Do Not Start Promoting Your Business Until You Have This Figured Out
Before you ever spend 1 cent on your traffic when promoting an online business, you should highly consider getting your business set up for profits.
I see this mistake made by rookies all the time.
About 3 months ago, I started coaching a student who was brand new to online marketing. He couldn’t afford (or didn’t have the motivation to raise funds) for his business (known as funding capital), so he decided to “not” take my advice, and go on to the next business.
To this point, I’m estimating he’s spent about $600-$700 on traffic, other software products, and/or programs. And if he’s lucky, he made about $500-$600 total, netting a $0 profit in his business at best.
So what should he have done instead? (and it’s not to go get clicks to a website… LOL)
The Offline Business Model Explained
Let’s say you wanted to start your own offline, “brick-and-mortar” business. If you were a trained barber or beautician, let’s say you wanted to raise some capital and start your own salon or barbershop.
In the first example, you could set up your own hair cut business, and find the location, come up with a snappy business name, put in all the products, set the prices, and then open the doors for business.
OR, if you wanted a much easier route, you could just purchase a franchise. Let’s say Cost Cutters for example. In this example, you’d already have a name, the corporation would help you scout a location, and give you the exact blueprint on hiring, the store set-up, layout, and have all your products and prices pre-figured out.
Since they have a strong brand-recognition in the marketplace, they’d even show you how to co-op your advertising and marketing expenses.
The Online Business Model Secrets Revealed
For some reason, when people start their search for an online business, all this logic as explained in the offline goes out the window. It’s like people get the “Get Rich Quick” frenzy and all their business sense goes flying out the window.
Another client I had recently, was a gentlemen in his mid 50’s with plenty of corporate experience, sales, AND business experience. Honestly, he was a prime candidate to take the online business model I was presenting to him and make about $50,000 in his first year. (Plus allow him to walk away from his 50 hour per week career and travel the world and spend more time with his family). Seriously.
But when it came time to pay for his business and “franchise it” so to speak, (which was only $2,000 by the way), he literally disappeared. Not sure if he thought I was going to magically create a “get-rich-quick” or “push-button” business from scratch without him spending a dime or what.
“It’s like people get the ‘Get Rich Quick’ frenzy and all of their business sense flies out the window.”
So why do people totally miss the boat? Where is the disconnect?
It’s our fault as Marketers
I’m going to go ahead and take the blame for this one. On behalf of the entire industry of online business entrepreneurs.
You see, the thing is that “we are very good at what we do.” Marketers like Dan Kennedy, Gary Halpert, and all those in direct response marketing have created an army of “super-sleuth” conversion creating machines.
We can take a giant cow turd and use our words and copywriting skills to sell it for $100 to a farmer, because we “paint the picture” and the dream about “our turd is the best turd around.”
“We can take a giant cow turd and use our words and copywriting skills to sell it for $100.”
What I mean is, that the job of any marketing expert or advertising person, is to sell products and to literally create business out of thin air and get people to spend money. Ever since the beginning of commerce, there have always been sales people doing this successfully.
So Why did our Corporate Client not buy?
Since we were promoting such a lucrative business model offer, to “change your life,” the client probably decided that in actuality, the business training program was “too much work” or “too expensive.” Meaning that it was not as much of a cake-walk as he originally imagined due to the flashy sales video and sales copy.
At the end of the day, a business is a business. They CAN and ARE very lucrative; but you do need to put in a little elbow grease and hard work. Once you have the back-end set up of your barbershop, and you have all of your products priced to profit, the business can really take off.
It’s the same with an online business. So get your back-end and sales team set up, purchase your license or franchise BEFORE you ever get traffic, then hustle like hell to get clients into your business funnel.
Related: 3 Reasons Affiliate Marketers Fail
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