4 Step Framework
This lesson is called the 4 step framework which will show you the 4 steps we use in all our sites from starting, running, and eventually selling them for a lump sum at the end.
This is important because you want a solid business that runs like a well-oiled machine 24/7 whether you are there or not
– rather than a chaos of mess that no one knows how to operate.
Here are the steps on how it works.
The 1st step you need is lots of people clicking your advert.
You need a hungry crowd that is already searching for what you’re offering.
Many people make the mistake of spending months or years making a product – only to launch it and find no one is even searching for what they’ve got.
So the first step is to do effective market and keyword research to make sure you already have people actively searching for what you’re offering.
As soon as your advert is LIVE – you should have heaps of people clicking it left, right, and center.
The 2nd step you need are leads – lots of leads.
You collect them through a lead page.
The reason you need leads is to collect users’ email addresses so you can follow up and gradually build trust with them over time.
Remember less than 1% of people coming to your site will purchase on their first visit.
The remaining 99% will simply close down your page.
So by collecting leads to start, you can slowly build up trust and get that number to 10% or even 20% gradually over time simply by collecting their email, following up, and gradually building trust.
The third step you need is an intro product at a low price.
This is done through your product sales page.
The reason it’s a low price is to allow users to make their first purchase with you and feel confident you can deliver and it’s something that doesn’t put them in too much risk the first time either.
Remember people have been cheated, scammed, and ripped off many times in the past.
So you need to overcome all this with a low offer and a quality product to gain their trust.
The aim is not to profit.
The aim is to cover your advertising costs and gain a customer.
Now the price you charge is an important factor.
Too low and you’re in the red. Too high and you’re out of range for a first-time buyer.
You also have general running expenses to cover too.
That’s why we add an upsell or two in the funnel to help boost the first time sale.
If you can aim to either break even or slight loss on your first product – you are doing very well.
For example, if you spend $1,000 on an advert and you get 25 customers from this … it means it costs you $40 to get each customer ($1000 divide by 25 ppl = $40) If your first product is … $39.95 – you are okay.
You’ve covered your ad costs. If not, you may be in the red in the beginning.
The fourth step is to sell more products to that satisfied customer for a slightly higher price.
Once you’ve gained their trust and they are happy with their first purchase – then you can then offer them further products for a slightly higher price.
For example, my first drawing course was $27 and people loved it.
Later I offered them a landscape course for $49.95, then a watercolor course for $49.95, then an oil painting course for $49.95, and so forth.
So what are we doing here?
We are asking customers to spend more with us – thus increasing their VALUE over time.
So going back to the numbers, if you spend $1,000 and got 25 customers – each customer costs you $40 to acquire.
If your first product was $39.95 – you’re okay and you’ve covered your advertising cost.
But what IF they buy a 2nd course for $49.95 – that customer is now worth $89.90.
If they buy a 3rd course for $49.95 they are now worth $139.80.
If they buy the 4th course for $49.95 they are worth $189.75.
So you’ve basically spent $40 to acquire a customer and you’ll get back $189.75. See how this works?
And the last (optional) step is to sell the business for a lump sum in the end.
Once you’ve got leads, sale, multi sales, and things are running smoothly, the last step is to list your site with a broker and sell it.
This is not mandatory – some people prefer to keep running things and enjoy the cash flow.
But remember there are many external factors that can happen – the market could crash and everyone will start cutting back.
Or the government could make up new rules to tax the internet or mail servers might start charging for every email you send in the future.
Anything can happen, so I prefer to start it, run it well and sell it for a lump sum at the end.
At least I know I have a definite start and end date – and I can use that lump sum of cash to do something else.
Lastly just to let you know I have tried other formats such as going for a sale upfront without collecting emails and building trust – and it didn’t work.
I also tried selling expensive items upfront and skipping the first low ticket item – and that too didn’t work for me either.
The 4 steps I’ve shown you have consistently worked for us no matter which market we go into.
Think of it as a natural progression from taking a stranger to building trust, making their first low purchase, and then offering them higher-priced items which they will gladly buy from you because you’ve gone through the stages.
And lastly, the framework doesn’t change – the content within the framework does.
So for example, if you run ads and can’t collect leads, then you simply change your lead page offer.
Maybe the headline isn’t right or the offer isn’t right or the colors aren’t nice.
Just change that – don’t get rid of the lead page itself.
Just change the content inside it. Same with the first sales page, if no one is buying your first product, just change the content on the page (maybe the price or the offer or the guarantee). Don’t get rid of the product page itself.
The framework doesn’t change – the content within it does.
Just to wrap up this lesson – now you know the simple 4 step framework that has always worked no matter which market we go into.
If you structure all your sites like this, the chances of your success are very high.