SNM049: Structure of a Successful Business

speaker 0: 0:00 building your business pyramid on today's episode. Today's episode is brought to you by ECM Rush started in 2008 with one mission to make online competition fair and transparent, with equal opportunities for all. To find out how SCM Rush can help you compete with the big boys. Go to serve no master dot com Backslash ECM rush today. Are you tired of dealing with your boss? Do you feel underpaid and underappreciated?

If you want to make it online, fire your boss and start living your retirement dreams now then you've come to the right place. Welcome to serve no master podcast where you learn how to open new revenue streams and make money while you sleep. Presented live from a tropical island in the South Pacific by best selling author Jonathan Green. Now here's your host. Sorry, my voice sounds a little bit froggy today. The kids have been sick so obviously sometimes makes its way into daddy's throat as well.

That's another perfect morning in paradise. The tide is high, so I'm sitting way back from the dock. I couldn't get out to the dock. It's so buried under water. It will be a daughter be above my knees to get out there, and I'm wearing pants today, which I almost never do. But it's a pants day, and today today we're gonna talk about the structure of your new business, which ever format business. You choose to make online the proper structures, everything.

Organizing your products Service's funnels in the correct way will maximize your profit and the speed at which your business grows. When we start a new business, we often times sell a great deal of consulting or coaching as a way to make quick cash. This can show up in many formats, but it's very common for people who just let the big job. They were a marketing director of a company, and suddenly they're marketing consultants. It's a way to get a big paycheck.

The reason we quickly sell coaching or consulting is because it pays a lot. It's a great way to start Replacing your income problem is that when you have this format, you're still trading time for money at the 1 to 1 ratio. One time for one money, whatever your feet is, your time is still controlling how much money you can make your business is not scaleable yet. It's very common to start a business this way, and it's very powerful With the pyramid business model.

I want you to think of it as how many people can afford each layer very bottom of your pyramid. That's the level everyone can afford. That's where you give away free stuff. And the very top of your pyramid is your consulting your coaching. Your most expensive service is when starting serve No, master. I started at the top.

I started by selling my most expensive product, which was a combination of coaching and training, teaching people how to become best sellers, helping people launched the first best seller very time intensive with a lot of digital marking businesses. When people decide they're gonna step up a website and start an online business, they start at the bottom. They say I want to start with my block. I'm gonna set up my website. Then I'm gonna create my free gift.

Once the free gift just created, I'm going to start creating email so everything they create initially is the free content. I created a high end content first and started building a pyramid down. The reason we do that is to generate quick funding. I wanted this project to fund itself from profits back quickly. Finding your balance and finding the right way to start is the key, and part of it comes down to What's your traffic source if you have no source of traffic?

If you're just gonna put ads on Facebook, tell your friends, start a block and get S e o style traffic. Just people finding your website. Then you want to start your pyramid at the bottom. However, if you have access to a client book, if you have access to joint venture partners or Phillips, who can send you customers, then you want to start a top, which is what I did.

I only sell my coaching via webinar, so you have to be a follower of one of my friends or partners. End up on one of my coaching webinars, where I teach him really cool book techniques. And at the end of it, I opened up a few spots for coaching students. That's the high end part of my business model. So the structure of the pyramid at the bottom we have the most people, the free gifts this could start off with podcast episodes like this.

This could be free. Blawg posts that people can just read anytime they want, and it can also be your mailing list. This is where you give people something for taking an action. So it's one little step up. The pyramid were still at the very bottom, but now it's people who gave you their email address in exchange for a PdF of video and additional training. That's one step beyond what you give away for free. We're not charging for anything yet, but now we're in a barter phase.

I'll give you a little bit better, something a little better than the podcast episode content. If your skin your email address, that's our first step of the period. Then we go up to our low ticket offers, and there's a couple of different names for it. One term that floats around we hear a lot right now is trip wire. A trip wire offer is something physical where you give them the physical thing and they only pay for shipping.

You can send a printed version of the pdf you consent DVD. You can send a CD if you're in a prepper type Mitch. Right now it's very popular is a credit card shaped thing that turns into a folding knife. They're actually a couple of different types of credit card knives on the market right now, and they're very popular. Get one for free just for 95 shipping. So they sent an actual free tool in that space.

The other way of doing a low ticket offer is simply having really good information and a low, flat fee. Something in the 7 to $17 range is usually where we price are low ticket offers. Another way to generate that low ticket offer is the dollar trial. My product is normally $17. We could get it for a dollar and paid other 16 in a month. This will maximize the number of people who make a purchase.

The purpose of the bottom of your pyramid is to show people what they get when they actually spend money with you. They get to see the products you make even better than what you give away in your blood. I give you a really, really good content on my website. In these podcasts, most of the content I generate. His podcast episodes. Every morning I get up, come out here around 6 a.m. To record because it's the one time when it's the quietest.

And, as you can hear, there's still a lot of ocean sounds. This is the quietest location I can find each step up the pyramid. The product is better, the product is more expensive and therefore the number of people who will buy it goes down. It decreases. Perhaps you have 1000 people who take your free offer, and 100 of them 10% go up to the next level. At each level, it's 10% so that you can only get one person out of 100 to go to level three.

When you have your pyramid built, you can start tracking numbers each level. And you know how many people you need to get your highest level. If you have a high end coaching like I sell in dating a $25,000 coaching package, I know we need approximately 10,000 people to come in through paid traffic through Google advertising for every one of those we sell. And if that number was higher, if it was one of 1000 I would raise the price until dropped again because I hate doing it.

I like the coaching part, but it's an in person coaching program. We have to fly and meet someone in person, so I have to leave my island fly around the world and then coach the person. That's why I raised the price to cover the cost of all that travel and the massive inconvenience. So we value our time based on what the time is worth and based on our inconvenience costs. Starting at the bottom, we keep adding layers as we build our business.

You have your first product. You create your free pdf, your free gift. You give away to people that join your mailing list. Then you create your 7 to $17 product in my case, and you'll see this very soon. I have a product called Product Launch Blueprints. What I put together are five different blueprints for how to launch a business.

I have one in launching a block one on launching a book on Kendall, one of launching a podcast, one for becoming an affiliate marker and one for launching a local insulting Seo type business. Each of these takes me a very long time to make. As strange as it is to say, my low ticket product takes me almost as much time as my high ticket products because the design and the organization is very important to me.

So each of those blueprints will take you several hours to go through to go through. All the blueprints will take you one or two weeks, and I sell five blueprints for $17 you'll see that offer starting to appear more and more. Now, If you want to get into a business, it's enough to launch and sell your first book and make a profit. It's enough to launch a podcast and find your audience.

It's enough to launch a block and get that 1st 1000 people to join your mailing list. And it's enough to understand how filling marketing works to find the right offers to make. So you could be profitable with any of the other blueprints. So that's my exact low ticket offer. I designed something that would appeal to anyone who reads one of my books, listens podcaster, visits my block. It's a wide, wide approach so that the maximum that people have interest.

When you're designing your lower offers, you want to appeal to as many people as possible. As you work your way up the pyramid, you get into the 27 37 up to $77 kind of range. And in that range I have a product in development for Kindle that I'm launching on a different platform that will be called Kendall Sniper. This will be on its own website, Kendall sniper dot com, which I'm working on. It will be a product we launch on the Click Bank affiliate platform.

It's a product specifically designed to appeal to a very specific list of affiliates who will drive traffic to products on click make. So it's a specific product first with six space, and it's separate from the rest of all my finals. The rest of my products to sell directly from serve the master dot com. But this is something a little isolated. It will be my first low ticket offer because it's at that lower price point above that.

The next level product is the $97 product, and you can also have up to 2 97 in that range. Sometimes you'll see a product for 97. Sometimes you see a bundle 3 to 5 products for 2 97 or sometimes you'll just see a massive product that's to 97 in that area. Oftentimes, a customer won't even be aware of the 2 $97 product until they've purchased something lesser. I recently bought something that's 38 50 a month. I was following their funnel. The first initial purchase was $7.

They talked me into the 38 50 a month, and when I purchased that, they showed me a $297 offer, which was very, very well designed and very tempting if I didn't really have it. These designs are created in a way that maximizes the value to your customers, maximizes the profit you make as a business owner and helps you control how your business is working above to 97.

It's where we get into the for 97 97 type products, and some products go all the way up to $5000 in this range. Now, as you get above to 97 you start to add in coaching elements that are more valuable lower ticket products often include a Facebook group or a private former private members area. As you move above that, you'll start to notice they include group coaching calls for 2 97 product. You might get one approaching call a month.

I bought a product for $150 recently, and it comes with sporadic group cutting costs. I bought it three months ago. So far, there's been one good coaching. He sends an email when there's gonna be one. We all hop on it, but they're kind of infrequent. At a higher price point, you start to expect regularity at the 47 Price pointed up. People oftentimes expect, perhaps once a month, a coach and call. And again you're only selling one hour of your time of month.

You could have a 2000 people on the coaching call, and now there's new technology that's pushing that number up to 2 to 3000 with some new advances in with Internet technologies on the infrastructure strength. So you can have 2000 people that each paid you $500 given our month, that's not that bad. As you're moving up the form out of your material, also change at your lower ticket offers its pure tax NOPD abs, and as it moves up, you move into audio files and videos.

Videos have Maur perceived value than the written word. When you're at 97 up. Now you're talking about a group coach and call once a week. People expect to be able to reach you when they're spending that kind of money and when we move above that price, But we move into a full coaching program when we have one on one coaching elements, we set up a structure where people get a phone call once a week, a phone call once a month.

There's a mixture of group coaching gonna wanna one coaching and as we go even higher into the mastermind level, which is 5 to $25,000 this is where people expect to see you in person two or three times a year. High level masterminds. You pay a lot of money. Everyone in the mastermind flies and meets in person for two or three days at a nice high end hotel. That's the highest level and again at the top level.

Some people structured that way, and then they have one on one coaching where they could just spend one day with you for a certain amount. At the very highest level, you construct your different types of time, depending on what you want to give up and depending upon your little popularity, if you can get away with selling group coaching for $25,000 person, which some people d'oh! I know people that have $25,000 a year, and you get to see them twice a year in person.

Everyone, the group thinks it's worth it because you're surrounded by people in similar industries making big money as well that will partner with you on projects, so you make back the total cost of investment the very first meeting. You don't want to join something like that until you're making enough money to support it. But this is the structure you can build. Depending upon your traffic sources, the way you build your pyramid will be different.

I have access starting this business out to high end a filly traffic so I can afford to start with high and offers. Now I'm building in the lower offers because I'm getting a lot more traffic from people who don't know. So I'm building the pyramid from the top down. I started off with my most expensive proximate work my way down. And only now am I building my less expensive products for people that have never met me before.

Didn't meet me through an affiliate and meet me through someone already knew me. Depending upon the warmth of the introduction, you can build your pyramid in different ways As you're building your business. You also want to think about how you're gonna pay affiliates. Are you gonna bring a fillets? And are you gonna let people send you customers and get a commission? And how are you going to process money? Designing your platform early is very important.

As I mentioned before, I'm going through a very large structural change with my business. I've changed my hosting company. I've changed my shopping cart. I've changed my site designed and abs changed my membership integration software. All of the technology behind my business is changing. And in fact, last night, after two days of soul searching, several phone calls and a lot of research, I'm also about to change.

My mailing was provider the company that handles my e mails because of the way this particular business structure, because of the waste of the master, works the following. I have people like you who see different offers or by different products goes to different coaching or are just coming through a contest. All of these different things, my previous 1,000,000 was provider can't handle that. It creates a lot of technological problems, so I'm now looking at a massive infrastructure change.

It's daunting to have to keep changing every different part of your business, but it's necessary to future proof. This is why, from the beginning, I tell you the exact pieces of technology that I use. I can tell you right now I'm switching to convert Kit. That's the new platform I'm switching to. I've been looking at them for three months.

I've thought about it for a least three months, and I finally last night rise that I just have to do it because I'm releasing so many different Amazon books that all giveaway different gifts that all have different types of training that come with, um, I need a platform that allows advanced tagging with my previous platforms. If you're on a weather get response if someone joins different lists. If someone reads different books, I ended paying for them multiple times.

You pay your men in this company based on how many emo dresses you have, so one person you might end up paying for 10 times it ends up really messing with your accounting. And you could accidentally send people same email over and over again because of the way they're structured.

So I'm switching to give a better customer experience to lower my long term costs so that I don't pay for additional email addresses when it's the same person over and over again, and to allow me to give better content quicker and in a more organized way. That's why I'm switching to a company that's newer. That's designed in a way that really works for me, and I'm excited about it. But it's also big infrastructure change.

Making the decision of how you're gonna structure business at the beginning will allow you to do things the right way. For example, if you want to have a lot of high ticket offers, you wanna sell a lot of coaching or sell a lot of things on webinars, you want to sell the really expensive stuff you can't use. Collect bank as your platform. Anything about $150 you have to get their approval for you also can't sell anything where people pay once a year.

You can't sell a yearly recurring service or product. The advantage of that platform is they control the money. If someone recommends one, your products could bank pays each of you. Other platforms require higher level of trust. I use the platform called Pay Kickstart. If you send me through an affiliate, link a customer through pay kick start depending on how the customer pays. If they pay through PayPal, you get paid instant.

But if they pay with a credit card, then you have to wait 30 days to get paid until after the credit card thing cycles. And they sent me a message. I click a button and auto pays you, but there's an element of trust because I have to click that button to pay. That's not for, however, allows me to charge whatever I want.

And the reason I'm using pay kickstart now used to use acts of the reason with a kick start is very simple. my friend owns the company every time I have a complaint. Aiken message about Skype and I always get a response within 24 hours. And if I message in the private users group for this platform, I get a response much quicker from one of the other developers. There's three or four guys behind the company, and I can reach them, and I know them.

I like to work with people that I know and trust the same reason that I'm switching to convert kits. I know people who know the guy that owns that company. I'm one degree of separation from him, so I have to go through a friend. Maybe that's to separation. Knowing how you're going to process money is very important. One of the great places to start out. If you're kind of in between, you want to charge higher prices, but you don't want to pay a monthly fee.

You don't want to get stuck with a shopping cart that's out of your price range. It's a product called Javy Zoo, which I have used for five or six years. I know the guy who owns that company as well. I've been through many technical glitches with them because I started with them right when they're beginning, and every time I had a problem, they fixed. Now the platform is rock solid, and it could do really amazing things to use that platform.

You just pay a small percentage of each sale, and that's great. If you have a really low price offer like $7 it's great if you're not running a large volume, and they also will instantly split payments of people pay through paper. So it has a lot of advantages. There's a lot of great things about it. Only when you're moving enough volume that your fees to J V Zoo become greater than a monthly fee for the shopping cart should you consider changing.

So it's a great place to start. It's a great place to find affiliates. It's a really good platform for launches. You could do a lot of great things there, but these thoughts about how you're gonna take money are what you wanna set up early on. There's nothing worse than having someone wanted to pay you and being unable to accept their money as you're building your pyramid. The infrastructure is important. Deciding how much your time you're willing to sell.

What your time is worth is very important, and you also want to have a flow that makes sense. You want your products to make sense with each other. It's very easy to make a funnel that is illogical. I could start off you buy my book breaking orbit, which is about how to launch a book on Amazon.

If I then sent you a $7.27 dollar offer, $17 something in that range a product and I said, Hey, here's my new product about Facebook ads You wouldn't be interested because it wouldn't make sense. But if I said, Here's my new system for running Facebook ads to books, suddenly it makes sense. If I make it specific, you want to design free gifts that fit your message that appeal to your audience, and that will lead into your more expensive.

So it has to fit the message in your podcast or in your block posts and has to connect with the more expensive things you want to sell. You don't just want to give away free gift. You think that most people will accept it's not any good to get a bunch of people that take your free gift. I have no interest in your products or what else you're doing. If I gave away an iPod for every email submit, guess whatever won't give your email address.

But it wouldn't be worth anything because I don't make the higher end iPod that I can leave himself. Think about the way you're going to structure your business. Draw that pyramid. I right now have drawing in my pyramid for about 70 more products I want to develop. If you Bye bye, Blueprints. You get the five first five. I've already mapped out more than 50 other blueprints I'm gonna develop in the next year that I'll continue to release two people that are members of the blueprint platform.

All of those are designed so that structures in place I've also already outlined my 12 higher ticket offers 97 to $97 range already have them mapped out. I figured out what I wanted to teach people right when I started building Servant Master having those in place, I can then send out an email and asked people which of these proxy most interested in they tell me Number seven is most popular. So then I make number seven next. I don't have to guess what I should make.

Once you have a little bit of an audience, you could just ask them what they want. This entire business, the entire does. A subservient master is built around a pyramid. And this is how every single, large content marketing business structure. If you follow this business model, you will build a very successful online business. Thank you for listening to this week's episode of Serve No Master. Make sure you subscribe, so you never miss another episode.

We'll be back tomorrow with more tips and tactics on how to escape that rat race. Head over to serve no master dot com forward slash podcasts Now for your chance to win a free copy of Jonathan's best seller, Serve No master. All you have to do is leave a five star review of this podcast. See you tomorrow. Thank you for listening. To serve no master podcast.

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