**Due to the popularity of this topic and this episode, Ryan and Danny are hosting a live Google Hangout to discuss launching a “product pilot.” Register for the class through this link.**
This is the twelve-month plan to building a million dollar brand that sells digital products or consulting. This formula will apply to any intangible business and is the model Facebook used when they launched and became a multi-billion dollar brand.
Business opportunity seekers tend to spend a lot of money on training and move markets in the direction, they as a herd, are going. In the last three years, we have seen a monumental shift in business opportunity seekers move into physical products and selling on Amazon.
Every three years there is a swing between selling physical products and digital products. The physical products business on Amazon is consolidating, which means there are wide-open west opportunities for selling digital, intangible, and education projects. Opportunity seekers will swing back over to digital products and new channels will open up.
Channels serve as a great leverage point to reach your target audience, but business is less about ‘what’ you sell, or even ‘how’ you sell it, and much more about ‘who’ you sell to. The opportunities that exist now are due to the fact that responsive audiences exist at higher rates than ever before. Product sales are down and ready for an opportunity. The increase in people consuming YouTube, podcasts, Periscope, and Twitter content have increased, but monetizing has reduced because of the temporary swing away from digital products.
When you see advertising as a primary way of monetization, you know that a shift is coming. Advertising is not the best way to monetize an audience; selling your own products is.
There are more content creators on YouTube getting millions of views and only making money by running advertising. The opposite of this is spending money to build an audience and then sell to your audience.
The Three Stages
Getting the Leads and Building the Audience. This assumes you know how to get leads and get an audience. If you don’t, then run advertising to build an audience or partner with people who have an audience.
Stage One: The Grind
You have leads and an audience but don’t have proof of concept for a product. Your entire purpose is to get the proof of concept. Does your audience want what you have to offer? If they don’t, then identify what they want. This can be figured out in a variety of ways. Ask them by running a survey, or put up offers and see who shows up.
Most people are not willing to do the grind, launch the product to a small group of people, get money flowing in, and gather case studies and testimonials from the students who go through the training.
Know that this process will be imperfect, may be done wrong, and can be embarrassing, but you will get feedback, and it’s worth it.
Stage Two: The Growth
Repeat stage one with your proof of concept and improve your sales process to new traffic and channels by leveraging other affiliates and putting your product on an existing channel. The purpose is to establish a sales machine that works. The goal is to identify what sales medium brings the maximum amount of exposure for your product. There are new channels you didn’t tap in stage one, so it’s time to seek new blood.
Stage Three: The Gold
This is where the money flows in and we become authorities in the marketplace. Build up regular traffic channels so we have regular customers coming to us, so it’s not a churn and burn launch process.
The two assignments are to build up recurring traffic channels and to brainstorm and release subsequent products. This could take up to six months. Most people try to skip to stage three, and when it doesn’t work, they give up.
Building Recurring Traffic Channels
This is where you start running advertising straight to the offer, as you are no longer leveraging audiences anymore. This could be by Facebook ads, Google ads, or by being a guest on podcasts. Fresh blood is sought for the sales process that you identified and clarified in stage two.
Brainstorm Next Products
What do people who bought product number one want more of? Is it coaching, consulting, events, another product, a mastermind? How do you dive deeper into the experience that you are offering? The next things should be more expensive than the previous offer. Take whatever you are thinking of charging and double it, then double it again.
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Links to Resources Mentioned
Danny Iny (previous podcast)