News â€“ Hope you had some wonderful time off and are ready to get back to work. Weâ€™re working on Week four of our online tutor guide and I thought I would share some things with you about creating products for your business. Even if the only thing youâ€™ve done so far in your business is tutor students, it doesnâ€™t hurt to have some additional income streams. A reminder if you would like to order our tutor guide you can find it at the following url.
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Product Creation 101
Weâ€™ve talked quite a bit in the previous weeks about creating products and you should have some pretty good ideas about how that youâ€™re going to earn money with the web site we created for you. I have used the following approach for products with several of my businesses and it has worked. If you look at the NCLEX case study, you can see how weâ€™re going to use it in the â€˜testâ€™ business.
You want to create three different products.
An entry level product â€“ this product is priced below $100. You want to provide the customer with exceptional value so that they purchase the second and third product.
Product 2 â€“ Priced between $199 and $499 â€“ this expands on the entry level product.
Product 3 â€“ Recurring income product. This product contains something extra and generates a monthly income of between $19 and $49.
I wonâ€™t go into why you want to create a product, when really what youâ€™re selling is a service (tutoring), but one of the big reasons is that you can create a product once and then sell it hundreds (or thousands) of times.
Product 1 â€“ youâ€™ll use all the income you generate from this product for advertising.
Product 2 â€“ will be your profit.
Product 3 â€“ youâ€™ll reinvest half of that back into advertising.
Real world examples â€“
Weâ€™ll pretend for a moment that youâ€™re a Math tutor, you tutor high-school Math.
Product 1 â€“ ($79) How to survive Freshman Algebra â€“ you want this product to be available during the first part of a studentâ€™s high school career. They can see how great you are at teaching Math, and theyâ€™ll want to buy your second product (and / or 3rd).
Product 2 â€“ ($199) How to Make a 30+ on the Math Part of the ACT.
Product 3 â€“ ($29 / month) includes Product 2, given to the student in bite size chunks and every weekend say Saturday Mornings and Sunday afternoons you provide them with an hour long â€˜classâ€™ and then practice questions, grading, and explaining how you got the answers.
Letâ€™s run some numbers.
Weâ€™ll pretend you get 2% of the people who click on an add to buy Product 1. Each clicks costs you $1.00.
Five percent of the people that buy Product 1 buy Product 2, 5 percent buy product 3.
So if you get 1000 clicks, how much money have you made?
1000 clicks = $1000
2% of 1000 = 20 x $79 = $1580.00
5% of 20 = 1
$29 / month
Total profit – $808.
Now imagine if that was for a month and you did that every month for a year. By the way the numbers I used there are very realistic.
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