Position Your Business for *Massive* Growth
How would you like to seriously ramp up your profits and
launch your site to new levels of wealth online?
You can... joining the ranks of other successful Internet
marketers who are making in excess of $100,000... $500,000...
even MILLIONS of dollars per year!
To start creating this kind of mind-boggling wealth online,
you just need to ask yourself one simple question: "How?"
Too many Internet marketers make the mistake of focusing on
what they're going to sell, instead of how they're going to
make money online. And the answer to how to generate massive
wealth on the Internet lies in choosing the right profit
That's why I want to look at some of the most straightforward
ways to make money on your site... and then dive into the more
advanced (and lesser-known) strategies that can catapult your
business to new revenue levels -- and create real wealth
instead of just "income."
The Three Basic Models for Generating Income on the Internet
Let's start at the beginning, with the basic ways you can
get online and start making money:
1. SELL A PRODUCT ON YOUR WEB SITE:
Becoming an online merchant and selling a product on
your web site is by far the most straightforward --
and obvious -- way to earn an income online, which is
why it's also the most common.
With this profit model, every time you make a sale you
earn a profit... and the more sales you make, the
bigger your profits grow.
The key to success with this model is to sell as much
product as you can while maintaining a healthy profit
2. SELL A SERVICE ON YOUR WEB SITE:
If you provide a service rather than a physical
product, you can absolutely make money selling it
online even if that service can only be delivered
offline (e.g., landscaping).
Your web site will allow you to reach a much wider
audience and give prospective clients loads of
information about you, your experience, and the
service that you offer.
And if you offer a service that can be delivered
online (e.g., web design), so much the better -- you
won't be limited by geography.
The main disadvantage of selling a service online is
that your income is limited by your ability to take on
new clients and the time it takes you to deliver the
service. There are only so many hours in the day!
3. GENERATE LEADS FROM YOUR WEB SITE:
If you already have an existing offline business,
then you should act right away to develop an online
presence for it!
Using your web site as a way to drive traffic to your
brick-and-mortar business is a great way to expose
your business to a broader audience and beef up your
The benefit of advertising online for your offline
business is that you can capture a much wider audience.
More and more people now turn first to the Internet
to get information about a product, service, or company
-- and to help them make informed decisions -- before
going shopping offline.
It's also much cheaper and more effective to advertise
online than it is to advertise offline!
In this profit model, your revenue comes from leading
your site visitors to your offline location.
You can definitely make money with any of these three
models -- and they're an excellent starting point -- but if
you want to get fantastically wealthy, you need to have
more than one way to make money from your site.
Most web site owners focus on "transactional" income -- the
income from a one-time sale of a product or service. But
the problem with this type of model is that the
relationship ends with the sale of your product or service.
To really explode your profits -- and turn income into
long-term equity -- try adding more TYPES of income to
ADVANCED PROFIT MODEL #1:
Rapidly Multiply Your Profits with a "Recurring" Income Source
An extremely powerful way to make serious money online is
to sell a product that will generate a *steady stream* of
income -- from every customer who purchases from you!
There are a number of powerful methods for incorporating
recurring revenue into your existing model...
* Generate "continuity" income:
With the continuity model, your income comes in
pre-authorized payments on a schedule for an ongoing
exchange of goods and services.
Membership to a gym or a members-only web site falls
under this category. Once you create an initial
interest in your product or service, you'll have a nice
ongoing revenue source.
* Create "renewable" income:
Renewable income is generated when your customers agree
to repurchase your product at a later, agreed-upon date
Here's why this type of profit model is so powerful:
A subscription guarantees you income over an agreed
period of time. Plus, it's very often renewed when that
time is up.
If you sell a monthly magazine, for example, a yearly
subscription guarantees the sale of every issue over a
year... and if your subscription item is valuable to
your subscribers, there's a very good chance that that
the subscription will be renewed over and over again.
Do you see how this is more beneficial than the
one-time sale of a single product, service, or lead?
* Sell "refillable" products:
Generate an income source that will always be replenished
by selling products that need to be refilled at regular
intervals (e.g., ink for a printer, or vitamins).
If you sell toner for photocopiers, for example, your
customers will need to buy more toner as long as they
want to continue using their photocopiers!
And as long as you can convince your customers to keep
purchasing their refills from your web site, you've got
yourself a nice source of recurring revenue -- without
having to constantly put in all the time and effort of
acquiring first-time customers.
* Create an "ascension" income strategy:
This strategy (made famous by American Express)
involves charging for different levels of membership or
"premium" programs. This is an extremely effective way
to ramp up your income for a couple of reasons.
For one thing, it rewards your best customers publicly
-- not only appealing to their ego, but also providing
a basis for a stronger relationship with those
customers over time.
And the other major benefit is that you can capture
sales from people who, for whatever reason, are not
ready to commit to a higher-priced membership level.
Maybe they aren't familiar with your site, so they're
understandably cautious about spending large sums of
money on your products or services. Offering a lower
price point lets these customers "test the waters"
before diving in to purchase your big-ticket items.
Once you've impressed these customers and they're
sure of your credibility, they'll be much more likely
to upgrade to a higher-priced membership level at a
Can you see how, right off the bat, incorporating these
strategies provides a revenue stream that far exceeds the
profits of a one-time sale?
When you only sell one product or service, you always need
to be focusing on getting first-time sales if you want a
steady income. But if you can add a replenishable income
source to your business, those first-time sales become an
ongoing source of increasing wealth!
ADVANCED PROFIT MODEL #2:
Increase the Purchase Value of First-time Customers...
BEFORE They Leave Your Site
Now let's look at a quick and easy way to *immediately*
increase your revenue from first-time customers by
20% to 30%...
It's called "upselling," and it's a highly effective
strategy of offering one or more products at the point of
sale that will enhance your customers' main purchases.
You've already convinced your customers to purchase from you
-- so it requires very little extra effort on your part!
And generally, once people have made the decision to buy,
they are much more receptive to other offers... if you catch
them while they're in a buying mood!
In fact, our testing shows that a whopping 30% to 55% of
people will purchase a second product!
However, in order for this strategy to be effective, you
must make sure that what you're offering is related to your
main item. By all means, offer some specialty tea if you're
selling a teapot -- but don't try to sell tea to someone
who's purchasing Mustang motor parts!
As long as you offer something that's directly related to
your main item, you can easily -- and instantly -- increase
your revenue from that sale.
ADVANCED PROFIT MODEL #3:
Maximize the Value of Your Existing Customer Base to
Skyrocket Your Revenue
Remember: Your first-time customers always cost you the
Instead of spending all of your time, money, and energy
drawing more first-time visitors to your web site,
devote more time to the relationships you have already
established with your current customer base!
Your current client base is a gold mine... In fact, "backend"
sales to your existing customers can increase your revenue
by 30% to 50%. That's why it's so important that you follow
up with everyone who purchases from you!
So how do you reach your existing client base?
One excellent follow-up strategy is to use AUTOMATED
SEQUENTIAL OFFERS to draw buyers back to your site. E-mail
your customers after the initial sale, thanking them for
their order, asking them if they have any questions... and
offering a related product.
Another strategy is to use e-mail to to send new offers and
special promotions. You can target your e-mail
communications to customers based on their history with you.
For example, you can send a special promotion to all your
first-time customers. Or, you can send a "thank you"
promotion to your long-term repeat customers. In each
e-mail, include an offer for a product or service related
to their initial purchase.
Not sure what you can offer as a backend item? Here are
just a few ideas:
* Offer a related product they're likely to be interested
* Offer more of the same product
* Offer an upgrade to the initial product
* Offer a service that assists with the use of the
* Offer a service to apply the product for them
* Offer information to improve the use of their product
* Offer other people's products for a commission
Make sure you time your offers for maximum success. Send
out your follow-up offers 3, 7, and 10 days after the
initial purchase. These are the times when new clients are
most likely to make a SECOND purchase.
If you're not following up with your customers, you are
literally leaving 30% to 50% of your revenue on the table!
ADVANCED PROFIT MODEL #4:
Expand Your Reach on the 'Net and Generate Massive Revenue
by Starting an Affiliate Program
How would you like to improve your search engine rankings
and exponentially increase your reach on the 'Net -- and
your revenue? Well, if you start an affiliate program, you
can do just that.
Developing an affiliate program is an incredibly powerful
way to market your product or service online. If you aren't
familiar with how an affiliate program works, it involves
allowing other people to promote your products or services
And the best part is that you don't have to pay them a
penny unless they send you a sale!
It's not difficult to set up an affiliate program, and the
benefits of doing so are enormous:
Your affiliates can send you a great deal of traffic. Using
banner ads, text links, and e-mail promotions, your
affiliates can send droves of people to your web site.
Your site can skyrocket to a top ranking in the search
engines. Not only will you acquire a host of inbound links
from your affiliates, your content will spread to the far
reaches of the 'Net... resulting in a drastic rise in your
search engine rankings.
You can reduce your advertising costs. Since you'll have
reams of highly motivated affiliates selling your products
for you, you won't have to spend money driving traffic to
The key to getting the most out of your affiliate program
is to attract the attention of highly motivated affiliates
by offering lots of incentive: generous commissions, and
tools and resources that will help them to succeed.
ADVANCED PROFIT MODEL #5:
Form Strategic Alliances with Other Businesses to Ramp Up
Your Profits, Expand Your Skill Set, and Offer Your Customers
High-quality Products and Services
Forming partnerships and joint ventures with other
businesses for a share of profits is a great way to ramp up
your income in a major way.
For one thing, when you combine your skills, products,
services, and resources with another business, you create
new streams of revenue and profit... and expand into
You also bring added value to your existing customers. The
key to getting the most out of a strategic alliance is to
seek out products or services that complement yours and
will benefit your visitors, and then approach the companies
that provide those products or services.
Ask them if you can recommend their products or services on
your web site for a portion of the profits. Most companies
will gladly agree to this arrangement. After all, it's no
risk for them if they have to pay you only when you refer a
One of our clients, Bert Ingley of VGSportsInc.com, has
experienced huge success with this model.
Bert sells video game strategy eBooks, and he recently
entered into a lucrative joint-venture relationship with
the company that makes the video games many of his strategy
eBooks are based on.
The video game company is going to advertise his strategy
guides on its site in exchange for a small cut of his
It's a win-win situation that's going to generate a LOT of
extra revenue for Bert!
ADVANCED PROFIT MODEL #6:
The Most Profitable Thing You Can Sell Online...
All of these strategies are surefire ways of creating wealth
online... and now I'm going to tell you how you can increase
your profit margins even MORE in ALL of these revenue
The most profitable thing you can sell online is
INFORMATION! An "information product" could take the form of
a "how-to" eBook, members-only resources, or even sofware.
Why are information products such a hot commodity?
* They're easy to create
* They cost *nothing* to reproduce
* They can be delivered instantly
* They can be set up to be delivered automatically
* Information is the #1 reason people come online!
Just think. It doesn't even cost you anything to ship or
store... In fact, once you have your information product,
you can fully automate the entire sales and delivery
process using software like eBook Pro (http://www.ebookpro.com)
and Mailloop (http://www.marketingtips.com/mailloop).
Then, just sit back as the orders roll in, without you
lifting a finger!
Your business model is your lifeline to bigger profits on
the Internet. So by all means start out by selling a product
or a service, or by driving traffic to your offline store.
But don't stop there...
Take advantage of recurring income and think of ways you can
incorporate a refillable or renewable product into your
business to create a steady stream of profits.
Offer related "upsell" products at the time of an initial
purchase to increase the base price of your main product or
And whatever you do, don't miss the opportunity to generate
up to a 50% increase in your revenue by following up with
your customers and getting those backend sales! Focus on
building strong relationships with them that will encourage
MULTIPLE purchases in the years to come.
Last, harness the power of selling information online!
Info products are a perfect fit for all of these business
models -- whether as your main product, an upsell product
such as an eBook, a follow-up product, or a renewable
It's not only the most profitable thing you can
sell, you can also automate the entire reproduction and
delivery process... and literally walk away!
Don't be afraid to mix it up. Create a diverse blend of
income streams that will add up to one MASSIVE revenue
stream... the kind that will keep growing and building
ABOUT THE AUTHOR: Derek Gehl specializes in teaching real people how to start profitable Internet businesses that make $100,000 to $2.5 Million (or more) per year. To get instant access to all his most profitable marketing campaigns, strategies, tools, and resources that he's used to grow $25 into over $40 Million in online sales, visit: http://www.marketingtips.com/tipsltr.html