Recipe To Make $100,000 a Year
May 11th, 2009Came across this good read, enjoy:
Yes - making over $100,000 per year IS something you can accomplish with the right business strategy.
Today we’re going to explore a simple gameplan that you can print and begin using to reach your own financial goals during the next 12 months.
Here’s What It Takes To Bring In $100K Per Year…
To get a proper understanding of HOW to get there, we first need to learn WHAT is necessary in order to get there.
It’s a numbers game.
If you want to earn $100,000+ a year with information products, then you must sell enough products in order to reach that volume.
Most people set themselves up to fail from the very beginning. Consider this:
If you sell an eBook that you earn $20 per sale on, you’d need to sell 5,000 copies in order to reach your goal.
That means you’d need to find 14 DIFFERENT customers EVERY SINGLE DAY for the entire 365 days in order to sell the required number of copies.
That is simply UNREALISTIC.
By selling only lower priced products, you set yourself up to fail before you even begin.
So, let’s compare the options at various price points to see where the most realistic opportunity awaits for you to reach $100,00 a year in sales…
Price X Units Needed
$20.00 X 5,000
$40.00 X 2,500
$97.00 X 1,031
$497.00 X 201
$1997.00 X 50
Learn this:
It’s easier to find LESS customers to buy HIGHER priced products than it is to find MORE customers to buy LOWER priced products.
Now, does that mean you should only sell higher priced products? Of course not. It does mean that you should OFFER higher priced products…
How You Realistically Can Do It
The ultimate business - and the easiest way to reach the six-figure level - is to create a mix of products priced at varying levels.
You need a blend of…
* Low-priced entry level products!
* Medium-priced intermediate level products!
* High-priced premium level products!
Look at the advantage:
If you sold just ONE $1,997 product per month, you’d have almost 1/4 of your profit reached in just those 12 sales.
(12 sales X $1,9997 each = $23,964)
Now, instead of needing to find 5,000 customers for your $20 profit ebook, you’d only need to find 3,800. Still a significant number, but it’s down a staggering 1,200 from your original numbers.
Work in a blend of $40, $97, and $497 products and you could easily reach the $100,000 range with substantially fewer customers needed.
4 Ways To Reach The $100,000 Mark
Having looked at the numbers, let’s identify your gameplan. Here are four things you need in order to generate a
six-figure income with your information business:
1. Multiple purchases per customer.
An age-old marketing law is this: “it’s much easier to sell MORE to existing customers than it is to find new customers to sell to”. Your information business stands to gain serious momentum when you offer multiple, related offers to your customer base.
Instead of selling a customer a $20 ebook and then looking for the next customer, you’ll want to setup a system to offer her a $20 ebook, then a $40 product, then a $497 product and finally a $1997 offer. (These are just “generalities”, of course)
The important thing is to get your existing customers to spend MORE money with you. Learn this: the more money each customer spends with you, the less customers you’ll need to reach your $100K goal.
2. Higher profit per purchase.
We’ve already talked about this in looking at the numbers for your business, but it’s certainly something we need
to spend more time on.
You want a mix of products that generate a larger amount of profit per purchase. The key is to create information products in “alternate” formats. No one in their right mind will pay you $1,997 for an ebook, but they will spend that much on a seminar or coaching or reprint rights.
The important thing is to get your existing customers to spend MORE money with you in larger and larger chunks per sale. Learn this: the more money each customer spend with you per transaction, the less transactions you’ll need to reach your $100K goal.
3. Built-In profit streams.
The third thing you need to do in order to give yourself a genuine opportunity to reach and soar beyond the $100,000 plateu is to setup a “backend” strategy to bring in profit from multiple sources.
One of the big “missing ingredients” in what most people teach you about setting up an information business is the “backend”. It’s not uncommon to increase your profit by 300-400% (or even more) by automatically following-up with your customers AFTER THE SALE.
Whether it’s your own products, affiliate programs you promote, products you’ve purchased reprint rights to sell, related services, residual programs or other revenue-generating offers, you gotta learn to cross promote through your autoresponder.
The important thing is to get your existing customers to get into the habit of buying from you well after their first purchase from you. Learn this: if you setup things correctly, you’ll make more money off the “backend” than you ever will in selling your initial product to your customers.
4. Increased market coverage.
And the final thing you want to accomplish is “increased market reach”. In other words, you want SATURATION. You want as many potential customers available in your target audience to remove the “potential” and just become customers!
The formula for market converage on the Internet looks like this:
Site Traffic + List Size = Market Coverage
Just on sheer numbers alone, growing your business is based on how many visitors arrive at your website and how many subscribers you have on your list.
For example: All things equal, 10,000 website visitors will generate more profits for you than 1,000 visitors. All things equal, 25,000 opt-in subscribers will generate more profits for you than 5,000 opt-in subscribers.
The important thing is to get more traffic to your site and more subscribers on your list in order to convert them into paying customers for your related offers. Learn this: The more “market coverage” you have, the more sales you’ll bring in just on sheer numbers alone.
So, that’s the basic gameplan for reaching the six-figure mark (and beyond!) with your information business.
By: justjeff