A good friend of mine moved from Scotland to America in 1995. Back home he was a World Champion Tae Kwon Do fighter. In America, he came to seek his fortune as a fitness coach. After a few years of being a personal trainer in the rough and tumble world of New York City (where he was once arrested for assault after defending himself against an unwise mugger), my friend and his new wife moved to California to be closer to her family.
Today they run the most profitable fitness center in America (per square foot). The gym runs so smoothly that they rarely have to go there. It makes money automatically because the lead generation, new member acquisition, and even client workout systems are built on time-tested principles.
It sounds almost as good as my Internet business.
After word got out about the success of his facility, other gym owners started asking him and his wife for business advice. Eventually they created a high-priced coaching program.
Last year, during one of my trips to southern California, I stopped by his gym (where an employee gave me the tour) and then I met with my friend at the restaurant across the street.
He showed me his complete funnel for getting new clients into his high-priced coaching program, and he also passed along my new favorite business quote. We’ll get to that in a second…
First, let’s look at his 4-level product funnel, and then you can brainstorm a high-priced product for your business, or refine the one you have in place.
He sells a $20 business book (paperback) that introduces new readers to him, his training business, and his gym, and he starts selling the idea that we all need a mentor to succeed.
The low cost of the book allows him to use multiple distribution channels, including online (through his website and email list), and offline at the various seminars where he speaks.
The book also promotes the next levels of his product funnel.
He offers a $500 1-Day Business Seminar. This is offered in a joint venture between him and a major fitness retailer. It’s a great example of how everyone – not just Internet folks – can leverage partnerships. At the end of the 1-Day Seminar, the next levels of his funnel are offered.
This is similar to our www.
There is a $2500 3-Day “Internship” at his gym. This is sold at the Level 2 seminar and his email list (which grows from all the speaking he does).
At the end of the Internship, an offer is made for the 1-year coaching program, and a large percentage of people jump to the next level because they have already received extreme value through the Internship.
He runs a 1-Year Coaching Program that requires an investment of $10,000. This is similar to our $100K Info Mastermind Group.
At this point, I told him he needs a Level 5 – a higher priced coaching program, or even some type of franchising or licensing. He appreciated that advice, and in return, he gave me this gem of wisdom:
“You should get paid the most for the things that come easiest to you.” – Adam Urbanski
At first that sounds counter-intuitive. After all, we’ve been told over and over that we must work really hard for our money. That’s true in a way, because you will have to work hard to become an expert in your field. Then once you do, you can teach what you know best and find easiest for you.
Think about it this way. I’m an expert at email writing, and can teach you it a million times better than I can teach you anything about using Google Ad Words. Obviously, I should charge a high price to teach you excellent email copy skills, and I shouldn’t even think of trying to teach you ad words.
For my friend, the high level coaching program is where he gets paid the most, and it comes the easiest to him because of all the hard work he has done in the almost 15 years of running his gym.
Let this lesson sink in…
You should get paid the most for things that come easiest to you…because if they come easy to you, that means you are a true expert in that field.
(Obviously, when I refer to things that come easy to you, I don’t mean eating pizza and watching television. The activities you get paid for must add value to the world.)
Now finally, let’s take a look at a sample online product funnel, using digital products instead of coaching.
Start with a $40 e-book.
Here’s where you need to make your biggest shift in thinking. The ultimate purpose of “Level 1” is not to make all your money here, but instead to get as many people into your product funnel as possible so that you can continue to give them extreme value with higher priced products.
At this level, you have to be okay with spending $1 to make $1 – while getting a customer. That means paying for customers (through ads) or giving out high affiliate commissions (so that others will send you customers).
If you are cheap and refuse to adopt this mindset, you’ll struggle. Period. You can’t be cheap when it comes to customer acquisition.
“When you are starting a new business, selling must be your #1 job. Learning to sell is an obligation, not a choice. Your educational objective during the start-up stage of your business is to simply learn how to sell one particular product to one particular market. You just need to do one thing well: Sell the hell out of your one product. You will get to $1 million quickly, and perhaps even to $10 million, simply by repeating this one trick over and over again. As long as it keeps working, keep doing it.” – Mark Ford
Upgrade clients to a higher value $200 product. This could be a membership site, or home study course, or DVDs.
Add another level of value to create a package that sells for $500. This could be a live event, more videos, or perhaps a $50 per month print newsletter that gives you $600/year.
What could you offer for $1000? A certification? A 3-day event? “Done for you” products to help your clients boost their business or simplify their lives?
Write down every idea you have for each level, and we’ll refine your product funnel at the Online Info Workshop, if you’re attending.
The more proprietary your ideas, the more value you will be able to offer, and the higher the price you will be able to command.
That’s why you’ll make the most money teaching what comes easiest to you.
[Ed Note: Craig Ballantyne is the editor of Early to Rise (Join him on Facebook here) and the author of Financial Independence Monthly, a complete blueprint to helping you take control of your financial future with research of proven methods in your career, in your business and in your personal life. He has created a unique system to show gratitude and appreciation to stay on track for these goals each and every day. Click here to follow the exact 5-minute system you can use to improve your life.]