There are 3 fundamental steps to building a profitable online business product – these simple steps if applied properly generate leads and produce sales, no matter the industry or niche you operate in.
Step 1 – Traffic
Every online business model needs traffic – simply put, traffic is the eyeballs on your offers, it is the people who you drive towards your website in the hopes that they will become a lead or a customer.
There are a core set of ways that businesses use to drive traffic to their websites:
- Pay per click – Buying traffic from services such as Google AdWords. It is usually seen as the quickest tool to producing targeted traffic. When a business gets this strategy right they get thousands of visitors instantly and make sales or collect leads. Get it wrong however and this strategy can quickly get expensive.
- Search Engine Optimization – In this method businesses produce content which search engines rank. They then show them based on the relevancy of the content they deliver. For those business owners who are prepared to invest time or money into utilizing this method search engines can offer a steady stream of free traffic. This method takes time though, it isn’t a quick process. You have to be patient and keep working until the traffic starts flowing.
- Affiliates: Affiliate marketing is perhaps the least used traffic source for many Internet businesses. That is because the process can be complicated to put in place. Relationships and quality of offers are key in this traffic method but when you get it right, the result can be high quality traffic delivered at a low risk. Usually commissions are only paid to the affiliate marketer when a sale is made.
Step 2 – Sales
Once a continuous flow of quality traffic is in place, the next piece of the puzzle is making your first sale. It can take a little trial and error to get this step of the process working profitably. Usually many tweaks and amendments will be needed to get your conversion rate to be as high as possible.
The aim of this part of the process is usually completely focused on getting a customer. Usually a low value, front end product will be used (we also hope to sell the front end product to cover the cost of the advertising).
The front end offer is usually an ebook or a webinar. It could also be a low value physical product. It is down to the individual business owner to work out what will have the best success rate for their business.
The front end product is important because it is the first step towards building a lasting relationship with your new customer.
The first sale also creates an opportunity for step 3. Step 3 offers upsells and back-end offers to qualified customers. They have already shown that they are prepared to pull out their bank card and spend!
Step 3 – Upsells and Backend Offers
Those of us who have been involved in online business for a while know that it is usually easier to convince someone who is the process of buying or who has bought something from us previously, to buy from us again or buy more.
With this in mind, the front end offer at step 2 creates the buying condition which then leads to the upsells, downsells and cross sells that happen at step 3.
Upsells, downsells and cross-sells include:
- digital products
- physical products
- anything you can come up with that might be relevant and valuable to your customers.
And that is usually where the profit comes from.
Be warned that only a small percentage of your customers will buy the back-end offers that you include.
But don’t worry!
The strategy relies only on small segments of your customers buying your upsells and back-end offers. The margins at this point are much higher resulting in increased profit for your business.
It’s also really important to follow up with these customers after they purchase. The idea is that over time you build up a relationship with these qualified customers. They then repeatedly buy the things that you offer.
One of the very best programs I have been on that helped me to create my first online product is something called the One Funnel Away Challenge by Clickfunnels. This course was the best step by step guide to take you through the process of creating your own online products and businesses.
I have been very fortunate to build an online income over the past few years, if this is something you’d like to do too you can see here exactly how I make money from this blog.