Automated, recurring revenue.   Make money while you sleep.

Soooooo tempting!!!   It’s what we all want right?

{Remember I’m a truth teller so brace yourself for impact as I show you what you are really wishing you had.}

Firstly, I DO believe in working smarter for higher profitability.   I do believe there are effective business models with high volume, high dollar “automated” income streams of online product sales.  (Amy Porterfield, Michael Hyatt, Marie Forleo, Russel Brunson.  I just named some heavy hitters.)

The hidden truth:   All of them started with small lists, low turn out webinars and $27 sales days after pouring 80 hours of work into the efforts.   You have to put in the sweat equity and invest in advertising up front.

I do personally believe this model is possible as this is what I’m building here with How She Quits programs.   But you have to know what you are getting into.  It’s a long game to play, not a quick hit for cash.

So here’s the truth you need to know about infomarketing:

It’s a long build up business.   You spend at least 80% of your time marketing.  Especially as the internet gets noisier and noisier.

The basic steps are this:

  1.  Build an “expert brand” online

    • Build a followers list on one or multiple channels.
    • Create content for free to demonstrate your expertise
    • Be consistent. Show up. Show up.  Show up.
  2. Build a product that is in demand and irresistible

    • Why is yours different?
    • Does the audience want this?
    • Why would they buy it over something else?
  3. Build a marketing system leading to that product  (See overview image below)

    • Traffic driving through some social platform, network, etc.
      • FB Ad Campaigns  (optional but accelerates growth)
        • Warm up campaigns
        • Retargeting campaigns
    • An amazing Freebie offer that builds reputation and trust
    • Email opt-in to freebie
    • Email drip follow up offering the product
    • Sales Page

 

Now let’s talk math.   Online marketing industry will tell you that even a 2-3% conversion on a sales page is phenomenal.  Whoa!  Feels like a failure to me right?   But when you think about all the things that could go wrong in that cycle, it makes sense.

See the questions below each pillar of the system in the diagram above.

  • Are the right people coming through your traffic channel?
  • Are you giving them what they want?
  • Do your words clearly describe their pain points and needs?
  • Where is the drop off in that funnel?  Where are you losing people?  What page?  What email drip?

Simple math example:

$47 product.  With 100 sales = $4700 (not bad but not stellar right?)  Let’s work backwards to see what it might take:

  • 100 sales at 5% conversion means 2000 people visited that sales page

Where do you find those 2000 people?   Let’s say you have a 20% conversion on a freebie opt-in page.

  • 10,000 people need to visit your opt-in page to get 2000 people on your email list.

Now, there are ways to tighten that up right?  A higher conversion means you make more sales with less visitors.   But the first time you offer a freebie or a sales page, you can always expect lower conversions because you simply haven’t dialed in the right messaging for the right audience yet.

So, where are you going to find 10,000 people to click through from social media and look at your freebie?

They.Are.Out.There.   Believe it.  For the right product, 10,000 people are out there waiting for it.   Do you think I believe 10,000 moms are sitting out there in cubicles right now dying to be working from home?   You bet I do.  That’s what keeps me motivated.

But you can see why showing up consistently, over a long time period, to build up a following is essential to being successful in the info-product business.   I won’t find those 10,000 moms in cubicles who needs these products too quickly.

This info product math is also a key reason why more people are going into 1-on-1 coaching right?   The sale can be easier.

If only 30 people follow me.  And they are “superfans”.  And only 2 of them buy my $2500 coaching package, I just made $5000 and it felt WAY easier than 100 $47 PDF workbook sales right?

Questions to ask yourself as you consider offering an info product

  1. Do I already have a traffic driving channel in place?
  2. Do I know clearly what my followers want?
  3. Where do I fit in among the competition in regards to price and quality?
  4. Is there ROI?  How many do you need to sell to make it worthwhile?
  5. Am I ready to be in this long game of content marketing online to build a brand and following?

Now, don’t be discouraged.  This is not a wet blanket.  It’s a reality check. 

If you believe there are 10,000 __________’s out there like I believe there are mom’s in cubicles who need this, then GO FOR IT!

With your eyes wide open and your stamina ready for a journey of perseverance with great reward at the end.

 

Related Resources:

  • Online Membership Launch Checklist (Claire please link)
  • The transformational online product designer.  My method for finding a program that truly brings results and is attractive to your audience.  Video Access here
  • Building 2 Businesses + the Online Training Business Model –  Key Questions and Steps.  (Live video Training access)