5/05/2008

Inspiration, execution and monetization makes the online millionaire

The trick in becoming an Online Millionaire is in following your Inspiration, Execution of your plan, and Monetization of everything.

This is a review of a product I just purchased which is a very good example of how to use the Internet and locally-delivered CD's to monetize information products.

Now, as you've been following these blogs of mine, you'll know that I've been researching eBay as a selling platform and reverse-funnel - meaning, it allows buyers to find you.

I found through Deep Analysis/Hammer Tap a certain product was selling over 60% with several auctions each week and multiple items. So this thing and its marketing was bringing home over $2-300 a week, not bad for a single item. Approximately $12-15K per year.

The reason I bought it was because of the marketing, because it had resell rights, and because shipping was free.

Then - I got the package.

Did I get what I bought? Yes.

The kicker: it was printed and burned on a home pc and mailed in a little blank cardboard mailer with a - get this - 58-cent stamp.

If I had this drop-shipped by an online company, it would cost $1.75, plus about $7.00 shipping. To deliver something like this, I'd put a $2.00 handling charge - so that I'd have straight profit on it. But then the price would be a lot higher.

For their $14.00 price, they have a near-nothing fulfillment line and able to print these off at home in bulk, labels and all, then simply drop them in the mailbox daily for each sale.

Let's examine what they had on the disc:

It was really nothing but an autorun program and an executable which pulled up a web page - which then linked to other web pages. That's it - nothing much more than 4 megs of data on there.

Everything else was on external websites:
  • One website was a membership-only site, meaning they got your email address - and gave you a membership with lots of downloads in it, while still being built.
  • One website was a collection of eBay articles, compete with adsense - another money-maker.
  • One website was a collection of wholesale lists for the US, Canada, and International markets.

Now, the reseller gimmick - you couldn't modify the product. Meaning you were sending them new customers. So the whole thing is viral just because it gives you money.

So the thing is beautifully developed to not just sell, not just be viral, not just get subscribers - but all at the same time. And the great part is that they get people to pay to be part of this system.

A critique -
a little on the cheap side. Depends on Windows to run - so the effect varies widely, depending on how your individual computer is configured. (And depending on Windows to do anything dependably is a bit like predicting the economy or the weather - good luck with that.) If they wanted to really take it to the next level, they'd get an affiliate sales system going - which is missing.

Now, how to improve it even more:
Without modifying the program - you can give additional value, which will then possibly bring your customers to your site. Just add in additional PDF's and or another executable file - which would drive people to your site. Then you can include that original product as part of the purchase price.

Your marketing could sell the product, but your packaging would start up yours first - and then they'd find the original resell product. You get first take at the buyers.

Your alternative is to simply take the affiliate commissions directly, minus your sales fees - and give away further sales unless you contact them directly.

But -- take their design and improve on it, plus the economy of their production line - and you've got a real winner.

Because creativity is the heart and soul of becoming an Online Millionaire.

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