So we created a product; I think that was one of my first lessons. When you’re going to create a product, make sure that there is a need first. Think market first and then make sure that you create the product. Try not to come up with a product first and then think about, well, who am I going to sell it to? That’s a little bit back to front, it’s always market first, what do they want to buy? Make sure there’s a hungry market and then give them what they want.
So we created a product called the Metastock Programming Study Guide. It was our first product, it was a physical product. It took us probably about six months to write. We sold it, it was an information based product. That was another one of those early learnings for me. Information based product are some of the best products that you can sell. Regardless of what business you’re in, it’s always a good idea to see where can you create information based product in your business. How can you create DVDs that teach people how to do things? How can you create manuals because they’re fantastic supplements to the core business that you’re already doing.
They’ve got fantastic margin. Typically an information product might cost you $10 to make but potentially you could sell it for $200. For example, the Metastock Programming Study Guide, we sell that for $297 but it probably costs us $30 to actually create and then fulfill and ship. There are great margins in it. It’s very scaleable as well. It’s not dependent on my time. A lot of you when you first start a business, you’re capped by how much work you can do. We were talking about this on the car ride up here. There’s only so much work that you can do when it’s dependent on you delivering that service.
So you start off delivering the service, getting the cash flow right, it’s really important to make sure you get your cash flow right. But then you need to start to think about how can I start to create these information based product or other streams, it doesn’t even have to be info product but basically create income that can be generated through selling of something that isn’t necessarily dependent on you.
So we created the Metastock Programming Study Guide. Then we ended up, I was only, it was probably just before I was twenty, we toured around Australia and did seminars in each of the different states. The final one we recorded and made DVDs, so that was our second information product.
So for me, this product was great, it sold really well in our immediate community. A lot of people picked it up and we were getting some great feedback from it. Then my next lesson came when I started to realize the sales started to slow down. Then I realized, it was a little bit of an aha moment when I realized the money really is in the marketing.
You can have that fantastic product, you can have a great service, you can have people raving about it but unless you get the word out far enough to new people, then you’re not going to make any money. It needs to get in front of the right audience. That’s when I realized the money was in the marketing.
I started going and attending a whole lot of say, workshops on how to create information products just like you. Whenever there is a workshop on, I’ll go and consume as much as I can, constant, never ending improvement. If you’re a Tony Robbins fan, constantly consuming information and just getting better. So I started attending all of these different workshops. One of the first ones was a workshop run by a guy called Brad Sugars. He runs the Action International Business coaching. He had this thing in Brisbane, I think it was Brisbane, on the Gold Coast and it was Billionaire in Training. I got some really good lessons from that. That’s when I really started to form my ideas of how to make money, one is to make your own product and do your best to market it to your target audience.
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