal of making $2,000/month (at least) in a year. Thanks.[/quote]
That's where I asked Masako if I could share this, because my reply is something everyone can benefit from.
But, before I get into that, let me first cover something I think most people forget…
A business is when you have customers who pay you money in exchange for a product or service.
You want your business to be reliable, consistently profitable, and to be sellable (even if you think you will never sell it).
In my old model train business, the sellable part was the system of recruiting, helping and motivating affiliates (my traffic strategy), the sales page and the membership site.
It was a complete system of leveraging traffic generated by other people, converting that traffic into paying customers, and then extracting as much money as we could from each customer…
There was a distinct sales funnel and each touch point of that funnel was measured and tweaked to maximize conversions.
It's this level of systemization that made the website attractive to buyers. But, in the beginning it was set up like that to satisfy my goal… which was to have a $10,000/month business that required less than 2 hours/day of my time.
A quick look at WorldKlassRunners.com and you will notice that Masako is monetizing with Google Adsense ads and Amazon products. While there is nothing wrong with that, a quick calculation shows that Masako will need about 4,209 visitors a day to earn around $2,000/month.
That is an incredible amount of traffic generation for very little return.
As I teach my coaching clients, the critical research part of a profitable online business is to identify how you can make money from the niche. You then make your decisions based on the potential average customer value.
When I originally looked at the model train niche I knew the worst I could do was to earn $17/sale from an affiliate product. But, if I created my own ebook I would make $27/sale and if I created a membership site I would make over $100/sale.
Same effort, but hugely different results.
At $100/sale you only need 20 sales to make $2,000. My sales page was converting at nearly 10% so that's only 7 visitors/day.
4,209 vistors/day versus 7 visitors/day for the same profit…
Which would you rather have?
I'm using Masako question as an example (thanks Masako), but I see hundreds and thousands of people making the exact same mistake… There is no well thought out monetization strategy behind what they are doing!
They end up blogging for years and earning less than a $1 an hour… When they could have a MUCH simpler business with amazing profits.
So, what should Masako be doing to achieve her goal?
1) Identify how to get paid at least $50.00/sale in the niche. If there is nothing out there, can you create something (like a membership site) that will get you there?
2) Identify where the targeted market hangs out online. Facebook is a good place to start and a Facebook ad will get you a big chunk of targeted traffic.
3) Create ONE landing page with a CTA (call to action). This could be a squeeze page, a presell page or a Facebook page.
4) Send the targeted traffic to your landing page and measure what happens. If you get 100 people landing on your page and 10 click through, then you have a 10% conversion rate.
5) Improve your results. Tweak your ad and landing page so you improve your landing page conversion.
That's it… Simple!
I explain more in the video below…
Watch the video on YouTube “How To Build A Profitable Online Business“
Got any comments, questions or feedback? Please leave them below…
Ian is a successful offline and online entrepreneur with over 20 years of marketing and business experience. He is very passionate about living a life with time, income and location freedom. Find out more about Ian McConnell >>
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