OK. This is a more serious presentation of a concept, based on my personally secret word: TRANSACTIONS. A couple of days ago I posted about this SECRET word and some Warriors didn't get it.
I'll leave out the sarcasm (hard for me to do so) and hopefully, this post will benefit at least one Warrior .
Let me define a transaction. It is an EXCHANGE of VALUE between 2 (or more) entities.
An entity can be a person, company, big corporation, city, county, state or federal gov't or even a country. Many Entrepreneurs get rich off of Uncle Sam.
We most often think of transactions between people and/or companies and they involve money.
Money is only ONE form of Value. Here are some other kinds of value:
Perceived value. This is what we THINK something is worth...subjective and personal.
Market value. What the market pays; search eBay completed listings and look at what people actually paid for something and that represents real market value. In the auto industry they have “Blue Books” which help determine Market Value.
Stored value. Watch American Pickers on TV or any antiques show, you'll see there is stuff sitting in basements and in the back rooms of corporations collecting dust, and if they are put into circulation, the stored value is released. Much moolah to be made with this.
Lifetime value. In remote direct marketing, a company can estimate how much money a new customer will spend over their lifetime of association. Example: Highlights for Children Books can go into the red (meaning they lose money) for a couple of years because the average customer will spend several years buying. There are actual formulas for figuring out Lifetime Value, and some good books out there if you want to know more. Try google first, OK?
Advertising value. This is what makes Google, Facebook and all big websites so lucrative, they can exchange EYEBALLS (yours and mine) for some cold hard cash from advertisers.
There are other forms or types of VALUE. For this discussion of transactions, there has to be an AGREED upon value for the EXCHANGE to take place. Money is most often used, but barter is big too. This alone could open one or two eyes to more possibilities.
OK, now you have some of the basics. So here are some relevant examples to see how TRANSACTIONS is a “secret” and in my mind, almost magical word which can help you with your business or money making efforts.
At the low end how about creating (or acquiring) an INFORMATION product. You want to sell it for 10 dollars as an eBook. How many will you have to sell to gross 100 bux? Did you think 10...great, you're educable after all (whoops, I said I'd leave the sarcasm out...oh well)...
Now, I've created dozens of these low cost products and the reason I do so...
once you set them up, they are AUTOMATICALLY conducted transactions (ACTs).
STOP and THINK for a moment. Isn't an ACT a worthy goal for your IM efforts?
I've eliminated my personal involvement from having to be a present entity to make it work. The machine, the bots, the Internet, my websites, PayPal etc. does all the work for me...that is, once I get eyeballs (the right kind) to the promotion (often the tricky part, but not all that hard either).
So, if you are thinking of selling a digital product like an ebook, the TRANSACTION would be;
A- your prospect finding your promotion (how, where, when???)
B- and then clicking on the Buy Now button (or whatever, could be filling in a form, giving cc info, etc.)
C- and then receiving what they pay for.
But if you don't have an EXCHANGE OF VALUE, that is if the buyer thinks your ebook sux, then you get refunds. However, if they feel it was 10 dollars well spent, then you have delivered the goods “in their minds” or you have fulfilled their PERCEIVED value. Good on you.
If you want to make 100 bux a day, you need 10 of these lower rung transactions, and to keep the 100 bux, you need to make the transaction stick by over delivering (my personal opinion here as I seldom get refund requests).
10 transactions a day sounds easy and anyone can do it, but to sustain that pace over a year, you need a constant stream of prospects converted to customers, and that could get costly...so, say you want to make your 100 dollars a day with only ONE transaction...
Well, what does a 100 dollar transaction look like? It wasn't long ago that a 100 bux would buy you a “course” with several DVDs or Cassettes, or CD's and maybe a 3 ring binder...and the online version of that could be a course or a short term or fixed term membership site.
You'll see many 97 dollar type courses, I've created several of them, my most profitable was a course on “Chatteling” which was an all digital product.
So again, you take a look at the process a potential customer goes through,
finding your promotion,
reading it, or watching or listening to it...
making a buying decision and going through the ordering process.
Each step could have several elements involved, such as setting up a website or blog to hold your promotion. Getting a PayPal or Merchant Account, some way to EXCHANGE value. And so on.
Now in the last few years we've seen the “Product Launch” which is a TWO thousand dollar transaction in many cases, and some affiliates make a quick 10 grand because they refer their customers to the promotion and pocket the commission, often 50% of the transaction.
What makes affiliate marketing so attractive is, it eliminates some of the steps and the COSTS associated with the transactin and your involvement...you don't need a website, just a link you can send in an email which will take your customer to your personal affiliate promotion page.
However, if you lack a list of qualified buyers, this more expensive transaction doesn't work so well for you. Which is why you hear the manta, “the money is in the list”.
What does a hundred thousand dollar transaction look like? Ever buy a house? A boat? Those are examples of more expensive types of transactions and if you are the broker standing in between the buyer and seller, you get a piece of the transactions, and think about standing in between a buyer and a seller of, say, a ten million dollar yacht...wouldn't that be a sweet commission? Many brokers here in West Palm Beach and Miami routinely make those kinds of deals.
So, you see what a 10 dollar ebook transaction looks like and many of you have experienced that here with a purchase or a sale of a WSO. You know what a 100 dollar transaction could be, a 2000 dollar product launch and a 10 million dollar yacht (yea, I know it's a small one, but, hey it's still a yacht)...
NOW here is where YOU come in. IF you were to sit down and write out the steps of ANY transaction, then you could quickly and easily begin to discern which of the Product Launches (for example) will really work for you. It is a way to ANALYZE any money making or business opportunity.
How does the TRANSACTION look like and how many do I have to make?
If you are going to be required to sell X number before you earn X number, then you will ask basic transaction questions such as:
Who is the market for this? Where do I find them? How do I get them to come to my promotion? What is the perceived value and real market value for this product or service?
SEE, the TRANSACTION gives you questions to ask. When you draw it on a piece of paper and show the flow of money or other value exchanged, you see what you have to do... to GET.
Draw a prospect on the right side and you on the left.
NOW, how do you get his money out of his pocket and into yours? Write out what steps he has to take, like how does he find your promotion or sales message? Where is he coming from and what is he looking for? You know, the basic marketing questions you ask before you jump in and begin your Internet Marketing careers, right?
Then draw a flow chart of how the money becomes yours and what VALUE he is getting.
And then there is this little SECRET (shh, don't tell please, I don't want to get into trouble)...
In many instances it takes just as little time to make a 10,000 dollar transaction as it takes to make a 100 buck one. The general rule is, however, the higher the dollar amount, the longer it will take.
So, it may take a year for the yacht broker to find a buyer for the 10M little boat...but his commission could be half a million dollars, which isn't bad. And consider he has the potential to do several of these a year...you'll see how BROKERS have some of the best lifestyles going.
If your product is a 10 dollar ebook (I seldom go lower unless I want more names, but, for me, I want quality names of buyers) then you know you're going to have sell 10,000 of them to earn the 100,000 dollars which is an arbitrary line of success in USA. That's a lot of ebooks.
But, if you have a list of 3500 buyers which isn't all that big of a list and you make 6 offers a year to them, you only need a percentage of the group to buy each time. Although, most information buyers are like squirrels and will buy anything that looks like a nut.
You don't need huge lists, it does help to have a LIST of buyers, and the sooner you have that, the sooner you get to whatever success you have thought out for yourself.
OK, now you know how to THINK about my secret and magical word and when you use it, when you make transactions, and you can do so whenever and wherever you like...consider that craigslist and eBay showcase MILLIONS of transactions a year... you can begin to see how much power there is in a single word...and how you can make money whenever you want...that is,
when you take the time to fully understand it and see it from a different perspective.
NOW, go make some transactions, will ya?
PS. Want to make money quickly? GIVE more VALUE than dollars you get.
I will answer questions if you have them.