What’s easier selling 1,000 10$ books, selling 100 100$ courses, or selling 10 1,000$ coaching spots? The correct answer is the 10 1,000$ coaching spots. Here I want to ellaborate on a business principles that took me awhile to understand but have made me good money since implementing it in my life. Okay so you have all kinds of people promoting all kinds of different business schemes. You have the old but popular sell e-books and live a nomad lifestyle type guys, you have the pimping the supplements type guys, you have the affiliate marketing wizards, and all sorts of different business models to adapt.
And while these can all work (then again walking as opposed to flying 1,000 miles a way “works”) they’re not the most effective ways to make money and set yourself up with a nice income. As a matter of fact I’d say today you’re better off making money “offline”. You’ll still have a website that you use and you’ll still use the internet but your main money will not be made online but rather important. So the online will mainly function to bring people to your offline business. But I’m getting ahead of myself here.
Big Numbers Are Better
We’ll start with my main point. Let’s look at two business models as examples. One is a high end marketing service where for a 50,000$ a year retainer you’ll do all of the companies copywriting and marketing campaigns. And let’s say you have enough time to do 5 clients a year. And now let’s say you have another model where you sell online e-books for 20$ each. Which one is it going to be easier to make money in? Let’s do some math.
To max out with marketing you can make 250,000$ a year. The online guru guys would then point out “Hey with the book there’s literally no limit it’s online so you could potentially make millions”. And while that’s technically true that’s not how it pans out in the real world. Hence a major flaw with the whole “passive income” thing (but that’s a topic for another time). To make that same 250,000$ (let’s assume you clear all 20 with each book) you’d have to sell 12,500 of them. Now what do you think is going to be easier?
Convincing 12,500 people to purchase a book of your or convincing 5 you can make them money by handling all their sales and marketing? Point is, it’s much easier to charge a high ticket to a few than a low ticket to a lot. Of course there is a way to intergrate all of this that I’ll talk about below. I lay this out to prevent you from commiting a critical mistake, which is trying to nickel and dime your way to riches.
The Price Pyramid & Making Bank
Let’s talk about how to intergrate all of this. Let me first start by saying this site isn’t made with the purpose of making maximum money but rather it’s number one purpose is to disseminate information so don’t copy what you see here for maximum cash. Alright back to intergrating it all. I do recommend writing on a blog, having books, making YouTube videos, podcasts, writing articles, doing speaking engagements, and so on and so forth. I also recommend selling e-books, courses, and higher end things, but these are not made with the purpose of making money.
These are made with the purpose of establishing expertise and moving people up the money pyramid. Where gurus and such make their true money is from the top 20% of the pyramid with hyper responsive buyers, not from the bottom 80% of products and such. You want to do the same, find the hyper responsive buyers that don’t just like you or love you. The corporate buzzword for this a few years ago was “raving fans” I believe.
So you’ll start the pyramid with free information maybe it’s YouTube videos, a blog, or podcast. Then you move up to low priced paid information such as paperback and kindle books sold on Amazon or another similar retailer. Then you have an more specialized e-book tier above that, which is more expensive but more specialized as well. Then above that you have an online course or something for a couple hundred bucks but generally not over 1,000.
Then you want to have a low priced continuity offer. Something where you’ll make reoccuring revenue from it month to month. It might be a special podcast, a newsletter, or webinar. Then you want to offer a “silver” version of that offer for more money with maybe an extra webinar or 15 minute group coaching call added on each month. And then you want the “gold” version at an even higher price point which might include a monthly 45 minute coaching call or master mind something or other.
Then from that pyramid you sort out those that most want to work with you and charge a premium fee for the privlege. And it’s this privleged few that will make you the most money and where you’ll get most of your income from. This is how it works, something most gurus won’t tell you. You don’t start making money or getting results until you get to the top tier of the pyramid.
Separating The Wheat From The Chaff
It’s in this top 20% of buyers where you can make the real money. Especially if you get them on a continuity type pricing. Most build their pyramid never getting into the real levels where you make money. You need your top offers to be worth thousands of dollars. When the most a hyper responsive buyer can buy from you is a 50$ book you’ll never make any real money. So get the pyramid together and filter out the hyper responsive buyers who will be who you make your money from.
If you have any questions you would like to see answered in a future post send them to me at charlessledge001 (at) gmail (dot) com. If you found value in this post then I would encourage you to share this site with someone who may need it as well as check out my books here. I appreciate it. You can follow me on Twitter here.
-Charles Sledge
