Live presentation by Andrew Reynolds from the Entrepreneurs Bootcamp 2007
“For those people who aren’t subscribers to Cash on Demand can I just go to the overhead projector for a second? It’s probably worth just reminding ourselves of the business model so that we’re all on the same page. Draw a funnel – for seasoned Cash on Demand subscribers, I’m sorry this is going to be boring to you – but it’s worth repeating.
Draw a funnel shape, the whole business that we have here works by you putting a lot of people into the top of your funnel. With what we Cash on Demand marketers call a front end product, front end product. For say, £69.95, little front end product with a 30-day money back guarantee. Having acquired those customers we then offer what’s called a back end product. I don’t know whether that’s an American term but it’s what we use, a back end product.
Back end product can be almost any price, typically we sell back end products at around £697+ VAT, but I mean we’ve had back end products that you know can be several thousand pounds. And having acquired these customers, those are your customers; you can write to them as many times as you like.
We have other products; we have a £3997 in some of the niches we operate in. Bearing in mind your cost on that product at £3997 is probably around £50. Can you see how we make money? And you just keep going. It’s not going to be the same people every single time that buy the product, but you’ve acquired the names at the top of the funnel.
They’re filtering through the funnel and from time to time – I mean, it may be that somebody doesn’t buy something for three years. But you’ve dealt with them properly, you dealt with them fairly three years ago. You make them an offer they can’t refuse and almost, I mean, the sky’s the limit.
I’ve got a 50,000 pound product. 50,000 pounds. Very high end stuff, absolute, you know, top shelf stuff. That’s how the funnel system works, that’s how Cash on Demand works. Does that make sense? Can you just swap back to the Powerpoint for a second? The way we run that model, just jot this down: is offering niche market products to hungry crowds of buyers.
I get so many emails from people saying “Got this great product. Could you help me sell it please?” Okay, I’ve developed this thing; I’ve worked on this for three years. I mean, there’s a gentleman in the audience – I won’t embarrass him – gentleman in the audience, sent me a thing saying “Could you joint-venture this? I’ve got this great product, we’re going to get 200,000 customers.” 200,000 people at this and it was like £29 quid or something like that. “Would you do marketing because I’m not quite sure how to market it? Now, it’s taken me three years. I’ve had a guy coding the thing and we’ve got this whole software thing and it’s going to be £29.95.” Doesn’t fit the funnel model. If I’m doing joint ventures, the only thing I want to know is: what’s the front end? What’s the back end?
The types of products that we sell, again lets just jot these down to remind ourselves, we sell paper products. We sell paper products. We sell books for example or reports or newsletters. Products that can be delivered on paper. We sell digital products – we sell DVDs, CDs, e-books, software, that type of thing, things that can be put together in a digital format. I mean how difficult is it for example, selling a CD product? Let’s see if I’ve got one: here’s a CD product. A really simple thing to do, you have a master of that CD. Customer sends you £39.95.
You put that CD, sorry you put a blank CD – and what’s a blank CD cost, I don’t know, 50p? Stick a blank CD into a CD writer. You burn a copy. So far so good.
Now we’re screwed because we’re going to need to put a label on it, okay?
There’s actually, as a simple little piece of equipment you can get which actually puts the label on. Because I thought there’s no way I’m going to be able to do, you know, a few of those and stick the label on straight. There’s a little thing you can get, this thing here “Press It” it’s called, that allows you to put labels on. You just print off on your colour printer and stick them on. Same thing here, in the case, when you get an order you go down to the colour copy shop. You take a copy of the cover, you slide it in the CD case, job done.
This tool here as I say puts labels on, it’s not expensive, go to the source of all products – Ebay – £6.99 for the tool to put the labels on here. You’re in business. At the end of this weekend I will be giving you some products, this is one of them. It’s a CD product which you can sell. You don’t have to go to my duplicators and have 500 of those and stick them in your garage. You focus on the advertising, when you get a sale copy it, stick a label on it, put it in a box, send it to your customer. It ain’t rocket science.
The other type of product we sell: workshops. Now, I’m not talking about, you know, arranging some huge thing like this, I’m not talking about doing £5,000 master-classes where we teach you about business. When we talk about workshops people get very excited and very jittery. I think Dominic was saying that a large proportion of the population don’t like to do public speaking. You don’t have to be a speaker. Just as in this business you don’t have to be an expert at anything. You’re just the publisher, you’re just the arranger of the workshop.
I mean, for example if you were selling front end products related to art, painting, art, pastels, that type of thing.
How difficult would it be for you to put on a workshop where you get an artist, you get a room with some chairs and an easel in it, you put the two together and you stand in the middle and collect the cash?
Digital photography, I found a digital photography class. People would go on weekends where they bring their camera, they sit in a room, you teach them how to do digital photography. Belly dancing, how difficult would it be to get a belly dancing trainer, put them in a room, bring in the students, teach them belly dancing?
See, you’ve got all these little niche markets, nothing to do with business opportunities, nothing to do with how to make money and that sort of stuff, nothing to do with internet marketing. Little niche markets and that’s what this business is all about. It’s about developing a funnel – that funnel shape I showed you for each of these little specific niches.
So if you want to start a funnel for is all to with drumming and another one which is all to do with belly dancing, you’ve got yourself a couple of little niches that you’re operating. You can apply the Cash on Demand techniques to almost any niche market.