If you want to grow a successful business, then you need to have a little E.S.P.
No, not extrasensory perception (although that certainly wouldn’t hurt! J). Instead, you need:
- Entry-level offers
- Subscription offers
- Premium offers
Let’s look at these three pieces in detail and how they fit into your overall business plan…
E– Entry-Level Offers
Entry-level offers are your least expensive products, which are typically priced in the $10 to $50 range. You may put these in almost any format, but generally you’ll offer them as downloadable short reports, e-courses, e-books, videos, audios or membership sites.
These may offer beginner level information, such as an e-book that covers a dozen of the top traffic generation techniques. Or you might offer an advanced report on a small piece of a larger topic, such as an intermediate or advanced report about search engine optimization.
You design these products to bring people into your sales funnel, build relationships and build trust so that your new customers become repeat buyers. As such, these aren’t huge income generators – rather, they’re lead generators.
Indeed, you may break even or even lose money on these products, since the cost to bring in a new customer may exceed the price of the product.
Example: You might offer affiliates 100% commissions just so you can build your customer list.
So, what do you do with this customer list? You pitch your backend offers: Namely, subscription products and premium products.
S– Subscription Offers
This is the part of your sales funnel where you start dropping a profit into your pocket. You do this by offering membership sites or other continuity programs where customers pay you ongoing monthly fees for access to your content and site.
You’re probably most familiar with this model in terms of service businesses.
Example: You pay a monthly fee in order to get continued cell phone service, web hosting or other services.
However, you can set up a subscription offer for products.
Example #1: You might offer a training course divided into 52 lessons, which you deliver in weekly installments. You can set up a continuity program where members pay you from $10 to $197 every month in order to access these lessons.
Example #2: You might create brand new PLR or resell rights content for your members to sell. You provide new resell rights content every month, and your customers pay you a monthly fee to remain a member.
These offers are the foundation for your business, because they generate a steady monthly income for you. Indeed, you’re making money passively, since your customers are rebilled automatically.
However, your profits don’t stop here. You should use both your entry-level products and your subscription offers to promote your premium offers…
P– Premium Offers
These are your high-ticket products and services that typically sell for at least $497. These include offers like:
- A month-long virtual workshop.
- A home study course (especially a physical product).
- Personal consulting / coaching / training.
- A weekend workshop.
- The recordings from a weekend workshop or other high-ticket course.
- Resell rights to your premium content.
The benefit of these premium offers is that you don’t need to sell a lot in order to make a lot of money.
Example: Selling just 20 copies of a $1997 home study course puts a quick $20,000 in your pocket – and you can do this month after month!
That $7 report may pay your mortgage or put food on the table. But if you want to make a fortune online, you need to create a sales funnel with E.S.P.:
- E– Entry-level offers that build trust so people will buy from you again.
- S– Subscription offers that create a steady stream of income for you.
- P– Premium offers that take you from “making a living” online to making a fortune!