Lesson #1: The Money Flow Chart
Targeted Traffic + Conversion = $$$
Regardless of what business you are into, if you do
NOT understand the flow of money, you will either go
broke or FAIL in the long run.
When you look at the money flow chart above, you need
to understand that in order for people to take action
or buy your product, you need to know their interests
and WHAT they really want.
For example:
If you are selling a weight loss product, you need to
make sure that you target the people who really want
to lose weight. (Not just overweight people)
Think about this, ok? When your mind is ONLY targeting
people who are just overweight, they really may not
want to get rid of the weight. They may just be happy
with how they look.
However…
When you target people, who are truly motivated to be
in shape again, then, they are the right people for
your business. What happens?
You just made your first sale.
How do you do that?
Simple.
(1) Find Out Where They Hang Out.
What industry are you in? Who is your target
market? How big is your market? Try to think as
specific as possible before you even try to fit
them to any products.
This allows you to know WHAT to sell, WHO to
approach, and the TYPE of products you can market
to them.
REMEMBER: The more specific you are, the higher
your sales conversions are going to be.
(2) Feed The Right Conversion to The Right Market.
When you know EXACTLY where they are located, you
know that you have already found a target market.
The next step is to find out the problem they are
facing in that moment.
Again, we can NOT just make an assumption that people
want your product, IF we do NOT know what they are
looking for in the first place.
Go to the forum. Ask about their problems. Find out
what the challenges they face are. The types of
solutions they are looking for.
When you make this ANALYSIS carefully, you are
able to know the PERFECT product to fit to that
market. This is HOW you are able to come out with
the right conversion.
(3) Level With Your Customers and Hear Their Complaints.
Once people purchase from you, don’t leave them
high and dry. Instead, keep digging further on what
they are looking for.
BELIEVE ME! You will always hear customers complain
about certain features NOT being there. You will hear
things that they wish they could have this or that
within your company.
Gather all that data. Find out if there is a high
demand in the market place. Create a NEW product
to feed the market at all times.
SEVERAL WARNINGS:
(A) Don’t Go Onto Micro Niche.
Instead of going after a smaller niche expecting
to be less competitive, you are actually killing
your chances to make MORE money online. WHY?
Many small and medium marketers are afraid of top
GURUS, including me. LOL. Seriously, there is a big
reason WHY we just don’t like to go after micro
NICHES: There is NO MONEY in it!
SOLUTION: Create a unique approach to GRAB the
entire industry. How?
Think about this. Instead of telling others how
to lose weight fast, you can use a unique approach
by coming out with a certain formula your GRANDMA
passed on to you.
It could be… “Henry’s Grandma Weight Loss Secret”
The more unique your approach is, the higher your
chance to differentiate yourself from your deadly
competitors.
(B) Don’t Go After a Cheap Price.
Listen. It is NOT so much about cheap these days.
Instead, it is all about quality. You have seen
all over the net, people are selling things like
$7 per product.
However…
Do they really make money with it? Think again!
In order to make a great living online, FOCUS more
on quality, instead of a cheap price. You want to be
LABELED as a quality person, not just cheap.
There is a big difference between “NEED” and “WANT”.
HOW? Well, I need a phone. I want an iPhone. I need
transporation. I want a BMW.
When people are desperate, they just go after
whatever it is to fill in what they need. This is
WHY you see competitors all over the place.
On the other hand, when people WANT something NICE and
high in quality, they ONLY turn to the few companies
that offer nice products or services. This is WHERE
you should be. This is where you belong.
MONETIZE STRATEGIES:
(A) How much is your product?
When you FOCUS on quality like what we mentioned
above, you will NOT worry about the price war at
all. This is WHY you are able to price products
at $97 or more in the Internet marketing industry.
How about on weight loss products?
How about on other industries?
Do your research. Come up with a higher price
point, as your focus is NO LONGER on cheap pricing.
(B) How much traffic do you need to make $10,000
per month?
When you are selling a product at $100 a piece, all
you need to do is to sell 100 products per month
to get $10,000 in profit.
Now… There is ONE thing you need to focus on,
which is what is known as “SALES COPY”. Let’s say,
1,000 people go to your salesletter, you receive
30 sales ($3,000). It means that you receive 3%
sales ratio on that product.
How much traffic do you need to make $10,000?
3,333 unique visitors. Simple!
In other words, all you have to do is maintaining
3,333 targeted visitors per month to your sales
letter, you are able to make $10,000 per month.
It is that simple!
Once you KNOW the power of the “Money Flow Chart”, I
encourage you to take a look at your business model
very carefully.
Does it fit your the money flow chart? (or)
Does it go against the money flow chart?
Regardless of what your concern is.. This is exactly what
I will be teaching you guys on http://117secret.com
Success is YOURS,
Henry Gold
If you enjoy this post, subscribe to the Free Henry Gold Newsletter
Related Posts:
Brutal Facts
Price War
Quality Vs. Quantity
Three Email Marketing Mistakes
Instant Solution
Chuck Madere said,
April 9, 2008 @ 6:05 pm
Henry Gold,
I like your style. You know your stuff and explain to us in a way we can understand. Thank you for that.
Chuck
Sandy said,
April 9, 2008 @ 8:55 pm
Dear Henry,
Thank you so much for your lesson. it is in particular details which we are eagering to know.
I am looking forward to Lesson #2.
Joann said,
April 9, 2008 @ 10:09 pm
Great tips Henry! Can’t wait to see lesson 2. Thanks for your help!
Daylen said,
April 9, 2008 @ 10:35 pm
Henry
I have been a subscriber of one of your lists for a while now. And I am not very proud to say that i have only been paying attention with one eye. I got sucked into being over whelmed with information overload. To many lists, to many Gurus saying forget about that way, you need to do it my way. The result is, information overload will lead to rock solid failure, simply because of lack of focus. The way you teach your methods are down to earth and fluff free. Thank you for that. I will continue to learn what you teach from here on. So, heres to fine tuning my focus to laser sharp. Keep up the great work. After learning what you started with and where you are now you deserve the deepest respect. Your living the dream.
Daylen
marc said,
April 9, 2008 @ 11:10 pm
The coach of success…
What is the defination on success?? without the defination, how do u measure success?
Maybe you should use coach of success in business. Many billionaires dont think they are successful.
Just a word of thoughts, no offend.
BRIDGE said,
April 9, 2008 @ 11:35 pm
Thanks for your lesson # 1.
It seems to be very simple and encouraging
Bridge
www.bridgeshairdesigns.com
pramod said,
April 10, 2008 @ 12:12 am
your thinking and delivary thaught very right give courege to recieving your thought
many many thanks.
Tony Harvey said,
April 10, 2008 @ 1:24 am
Henry, I got to say you’ve caught my attention, you see when I started out I’ve seen and heard all of the big gurus and even bought some of their Fluff and stuff, I’ve come along way and I know when I hear truth and honesty, thats why you’ve got my attention, True Honest help is what I and my website to be known for and I will be looking forward to your next email, I’ve got somthing Id like to talk over with you soon as I get a chance, keep the good coming. http://th1market.com
fren said,
April 10, 2008 @ 2:39 am
Thanks for the useful information. I look forward to your next lesson.
Ivan said,
April 10, 2008 @ 5:27 am
Hey Henry,
this is a very detailed report of how anyone can basically make money online.
Looking for the targeted market and coming up with a product.
Cool stuff… thanks for the information. Made me reflect upon my own business model and how i can be on my way to making my first 5 figure income soon.
Regards,
Ivan Ong
http://ivan-ong.com
An Affiliate Marketing Blog
Tama said,
April 10, 2008 @ 5:38 am
Hi Henry,
Thank you for lesson #1. Simlpe and easy to understand. I believe you have no problem with geting that fire back because you have done it before, you’ve been on that track just need a new reason. Loo forward to lesson #2.
Tama
Ahamed Arif said,
April 10, 2008 @ 7:29 am
Hi Henry,
Thanks for the real stuff!
Charlotte said,
April 10, 2008 @ 8:27 am
Simple formula:
$100 a sale
100 sales a month
3 sales a day
300 visitors a day at 1% conversion
100 visitors a day at 3% conversion
if they are targeted correctly
what am I missing?
Looking forward to the next lesson!
Bernice Howe said,
April 10, 2008 @ 9:13 am
I am very new in net business.. but, absolutely, do want to succeed with it. I like beginning with step one….in simple terms. But, at the same time… your getting comments from your readers is….in my opinon… a stroke of genius..I am impressed, but, also, greateful since It is great to “communicate’… in this way.
Great Love, Bernice Howe
Kavita Masthoff said,
April 10, 2008 @ 11:55 am
Henry, I completely agree with you about not going after cheap price. I started a PLR article membership site for $15 a month for 50 to 100 articles. However, I found it difficult to get paid clients. The moment I increased the price of the membership from $15 to $30, I saw a flood of paying customers.
I love to read your stuff as it makes a lot of sense to a first-time netpreneur like me. Thanks for all the insightful thoughts and knowledge.
Cheers,
Kavita Masthoff
http://www.qualityplrarticles.com
Steve Pohlit Tampa Bay, Florida said,
April 10, 2008 @ 12:56 pm
Hi Henry - good material but I am concerned about several items. First it is logical that a unique hook will work with a higher ticket prices. However, the guru players also know the principle of a unique hook and also have the resources to produce the sales pitch.
I am not suggesting that your advice is flawed. It just seems to me that using free, then low cost can be an effective technique in building a responsive list.
Steve Pohlit
http://www.stevereports.com
http://www.prosperitytip.com
Dirk said,
April 10, 2008 @ 2:44 pm
Thank you so much
Can,t wait for lesson two
Dirk Scott
Nancy Hoglund said,
April 10, 2008 @ 4:50 pm
H Henry, Thanks 4 the kick in the butt email you had sent me. I read every words to lesson #1 and #1.2 and it really hit home and I find that I was stuck in that, I have to have it if it is under 10.00. I really need to FOCUS and stay on track from now on. I can’t wait for lesson # 2 . Thanks alot Nancy
Henry Gold said,
April 10, 2008 @ 5:26 pm
Steve,
Try to create a standard in your business. If you want to look like a rolex store, then sell only expensive watches. However, if you just want to sell watches, you are blend into an unknown society, which is bloody and killing your battlefield. Hope this helps.
Henry,
John said,
April 10, 2008 @ 6:01 pm
Thank You for all the information. The lesson was great and understood. Waiting for next lesson.
John
Martin Hotz said,
April 10, 2008 @ 7:20 pm
Hi Henry
I’m enjoying your articles as niche marketing is becoming increasingly important to me.
I’ve just started selling Dave Guindon’s new software called Virtual Smart Agent. I reaaly like this software and succeeded in selling a few copies yesterday (if you hasvent seen it, heres the link: http://tinyurl.com/6ztuxd
I was wondering if you could tell me where you would advertise this. It’s really aimed at ANYONE who has a website, so I have started posting on webmaster forums. If you have any ideas I would be very pleased to hear from you.
Regards
Martin
Yvonne said,
April 10, 2008 @ 9:55 pm
Thanks Henry ,
You make a lot of sense. You also make it easy to understand things about the marketing field, that no one else takes the time to explain. This is great stuff all newbies or for people that are just starting out should know.
Also thanks for getting your fire back…WE ALL NEED YOU….
My Best Wishes to you,
Yvonne
Ms. Glenda D. Havard said,
April 11, 2008 @ 10:13 am
Thanks for the information. I think that as a teacher in the public school system for over 25 years, the focus should be placed on getting the children back into their right-sized pants. This will help to deter behavior infractions for dress code violations. BRING BACK THE NEAT LOOK! OUT WITH THE SLOUCH LOOK!!
Tracey said,
April 26, 2008 @ 3:24 pm
WOW! I have been coaching retirements since my training in 2003 and am taking it online to be able to help more people. Your idea to put “Grandma” in the title (since that’s who I’m coaching!) was an ‘ah-ha’ for me as I build me site and marketing.
Thank you!