Time and again I’ve seen new marketers complain that they’re not earning 5 figures a month. So, I ask them what they’re selling…
$27 video sets…
“Okay,” I say, “let’s do some math. Five figures a month is $10,000 or more. How many $7 products do you need to sell to make $10,000?”
“I don’t know,” they say.
The answer is 1,428.
What about $17 ebooks?
If you sell 588 of those a month, you’ll make five figures.
Yeah, but what about $27 video sets?
You only need 370 of those a month. That’s 12 or 13 sales every day.
If you convert a whopping 5% of your visitors, you’ll need 360 interested visitors a day to achieve that.
That’s going to cost money to drive that kind of traffic, which means you’ll need to sell a whole lot more products.
You see where this is going.
If the basic structure of your business prevents you from earning the income you want, then you’ve got to change your business.
It’s like buying a car that only goes 50, and then feeling disappointed and mad when it won’t go 100. It’s just not built for that kind of speed, and your business might not be built to earn 5 figures a month, either.
Low priced products are great for building a list of buyers and essential for self-liquidating paid advertising. You pay $100, you make $100 but you’ve got a list you’re building, or rather two lists because one is subscribers (which can be good) and the other one is buyers (which is where the real profit is made.)
But if you want to make five figures a month, you’ll need to either sell something more expensive like a $197 course or a $500 coaching program, or else promote affiliate products.
Let’s talk about that $197 price tag – to earn $10,000 a month, you need to sell just 50 of those a month. Or you can sell 20 of the $500 coaching.
The point is, if all you’re doing is selling nickel and dime stuff, then you can’t complain if you’re not making any REAL money.
It’s time to step up your game. Whatever is holding you back from selling more profitable products, knock it off.
Don’t tell me your list won’t buy expensive products because I know they will. They’re already buying more expensive products from other marketers, so why not from you, too? Build trust and rapport with them and some of them will buy anything you offer.
But the first step is getting your own mindset in shape and believing that you can sell big ticket items.
And if this is too much of a stretch for you right now (you’re not alone) then you can at least get on the right track by adding multiple products to your line. Add a continuity membership site, paid newsletter and/or paid podcast. Add products that sell for $47, $67, $97 and more. Find affiliate products you love and believe in that earn good money per sale. This way you can work your way up to the big-ticket items.
Heck, I know one marketer who won’t sell anything that costs less than $1,997. He doesn’t have a list of 500,000 because he doesn’t need one. He’s got a couple of lists of about 5,000 each and he is absolutely CRUSHING it because every single sale brings big money to his own pocket.
His mindset is that $17 products are a total waste of his time, and he’s right. To earn $1,997 he can make one sale or he can make 117 sales. He chooses to make one sale and even as I write this I realize that I, too, need to focus more on the higher priced products. I guess there is a lesson in here for all of us. 😉