Creating The Right Products Correctly
What do you think is THE biggest factor behind going from doing ok to having a proper online business?
There is one real way to push your business on, and that is to become a product creator. To have products of your own to sell.
What we’re going to talk about creating is the right product. I think a lot of people get too excited in the beginning and they’re just like, “Oh my god, I just want to create a product, I need to make money, I’m going to create a product.”
They fail to see the big picture, they fail to plan far enough into the future that’s going to actually help them create a business and solid income that’s going to keep coming in.
More often than not, people just create products about things that they know or that they feel comfortable in without having done the research and finding out is this something that I’m going to be able to sell, is this something that there’s an existing need for, is this something that there’s already an audience and a demand for.
You have to ensure that your product’s going to sell before you even start creating it.
This is one of the biggest mistakes that I see in new internet marketers making online. It is probably the reason that most people struggle to find traffic and to make sales. Usually, when somebody comes to me and says, “Wignal, how can I drive traffic?”
I usually say, “Well, you probably already screwed up the whole process because you made the product first and didn’t consider traffic source before you started making it. Now, your life is going to be a living hell and it’s going to be consumed with driving traffic instead of being creative and making new products.”
Let’s talk about how to create the right product; one that’s going to make you a lot of money. This all starts in the research phase right in the beginning. Let’s understand what makes a product the right product. What makes it an awesome product?
My opinion; an awesome product is one that helps people and it sells like crazy and makes affiliates a lot of money. Notice, I didn’t say an awesome product is one that makes me rich, an awesome product is one that’s gonna make me all this money. Here’s the thing, what I’ve come to learn is that the real money is made on the backend. The real money is made when you market to the buyers.
If you think that our success has come from the profit made selling $10 ebooks, or even $47 ebooks, or $97 softwares, it hasn’t. What I’ve learned and what has really taken my business to seven figures has been the creation of a loss leader and the creation of a sales funnel, the creation of a purchase process that’s going to walk a prospect through a purchase decision that is crafted solely for the benefit of the affiliate.
When I craft an offer solely for the benefit of the affiliate—funnel wise, anyway, profitability wise—that’s driving the traffic, what’s going to happen is I’m going to attract a lot of affiliates that are going to drive a lot of traffic.
Traffic won’t be an issue for me because affiliates are so profitable and the product is selling so well that they will continue to mail, continue to run ads, and they’re going to be paying to run ads for me to drive traffic to my site through their affiliate link because it’s so profitable for them.
That’s an awesome product, that’s a product that I’m never going to have to worry about driving traffic because the affiliates are doing it for me. Why? Because I focused on making the affiliates profitable on the frontend. I focused on creating my money, my wealth, my revenue on the backend, on the strategies that I’m going to use to monetize those buyers that the affiliates just handed me in exchange for that profit that I gave them on the front.
These are some of the things that I’ve learned, and it’s simply a matter of looking at it. The way that you’re looking at the money making process that’s going to determine whether or not you make money.
If you’re trying to make money off of that frontend product, you’re trying to pay the affiliate just 50% or even less than that sometimes because you want to make those $3 per sale on the frontend. You know what’s going to happen? You’re not going to get as many affiliates, you’re not going to get as many sales.
Now, you’re like, “Oh crap, I didn’t make enough sales. Let me try finding customers.”
Now, you’re out there finding customers instead of finding affiliates which again is the wrong mentality because an affiliate brings you hundreds of customers. Instead of going out there and trying to bring one customer at a time to your website or to your product which you shouldn’t be doing to begin with because driving traffic sucks and it’s a time waster, that’s not what the owner of an online business should be doing.
An owner of an online business should be creating products to launch because driving traffic is just tedious and who wants to do that?
Nobody said, “Hey, I want to grow up and drive traffic when I’m an adult.”
My point is this, if you want to come up with an awesome product of your own, you must start by identifying and profiling the traffic source FIRST. Failure to do this will land you in trouble later. I can’t stress this enough.
I’ll say this to newbies right in front of their face and they’ll turn around and still go and create a product that they like, or that they think will sell. Then, they come back to me, “Wignal, how do I drive traffic now?”
“You don’t drive traffic now. The traffic driving phase was before you created the product. You already screwed it up, so start over.” “But I’ve got such an awesome product.”
“Yeah you’ve got an awesome product that nobody’s going to buy because had you done your research, had you looked for the traffic first, you would’ve realized that nobody’s freaking interested in underwater basket weaving. You shouldn’t have made a freaking ebook about it.”
Again, extreme example, but my point is this. You’ve got to go look for the traffic first, You’ve got to identify the audience that you are going to be selling to. If you don’t know, then go find them. Go create them. Then, learn from them, find out what their needs are, what are their wants?
What problems do they have? Then, go study those things, create the solution for them, and go drop it in front of them. You created a product for the traffic instead of struggling to create traffic for the product; this is a very simple concept that for some reason people can’t get through their thick skulls when they’re starting online.
They always end up coming back to me, “Wignal, I don’t know what to do. Internet Marketing sucks, man.” No, it doesn’t, you’re just not paying attention.
What’s the traffic source? This is where we begin. We’re going to go over four important questions with regards to doing this properly. What’s the traffic source should be the very first question you ask. When you’re thinking about starting a new product and you’re saying this, “What should my product be?”
My question to you is what’s the traffic source for the product. How do we examine this? We’re going to go about this a couple different ways. There’s a couple different types of traffic sources.
Do you have affiliates yet or are you going to be recruiting them? If you have affiliates already, then they are your traffic source. It’s their subscribers that are your buyers. Creating a product first and then trying to stuff it down their throats ain’t going to work because if you create something that doesn’t appeal to them, the affiliate is going to say, “Sorry man, I’m not going to promote that.”
Or, if you try to pull a favor and he does promote it, you’re not going to make money so he’s not going to mail for you again. Do you have affiliates yet? If you don’t have them, you should be recruiting them. You should be penetrating Facebook groups, go to where these affiliates hang out.
How do you become friends with people in a specific niche? Well, learn about those people. Where do those people hang out? Where do those people spend their time?
Where can I go and meet those people? Let’s say you wanted to meet people that are into fitness. If you wanted to meet people that are into fitness, you go to a gym.
Go to some sort of fitness meeting or something. It just makes sense. Go where those people hang out. Same thing with affiliates; if you want to recruit affiliates, go where those affiliates hang out.
Where are they spending their time?
What groups do they frequent?
What events are they going to? What forums do they post in?
That’s where you go and you make those friendships and that’s how you go and start assembling those affiliates that are going to be promoting your product. That’s how you start determining what your traffic source is going to be.
Once you have these affiliates, now you’ve got to learn who is on their list. What do you know about their needs and their habits?
You’ve got to learn about the people that are on that affiliates list.
If I was that person, let’s say that you are a member of one of our products. As part of that membership, I will be promoting for you. It would behoove you than to identify my subscribers as your future traffic source.
The question you should be asking yourself is what can I create that will solve a problem for those people on Wignal’s list?
The only way to really get the answer to that is to identify who is on these lists.
What’s the demographic? What are their needs?
What are their habits?
We start learning these things by penetrating that, by being a member ourselves, by talking to these people, by polling these people, by asking the affiliate who’s got experience, that being me. Very, very important step that hardly anybody—I think in my entire career only a handful of people have ever really approached me and gone about this the right way to ensure that their product converts.
What do your affiliates absolutely need to provide for their lists?
When you do approach that affiliate to ask them about that traffic—they’re going to know their list better than anybody. One of the questions that you can ask is, “Hey look, if you had the time to create another product this month, what would that product be?
If I can take everything else off your plate, what’s the product that you wish you could create for your people but you just don’t have the time to.” He’s going to tell you what to create right then and there. He’s going to tell you what you can go and make that’s going to sell awesomely for his people, he’s going to tell you.
You’d be an idiot not to follow it if he’s your affiliate because he’s basically saying, “If you do this, if you make this product, I will promote it. I will promote it heavily because I need it and my people are going to love it, they’re going to buy it. I know this because they’ve been asking me for it.
If I had a chance to do it, that’s what I’d do.” But then you’re going to run off and still make an underwater basket weaving product because that’s what you like. It makes no sense, you’re not thinking like a business person. You need to eat a slice of the humble pie and make a product that’s going to sell rather than make a product that you like or that you’re excited about.
Follow the money, very important.
A couple things to consider when it comes to traffic source. Are you going to be depending on SEO or PPC for traffic?
When internet marketers come to me with this SEO mumbo jumbo, I’m just like oh my god, you’re not really looking at the big picture. When you’re creating internet marketing products, SEO should be like the last thing you’re worried about. Really, SEO should be the last thing you’re worried about. Affiliates are the ones that are going to drive the traffic for you.
Organic searches are not going to be bringing you droves of customers, affiliates are.
That’s what you need to be focusing on. If you’re trying to spend all this time making Google happy about the way your site is set up, is Google going to send you—you really think Google is—it’s not going to send you droves of buyers just because you used DH1 freaking tag in the headline or whatever the hell.
That’s the other thing, now you’re business depends on Google and every time they do another animal update, guess what? Boom, you just got Google slapped and you’re really working for Google, not yourself.
PPC, a little bit different. In any one of these cases whether you’re doing pay per click advertising where you’re going to be investing money or you’re doing search engine optimization for evergreen product sales or what have you.
I don’t know but if you are, the important thing to consider before you create a product since this is going to be the traffic that you’re going to be turning to in order to make sales is what keywords are you going to target?
What’s the target audience?
Who are they?
What are they typing into their search bar every month?
Or every week?
Or every day?
Once you know that, once you’ve come up with something that seems to be sought after, you need to create again a profile on that type of user, infiltrate them, where is that person, where does he hang out, what are his problems, and learn about them in advance. This is the way that you identify traffic sources that are going to lead you to a profitable product launch.
Another thing that you can do that you should be doing is actually determining are you going to be the person assembling that audience first?
A very, very powerful tactic is to as you’re creating your product assemble the audience, grow the audience. Naturally, identify the target demographic and the person.
Once you know where they are, where they hang out, how to reach them, then you can start assembling them and inviting them into your own little place of refuge for this particular demographic; maybe a Facebook group, maybe a forum, maybe a fan page, maybe a blog; anywhere that you can post content that interests this demographic that they will be willing to somehow align themselves with you by either clicking the like button, entering their name and email, a way that you’re going to be able to market to them.
Are you going to be doing that?
Are you going to be assembling that stadium where that audience is going to sit?
Is it going to be a Facebook group? Is it going to be a forum? Is it even going to be an email list?
Maybe you’re going to build a squeeze page that’s going to offer a free report on model airplane building for example. You’re going to go to some model airplane forums and share it with them, I don’t know what your tactic is going to be to assemble that audience. It would behoove you to build an audience of a few thousand people in the same time.
Do this in parallel at the same time as you’re creating the product. Nonetheless, after you’ve already done the research on the niche and the specific target audience and you understand what their needs are.
An important thing to keep in mind once you’ve identified that traffic source, once you’ve profiled them, is to know if they’re evergreen, is it recyclable, is it a seasonal type of traffic source?
The best way that I can point this out to you is a comparison between toilet paper and fur coats. One of them sells much better than the other, that is toilet paper, why?
Because it’s a consumable item. People will always need toilet paper. A fur coat is something that you kind of buy once. With toilet paper, you can sell it over and over and over and over again to pretty much everybody. Where on the scale does your product fit?
Between toilet paper and fur coats which is a very, very small percentage of the population that is ever going to buy a fur coat, and a very small percentage of the world, and a very small percentage of income because they’re so expensive.
It’s a specific type of person that will buy a fur coat, but every single person will buy toilet paper and can understand a need for toilet paper. They’ll continue buying it often.
A lot, they’ll look for ways to save money buying it, they’ll look for ways to buy it in bulk. Somewhere on the toilet paper scale is your product, between toilet paper and fur coats. You’ve got to determine this particular traffic source, where on that scale is it?
Can I create a product like toilet paper for this people that they’re going to have to keep buying and buying or is my product going to be more like fur coats? If it’s more on the fur coats side, then I would rethink that, you want to be more on the toilet paper side.
Again, things to consider before you create a product. Unfortunately, because you’re new and you’re just starting out, and the whole thing about making—you try to make it easy, you try to take the easy way—“Oh, let me create a product about something I know.” “Oh, let me just create a product that’s going to be easy to create.”
Sometimes easy to create isn’t easy to sell. Easy to create is usually a pain in the freaking ass to sell. You have this awesome product that you love that was easy to create, but you can’t get one freaking stinky person to buy it because you put the cart before the horse and you didn’t identify the traffic source first.
The next question that we need to address once we’ve identified the traffic source is what are their problems. You’ve got to infiltrate this audience. You’ve identified the traffic source, now you know where they are, you know where they hang out. You’ve got to infiltrate them, you’ve got to get to know them.
You’ve got to gain an understand for where they are in life and in business. You’ve got to become one of them essentially. You’ve got to subscribe to the same lists, you’ve got to follow them on Facebook, you’ve got to find a way to poll them, learn about them, subscribe to the same periodicals that they do.
You need to identify with these people if you’re going to get to the root of their needs. If you’re really going to be able to figure out what their problems are. It’s almost like you got to become one of them. You got to infiltrate this audience if you’re going to gain an understanding of them.
The important thing with any group or any audience that you’re learning about in your research phase of your product creation is you want to identify with the greater majority of that audience, not just one guy or one girl, or something like that. You really need to try to appeal to the most amount of people on that audience. Let me break this down to layman’s terms. Let’s say that audience is coming from an affiliate, from one affiliate. That affiliate probably has a total of XYZ subscribers.
Maybe he’s got a total of 10,000 subscribers. An important question to ask that affiliate is how did you gather these 10,000 people that will become my audience?
He might say, “5,000 of them are from a product launch about list building and then the others are from different things that I’ve done. I have a golfing list, I have another one that’s motorcycle niche.”
Wow, so that 10,000 people isn’t really 10,000 anymore because what product can I create that’s going to appeal to people about golfing, motorcycling, and list building; it’s three very, very diverse categories.
We’re going to focus on one of them. We want to focus on the greater majority because the more eyeballs we can get on our offer, the better it’s going to be. In that particular case, half of his list is comprise of list builders, then maybe that’s the kind of thing that I should be trying to learn about. It’s not just about the total amount of subscribers, it’s about the greater majority of interest within that segment of people.
You need to do intensive and extensive research. What I mean by intensive and extensive is you need to do a lot of research and you need to really, really focus on it.
You’ve really got to be dedicated into this research. You’ve got to be intensive about it when you are learning about the audience. You can’t just say, “Oh yeah, I know Wignal and he’s got a list about product creators so I’m just gonna make a product about product creation.”
That’s not very good research. You know what? If Wignal’s got a list about product creation, chances are he’s already promoted a shitload of product creation products to that product creation list. That’s not a very good—that’s not intensive enough, that’s not extensive enough research into that audience.
Maybe polling them, maybe asking for permission to ask questions in one of this affiliate’s Facebook groups, maybe interviewing the actual marketer that they subscribed to. Creating an interview with that person, asking that affiliate if he’d be willing to sit down for a recorded interview, something that you could even later use as a tool to give away for free to try to build that audience.
Now, you can create a Facebook group where you’re going to share that interview with those people. Now, that person’s subscribers will come and join that group in order to listen to that interview, so maybe 100, 150 of those 10,000 people join that group because they want access to that interview.
Now, you can poll them within that group because you own that group, and now you can get to know those subscribers that were interested in that interview from that marketer and you can penetrate those people—not physically—infiltrate is probably the better word.
You can infiltrate that segment of that person’s list and you can find out what their needs are. You can find out what other marketers they subscribe to. You can find out what things they like to buy, what things they bought in the past. All of these kinds of things are questions that you can ask the marketer, and that you can also ask the marketer’s subscribers as you start polling them once you start infiltrating that group of people.
Once you’ve done this and you gained an understanding and you developed some relationships with these people, you need to identify a problem that the majority of them have in common. This is a key because this is what’s going to give rise to the product that you’re going to create. You need to identify a problem that you can go and figure out and solve for them.
It’s got to also be a problem that’s going to lead to other needs. You don’t want to just solve their problems in a way that they’re never going to need anything from you again. The idea here is to create a customer for life. When you’re doing this, you’re not going to start thinking about the big picture.
Maybe, you have an option of creating a software tool that solves their problem, or you have an option of creating a training product that you’re going to need to update every year or something like that.
You want to try to create a product that will solve a problem but at the same time will also give rise to other products that you can create for them. A problem that leads to other needs. Most problems are usually that way.
When you solve someone’s problem and they get past that hurdle, it isn’t too long until now they’re facing new hurdles. They’ve reached a new plateau in their business or in their life, but now they have a whole new set of problems. You want to identify issues that they have and create solutions for those issues but you want to keep in mind that you want to be able to sell things to them again in the future.
You want to start thinking about that, you want to start thinking that way. Okay, so if I make a product about this, how will I monetize these people after they buy this product from me? That’s important. You should start thinking about that before you even create the very first product.
We’ve identified the audience, we’ve infiltrated them, we’ve found out about the traffic source, we’ve interviewed the affiliate, or we’ve done keyword research—whatever direction you’re going in. You’ve got the audience, you’ve identified the problem. Now, the big question is how the hell are you going to solve it for them?
Can you solve this for them or teach them how to solve it themselves through some sort of digital means?
Meaning video recording, audio recording, some sort of a PDF document, instruction manual, or something like that. Are you capable of creating an information product that will address this issue for them? Some problems, you just can’t solve digitally.
Maybe the problem is that their car is broken down and they don’t know how to fix it. Can you really solve that digitally?
You can create a PDF with the images of how to fix that problem, maybe the person needs a new muffler and you go and you replace the muffler on your own car and you record a video of yourself doing it, and then you take that video and turn it into a PDF and all that.
You can do that, but are you really capable of creating a specific information product that’s going to address this person’s needs? Sometimes, you can’t. Sometimes, it’s the kind of things that you just can’t teach in a digital product, sometimes it’s got to be physical. I’m going to caution you on creating products that are teaching them how to do something physically or that need a physical component.
I’m going to caution you on doing that first. You can experiment with that after you’ve got some more experience in creating digital products. As a first product, you should create something that digitally solves their problem. Because digital products are just easier to make, they’re just easier to make, they’re easier to handle, they’re easier to deliver.
As you start building your business, the last thing that you want is to deal with some sort of physical issues, fulfillment issues, at the very, very start of your career. I think that’s something that you should learn at some point, I just don’t think it should be something that happens right away.
I would strive to find a problem—in the prior step, the prior slide—strive to find something that can be solved digitally. That’s really what you want to do. You want to be able to solve it through a video course, through an audio course, through an ebook.
If you can’t explain to them how to solve their problem or if you can’t give them their solution in a video like the one that you’re watching right now, then probably you should look for something else to create product about.
Another thing that you need to consider is can your solution be moulded to fit other audiences or will it only work for this particular affiliate’s list?
Are there similar products out there already? That’s the way you find out if there’s other audiences. Once you’re thinking about your solution, you’re starting to get the ideas, start going into the market places. Go to Clickbank, go to JVZoo, go to Deal Guardian, go to whatever one you want to go to. Do some searches, extensive and intensive searches. Don’t just type one word into the search bar.
“Oh no, things there, awesome, I’ll be the first one.” No, go and look. You actually want to find products that have competition, you want to find products that there are other similar products out there. Why? Because that means that you can fit other audiences, that means that now—you might be saying, “What do you mean, Wignal?
How am I going to fit all…?”
Now, you can go and hit those affiliates, those product creators up as affiliates. Now, you can share your product with those affiliate’s list. You have a place now to go and recruit more affiliates.
Again, finding traffic is something that we’re doing in advance. As part of our research, we’re going and we’re finding other affiliates that we can recruit. If I’m thinking about creating a product on list building or a specific type of list building, or how to use this particular auto responder, something like that, I’m going to go into the other marketplace and I’m going to see if anybody else has created a product like that.
If I find a few, I’m going to be like great, I’m gonna research those, find out who created those.
Those people that created those products, obviously they have a list of buyers that are in the same niche, that have the same interest. Those marketers, those product creators, they’re on my radar now as a source of traffic for me. I’m doing all of this before I created my product to make sure that these options are there for me. Once I’m done with my product, I’m going to have a place to go to find buyers. That’s important.
Don’t leave it until after you’ve created your product to hope that you can find affiliates, and to hope that you can find audiences. Can this be moulded to fit other audiences?
Are there similar products out there already?
Very, very important questions to ask.
I talked a little bit about platform dependency when we mentioned SEO, and this is important with your solution. Is your solution platform dependent or is it seasonal?
A lot of people create tutorials on—for example what’s an example of a seasonal product. Maybe your audience lives in Hurricane Alley, you’re targeting a list and an affiliate that sells survival gear. Is it going to be your affiliate, that guy’s got a list of 16,000 people that are all from Hurricane Alley and they’re all in this group for hurricane preparedness.
You’re going to build some kind of a product or tutorial or video series on how to prepare for hurricanes. I don’t know, I’m pulling this out of thin air, making it up as I go along here as an example.
This kind of becomes a seasonal product now. This is going to be tough because if it’s not hurricane season, it’s going to be tough to sell this. It’s going to be tough to sell this to people in Alaska. It’s going to be tough to sell this to people in areas of the world that don’t have hurricanes, or that don’t have that problem.
Even though you did find a niche, you did find a group of people, you did find people with a problem, and you did find something that you can create a solution about.
You did it in an industry or niche that’s seasonal, or that’s platform dependence.
Platform dependence could be just as crippling.
For example, if I created something that depended on Facebook. Let’s say my product was something about how to build a Facebook Fan Page. I spent three months learning how to create the awesomest Facebook fan page, creating ten of my own, building audiences for those pages, and doing all of that.
Then, I create this MacDaddy product, it’s awesome. I’ve got multiple affiliates that have Facebook lists and people that are interested in Facebook marketing and stuff like that.
I think I all set and then guess what, all of a sudden right after I launch or the day before I launch, Facebook decides, “You know what guys, we’re going to remove the whole Facebook Fan Page feature, we’re just not going to do it anymore.” I’m not saying that’s going to happen—it’s unlikely—but it can.
The reality is that you’ve created a product that’s dependent on another platform.
Whenever you create a product that’s dependent on another platform, you will always kind of be working for that platform. That platform has control over you. If they change things, you’ve got to go change things. That’s a pain in the ass. The more dependent on outside factors, the less in control of your business that you are.
These are all things that I consider when I’m thinking of how I’m going to solve the problem for this audience that I’ve found, because I want to avoid getting into a solution or creating a product that’s going to be a pain in the ass for me later.
Speaking of being a pain in the ass later, can it be sold later?
Is it something that’s going to be evergreen?
Can I sell this year-round, forever?
How am I going to be able to continue monetizing this solution after the initial product launch?
Am I going to be able to keep this website open and drive traffic to this perpetually?
Am I going to be able to experiment with cold traffic, pay per click, and media buys, and all kinds of other things. Is this an evergreen thing or is this something that is some sort of a solution for just something that’s happening right now?
For example, what are the kind of things that happen once?
Let’s say that—do you remember, I might be showing my age here. There was a big scare in the year 2000, 2K, oh my god, the internet, it’s going to explode on midnight of the year 2000. Let’s say that you identified a big hungry market of people that were looking for a solution, they were looking for a way to protect their computer and back everything up in case the internet falls apart on midnight in the year 2000.
Maybe you created a tutorial, but that’s the kind of thing that you’re just going to try to milk it. After that event happens, guess what?
People are not going to need to buy your Y2K product anymore, it’s not an evergreen product. Will you be able to continue monetizing the solution after your initial product launch? All very important questions to ask.
Does this problem that you’re going to be addressing, does this problem that you’re going to be solving have an abundant amount of research material that you can study?
Is this a kind of product or solution that you can go to Google and type a couple of words into the Google search bar and come up with hundreds if not thousands of pages of blog posts, of videos, of information, of data to help educate you on how to solve it?
Data that you can study to then turn into a product of your own?
Maybe, you’ve got a great idea for a solution, maybe you found—this is a terrible example. Maybe you want to create a product about cancer, you want to write a book about cancer, but it’s going to be tough. Unless you’re going to go find the cure for cancer, you’re going to be hard pressed to go and convert that into…
If the audience that you’re trying to market to are people that are looking for the cure of cancer, that’s not something that you can go out and find the solution for easily. You want to go and find a problem to solve that you can easily create a product about.
You want to be able to find abundant material, heck you might be able to find PLR material that already exists about it and use that PLR material as some content, as filler, as bonus stuff to add to your product. You shouldn’t just go find a PLR product to drop in front of that audience, you should create your own.
There’s no reason that you can’t use some of that PLR stuff that you find out there on the subject as source of your research, as a source of material for the product that you’re creating, for the videos that you’re going to make, for the audios that you’re going to record, for the book that you’re writing yourself.
The last thing I want to cover which is a question that you should be asking before you even start your product creation is what are they going to absolutely need afterwards?
After you’ve solved this problem for them. Do you know what are the things they’re going to need after they buy from you?
Because you’re going to need to keep selling to them. You don’t want to just create yourself a product and a niche for an audience that just needs to buy once. Toilet paper for example, they’re going to need that over, and over, and over again.
Creating a product that solves a problem once and for all is not usually a really good idea because then—or rather, it’s good that you solve their problem once and for all, that’s not what I meant to say. It’s good that you solve that problem once and for all, but it’s also important for you to identify things that they’re going to need after that problem is solved.
You got to think like a business person here. You got to reverse engineer your offer based on things that you plan to sell them AFTER they buy. I talked earlier about creating a product that is profitable for your affiliates. In many instances, one of the things that’s wise to do is to offer that affiliate 100% commission on the frontend product, 100%.
You literally do all this research, al this market penetration, you do all of this product creation and everything, you really put your ducks in a row, you do intensive, extensive research to create a product that you’re going to give away 100% of the profits for.
Doing that is going to ensure that you’re going to get a whole bunch of affiliates excited that are going to send you a whole bunch of customers. Then, you’re going to make your money by selling them things after they buy that initial product that’s profitable for the affiliate. This is smart marketing. This is strategy.
What’s going to be the high ticket webinar that you automatically register those new buyers of yours into? I want to pause here for a second and I want to spend a moment talking about this. This concept has added millions of dollars to our bottom line over the years that we’ve been building out business.
The concept of creating a product that introduces people to a high ticket backend webinar. The idea that front end product doesn’t need to be profitable for us at all, but rather profitable for the affiliate which is bringing us customers. The more profitable and exciting that I can make that front end product for the affiliate, the more he’s going to want to promote it and the more customers he’s going to send me.
Let’s do some really, really quick math here just to give you an example. Let’s say that you were to do a product launch and that you were to create a product that sells for $10. You were to offer those affiliates that are going to be promoting your product 100% commission. They’re going to make $10 per sale.
Not just on that product but you’re obviously going to have an upsell and maybe a downsell, you’re going to give them 100% on all of that. You’re not going to make any money at all on the frontend product. This is what we call a loss leader. The lead in product to your funnel, to your sales funnel, to your purchase process that you’re going to be putting your visitors through is a loss leader.
It’s not making you any money, it’s leading people into your funnel. It makes your affiliates money.
A lot of things happen when you start creating this dynamic. It makes them more profitable, which means the EPC is going to be higher, the earnings per click is going to be higher because you’re giving them 100% of the commission, which means that the statistics are going to display inside of the marketplace as much more profitable than if you’re just giving them a percentage.
Other affiliates will see this and they’ll be like, “Oh wow, the EPC is high on that, let me promote this product as well.” It’s going to start to buzz and you’re going to start creating—one affiliate is going to attract another affiliate. If you craft the offer to sell, if you price it to sell—you’re not looking to profit on that front end, you’re looking to make a lot of sales.
Not only are you going to make it appealing to the affiliate, but you have to make it really appealing for the customer, you got to make it a no-brainer, you got to make it something where like, “Oh my god, I’m getting ten videos plus that plugin for only $9?
Wow, I’ve got to buy this, it just makes sense to buy it in case I ever do need it.” You got to get your customer thinking that way with a no-brainer offer. What do you care?
You just want a price to sell. All that money is going to the affiliates, so now you’ve created this dynamic on the frontend, on the loss leader of your product that’s got a flood of affiliates driving a flood of traffic. Traffic is not going to be a problem because of the strategy that you’re using.
Let’s say, let’s just say for illustration purposes here, that you run a product launch, you set it up as a loss leader, you give 100% commission, and on top of the fact that you’re giving away all the commission, you create a contest for your affiliates and you put up a couple thousand dollars in prize money.
Now, those affiliates are even mailing harder and they’re mailing over and over to try to win that $2,000 or that $1,000 or whatever that prize is that you’re doing. You might be saying to me right now, “Oh my god Wignal, I haven’t made any money in the front, I’m tapping into my savings. Oh my god, you’re going crazy.” No, listen to the strategy here.
That mentality—setting that up in the front could very well make you several thousand sales. Let’s not go with several, let’s just say 2,000. Let’s say that you have a launch that does 2,000 sales. It took you three months to create this product that you didn’t make any profit on, and in those three months, you worked your ass off.
You invested a lot of time, a lot of sweat equity went into it. On top of that, you’re going to go into your savings, you’re going to put some money, you’re going to go ahead and put another thousand dollars or $2,000 or whatever into prizes for your affiliates.
Now, it’s actually costing you money, it’s a loss to do this launch, it’s a loss, but it’s going to bring you in 2,000 people because you did it right, because you went to the affiliates first, because you did your research, because you found the traffic first. It’s not really risky, it’s not risky. If you’re scared about doing this, it’s because you haven’t done the research.
If you’ve done the research and you know the audience, and you’ve penetrated it and you’ve infiltrated it, and you’ve done your studying, and you’ve created a product that will appeal to them, and you’ve built a relationship with the affiliates, and you’ve interviewed the affiliates, you created something they need.
It’s not risky, you know it’s’ going to sell. You’ve got no problem doing a loss leader when you do it that way. If you’re afraid, it’s because you haven’t done enough research; go back to the drawing board.
We do 2,000 units on a frontend. Remember, out of that $10 of each sale, the fees get paid right out of that. The PayPal fee, the JVZoo fee, that all gets taken out of the sale itself. You’re not coughing up more money to pay for that stuff, that all comes out of the sale money.
The money that you’re going to be coughing up is the prize money. It costs you let’s say $1500 or $1000 you put up for prize money. Now, you’ve got 2,000 customers, brand new customers, people that invested money in you. They saw your face on that sales page, they saw your sales video, they saw your product, they’ve invested in you—they are now on your list, so you’ve built a list of 2,000 buyers.
You’ve probably also built a list of maybe another 1500 freebie seekers because you had an exit pop on your sales page like Wignal Edwards taught you that gives them something for free and puts them on an autoresponder sequences, there’s another video about that in the archives.
You’ve got 2,000 buyers and you’ve got another 1500 freebie seekers, you’ve got a total of 3500 people as a result of this launch. You still haven’t made any freaking money. However, you followed Wignal’s advice. You know what you did? You found yourself a high ticket webinar.
You created a relationship with affiliates and you found a guy that’s got a webinar out there; he’s got a product. He’s been doing this a lot longer than you and he’s got a product that he sells for $1500. It’s a congruent product to what it is that you’re selling. It’s going to appeal to your audience.
This $1500 product, this guy, he’s been an expert, he’s been doing this for a long time. He’s got proven metrics, and you know that his webinar that he does converts at—let’s give it a low number—10%. He’s got a $1500 product that converts at 10% via live webinar.
What you did is you took your 2,000 buyers and you automatically registered them right when they pay in JVZoo, it’s a feature in JVZoo. You automatically registered every one of those buyers into a webinar. You now have 2,000 registrants into a webinar, that’s going to take place maybe a few days after your launch. You’re going to show up, and you’re going to introduce that speaker. We’ve got to do some math, I don’t want to gas up your head, let’s do some maths.
If you’ve got 2,000 registrants, conventional wisdom and experience tell me that 30% or so will actually show up. 2,000 times 30% is 600. You’ll have 600 people that attend live, more or less. These are pretty accurate numbers because I’ve done this many times. About 600 people will attend live.
Remember the statistics that we have, the metrics that we had—10% conversion rate, that means 60 people are going to buy on the live call. 60 people are going to buy a $1500 product, 60 times $1500 equals $90,000. You just generated—well, somebody did it for you—$90,000 out of your loss leader. You did it in 90 minutes.
Well, you did it in five because all you had to do is introduce that guy, it’s his business to do that. “Wignal, I don’t get to keep the whole 90.” No, of course not, you’re an affiliate for that guy so you keep $45,000. How much did we spend? Well, to get to this point, we put up a contest of $2,000. We invested $2,000 or $1,500, whatever the hell you need, and you invested the sweat equity of doing the research and creating the product for three months.
$45,000, not a bad payday, but it doesn’t stop there. Remember, only 600 attended, and you built a list of 3500, 2000 buyers, 1500 freebie seekers. What are you going to do for the next three days after the webinar?
You’re going to promote the replay to those other people that didn’t attend.
Experience has told me that you’re going to sell more—on average for us, it’s about 60%—50% at least of your sales overall as a result of that webinar are going to come from the replay. You’re going to make another $45,000 at least, likely you’re going to make $90,000.
On top of the initial $90,000 that you did, you’re going to make this additional money by promoting the replay with a countdown timer over the course of three days using an urgency campaign that we call the crush campaign—this isn’t made up. This is real. This is stuff that took me years to develop and figure out and test. This is reality.
That loss leader could very well lead to $90,000 in profit. We’ve only scratched the surface of how you’re going to monetize this brand new 2,000 people in the back-end, those 2,000 buyers. You’re going to put a banner for a fast action bonus on your welcome page and that’s going to make you another $5,000 to $10,000.
You’re going to use something called the step box, you’re going to also be promoting products over the next 60 days. Everyday you’re going to send them an email recommending something else; that, again, is congruent.
The cool thing is that what we’ve learned is that for every subscriber that you have on your list, you make an average of a dollar per month recurring revenue. These 3,500 new people that you’ve added to your list, marketing them through email marketing over the course of a daily basis, you’re going to find that you’re going to make a dollar per subscriber on average.
You just added $3,500 a month to your recurring income—this is all from a loss leader. It’s about strategy.
If you just try to come up with a product idea—“Oh well, that sounds good. I’m going to make a product of model airplanes because I like building model airplanes. I’m just going to make my money selling $7 ebooks and I’ll make $3.50 per sale because I make 50% of the affiliate.” You’re going to have a hard time finding affiliates, you’re not going to make 2,000 sales—you’d be lucky if you make 100 or 150. You’d be lucky because you’re not going to have affiliates.
You’re going to be struggling to drive traffic. You’re going to be coming to me and saying, “Oh Wignal, how do I learn about traffic, how do I drive traffic?” The smart strategic marketers—the guys that are using higher level strategies—while those guys are giving away 100% commission and generating hundreds of thousands of dollars on the back-end, you’re struggling to find traffic because you didn’t do your research first.
You put the cart before the horse. You’re struggling to find traffic, you’re just trying to sell—you’re trying to make $3.50 at a time from your guys. You’re doing SEO, you’re doing that, you’re playing that game. I’m going to ask you these questions before you start creating a product, as you’re penetrating a market, as you’re infiltrating an audience.
You need to start asking things like, “What are their needs?
What are their problems?
How can I solve their problems?
How can I create a loss leader for these people?
How can I make money off of them after they buy that solution from me?”
What’s going to be the first fast action bonus that I promote on my welcome page?
A fast action bonus is an offer that you put—this is probably one of the most profitable pieces of real estate that you have inside of your website and that is on the bottom 1/3 of your welcome page. Once someone buys from you, what you want to do is on the bottom 1/3 of that page is make them an unadvertised bonus offer and you say, “Hey look, I didn’t talk about this on the sales page.
I wanted to keep this and limit this just to action takers. This is a fast action bonus. I want to make you this offer. Everybody in internet marketing needs a hosting company. I’ve negotiated a deal with this hosting company that if you sign up through me, through this link, they’re going to build you a free website, or they’re going to do this, or they’re going to do that. It’s only going to cost you XYZ to do that.”
Throwing that banner in there is going to make you tens of thousands of dollars. We know this by experience, but it has to be a fast action bonus. You can’t just be like a sales whore and make your visitors feel like you’re just trying to squeeze every dime at them. You’ve got to make them feel like you’re trying to help them, and you are because you went and you found a deal.
You did some research in advance, you worked out a deal with some company that has congruent products, something that your people are going to need. You’re going to say, “Hey, if I can bring you a bunch of customers, can you offer my customers a deal?”
You’re negotiating a special offer for them. It’s a win-win-win situation. That company gets new customers, you make a profit, and your customers that needed this service get a discount; win-win-win. This is the marketing side of internet marketing. Don’t spend all your time on the internet, spend your time on the marketing. That’s your fast action bonus.
What products are you going to be promoting to them via email over the next 60 days?
In the process of recruiting affiliates, you can make out deals with these affiliates.
You can say, “Hey man, listen, I’m going to have a couple thousand brand new buyers. If you promote for me during my launch week, I promise to promote for you after my launch to all of my new buyers, let’s work something out. You promote for me and I promote for you, this is called reciprocity.”
You should create a promotion schedule even before you create the product, you should be creating a promotion schedule that you’re going to follow to the buyers of the product that you haven’t even created yet. This is how you create products that win. This is how you create businesses that win, that make you money long term.
Remember, you’re going to have multiple listS. As you could see on the screen there, I put capital S because you’re going to have—every funnel creates a series of lists, it doesn’t just create buyers.
You create buyers that bought your frontend product for $9, you create buyers that bought an additional upsell for $47, you create buyers that bought the downsell for another $9, you create freebie seekers that didn’t buy shit, they just clicked the X to leave your sales page but they wanted something for free. You’ve got all these different types of people that you can market to.
You can market different things to those different people. Somebody that was willing to spend more money on you, you can go ahead and start marketing them right away with more expensive products that you’re going to be more profitable on. The guy that was a freebie seeker, you might want to start with the $5 products, you might want to start with the $10.
You’re going to have this plan on how you’re going to market to these people after they buy from you before you even create the product that they’re going to buy.
Do you see where we’re going with this?
This is being strategic. This is called creating a business plan. This is just one product out of your business plan. This is how you build a company that’s making you millions of dollars in eight years, or in a few years. This is how you build a six figure business in a matter of 18 months like we were able to do, just by thinking about strategy.
What’s going to be the next product that you launch? That’s really important. How are you going to follow this bad boy up? Is it going to be a sequel?
How do you follow up strong in a few months with something different that’s also going to appeal to this audience?
Again, if you’re creating the Y2K product, it’s going to be tough to follow up bang buster launch the next year because there wasn’t no Y2K1.
How are you going to follow up? What’s your next product going to be? All of these questions—this is called reverse engineering your funnel and your business funnel, not just your sales funnel for this product. My entire business funnel, I’m reverse engineering. I’m thinking what is next, what is next, after this what do I do next? What will I do next, like playing chess. You got to be thinking three, four, five moves ahead. After I do this, what’s going to happen? After that happens, what could possibly happen? If I don’t do this and that doesn’t happen, this other thing might happen. If that other thing happens, what will I do then to counter that other thing? This is called strategy. This is how you make money online.
If you’re too worried about “Oh my god, how am I going to pay the rent this month. Oh my god, I’m going to be—I need to make money right away. Oh my god…” You’re not in any mental state to build a business, you’re not being strategic. You’re making decisions based on fear of losing your house, and this is why people say to me, “Wignal, I need to make $500 by tomorrow, this week.
If I can’t do it, that means that you suck and you don’t know anything about internet marketing.” Okay, I suck, I don’t know anything about internet marketing.
If you need to make $500 by next week, then you need to go get a payday advance or you need a better job, you need to fix your life because the fact that you need money so fast tells me that you don’t have any strategy about managing your own money, let alone building a business. Very, very important. I’m not saying this to put anybody down.
I’m saying this to kick you in the ass, to make you understand the mindset that you need to be in if you’re going to create product launches that win, if you’re going to create product launches that make you a lot of money, if you’re going to establish a name for yourself.
Here’s the other thing that happens, something magical happens. When you do this, when you set up strategies like this, you make affiliates a lot of money. It gets easier and easier to launch every single time. Affiliates are going to be approaching you and saying, “Hey man, when are you going to launch something again?
When are you going to launch something bro, because I made a lot of money the last time you did something and I need to make that kind of money again.” Affiliates are coming to you, speeding you up. Traffic is no longer an issue. The guy that’s struggling for traffic after being on internet marketing for a year, for six months, he just did it all wrong. He put the cart before the horse; don’t be that guy. Don’t put the cart before the horse.
Remember, if you get all excited and you put that cart before the horse, you’re going to screw this up. You’re actually going to have a 97% likelihood of failure. The people that fail, which is 97% of people that start building an online business, they fail, they crash and burn. They fail because they put the cart before the horse.
They didn’t go and find the traffic first. It’s much easier to create a product for the traffic than traffic for the product. Get it through your skull. It’s smarter to build a hut by the river than to go and find a nice empty spot in the desert and pray for rain.
I hope that you heed this advice and that you use it in your business. Whether you have an existing business you want to bring online, an online business that could perform better, or you’re starting out and want to build your own new business online – you are in the right place. Simon founded the Internet Business School after finding out himself just how much there was to learn about doing business online and how widespread the information is. To learn more on his complete system for making money online, check out his video here.