PART ONE –
“Choosing Your Million Dollar Niche, Business Model, and Products For Maximum Profit”
What You’ll Discover In This Step:
- Why it’s easier than ever before to become wealthy today
- What a “niche” is and how to choose the right one
- The “ultimate niche” to make enormous profits in with your online business
- Various business models and why they are not all created equal
- Why the company that can “lose” more will be more successful
What Business Has A 85% Success Ratio While Most Other Businesses Fail
It’s Never Been Easier To Become Rich
Humans have been roaming the planet for many tens of thousands of years.
Modern capitalism—the action of merchants doing business and making profits—has been flourishing since at least the 14th century in Florence, Italy.
This picked up pace further when Europeans started migrating to the Americas (known as “the New World”), known as the New World, opening up commerce on a global scale
And more so as the Industrial Revolution introduced new manufacturing processes.
Yet never has there been an easier time to get rich than right now today and it’s because of one phenomenon: the Internet.
The internet has made it easier than ever before to start your own business and make a lot of money from home (or practically wherever you want).
“Imagine if that far wall on the other side of the seminar room represented the dawn of mankind. And then imagine if where I am standing represented today. And then in between us was an imaginary timeline showing all the years in between.”
Then I held up two fingers, just mere millimeters apart, and said: “On that timeline, this tiny distance represents the last 20 years where the internet has been available to the average consumer. Never before has it been easier to get rich beyond your wildest dreams. And you and I just happen to be lucky enough to be alive right in the middle of it.”
This is true for a few reasons:
Number one, you can receive payments from anyone, anywhere in the world so long as they have a credit card. Fifty years ago this wasn’t really possible. It is today.
Number two, with the internet, you have a direct line of communication with several billion people on the planet.
Number three, it’s now possible to build a business catering to very specific audiences, in ways that just 20 years ago were not.
If you take a specific audience—like people who want to learn how to knit quilts from home—you may be able to start a business in your local area teaching it, or selling products to this audience, but it will be extremely hard.
Even if you live in a city with 1,000,000 or more people, how many of them are looking for training on how to knit a quilt? It might only be a couple hundred or maybe 1,000 people who would be interested in buying your course—that’s if you could somehow identify them (which would be nearly impossible since they’d not exactly be shouting from the rooftops that they wanted to buy a course on knitting quilts).
But now, with the Internet, it’s entirely possible to build a business that sells training on knitting.
Here’s a few examples of people who are doing it:
With the Internet, instead of only having 1,000 people in your city who you could reach, you now have access to many hundreds of thousands of people who could potentially be interested.
You can identify them in a split second online, based on their behavior. For example, if you research the kinds of things they are typing into Google, like “how to knit your own quilt training,” you can identify who’s in your target market, and you can target online ads directly to them.
And even if they are on your website at 4am somewhere on the other side of the planet, it’s now possible to receive money from them in a split second.
the internet has made it easier than ever before to start a business and be successful.
Then Why Aren’t More People Making Money Online?
There has been such an explosion in the abundance of opportunities being presented daily that it’s become a curse for the average aspiring online entrepreneur.
Let me ask you a question: in the last seven days, how many emails have you gotten from different internet marketing gurus talking about some new way to make money online?
Probably a lot.
Whether any of these programs are legitimate or not there’s just way too much information for any one person to process.
It’s easier today than it’s ever been before to get rich with an online business, but only if you focus—and choose the right niche, business model, and products to promote.
Choosing The Right Niche
What is a “niche?”
In business a niche is “a specialized but profitable section of the market.” It’s made up of consumers or businesses who share a common interest, desire, or problem. When you sell to those consumers or businesses, you are said to be doing business in that niche.
Choosing the right niche for your business is essential. Some niches offer you the potential to make tens and even hundreds of millions of dollars.
Others will make it difficult to even make a five-figure annual income. Let’s take a look at a few important things you need to know to ensure you choose the right niche for your business.
The first thing you want to look for is how motivated the prospects are to get whatever you’re selling.
Selling Cure, Not Prevention
If you’re selling prevention, you’ll likely have a hard time making sales. But if you’re selling the cure (some kind of “fix”) then you’ll have motivated prospects looking for you.
For example, if you were selling a course online which taught people different exercises they could do from home to strengthen their core and avoid back pain later in life, you’d have a very hard time making sales.
People who don’t yet have the back pain aren’t even thinking about it.
But someone who does suffer from severe back pain, and is searching for a way to relieve the pain, is a motivated prospect. They are looking for what you offer and they want it immediately.
Accessibility To Prospects
You need to be able to reach the prospects. Not all niches offer you this ability.
Pick a niche where prospects are more likely to go online and search for a solution.
Usually when people get a common cold, they typically don’t go looking for solutions on how to solve it online; most will try to treat it with common home remedies, like taking over-the-counter medicine, gargling with warm salt water and drinking hot drinks, etc.
The Right Price Point
Not all niches offer the ability to sell more expensive, higher-margin products.
Unless you’re a company like Coca-Cola, selling products for a few dollars online is a very, very hard way to get rich on the Internet.
Instead, you need to be in a niche where people will pay much higher prices.
In the niche Matt Lloyd us in (which we’re training graduates in also, as direct response lead generation specialists (DR.LeadGens)), there are people willing to pay literally hundreds of thousands of dollars.
In fact, as of today, Matt’s most expensive product is a one-year mentorship program. It’s $100,000 and many different people have paid him that kind of money for one-on-one consulting.
Now imagine if you were in a niche where you could sell programs for $100,000. How many sales each year would you need to reach your financial targets?
Not that many.
So in choosing the right niche, make sure you pick one that has the ability to sell higher-priced and higher-margin products.
Small business owners will pay a lot of money for the right solutions, so long as they can see an ROI (Return On Investment). If you can demonstrate to them that what you have will help them make more sales, save a lot of money, or work less, they’ll pay a proportionate amount of money to get your solution.
If a business owner is doing over $250,000 per year in sales and you show them how to increase their upsell effectiveness by 10% by selling them a training product on that topic, then you’re delivering potentially $25,000 in value (10% of $250,000).
Do you think that the business owner would be willing to pay $10,000 for it?
Of course they would! Who wouldn’t pay $10,000 to potentially make an extra $25,000 every year?
The Wealth Levels Of Your Prospects
If you want to sell high-ticket products to a market, you also need to first make sure the average prospect in that market has the ability to afford those products as well.
The Ultimate Niche To Get Rich From
Of the many hundreds of niches we rigorously researched like Matt did before starting MOBE, by far the most attractive one we found was selling to small business owners.
Here Matt tells you just a few facts about small business owners:
- The small business niche is made of people who are desperately in need of and willing to pay for training
- The vast majority of them fail precisely because they don’t have the right training
There’s also a bigger purpose to helping the people in this niche.
Entrepreneurs make up the 3% of the population who are responsible for the increased living standards and livelihoods of the other 97% of the masses.
Without entrepreneurs, we wouldn’t have cars. We wouldn’t have modern flight. We wouldn’t have air conditioning and heating. We wouldn’t have the Internet. We wouldn’t have almost everything we take for granted which makes our lives easier.
Forty-nine percent of employers in the United States are small businesses.
So not only is this a niche you can make a lot of money in, it’s a niche which you can serve and one where you can help to make a massive impact on society.
The Boom In Online Learning Platforms and The Shift Away From Traditional Education
One of the fastest growing industries of recent times is online learning.
Nowadays, more and more people are looking for alternatives to traditional modes of education (e.g., college). They’re starting to take better responsibility for their own education, therefore they are looking for other learning avenues.
They are more pressed for time, want more flexibility on their learning path, and often prefer the option of learning from home rather than going to a classroom every day. This is very apparent, because more and more traditional colleges and universities are offering online courses and degrees.
According to the article published on Forbes.com, the online learning market was projected to reach $107 billion in 2015.
And according to a report by ReportLinker, a technology company that simplifies how analysts and decision makers get industry data for their business, the global e-learning market is estimated to be $165.36 billion in 2014 and is poised to grow at a Compound Annual Growth Rate of 5.08% to reach $243.8 billion by 2022.
Here is another report that project the global e-learning market will reach $325 billion by the year 2025.
The key factors that are favoring the market growth are flexibility in learning, low cost, easy accessibility, increased effectiveness by animated learning, escalation in number of internet users and growing access of broadband pooled with mobile phones with online capabilities.
There are several big players in this industry:
Lynda.com: Founded in 1995 by computer graphics instructor Lynda Weinman as a supplement to her books and classes, which she initially issued on videocassette. As the web matured, she put her videos online. Lynda.com expanded beyond software and web design, to a wider range of topics. By 2014, the site had revenues of $150 million. The next year, LinkedIn acquired the company for $1.5 billion.
Udemy.com: “The Academy of You” launched in 2010. Though they initially failed to attract investors, before they’d been in business a year, they had 10,000 registered users and easily raised $1 million in venture capital. Over the next five years, the site boasted more than 40,000 courses and had raised another $112 million in funding to expand.
Clickbank.com: Tim and Eileen Barber started Clickbank in their garage in 1998, initially selling ebooks and later, video training courses, across very wide range of subject categories created by millions of authors and instructors. The company has sold $3 billion worth of digital training content to 200 million customers in 190 countries, according to their website.
Matt talks about MOBE’s own opportunity as follows:
I first saw the potential of these online learning platforms in 2014. MOBE had long since been up and running, but we were limited in that we could only release business training products as fast as I could create them.
It was around that time I had the idea of creating MOBE’s own online learning platform, which I’d call “MOBEmarketplace.com.” MOBE Marketplace allows any instructor to host their e-learning product on the MOBE platform.
My vision with MOBE Marketplace is for it to become synonymous with online business training, and to become a well-respected alternative to spending several years at university to earn a business degree.
At the time of this writing, there are about 350 products on MOBE Marketplace. My vision is that one day it will have 10,000+ online training programs, covering every single aspect of starting and building a business. Each one of them will make up the front-end of MOBE.
MOBE Case Studies
MOBE’s niche is aspiring entrepreneurs and business owners seeking to start or grow their businesses. MOBE’s products, services, and events provide the business solutions that help them do that.
Ask Holly Gannon, owner of Fantasy Fitness and Dance Studio in Perth Australia. She was using radio, newspaper ads and flyers to drive traffic to her company’s website and Facebook page but the results were dismal.
She chose MOBE because, unlike other offers she’d looked at, MOBE provided a complete training program. After applying what she learned in MOBE’s Traffic Masters Academy, O.P.T. Formula, and other courses, her classes are full, seven days a week.
You can read the case study at: www.mobe.com or just click the photo below.
Tony Ashbolt, from Guildford, UK, had built up a successful business as a tax and wealth management consultant, but a health crisis forced him to reevaluate the long days he’d been putting in a the expense of his health and family.
After going through MOBE’s training programs, he set up marketing processes to educate and prequalify his prospects, 24 hours a day, seven days a week. He no longer has to go out to make sales presentations; clients come to him instead.
His conversions tripled, revenues are at seven figures, and he regained his health and his time freedom.
You can view his case study at: www.mobe.com or just click the image below.
Choosing The Right Business Model
A business model is simply the way that a company generates income and makes a profit.
It includes such things as how you get new customers, how you effectively monetize the customers you have, and how you scale your business.
Many people mistakenly assume that the success of a business is determined by the entrepreneur’s intelligence. While that’s important, there are also other big factors as well, like the business model they use.
Matt talks about the two critical factors behind his personal experience of success in business as being the niche and business model he chose saying,
I’ve been able to make a lot of money over the years with my various online businesses—enough that I’ll never need to worry about money ever again.
I also have many colleagues and clients who’ve been able to make millions as well. While I (and they) would love to think our success is entirely due to our smarts, it’s not. It’s largely due to the niche and the business models we use to make our money.
Not all business models are the same.
Let’s go over just a few very profitable business models …
A franchise, like McDonald’s, is a near-proven business model. It’s not that hard to make a high six- or even seven-figure income running a McDonald’s restaurant, if you can afford the multiple six-figure investment to get one.
This is part of the reason why there’s well over 30,000 McDonald’s restaurants around the world: the company has done a really good job of making their business system relatively easy to succeed with.
A farm on the other hand (like the one Matt grew up on and which his parents still operate to this day) is an extremely poor business model to make good money with.
With a farm you outlay all of your money (or the bank’s) upfront on land, machinery, fertilizer, and chemicals to plant the crops. And then close to a year later (and after paying a lot of interest), so long as the weather has been good and insects have not plagued your crops, you then spend a lot more money to harvest your crops and hopefully get a good price.
This is one of the more popular mainstream online business models. This is where individual marketers sign on with a company to market their products in exchange for a commission on sales. Although a lot of people have made a lot of money with the typical affiliate marketing model, many new entrepreneurs struggle to make more than $500 in their first six months.
Choosing The Right Products To Promote
What Makes A Great Product
One that is already in demand: People already have a need for it, and, the problem is already occurring so they are already out there looking.
Provides a solution for an existing problem: You’re selling the cure, not prevention. Remember, we want motivated prospects.
Some of the more suitable product categories to sell online are:
- Physical products and deliverables: (Consumer products like computers, phones, clothing, vitamins etc.)
- Digital & information products and goods (Kindle ebooks, software, apps, online games, online training)
With physical products, the pricing formula is simple. You need to know:
- How much does it cost to have something produced?
- What is the price of distribution and fulfillment?
- What’s your profit margin?
All this being considered, you then arrive at the retail price of the product or goods to be sold.
After that, you can usually only raise your prices by differentiating yourself from your competition. As a result, what most often happens, is you become a victim of fierce competition, and so your profit margin is very thin, thus you rely on a lot of sales to achieve any profit at all.
But with digital and information products, you’ll have more room for bigger profit margins.
- You can create the product once, and ship as many as you need. No additional cost to create new ones
- There are minimal online storage costs compared to physical storage
- There are no shipping costs, as everything can be delivered electronically
- You can set your own pricing. No one can compete with your personal stories, knowledge and experience
That is why online training programs are the most ideal products to sell online.
Your Tiered Product Mix—Having The Right Products
Notice that this section is about having products—plural—rather than a single product.
To achieve huge online revenues, one of the most important things to consider is to make sure you have the right products.
you’ve got to have a series of different products at different price points that you can offer to all customers in order to make the economics (the numbers) of your business work.
MOBE loses money on the initial (front-end) product sales they make to new customers, just about every time.
But they make back all their money (and a lot more) on the back-end, through offering more expensive, more valuable and higher-margin programs.
just to be sure:
Whichever business has the best back-end sales process in place (the best monetization strategy for increasing the amount of money an average customer spends) will always dominate in any niche.
So you have 2 choices:
1. You can either build your own back end (create a lot of more expensive, more valuable, and higher-margin programs)
2. You can find another business that already has this in place, and leverage their backend.
Creating Your Own Products
Creating your own product line is a very fulfilling process. But if you have started implementing certain components of the business like building a website, writing copy, reading how to eBooks, you might have even tried creating your own products, then you would’ve found out that it was very difficult work to do all on your own.
When you are just starting out, take the easy path and choose shortcuts that will get you in the profit zone faster.
Throughout the rest of this training, we’ll be showing you how to take a massive shortcut and save yourself years of work by choosing option 2 with the Tecfclip’s P2F TW Service, where do not have to think of selling a product, but simply leverage the templates provided and apply what you’ll learn in the next part of this lesson into sourcing the number of clients required of you, and start working only 4 hours daily to earn $10,000 monthly, consistently and steadily.
See You In Part Two.
Resources For Further learning
Creating Your Own Products
- Write down your understanding of why it’s essential to choose the right niche.
- Which niche do you think you’d like to enter to start your online business? If you don’t know, discuss this with your coach.
- Which products and business model do you see yourself leveraging? Again, if you’re not sure, go over it with your coach.