The SMO Memo #1
Simplicity Is The Key to a Sucessful Business
Start Simple Stay Profitable
In this first report I want to focus on what I believe is the key to creating a sucessful online business.
The simpler that you keep your initial business the easier it is to scale going forward. You can add as many bells and whistles once you know your front end offer is working.
Every one of the funnels I've built that have S497 or S997 items in them started as a $17 or $27 product and were only built on once I knew the front end worked.
Start by nailing down what the final goal is:
"I want to get a subscriber."
"I want to make a sale"
Next move on one step:
"How do I deliver this?"
Believe it or not with those 2 questions answered you are almost done there is only one more question you need the answer to;
"How do I drive traffic to my Salespage or Lead Magnet"
If you have a list already the answer is simple ...email
If you don't have a list then apart from commiting to building one NOW! You'll need to work out where the audience is and plan to place your message in front of them as ofter as possible
Focus On Small Simple Offers
Simple offers mean that you don't have to have complicated tracking solutions, you don't need complicated tools.
I can run my business on just a few simple tools. I will expand on my marketing stack in a future MEMO but for now if I am launching a business the core tools I use are:
WordPress with Beaver Builder
Convertbox to capture leads (Onetime payment)
Thrivecart to take payments (Onetime Payment)
ActiveCampaign to deliver what's been purchased and run my email list. (Monthly cost)
That's the core of every business I create, in addition some of the longer established businesses have proved their worth so I've scaled them up.
I'll then include Thinkific to host courses and use Mighty networks or Facebook groups
Example of a simple Funnel
That's it that's all you need for a successful business, An email that directs subscribers to a checkout that has a sales message.
Now as people come onto my list I can ensure that they see this link on a regular basis.
Automate to Scale
Once you feel that your business is primed for scaling then you simply need to do a few things.
1. Increase the price
Once you have made some sales and you are happy that your business has "legs" look at how much each sale you made has cost you. If it's profitable well done if It's making a loss it's time to increase the price to breakeven or small profit levels.
2. Add a Backend
Your backend is where the real profit lies. This can be anything that is relevant to your front end product, Additional products, upsells, coaching done for you etc the list of what you can add is long.
You can set up the backend exactly like the front end and automate who see's it and when the see it.
This can be as simple as a TAG in your email service provider that stops showing the front end offer and starts showing the next offer in the sequence.
Email Automations Are The Key
Many people think an email automation Is just a way of sending a series of emails but it's much more than that, It can control your whole business. The automation map below shows what happens in the backgroup once someone enters it.
This is all in addition to a series of emails If I expanded it more you'd see that these was more acions under each green dot.
Viewing this now it might look complicated and overwhelming but If I told you that this autmation has been untouched for 4 years it might give you some idea of just how important these can be.
4 years of everything happening on autopilot.
4 years of hands free scaling
All of which was set up in less than a day
The Ultimate Simplified Business Model?
What's the ultimate simplified business model?
This will vary from person to person but I want to share my ideal model with you.
The first thing is it must be easy to manage, I no longer want to spend 8 hours a day inside my business, 90 minutes a day would be ideal. That gives me somewhere to start and develop the plan.
To do this you need to focus on the "Big Levers" these are the parts of your business that will have the biggest impact on growth.
Paid traffic: Ads driving traffic to a low cost offer ideally breaking even at $27, $37 or $47. I would like to run 1 main ad each week and one test ad. The budget would be split 75% main ad 25% test ad.
Each week the main ad would be swapped out for a new one. The test ads that performed the best would be added to the rotation of main ads.
By rotating the main ads over time we can build a selection of ads we know work and can be turned on every 8-12 weeks this will help negate ad blindness and keep the campaign breaking even or even slightly profitable.
This method will also build a list of buyers
The Back End
The profit would be driven by the back end offers a series of related offers scaling from $97 to $1997 but focued between $197 and $497
The Profit Lever
The core of the business would be regular email probably daily emails, this is the biggest of big levers.
Our list is now being built with buyers, everyone on it has the ability to buy from us and have already bought. If we know the lifetime subscriber value our business is in a very strong place.
Put simply if the LTV of each subscriber is $150 and you spend $50 getting a subscriber then 10 subscribers a day is $1000 per day or $365,000 per year.
Does that LTV figure sound unrealistic?
Your cart should give you LTV figures and your if you add a %LTV% field to your Email Service Provider then you can set up an automation to update that figure each time a payment comes in.
I'll do training on this in SMO Pro this week
Continue The Conversation
We've covered a hell of a lot here today but it's only skimming the surface of how simple you can make online marketing.
If you would like my help with your business we can meet weekly for just $197 per month just reach out to mark (at) markjthompson.com or reply to any email.