Lesson Details:
February 14, 2020
Video Transcription: Now let's cover something fun money and revenue woohoo how is that for excitement you like that whoo anyway so let's talk about money revenue ideas from worst to best and in terms of maybe from least effective to most effective and usually most people see as the most apparent way to make money is publishing ads on whatever they're doing and it's actually the worst way to make money now in some businesses it's the only way to make money for example news or some kind of like you know mass market things but we can't really upset that much stuff ads is essentially going to make you the money but it's gonna require you to get a tremendous amount of scale because usually a typical CPM cost per thousand cost per Mille is five dollars for a thousand views now when you get into the hundreds of thousands and millions of views a month you can dictate your own terms but until you get there that's the cost and as you see that's the way to the poorhouse it's really hard to make significant amount of money and you know how hard it is to get hundreds of thousands or millions of views a month that's really difficult scale to reach so this is not particularly effective second best is reselling products or services made by someone else for example like I resell Hosting's you know my clients need websites and starting they're starting a business.
So they often need web sites hosting design and I don't provide that those services myself so I resell services made by others for an affiliate Commission so that's a big part of affiliate marketing is just essentially reselling stuff made by others the problem with it is you collect only a portion of the revenue so what's the reverse of this creating your own products and services because first I try to get my clients into getting my own products and services for example I might tell them my business planning services my business starting consultations and my books and my courses and whatever and then when they get to the point where hmm I need a hosting for my website I need a domain name for my website then of course I don't provide the mains and hosting so I actually refer them out for a fee so that way I sell them my own product and they keep a hundred percent of the revenue and when I want to if there's a service or product they need that I don't provide I refer them out and still collect a fee for that so selling your own stuff is best you have most control and your business actually grows and you keep people within your ecosystem.
So they can buy more now the it's making one sale here and there is okay but the best thing to do is to make multiple sales to the same customers this is why selling subscriptions where people pay for something on a regular basis or selling consumable products or selling a in a catalog of product for example if you think about my business I can take a person from a business idea to a full-fledged business what does that entail I can tell them there is no strategy coaching I can create a business plan for them I can help them create a website I can help them find a good domain name I can help them build the website I can help them promote the website and I can help them promote with search social media all that half of these services I provide for them I can do myself half of the services I have partners affiliate partners or just people that I refer to for free but you see at every juncture there there's like 10 or 20 different services I can provide them stuff the own stuff that my customers need and stuff that they'll appreciate when I provide but see for me it's like same person can buy stuff 20 times rather than one time okay so it's thousands of percent more revenue you can get from the same happy customer provided that the customer is a happy customer so you always want to position how you structure your product and your business for a long-term engagement long-term engagement will create happy customers who buy over and over and over and over and it's often easier to resell to the same existing happy customer than it is to find a new customer so focusing on extending the lifetime value of your customers is actually sometimes more lucrative than finding ways to get new customers okay so that's how you that's the structure of how you should think through your monetization strategy you see we kind of went from worst least effective to most effective imagine if one person comes on your website sees an ad if a thousand views generates five dollars you can expect a penny on average from that person but imagine if you can sell them something for you know in me some some immediate payment but also payments on an ongoing basis I mean you can tend them sell them for thousands of thou make thousands of dollars in revenue yeah you know and you see the difference a penny versus thousands of dollars from the very same person depending on how you structure your monetization strategy.
Write a public review