Please critique my business model

11 years ago

I don't want to rain on your parade, but you're talking about charging a $49 fee to access information freely available in many places. What are you going to offer to differentiate yourself from, say, Yahoo Money or MSN, to say nothing about sites like Quicken or even Wikipedia. I won't even start on YouTube, with the number of financial experts giving the same information away as a lead generator or credibility builder.

As for the ad, if I saw it on a site having anything to do with money or personal finance, I'd assume that you were pushing some MLM or MMO deal.

Before you sink a lot of time or resources into this, take a long think about what makes you any different from any of the other folks offering generic advice about money.

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RuthRNM

11 years ago

Hi,

If you can market the service effectively, offer good value for money, and can write a killer sales page, there's potential for getting people to sign up. Personally though, I'd consider how big you can make it. If that's a one-off fee for lifetime membership, that's an awful lot of people you need to get on your list, and how long are you committing to providing content for? Have you already considered a one-off e-book or information pack? And if so, why?

Also, at the risk of being pedantic - there's a letter missing from 'financial' on your ad. I'm a writer so I can't help but notice these things

Good luck!

Thanks

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NatesMarketing

11 years ago

I think it's a pretty good idea. Sure, the same/similar information can probably be found on YouTube for free, but if you present it in a better way then people will pay for that.

I wouldn't worry about all of the "free" stuff that's out there.

Now, you will need to ensure you address that on your sales page, but I wouldn't let the "free" stuff stop you.

As for your payment plan. If you're offering 50 videos, how much bandwidth will that be?

Will a one time price of $49 be enough to cover a lifetime of downloads?

Maybe...just my thought...maybe it's stupid...have a starter price of $49 then a monthly fee of only $3. That way, if they continue, then they'll cover their bandwidth usage, and if they don't...well, you still got the original $49.

Just a thought.

Otherwise, it looks like you've put some thought into it. Just make sure you're able to explain WHY you're better than the "free" stuff.

Thanks
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JohnMcCabe

11 years ago

Originally Posted by NatesMarketing

Otherwise, it looks like you've put some thought into it. Just make sure you're able to explain WHY you're better than the "free" stuff.

This was my main point, only shorter and more direct.

The OP mentioned doing videos like "what is compound interest", which I think they cover in elementary school. Generic advice on personal finance is everywhere, not just on the net. It's in magazines, newspapers, on TV and radio. You can't get away from it.

Now if the OP can offer solid, pragmatic info on something like "How to beat the 'doughnut hole' in Medicare prescription coverage" or other specific topics, he might be on to something.

The problem those sources I mentioned earlier have is that they have to appeal to everybody. Find a niche market and provide them with targeted info.

[Here's a hint: There are trillions of dollars locked up in the current senior generation and the Boomers following them are going to inherit a big chunk of it over the next ten years or so...]

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The Stardust Traveler

11 years ago

Originally Posted by JohnMcCabe

This was my main point, only shorter and more direct.

The OP mentioned doing videos like "what is compound interest", which I think they cover in elementary school. Generic advice on personal finance is everywhere, not just on the net. It's in magazines, newspapers, on TV and radio. You can't get away from it.

Now if the OP can offer solid, pragmatic info on something like "How to beat the 'doughnut hole' in Medicare prescription coverage" or other specific topics, he might be on to something.

The problem those sources I mentioned earlier have is that they have to appeal to everybody. Find a niche market and provide them with targeted info.

[Here's a hint: There are trillions of dollars locked up in the current senior generation and the Boomers following them are going to inherit a big chunk of it over the next ten years or so...]

I enjoyed this. The first thought that comes to mind is a will preparation service or product. Maybe, do it yourself will preparation. I supply documents and easy to follow instructions, maybe even video. I need to do a little research to find what "actually" has to happen and make sure my product delivers. Thoughts?

Thanks
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JohnMcCabe

11 years ago

Originally Posted by The Stardust Traveler

I enjoyed this. The first thought that comes to mind is a will preparation service or product. Maybe, do it yourself will preparation. I supply documents and easy to follow instructions, maybe even video. I need to do a little research to find what "actually" has to happen and make sure my product delivers. Thoughts?

Good research will be key if you go ahead. Mainly research into the very specific kinds of situations people struggle with.

I can go down to my office supply store and buy a $20 software package on generic will prep.

Now if you could take a common set of related questions from forums, answers sites, etc., generalize them enough to keep them anonymous, and give advice specific to that situation, you'd be onto something.

Or start with info on wills v. trusts for estate planning. Or estate planning for people with multiple families (i.e., married twice, children with both spouses).

You mentioned in another post how your material would be beneficial to lower income people. Are lower income people really looking to buy this information? Or are they going to settle for watching Suze Orman on PBS?

Find out who wants to buy the kind of material you can provide, then provide the material they want to buy. Sales will be a lot easier that way than trying to convince the people who you think need it, but don't want it...

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willie robertson

11 years ago

The difference I see with having membership site such as yours as opposed to people getting the info free is that you will have it all conviently ready and available at your site and you have done all the research...

No different than some of the IM courses being sold...They take same crap, just revamped and put togather all conviently, make a slick sales page and USP package, then upsell the hell out of folk.

Most times when we buy stuff that we could get for free, it is for the convience and time saving effort we are buying, so as not having to do the research on our own...

Have you considered using a trial offer, such as $trail for 3 to 7 days and making some of the material available until after the full payment is made?

As far as your ad, can you tell the prospect if this is something that can be done with or without their current budget or with the current money they make...
If they can use your material and make it work with their current budget, you might have a winner. Otherwise it probably would come across as just another biz opp...

Ruth offered some great tips...

You could possibly package your product(s) seperately and sell them indiduvidaully, starting with a freebie and thus using upsells via a sales funell...

Marketers do it all the time with less valueble material.

Thanks
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The Stardust Traveler

11 years ago

Originally Posted by willie robertson

The difference I see with having membership site such as yours as opposed to people getting the info free is that you will have it all conviently ready and available at your site and you have done all the research...

No different than some of the IM courses being sold...They take same crap, just revamped and put togather all conviently, make a slick sales page and USP package, then upsell the hell out of folk.

Most times when we buy stuff that we could get for free, it is for the convience and time saving effort we are buying, so as not having to do the research on our own...

Have you considered using a trial offer, such as for 3 to 7 days and making some of the material available until after the full payment is made?

As far as your ad, can you tell the prospect if this is something that can be done with or without their current budget or with the current money they make...
If they can use your material and make it work with their current budget, you might have a winner. Otherwise it probably would come across as just another biz opp...

Ruth offered some great tips...

You could possibly package your product(s) seperately and sell them indiduvidaully, starting with a freebie and thus using upsells via a sales funell...

Marketers do it all the time with less valueble material.

Interesting points. The material could work for any budget and will be most beneficial to lower income level from a savings to income view point. I guess demographic viewing the ads will be different depending on my key words so I would run multiple ads with different income level copy and split test them.

Another question, what length are you imagining these videos? I was thinking a 3-11 min video for each topic and maybe some longer ones, 20-30 min for a few in depth topics.

Thanks

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mekdroid

11 years ago

How about using Content Locking instead of the lifetime subscription model? You could place your videos in your site, get the visitor's e-mail to build your list and then have them complete whatever the content locking network asks them to do (survey, offer, etc.) before they are allowed to download the video.

This way your visitors get the videos for free (a much easier sell) and you still monetize the videos ...

Thanks
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The Stardust Traveler

11 years ago

Originally Posted by mekdroid

How about using Content Locking instead of the lifetime subscription model? You could place your videos in your site, get the visitor's e-mail to build your list and then have them complete whatever the content locking network asks them to do (survey, offer, etc.) before they are allowed to download the video.

This way your visitors get the videos for free (a much easier sell) and you still monetize the videos ...

This method leaves out a traffic source. If I'm paying from 30 to 50 cents per visitor. Are they going to watch enough videos to pay me back? How much do content unlocking networks pay? I do not want to use organic traffic.

Thanks

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The Stardust Traveler

11 years ago

So am I to understand then that the general consences is that the original plan would not be the best plan of action and has a likely chance of losing money unless I modify the pricing model or nice down. My biggest concern is I want to be able to generate at least $100 profit a day, hopefully expandable to $200 a day. So with a 1% conversion, and $8 profit per sale ($2 for operating costs), id need 37,500 visitors a month available to profit $100 a day. Is google's traffic estimator a good enough tool to find the most cost effective keywords?

Thanks
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JohnMcCabe

11 years ago

Originally Posted by The Stardust Traveler

So am I to understand then that the general consences is that the original plan would not be the best plan of action and has a likely chance of losing money unless I modify the pricing model or nice down. My biggest concern is I want to be able to generate at least $100 profit a day, hopefully expandable to $200 a day. So with a 1% conversion, and $8 profit per sale ($2 for operating costs), id need 37,500 visitors a month available to profit $100 a day. Is google's traffic estimator a good enough tool to find the most cost effective keywords?

It sounds like you asked for critiques after you already had your mind made up.

If you want to learn PPC, check out Perry Marshall and Dr. Glenn Livingston. Livingston even has a company called Rocket Clicks that manages PPC campaigns for you.

Good luck, you'll need it.

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Kay King 11 years ago

Those with low incomes and people focused on SAVING money will not pay for something they can get for free. They will spend time finding info rather than pay someone else to organize it for them.

You are making a common mistake in planning your earnings before you have a valid business plan in place. When you have tested and found you have a product or membership people will buy into - then you can run numbers to see what your ad budget needs to be to ramp up results.

I think you need to go back to the drawing board as the ideas you have so far may not be profitable as a membership.
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The Stardust Traveler

11 years ago

You guys are absolutely right. And I do not want to go in without data to back me up. I wonder if it would be meaningful to build a page with buttons or links to different types of products (that I make up) and upon click, the user is taken to a more info page with a brief description of what the product would offer. I could even put some simple, action oriented buttons or text boxes asking the users what they want. Follow up with an email capture for notification when the product or similar product is available.

I don't recall ever reading about a similar strategy. Am I thinking a little too out of the box or could that be a valid method of testing visitor interest (interest would be tracked on a click by click basis to determine what the user is looking for).

Thanks
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JohnMcCabe

11 years ago

Originally Posted by The Stardust Traveler

You guys are absolutely right. And I do not want to go in without data to back me up. I wonder if it would be meaningful to build a page with buttons or links to different types of products (that I make up) and upon click, the user is taken to a more info page with a brief description of what the product would offer. I could even put some simple, action oriented buttons or text boxes asking the users what they want. Follow up with an email capture for notification when the product or similar product is available.

I don't recall ever reading about a similar strategy. Am I thinking a little too out of the box or could that be a valid method of testing visitor interest (interest would be tracked on a click by click basis to determine what the user is looking for).

Direct mail/infomercial people used to do this all the time. It's why you see "allow 8-10 weeks for delivery" of an item that should reach you in a week even if they ship via Pony Express. They don't actually order the merchandise until they know they have enough orders to be profitable. If the product flops, or they don't get enough orders, you get a polite letter and a refund.

One variant I've heard of (can't remember the source, but it was someone I respect) involves creating a dozen or so titles, then asking people to choose three. After you get enough responses to be valid, you create products around the top three. You can offer a discount or a drawing for a freebie in return for their email. Just don't make the common mistake of confusing permission to send the results of the survey with permission to hammer them with offers.

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mert

11 years ago

While I think the business model is great, I would not agree with the price. You can add a little mix down the road, say like beginners can pay $20 for a life time membership and only access 10 videos... once they think they could use more infos, you can offer them an upsell of say $5 more for a lifetime subscription to advance level and $10 more for pro level and include other perks and added value.

Otherwise, I would suggest you cutting down the registration fee if you want to get more sign-ups.

Thanks

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Please critique my business model

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