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The Business Model
As you can guess from the title of this report the basic business model here involves a free report. Free reports are one of the best methods of building a list but few realize that they can be an excellent revenue building tool too. The great thing about this business model is that if you are already giving away a certain type of free report then you could be 90% of the way to creating instant revenue from your reports.
So, the simple structure for this business model is that you create a useful “How To” report in a market where there are a large number of people looking for the information and there exists the possibility of a reseller market. You create an optin page for the free report as you would if you were just building a list but you add on upsell page offering the resale rights (to the upsell offer).
The Free Report
To paraphrase George Orwell, “not all reports are created equal”. Free reports that are a sample of a main report are great for list building and for pre-selling a high priced product but they are not suitable for this model. The ideal report to make this business model work well is a standalone report that the gives useful information focusing on a specific outcome.
Examples of reports that would work well are:
- How To Build An Affiliate Review Site
- How To Make Your First $100 Online
- How To Get Your First 500 Subscribers
All of these reports fall into the How To Make Money Online or Internet Marketing Niche but other good niches for this business model include Network Marketing and any Business to Business markets. All these reports have a double value. They are useful for new people into the niche in question because they contain great information and they can easily be reused by your customer to build their list.
The standalone nature of the report is important. This means that the report can be used outside of a traditional sales funnel or it can be used by your customer to begin building their own sales funnel. This is another great reason for your customer to decide to buy the rights you offer them on the upsell.
The Upsell
The Upsell component of your offer is straight forward and requires two key elements to maximise your income. The first is obviously a sales page. This is best displayed after the web visitor has opted in to receive the free report and before they get to the download page.
The second key element, the one most often overlooked, is a mini version of the sales page included at the end of the report. This means you get two opportunities to sell the upgade to your reader. Having read the report (and here I am assuming that your report is well written and valuable) your prospect should be able to see the benefits and future profits they can attain when they do upgrade.
As you can see, this process is simple but there is an interesting variation I’d like to introduce. You see, the vast majority of One Time Offers are not really one time offers. They are simply static pages in the sales funnel that can be re-accessed after your visitor has downloaded the report and bookmarked the page in question. If you choose to use a static page I strongly encourage you to call it an “Upgrade Page” or an order customization page, in fact anything other than a One Time Offer page will do.
The reason for this is, I hope, obvious. Being consistent, especially when it comes to scarcity tactics like OTOs, will ensure that your future scarcity tactics get the respect they deserve and prompt your customers and prospects to take the desired action. Having a One Time Offer that is not really “One Time” just confirms some people’s view that everyone online is out to scam them.
If you do go down the One Time Offer route I recommend using a script to enforce the one time nature of the offer. To maximise your long term profits you should use the OTO to give a small discount on the Upgrade price. For example, you decide that it will be $17 to Upgrade to get the rights to the report you are giving away. You could then make the OTO a discount so the price is $12.95 vs the $17 price mentioned in your Autoresponder follow up messages and on the Upgrade Page at the back of the report.
Establishing this type of credibility and commitment to your pricing (as opposed to the fake OTO that most people use) will go a long way to ensure your subsequent scarcity offers are taken seriously and respected. This ultimately means a stronger list response (you’re educating them that taking action saves them money) and a more predictable cash flow into your business.
Market research
By now you can see how profitable this business model can be. All that is left is to pick the right market and this comes down to research and some keen market observation. The goal is to select a market that is popular enough to ensure a big enough primary audience for you to build your list from and a market in which other people are looking to do the same (these are the likely buyers of your Upsell).
This business model has two goals. The first is to build a list through the give away aspect of the report, the second goal is to generate revenue. Your primary source of revenue will be the Upsell. However, if you pick a market with a large number of medium to high priced products offering affiliate programs you can make more money by adding affiliate links to the reports and including affiliate recommendations in your follow up Autoresponder email sequence.
For example, previously we mentioned that Beginner or Newbie focused reports are a good idea. Creating a report “Your First 500 Subscribers” would enable you (and the customers of yours who purchase the Upsell) to then advertise a number of other list building or “How To Monetize Your List” themed products from a market place like Clickbank.com or JVZOO. So finding popular and established products gives you the opportunity to create a front end free report. The established product then becomes the ‘backend’ for your give away report.
Once you have found a suitable product (or multiple products) to act as the backend product for your report you should include this information in your upgrade page at the end of your report and on your Upsell Sales Page.
This will encourage your subscribers to take the upgrade as they now have multiple ways of recouping their investment in your offer. They can sell their own copies of the report or they can opt for the give away route and monetize the optin email list using the ‘backend’ products you have identified for them.
Keep It Simple
As with most activities keeping things simple will save you time and effort. In this instance I recommend that you create a simple and standardized report format. An MS Word or Open Office document with basic formatting (Title, Subheadings) that runs to about 10 pages with no fluff or filler content is the goal here.
Creating a standard report format means that you can create multiple (ideally sequential or thematically related) reports that all have the same clean and elegant style. It also makes it easier to sell multiple upgrades to your paying customers as you will be creating what the publishing sector calls a ‘House Style’.
From your customer’s point of view they are getting a predictable quality report each time (making it far easier to make repeat purchases), further, if you have a very clean and simple style it will be easy for your customers to make a small modification to create their own in-house style. As before, this makes it easy for them to purchase and re-purchase more reports from you.
Shopping Carts
There are literally hundreds if not thousands of shopping carts out there ranging from free (paypal.com checkout) to the very very expensive (bespoke or highly customized shopping carts can cost many thousands of dollars).
Given the desire for a simple solution (see previous section) and for a solution that offers secure digital downloads my recommendation for first time vendors is http://www.e-junkie.com. It is a cheap, scaleable solution. It’s shopping cart works out of the box with both paypal.com and Google Checkout - giving you a choice of payment solutions without having to investigate the costs and paperwork involved with an Internet Merchant account.
The e-junkie cart works with simple html pages and sites built using popular open source content management systems (CMS) such as Wordpress and Joomla. An essential point here is the ability to offer secure digital downloads for your upgrade offer.
The e-junkie cart can be configured such that the digital downloads can be restricted to a small number of download attempts and that the download expire after a configurable period of time (usually a couple of days).
- File Size:49,510 KB
- License: Master Resell Rights
- Category:Ebooks
- Tags:2014 Ebooks With Audio & Video Master Resale Rights