5 Steps to Building A Passion-Filled, Profitable Online Business
Today I want to show you the 5 steps to building a passionate (and profitable) online business…
Each step is necessary. And if your goal is to build a business you can live off of COMFORTABLY, then I suggest you follow each step.
And I believe I’m sharing this at the perfect time, too.
I asked you last week about your status and what you’re struggling with. And a lot of people are simply overwhelmed. Sometimes they lack clarity about what it takes to start, build, and grown an online business. Other times they just can’t find the time to do it.
So let me provide you with this simple 5 step formula…
Step #1: You Need An Idea (And The Will To Pursue It)
Back when I started my business, I made a sizable investment in some training material. I remember my girlfriend at the time was like, “should you really invest that much?”
And I remember telling her, “Absolutely. This has a 100% percent chance to succeed!”
She went on, “100% chance? ARE YOU SURE?” She thought I was being blindly optimistic, and probably for good reason. But I saw the potential for profit. And even though she didn’t see it right away, I saw it. And I had NO DOUBTS in my mind. I just did the work. And bam. A year later. #success.
However, when you can’t see the potential for profit, that’s when the nagging self-doubt creeps in.
“Can this even work?”
“Is this a good idea?”
“Can I even do this?”
I’ll talk more about this on Wednesday…
…but for now here’s what you should know:
If you want to quit your survival job and make a living off your passion, you need an idea that has the potential for profit.
Passion is important. Passion is the reason why normal people do something crazy like starting a business.
I mean, think about it. Clocking in at 9 and ending the day at 5 is easy. Do the work. Go home. Watch TV. #success.
But when you start a business, you find yourself working ALL THE TIME. Even when you’re not working, you’re working. I’m on a double date the other day, and for 2 straight hours, the only thing we talked about was work.
Sure, we love what we do, but geez. The Apple commercial nailed it. We are the crazy ones. And passion gives us the strength to take the plunge.
…but “potential for profit” gives us the courage to keep swimming against the current. “Potential for profit” is the carrot we chase while we start and build our business.
The problem is, sometimes the “potential for profit” is hidden in muddy waters. And that’s where people get caught up.
How do you know if your idea has potential for profit?
Here’s a PROVEN test:
“Do you see other people doing the same thing that you want to do?”
If the answer is “Yes,” PERFECT. You have an idea that has potential for profit because there’s proof that people are already pursuing profit for that specific idea.
People think competition is bad, but in reality, competition is good. It means there are people who are actually paying money for it.
On the flip side, if you can’t find someone who’s doing what you want to do, you should probably consider a new idea. Because if there was potential for profit, I promise you this: the internet is a big place, and people would be trying to make money off of it already.
But again, I'll cover this more on Wednesday. For now…
Step #2: You Need The Right Business Model
If you’re going to pursue a passion job, you should have the RIGHT business model. Here’s why:
People always tell me that they feel trapped. They are doing well right now, but they can’t find the time to do anything else.
Sometimes they’re stuck working 50 or 60 hours a week. They can’t work less. And they can’t charge more. So their income goes flat. And they’re stuck in an invisible jail.
And I can relate.
I’ve been building online businesses for about 10 years (closer to 11, actually).
For the first 5 years, I wasted my time building a business that put me in the same position… every day I had to keep working just to keep the revenue coming in…
…Then I wised up! And over the next 5 years my online business TOOK OFF. Just take a look at the consistent growth:
How did I do it?
There are two types of business models. There are time-based businesses. And there are asset-based businesses.
What’s the difference?
A time-based business requires you to keep working to keep making money. An example of a time based business?
Maybe you’re a service provider, like a freelancer, a consultant, a web designer. You may charge people by the hour… or maybe you charge them by the project… but the bottom line is this: you need to keep working to keep getting paid.
Ever feel like you’re in the same situation?
I’ve got good news…
An asset-based business relies on the fact that you build something once… and you keep profiting off it for YEARS.
And in my opinion, the BEST asset-based business is the business of creating and selling online courses.
Take a look at this graph:
These are the real sales results for one online course I made back in 2012, and even though I barely changed anything about the course, I continued making sales in 2013 and 2014.
Yes the sales tapered off, and that’s normal, but I fully expect to continue generating sales on this online course throughout 2016, 2017, and beyond… all because I built it the right way back in 2012.
Think about that…
I did the work once back in 2012. And I kept making money off that work in 2012, 2013, 2014, 2015, and even now, in 2016.
Sure, I had to market the course. And I even revamped the course in 2015. But the key here is this: I did the bulk of the work in 2012, and I kept benefiting from that work for years.
I believe every online business needs an asset like an online course in their revenue stream because it gives you the freedom to stop working. Even if you just need a breather for something like a family vacation.
The best part?
If you look around, you’ll see people selling online courses in all different types of industries…
Dating. Business. Relationships. Personal Finance. Social skills. Software training. Social media. Marketing. Cooking. Health. Writing. Web Design. Productivity. Networking. Careers. College Admissions. Test prep. Tutoring. Coding. Music. Yoga. Fitness. Food.
…and in many cases, people are doing real well.
Are there other asset-based businesses? Sure. You could create a software product, as an example. But there’s nothing that’s more accessible than creating an online course. And that’s why I believe all passion based businesses should begin as an online business that sells online courses.
My question to you: are you currently in a time-based business or an asset-based business? Before you fix it, you must first acknowledge it.
Moving on to…
Step #3: You Need An Audience Who Wants To Buy
Picture yourself on a stage. You’re delivering the perfect sales pitch. But… The room is empty. Well, guess what! You’re NOT going to make any sales.
Even if your idea has the potential for profit, if you’re speaking to an EMPTY room, the profit potential is zero. Because nobody is hearing you.
That’s why you need an audience.
And then you need to persuade these people to join your email list so you can stay in touch with them.
But how do you build this audience?
Well…
Before you build an audience, you must decide who you want in the seats. And that’s where people get it real wrong.
I often see people looking for the PERFECT CUSTOMER, but in truth, there’s no such thing as a PERFECT CUSTOMER. Instead, there are PERFECT CUSTOMERS… with an S.
But don’t focus on demographic data. Don’t say, “my perfect customer is a 35-year old woman who’s spiritually inclined, and loves to…”
This information is useless.
Instead, you should classify people based on what I call: “Reason Why I’m Doing This” Framework.
Here’s how it works:
Everyone has a unique reason why they are doing what they are doing. You need to get clear on each of these reasons and focus on attracting people who identify with each of these reasons.
Here’s an example…
Let’s say you’re a fitness coach. You help people get fit. How would you use the “Reason Why I’m Doing This” framework for audience building?
Well, why do people get fit?
Reason Why #1: My wedding is in 6 weeks
Reason Why #2: My doctor told me I need to lose weight
Reason Why #3: My kids run me out of breath
Each reason why is different, and each reason why is a specific type of person who may be interested in what you’re selling.
You see, “Everyone” needs to get fit. And sure, even “37 year old spiritually inclined people” need to get fit. But when you break everything down with the “Reason Why” framework, you get MUCH more clear about who you want in your audience… and how to reach them.
You want brides to be? No problem. Write a column for a wedding magazine.
You want people who are focusing on health? Talk about health problems like cholesterol issues.
You want to help parents get in shape? No problem. Talk about how they can’t keep up with their kids.
See how that works? The “Reason Why I’m Doing This” framework helps you gain clarity.
I go over this more inside my course Seven Figure Courses. Specifically, how to go from zero subscribers to 1000 subscribers, and how to scale from 1000 subscribers to 10,000 and 100,000 subscribers. But more about my course later.
For now…
Step #4: You Need To Create Your Online Course
I already told you why I love the “online course business,” but you’re probably wondering: “how do I create this course?”
And how can you do it…
…even if you’re not a professional teacher?
…even if you never created a course before?
This is something I’ll cover in great detail on Wednesday.
The whole process seems a lot more daunting than it sounds. You see, there’s a simple technique I’ll share on Wednesday (for free), that will make this all make sense.
So table this concern for right now.
Finally…
Step #5: You Need To Sell Your Product (And Don’t Worry If You Hate Selling)
Some people CRINGE when they think about selling. And that’s because they have the wrong view of what selling really is…
People think a good salesman can sell ice to eskimos, but to me, that’s a bad salesman. You should never try and sell someone something they don’t need.
In fact, you CAN’T MAKE anyone buy anything. Instead, you can only show people how what you sell can help them fulfill the “Reason Why I’m Doing This.”
I showed you this just a few seconds ago, but think about it. Even if you have to hop on the phone with someone, it’s not a sales call. It’s a call where you are trying to figure out whether or not you can help someone. If you can, the answer is they should buy what you’re selling. If you can’t, the answer is they shouldn’t buy. Simple.
Now, of course, there’s a process behind how to do this. And depending on what stage of business you’re in, there are actually 3 types of product launches: The 10K Launch, The 100K Launch, and the Seven Figure Launch.
But for now, I don’t want you to worry about any of this. I’ll cover this more as the week goes on.
Instead…
Here’s Your Homework For Today
Today I introduced you to the 5 steps to building a profitable and passion-fueled business.
To recap:
Step #1: You Need An Idea That Has Potential For Profit
Step #2: You Need A Business Model (Asset-Based or Time Based)
Step #3: You Need An Audience (And The RIGHT Audience)
Step #4: You Need A Product To Sell
Step #5: You Need To Actually Sell It
But for now, what I want you to focus on just two things:
Thing #1
If you have a vague idea about what you want to start your online business about, I want you to find 5 people who are doing what you want to do.
Yes, FIVE, people.
If you want to be a life coach, find 5 life coaches you respect. If you want to sell courses about scrapbooking, find 5 people who are already doing it.
Here’s why:
Every time you think to yourself, “Can this work?” I want you to look at the people who are already doing it to remind yourself, “YES IT CAN WORK.”
Better yet, leave a comment on this post right now.
“I want to build a business about [insert topic]. And here are 5 people who are doing it successfully.”
If you can’t find 5 people, leave a comment saying that you can’t find the 5 people. And then either I or someone else can help.
(If you see someone struggling, maybe you can help them out too!).
And then…
Thing #2:
In Step #3, I introduced you to the “Reasons Why I’m Doing This” Framework.
Remember, if you want to build an audience, you need to figure out who you want in the seats. So, instead of thinking about demographics of who may be interested in what you want to do…
Think about your passion. Yes, you’re passionate about it, but why should someone else be passionate about it? What’s THEIR “Reason Why I’m Doing” this?
And don’t focus on “surface” level issues. As an example, if you’re a fitness instructor, and you help people lose weight. Don’t say, “Because I want to lose weight!”
Instead, get specific. “I want to lose weight for my wedding.”
And I want you to come up with at least FIVE reasons why I'm doing this. Not you. But your potential customers.
If you struggle with this specific task, the good news is: on Wednesday I'll go into more detail to make this much easier. But for now, I want you to take a stab at it.
Even if you think you are doing it wrong, still, DO IT. And share it in the comments.
Remember, building an online business is about progress. And to get progress, you need to do the work. Even if it is not perfect.
So, leave a comment now!