The Perfect Business Model…And A Huge Email List, Too

written byHenry Biegacz
posted on

I’m sure you’ve all experienced this—you want to start your internet marketing business, but you’re faced with an overwhelming number of choices.

Do you create your own products or market someone else’s as an affiliate? How about traffic—free or paid? Do you go with Facebook or YouTube or maybe Google adwords?

When I got started I faced this dilemma and had a difficult time because the choices were overwhelming. As a new marketer I wanted to do them all.

But, that’s impossible because if I had tried that, they all would have failed miserably. So, the question was: “What’s the best business model to use that will give the marketer the best chance for success”?

How about this?

A business model where you could market for no out of pocket net advertising cost and, at the same time, build a huge email list? That means you’ll have a free email list that could grow to be huge.

To be clear—This model is not a push button, get rich overnight scheme. Those never work. The people who promote them are just preying on the naïve.

Don’t let that be you.

This business model will take some real work to develop and it will take some time to grow—90 days to be safe, but it could be done sooner.

You will need to buy traffic (yes there’s some upfront cost), but I’ll show you how to recoup your cost quickly and, possibly, make a profit.

You will also need a capture or squeeze page with a free offer. Your free offer should be something of high perceived value that is easily consumable by your subscribers.

You will also need an autoresponder to build your relationship and trust with your audience. The autoresponder that I use myself and recommend is Aweber. It has great email deliverability and it’s easy to use.

Here’s The Game Plan For Your Business

You start by buying traffic. Yes, you’ll have to spend some money initially. How much you want to spend is up to you. The more you’re able to spend, the faster your business will grow.

If you do this right, you’ll recover your advertising cost.

Look at your ad cost as an investment in your business and not as an expense.

You will send your traffic to your squeeze page to collect email addresses. Your goal is to get your visitor to trade their email address in exchange for your free offer; your lead magnet.

Your lead magnet must have a high perceived value to your prospect. Otherwise, they’ll just leave.

An effective capture page with a good lead magnet should capture at least 25% of your visitors. I’ve had conversion rates on capture pages which exceeded 50%. It’s not as tough as you might think to get high capture rates.

After your prospect enters their email address they’ll be taken to a download/thank you page.

This page is very valuable internet real estate which is often completely overlooked. Many marketers only use the thank you page to provide the download vehicle for their lead magnet.

They’re leaving money on the table.

Your thank you page must have a front end offer. Some marketers call this offer a “tripwire”. The front end offer can cost anywhere from $7.00 up to $49.00. Think about why this works.

At this time your visitor is in an agreeable mood. After all, they just gave you their email address.

The front end offer is vitally important to your business because this is where you want to recoup your ad costs.

Let’s look at some numbers for illustrative purposes.

Ad cost $100

Subscribers 35

Front end product

commission $ 25

With only four sales we’ve earned $100 and we’re breakeven on our ad cost. In other words your ad is free and you’ve added 35 subscribers to you list.

Even if you only made two front end sales, you’ll earn $50 commission and your cost will be $50 net. But, you’ve also added 35 subscribers at a cost of $50 or only $1.43 per subscriber. This is ridiculously cheap.

If you were able to make five front end sales, you would have profited $25. Your ad and your prospect cost would be zero and you’d be ahead by $25.

If you could optimize your offer and maintain these numbers, you would have achieved freedom.

If you can create a profit on your ads, you’ll be able to reinvest those profits into more ads and scale much quicker. When you’re making a profit on your advertising, you’ll be happy reinvesting in more ads.

This will become your very own automated teller machine.

You should ideally have at least two more products to initially present to your visitors. One should be a higher priced offer to show your front end buyers. It should be priced in the range of $197 to $497. It should also be closely related to your lead magnet and front end product.

It would also become part of your follow up emails to those people who didn’t take your front end offer.

And finally, your third product should be something with recurring monthly income. Recurring income will add stability to your finances because that’s income that will be there every month as long as your customers remain members.

You will also be building a mailing list at the same time. Building your list should be your main priority.

Your list will become your business’ biggest and most valuable asset because it will allow you to almost make money on demand every time you send mail.

So, there it is. A very simple, yet very effective business model that is easy to implement and is profitable in any niche you choose. But, remember, it will take some work to get off the ground.

And, like everything else, you must take action.

Whether you liked this post and found it valuable or didn’t like it at all, please leave a comment. I’d love to hear your thoughts.