1000 Raving Fans – Part Two
This is part two of “1000 Raving Fans”, for part one click here.
500 people who you treat extremely well, provide awesome content to and even speak to on a personal level. In order to make $100,000 from 500 people, you need to release 3 products a year at around $67 or one at $200. The idea is that the vast majority of your fans buy all of your products. These are the people who you should treat extremely well, even speak to personally.
If you spoke to just 1.3 of your fans per day, you’d speak to 500 every year. Just by offering that extra personal support and interaction; the buyers become far more loyal and responsive. They become customers for life.
On top of having those 500 or 1000 fans, you only really need a steady flow of 5-10 new leads per day. Five to ten new leads per day are enough to replace the customers who become unresponsive. It’s also enough to build a list of long tail fans or people who buy “some” of your products. Big companies, musicians, film makers, they all make there money from long tail fans.
Long tail fans are the buyers who are on your list, but only buy the products they feel are right for them. While your true short tail fans will buy anything from you. Here is a great explanation of a true fan:
A True Fan is defined as someone who will purchase anything
and everything you produce. They will drive 200 miles to see
you sing. They will buy the super deluxe re-issued hi-res box set
of your stuff even though they have the low-res version. They
have a Google Alert set for your name. They bookmark the
eBay page where your out-of-print editions show up. They come
to your openings. They have you sign their copies. They buy the
t-shirt, and the mug, and the hat. They can’t wait till you issue
your next work. They are true fans.
While originally written for musicians, the same applies to the marketing world. It’s a lot easier, less stressful and more profitable to build a true fan base who buy all your stuff. Then generate a steady stream of just 5-10 leads a day to build a group of lesser fans who buy some of your products.
To look at it another way, if your average loyal customer/fan spends approximately 1 days income a year on your products; you’ll only need 365 of them to replace your current income. If you have just 500 customers who buy 3 of your products a year (which is a sensible number), averagely priced at $37 that’s $55,500/year.
If you upsold them a membership site that’s a mere $15/month, that’s an extra $90,000/year in recurring income. How difficult do you think it is to get 500 people paying you $15 monthly for a product or service?
Not difficult at all. If you personally converse with these people and interact with them, it’s damn easy. Not every customer of yours will become a “true fan”, but get enough of them, treat them right and you’ll create a rock solid full time income.
To do this right, you need to position yourself carefully. You need to be known as the expert with by putting out premium priced high quality products. If you can’t put out high quality products don’t go near this business model. It’s the easiest model for people who can provide real value to their customers.
As you grow this business model and gain more and more “true fans”, you’ll be able to shape a phenomenal sales funnel. It’s all about the funnel. In the beginning of my IM career, I promoted one product. I tried my hardest to get people to buy it, and when they did I accepted the measly $20 commission.
As the business grew I started promoting some other products. But there was a problem, they weren’t connected. I was promoting 4 totally separate products, they weren’t easy to consecutively sell. No matter what niche you’re in, as long as its informational; there are going to be several things everyone needs to learn.
You don’t want to be the guy who only sells information on one specific topic. In the online marketing arena, you have traffic generation, copywriting, marketing, product creation, conversion optimization, email marketing. Those are the 6 fundamentals you need to learn about in order to make a lot of money in this business.
So you’d be an idiot to just be selling a traffic generation product, those customers of yours would be going out there and buying products on the other subjects from other people. The solution is to create a product around each sub-niche in your market, and position them in perfect order in your sales funnel so your customers buy one after the after.
Once customers have bought them all, you simply promote your new products to them each year. All you really need is 500 to 1000 true fans, get just one a day and you can potentially be making $100k following this model within 18 months. Remember it’s not about how many customers you have, but the relationship you have with them.
Planning The Model
So I’ve pretty much explained the model. Could the explanation be structured better? Sure, I’ll admit it wasn’t in perfect flow. The model virtually boils down to creating a group of people who you service year round and in return they pay you as much money as you’d like to make. Here is the idea in graphic behind the model:
As I said in part one I was originally promoting several utterly separate products. What I learned to do was connect them and have each product promote the next and each other. With that said, you should always have core product.
Your core product should be high ticket, a premium priced product or even better; a monthly recurring membership site. Membership sites work best as core products if you can build and maintain them. So the ultimate goal is to get all your fans/customers paying you monthly for your core product, membership site.
It doesn’t have to be a membership site, instead it could be a product priced at $1000-$5000 and be just as profitable. The idea of having people pay you monthly is better than the reality; most people only subscribe to membership sites for 3 months.
To begin with you should focus on building at least 3 satellite products. Satellite products are high quality products that focus on a sub niche in your market. If it was Internet Marketing, the satellite products could be on: affiliate marketing, email marketing, traffic generation.
You don’t have to create all of these products at once. You only need to create one every 3 months or so. As you create them, you can do mini-product launches and get several hundred+ customers on your list each time. We won’t go into product launches on here.
Over time (around 6 months), you should work towards launching your core product. Your BEST premium priced material. Once you’ve created this funnel and all the products in it, connect them. Have product A promote product B and your core product. Have product B promote your core product as well as product C. Have product C promote both your core product and product A.
Once setup, you only need to drive customers to product A. Once product A gets customers, so should product B, C and ultimately your core product. How do you get customers?
First, make a list of all the resources you have in the niche. This means websites, web2.0′s, blogging accounts, free reports, videos and any half created products. Leverage all of the traffic you have between them to build your list. Create follow-up emails in your autoresponder account to promote products A, B and C to your subscribers.
Done right the subscribers will turn into customers and it’ll trigger the chain reaction where they buy everything. If you have free reports or not; create one. You’re going to need one. Ask other marketers in the niche to send it to their subscribers. Offer it for free on your blog. Offer it as a bonus to compliment other people’s products in the niche.
All you ask in return is their email details. The last part in this plan is actually building the relationships. The best way to build relationships with your customers is to reach out to them. Send an email to your list asking them how they are doing and what you can do to help them in their business or whatever else you’re helping them with.
Interact with them on your Facebook fan page, post videos and podcasts on your blog which you only grant them access to. Most importantly be real with them, don’t blast offers and be genuinely helpful!
P.S. Leave me your thoughts, comments and questions below. Also opt-in to the email list on the right for more marketing tips, tricks and secrets.