In the Online Business industry, developing “multiple streams of income” should form part of any business plan. In this article, I’ll be explaining how to build multiple income streams by building your ‘product value ladder’ and focusing on helping your audience get what they want.
Whatever business you have, your attention must always be on serving and improving your customer experience.
As a new Business Owner, you should write this into your business plan. The initial step is to identify and understand your audience. It pays to think a few steps ahead identifying their pain points and the solutions you can provide from your own products and affiliate products.
The Product Value Ladder
Before we continue, you need to understand the Product Value Ladder.
For example – you’re searching online for an autoresponder for your business and you find the information you’ve been looking for. ‘The Best 10 Autoresponders for Online Business Owners.’ You download the free PDF which you find really helpful.
Inside that PDF, you choose the autoresponder you want and purchase. The Business that wrote the PDF sends you an email about how to get the most out of email marketing and invites you to purchase a $7 course. Perfect timing indeed…
That $7 course is full of tips for great email marketing and you’re invited to join a members-only site to learn more.
This is a typical example of a value ladder:
- A free pdf
- Monthly commissions for an autoresponder
- $7 course
- Monthly membership product
- Mid to high-ticket offers
Creating your own product value ladder is essential to help your audience and make profits for you.
Associated Sales
When I started work in a menswear department store we learned about associated sales.
You sell a suit to the customer, maybe you suggest a shirt and tie to match, then shoes and so on. The pain point is Dave wants to look good at the wedding, the solution is your products.
Let’s take a dog grooming business as another example:
If you get your dog groomed regularly, it makes good sense for the dog groomer to sell pet-related products.
In addition, the groomer could have deals with local Vets who pay a referral fee and perhaps create partnerships with dog food, pet insurance, and so on.
This way the dog groomers create multiple streams of income from the same customer.
Different types of income streams for Online Business Owners
There are many different types of income streams you can generate online:
1. Product affiliate commissions
Selling other people’s products for a commission.
A popular program is Amazon (they pioneered the affiliate mode online). When you sell a product from Amazon, you’ll earn a 2% – 8.5% commission. If you were to sell a $100 item on Amazon, you would receive a commission ranging anywhere from $2 – $8.50.
The great thing about affiliate marketing is there will be an affiliate program that compliments your business and helps your audience.
We have looked at the dog grooming business as an example. Now, look at your business or business plan. Introduce other associated products by placing a link on your web pages. I see so many traditional business owners who could increase their customer service and profits simply if they knew about affiliate marketing.
2. Monthly residual income.
Many affiliate products have monthly residual income built in. This is arguably the best type of commission to make. Selling a product or service once, and receiving monthly commission income as long as the user is subscribed to the product.
In the dog grooming example, insurance and pet health products could pay a monthly commission.
As an Online Business Owner, look at what your audience needs on an ongoing basis:
- Web hosting
- Email autoresponders
- Video hosting
- WordPress plugins
- Ongoing training
The list is endless, so find out what your audience needs and serve them to the best of your ability.
3. Top-tier commission income.
Top-tier commission or high-ticket affiliate programs are products and services priced from $2k and upwards.
Selling high-ticket products and services is a different approach to selling a $7 pdf. However, when you provide value from the start and create a value ladder, it’s a natural progression for your audience.
If you don’t have your own products, selling products as an affiliate can provide a done-for-you value ladder, so your job is to send traffic.
Are you ready for multiple streams of income?
Has this article inspired you to develop multiple streams of income? Or are you still unsure about the direction you want to take?
I understand it takes a little time to put things into perspective, understand your audience and build your business confidently.
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