Where’s The Money? The Critical Revenue Mistake for an Online Business
Most people start an online business with the major goal of making some good profits.
But many struggle to make substantial profits despite being in an industry experiencing dramatic growth over an extended period with a whole lot more growth to come.
Why is it that some people build large, highly profitable online businesses while others struggle to make any kind of income?
When I first started online I was making over $1000 per month selling an eBook on eBay which took me about 2 hours a week while I was at University… but along the way I drifted of course and ended up working a lot harder, getting millions of visitors, and while successful, getting a much smaller return on my time…
What did I do wrong?
This report reveals a few of the most common reasons for failure in the profit creation area and the simple key to generating revenue online.
These basic principles will help if you’re not making money yet with your online business.
They’ll help if you’re not making enough money and they’ll also help if you want to identify how to increase the profits of an already profitable business.
What Are You Selling…?
Sometimes you can get so focused on building traffic, building a site with all the bells and whistles and chasing after the latest cool online technique that you overlook the most obvious business basic…actually selling something.
You don’t make any money until you sell something.
I’ve seen sites that are fantastic, generating good traffic with no significant revenue.
In fact I had a site like that myself and everything changed when I created and started to sell a product specifically targeted to the kind of people who were coming to my site.
Repeatedly I’ve seen people working hard to build an online business fall into the trap or not getting clear on what they’re selling or not making any attempt to sell anything themselves.
Trying to monetize a website in 2016 and beyond with ad revenue is only going to give you a tiny fraction of the money you could be earning if you sell a product tightly targeted to your niche. It might work for huge sites like the Huffington Post or Reddit, but for the average business focusing just on ad revenue is highly risky and not a great ROI on your time.
If you’re not selling a product yet start thinking that way. Think about where you’re getting traffic from or where you’re going to get traffic from and what’s important to them.
Think about what moves them emotionally and what they’ll put their hands into their wallets to buy.
Take Your Product Creation To A Different Level…
Another big mistake is to create a pile of different products that are unrelated.
Once you have a product or service that’s selling ask yourself the question “what do the people who bought this want?” “What other product can I create for them?”
To maximize your profit opportunities you need to be something specific to a niche market…
By creating a whole range of products and services that appeal to the same niche market you get multiple chances to sell to the customers that you create. You don’t have to make all these products yourselves, you might recommend other products for a commission, or if applicable get people to subscribe and buy more of the same product… the point is you have to think past the first sale and about the lifetime value of that customer!
And that typically means specializing in a particular area.
It also makes it much easier for anyone who wants to promote you or send traffic to you to know exactly who you are, who your best audience is and what you deliver.
Even if you’ve never created your first product you can start thinking this way…about creating a range of products or repeat purchases instead of just one product.
That does not mean making the mistake of spreading yourself thin chasing every product idea that comes into your head, but about adding ongoing sequential value to your customers… whether it be buying related products, repeat purchases or subscriptions.
Is any of this making you rethink or refine your current strategy so you can make more money?
Who Are Your Best Prospects For What You’re Selling…?
Knowing who is most likely to buy from you and why they’ll buy from you is a huge part of getting you tightly focused to build pages on your website that help convert visitors into email subscribers or buyers.
It helps you create follow up sequences by email that convert subscribers into buyers.
It also helps you keep subscribers happy staying on your email list so you can sell to them later.
Of all the things you can have in a business an intimate knowledge of who your best prospects are and what their emotional triggers, needs, wants and backgrounds are is the most valuable.
With that knowledge you can build products, services, web pages, social media and every other component you need to be profitable.
If you’re trying to build your traffic this can help you narrow down to exactly the type of traffic you want.
Being really specific about traffic makes it much easier for you to compete for paid traffic to because you can weed out all the types of traffic that can be less profitable for you.
Does What You’re Selling Have Genuine Value To Your Prospects…?
In our modern information age with the proliferation of social media failing to deliver value to customers can kill a business incredibly fast.
When you create products or services for a market you want to be sure that you’re going to deliver something that has real value to them…a great return on investment (dollar value) or some type of emotional return they’re looking for.
If you’re giving people the type of emotional return they’re willing to pay for they’ll buy from you over and over again like Taylor Swift fans buying concert tickets.
If you’re giving a good dollar return it becomes a no-brainer for customers to buy more from you because the more they buy the bigger their return on investment becomes.
Gear Your Marketing Material To Communicate That Value…
Once you know who your prospects are, what you’re selling and the type of return your product and service will deliver to them it becomes a whole lot easier to gear all your marketing material, your social media, your emails, your web pages etc etc to sell that value in a way that appeals to your best prospects’ emotions. When FedEx first started they nailed it…
So how does this apply to your online business?
You can produce great free content, and that content can be structured to help lead people to the product you are selling. Your visitors might start reading an article (just like this one), join your list, and then become interested in the product/s you are selling. You just have to be sure you are providing value along the way.
People make the decision to buy based largely on emotion then they’ll often justify that purchasing decision with logic. This can be incredibly hard for some people to accept… but science proves it over and over, and any top copywriter or sales guy will agree.
The more tuned in you are to your best prospects and what they want, what pains they have, and how they feel, the easier it is to sell to them effectively.
It’s also easier to continue to deliver products and services they want.
Focus On Building A Business That Serves People…
While some people get into an online business with the aim of building something great, the majority of people start out just wanting to make some money online.
Then they jump from one idea to the next trying to find an easy push button way to get that fast easy income. They fight for the scraps hoping a loophole will last just long enough for them to make a quick buck… the fail rate is tremendous!
But the vast majority of people who actually succeed online are building serious businesses that have at their core the idea of serving real people with real needs and charging for delivering those people something of value.
Once you start focusing your attention that way and start selling what people want and need in a niche you’ll find it many times easier to start making serious money.
And that really is the biggest revenue key… that is the most profitable idea for your online business that you can run with…