Report: Why You Should Add a Coaching Program to Your Information Business
From: Sean Mize, Author of 25,000+ Articles at Ezinearticles and Author of Coaching Guide: Anyone Can Coach
In this report, I intend to share with you why I believe adding a coaching program to your product or information line up is likely the most important thing you’ll do this year. You see, only a few really know how powerful a coaching program is, because only a few have coaching programs. But those who have coaching programs know the truth about them, and they know how profitable they are.
Have you ever noticed how just about every guru, every expert, everyone making $100k or more online has a coaching program?
They might not answer their email, they might outsource their customer service to India, they might outsource their CD printing to China, they might stop selling certain types of products — but they continue running their coaching.
They might even have multiple coaches working for them. They might have a sales force of people calling buyers to sell them coaching. They might not even deliver their own coaching because they are so leveraged in everything they do.
But they have a coaching program.
In fact, many gurus and experts have . . . multiple coaching programs.
That’s right: an entry level coaching program, an intermediate coaching program, and a high-ticket advanced coaching program. They might even have an ultra-exclusive coaching program for a very high price.
Think about it. Think about all the gurus and experts you know. And if you know them very well, you will realize they have at least one coaching program. And if you only see one coaching program, you don’t know about the next one they have until you have “graduated” to a higher level of paying.
You see, many of the experts and gurus out there don’t show people in their freebie email campaign their higher ticket products. Maybe 1 or 2 of the products, but not the full lineup. One of the reasonings for that is that if someone is just a free email reader, they aren’t qualified to buy at $10k or $20k or more. Hey, if someone won’t invest $97 for a training, they aren’t likely to buy a $10k or $20k coaching program. So why waste the email? Because each email you send has a cost.
And it’s not just the cost of sending the emails. Sure, depending on how many subscribers you have, you might be paying $300, $500, or $1000 or more each month for your email delivery (many marketers pay much more than that), but one email is not going to break the bank.
But think about this: if you have someone new on your list, you have, what, 30, MAYBE 45 days to get them to make their first purchase. If they don’t buy within that period of time, they will likely never buy.
And the number of “clicks” someone is good for on your list on the first 30, 45 days is finite. So if you have a $97 or $300 product that converts at $4 a click on average, you sure aren’t going to promote a $10,000 coaching program that no one who has not yet invested at $97 will buy. It would be a wasted click.
But once you buy someone’s $97 intro product, they then show you that they have a $2,000 coaching program. And of course you might think, ok, that’s the end. That’s their backend.
We have $2,000 coaching programs, $10,000 coaching programs, $50,000 coaching programs, and more.
I’ve offered (and sold) a $90,000 training program.
But no one gets offered these exclusive coaching programs – or even gets exposed to how it works – until they start buying.
So most people never see these higher levels of monetization.
And because of that, if you are trying to figure out how a marketer is generating $100 a subscriber or more, and you see him selling a $97 product up front and maybe a $200 a month coaching program, you just can’t get the numbers to work. Because you can’t see “behind the curtain.”
And it’s even worse for a $7 upfront product!
I was talking the other day with another esteemed marketer in this market about this – and calculating some numbers out on a $7 upfront purchase.
And this is the kind of thing that happened: we said, ok 100 buyers at $7 = $700
70% of those buyers make a $37 payment. So 70 * $37 = $2590
Then 50% of those buyers make 4 payments of $50 backend – so 35 * $200 = $7,000
So that is $10,290 on 100 $7 buyers.
And that is only the surface!
What you DON’T see behind the scenes is this:
First before I share, let me ask you this, have you ever gotten a phone call from a guy that says, “Hey, I’m calling you because (some guru’s name) asked me to call and welcome you to his family of clients (you just bought something for $100).”
You reply “Hi”
He says, “Do you have a few minutes to talk about your business?”
If you aren’t too busy you say yes.
Then he begins to ask you all about your business, how long you have been trying to build your business, what it has cost you, how it is working out etc.
And it all ends with what?
A sales pitch for $5,000, right?
Perhaps you’ve even invested in one of those.
And you usually regret it, right?
Because at $5,000 a guru doesn’t even talk with you personally most of the time.
They hire coaches who aren’t good enough marketers to get their *own* coaching clients and pay them $25 an hour to coach you.
And since you bought 20 hours of coaching for $500, they pay the coach $500, and pay the salesman 20% (that’s $1000) and have a profit of $3500.
Ok, now you know the rest of the story.
Well, that’s only a small part of it.
There are 3 deeper levels than that, but I’m not sure I should reveal them in this letter, I’ve probably already stepped on ALOT of toes by sharing this part of the scheme –
But back to that $10,290 on 100 $7 buyers
Generally speaking, for every 100 buyers you call and offer $5,000 coaching, you make 3 sales.
So at a $3,500 profit each, that is ANOTHER $10,500 in revenue for a total of
$20,790 in revenue on 100 $7 sales – AND YOU HAVEN”T EVEN STARTED ON THE REAL BACKEND YET – this is just the first 10 days after someone buys!!!!
OK, so that’s what you may be missing if you are trying to copy what you see people doing, selling $7 and $37 front ends.
You are losing money selling at $7 or $37 and you don’t understand why.
If that’s you, now you know.
Now, that’s only one way.
That’s the quick and easy and dirty method.
A lot of people travel the world on that income model.
That’s just on a $7 front end.
And I could show you how it works for a $97 front end, like mine:
Buy at $97.
If you like it, I have advanced training at $1,000.
If you like it, I have a generic coaching program at $3,000
If you like that, you can work closer to me for $10,000.
Or personally for $25,000.
Those are the levels you don’t see.
And just about every guru on earth that is making $100k or more – is using this model!!!!
I remember the first time I was exposed to it.
I was a little awestruck, just like you might be (unless you are one of those gurus, and then maybe you are a bit irritated with me right now for sharing this)
And then I set out to learn how to do it.
I hired 3 different coaches at $1,000 an hour each to find out. I invested over $34,000 learning.
And I did it. The full funnel I just described.
You can learn it too, of course.
But if you are reading this entry-level expose about higher level coaching, you probably aren’t ready for that.
So let’s talk about what you ARE probably ready for:
You need to add a single coaching program
It will be the difference between struggling like you probably are right now (you wouldn’t be reading this unless you are struggling, unless you are another marketer just trying to see what I am doing on the front end, and if you have time to be watching what I’m doing you are still probably missing part of this) . . .
It will be the difference between struggling like you probably are right now, and making a real living online.
Would it be okay with you if I shared some numbers?
First, let’s look at where you might be right now.
You are selling a $10 product.
It converts at 5%.
So that means if you get 100 visitors, you make 5 sales at $10.
That is $50.
So you make $50 divided by 100 visitors, so you make 50 cents per visitor.
That means that you are FORCED to buy traffic for LESS THAN 50 cents a visitor to make any profit at all.
Well, it is VERY HARD to buy traffic for less than 50 cents per visitor.
So therefore you believe you can’t get enough traffic. Well, that’s partly right. You can’t get enough traffic at a price of less than 50 cents per visitor.
So then you say, ok, well I can only get free traffic.
And then you find out that free traffic is VERY HARD to get as well.
So your conclusion is, you can’t make a profit at this.
Or you conclude you just have to keep finding a way to get cheaper traffic.
Then some guru comes out with some $500 program for how you can get 1 cent traffic so you know in your heart that this will change your life, because you make 50 cents per visitor, so if you buy traffic for 1 cent, you make 49 cents per visitor, all you have to do is drive 10,000 visits per week and you make $4,900 per week.
So you plunk down $500, perhaps hiding the purchase from your wife because of the last 2 times you invested $500 on something that was going to change your life and it didn’t work out.
And you study it.
And you try it.
And maybe you even get 1 cent traffic.
But NOBODY buys!
Or maybe just 1 in 1000, instead of the 5% conversion you were getting before.
So what gives?
Well, you usually get what you pay for in traffic!
And you are out $500!
And the guru sold 1000 people his $500 package and he is on a cruise in the Mediterranean while you are explaining to your wife about your latest $500 blunder.
Does this sound familiar?
So what is the answer?
The answer is you must monetize better.
Let’s go back to where you are right now.
You have a $10 product that converts at 5%, so you make 50 cents a visitor.
(And by the way, you might have a $37 product that converts at 3%, so you make $1 a visitor, it doesn’t matter, I had to choose SOME number for an illustration, but the concept – and the basic results – are the same, you’ll see)
Now I want you to imagine that you have a decent training that you are selling for $10. Meaning that it teaches people what they want to learn.
They read your ebook, they listen to your mp3, and they write you an email telling you how great it is.
But they never implement what you taught.
So they never actually get results.
Not because the training was bad, but because of . . . human nature!
That’s right, human nature.
Because human nature contains inside of itself, for some reason or another, the desire to learn more and more but it is inherently difficult for humans to just take action.
They want to, but their wife distracts them, their kids need help with homework, they have 50 emails in their inbox, they are tired, whatever.
So they have your $10 wonderful training, but no results.
What do they really need?
They need personal guidance.
Not on WHAT TO DO (that’s in your ebook)
But instead to hold them accountable each week for accomplishing one little step.
And to remind them of the next step.
That’s all they really need.
Think about it.
That’s the gap between your wonderful training and your buyers’ implementation.
They need to be told each week, “ok, do this one next step” and the following week, “how did that go?” and the next week’s instructions.
And of course if they got stuck on anything, you help them.
That is the gap!
That is what is missing!
So if all you are doing is selling the $10 ebook no matter how good it is, you are doing your buyers a disservice. Because you KNOW that only 1 out of 1000 will actually implement it.
But imagine instead that you were to create a $1000 12 week coaching program where people get a weekly step to do, and if they get stuck on something, you answer their questions, and each week they are responsible to turn in a homework assignment of what they did last week?
Wait! You say! There is a big gap between $10 and $1000, how do I bridge that gap?
I’ll show you in a sec.
But first let me ask you this, if someone were to work personally with you for 12 weeks, could ask all the questions they needed to, AND you gave the 1 homework assignment per week with full directions on what to do and how to do it to accomplish their goal, could you create 10-12 lessons/homework assignments that if someone DID what you taught, they would GET RESULTS?
And if they got results, it would be worth $1000 to get those results?
You might be thinking, that seems like a lot for what I teach.
So let me ask you this, your client has bought your ebook for $10. How many more have they bought in the last year on this hopeless quest to learn what you teach? Maybe 10, 20?
And how many mp3 training programs have they bought at $100 each to learn the same thing?
In the last year, your typical coaching prospect has probably already SPENT $1000 to try to solve this problem!
But he still has his problem!
That’s right, he still has his problem!
A whole year, and $1000 wasted.
So what would be better, for him to flounder around for another year, spending $10 here, $37 there, $100 somewhere else, spending $1000 all over again –
or investing $1000 with you and in 12 weeks have real results?
I personally think (and all the $1000 sales I’ve made in my lifetime prove it) that your client is far better off investing $1000 and changing their life in 12 weeks instead of repeating last years’ experience.
Now, I know you might be thinking right now, but not everyone can afford $1000.
But out of every 100 people who invest $10 with you – about 10 -20 CAN afford it!
And if just 5 out of every hundred people who buy at $10 buys your $1000 coaching program – that changes the numbers significantly.
Especially when you add in one more level I will share with you in a sec (you are probably already doing this level anyhow)
But let’s go back to the numbers, then I’ll show you how EASY it is to deliver a $1000 coaching program (and by the way, sometimes if $1000 is too much for someone upfront, you can always spread the coaching out over time and do payments – and most people can make payments!)
Let’s look at the numbers again:
This was the previous model:
You are selling a $10 product.
It converts at 5%.
So that means if you get 100 visitors, you make 5 sales at $10.
That is $50.
So you make $50 divided by 100 visitors, so you make 50 cents per visitor.
Now we need to scale it up a little to have enough sales to make sense:
So you are still selling a $10 product that converts at 5%.
But for this illustration, let’s use 1000 visitors converting at 5% to $10, so you have 50 sales of $10 for $500 in revenue, so 50 cents per visitor.
Exact same model, just scaled up a little.
So with 5 out of 100 buying your $1000 coaching program, that means 2.5 out of 50 will buy your coaching program.
So you make 2.5 sales of $1000 for every 50 sales you make at $10.
So an additional $2,500 in revenue.
So now your revenue on 1000 visitors is $2,500 + $500 = $3,000 instead of just $500.
Now you are at $3 per visitor.
This means that you can spend 50 cents or $1 per visitor AND MAKE A PROFIT DAY IN DAY OUT!
This means that you no longer have to scrape the bottom of the barrel for cheap traffic.
You no longer have to grovel for free traffic, or for 20 cent traffic, etc.
You can pay 50 cents or $1 per visitor – AND STILL MAKE MONEY!
And what happens when you can pay $1 a visitor and make a 3x ROI in the first 30 days – you can scale up and up and up.
You can buy traffic, make a profit, buy more traffic, make more profit.
Re-invest and grow.
Re-invest and grow.
Now, I want to add another layer to things.
Then I’ll show you how easy it is to create a $1000 coaching program.
So here’s the next level:
If you are selling a $10 product, about 10% of those $10 buyers will likely buy a $97 product.
So that doubles your front end.
And if someone buys at $97, they are much more likely to buy at $1000.
So you NEED a $97 product as well. And it’s easy to create. Let’s say your $10 product is a one-hour intro training, plus some bonuses.
Simply record 3-4 hours of more advanced material (hint: it takes 3-4 hours to record a 3-4 hour product, I know from experience) and price it at $97.
IT WILL SELL.
Because a certain percentage of people who buy your first product will WANT MORE. And it doesn’t matter much what, and the price point doesn’t much matter (within reason). If you don’t have a second product, you are leaving money on the table. And the same thing goes for more products than that . . . a percentage of people will buy the next product, and the next one . . . I have clients who have bought 5, 10, even 20 products from me!
But if I didn’t create them, they couldn’t buy them.
And it’s easy to do.
Just schedule the first Monday of each month to record a new product for 4 hours. Tell your wife you are working (you are). Tell your kids you are paying for their trip to Disney (you are). Tell your clients you are working on YOUR business today (you are).
But the focus of this report is the coaching, and I promised to show you how to easily deliver $1000 coaching.
And now I will.
The first thing to know — and this is the most important: the only thing that matters is results.
If you have 10,000 hours of training, and people can’t listen to all the training, and they don’t get results, then they won’t even pay $100 for that coaching.
But if you work with someone for just 5 hours and it changes their life, they will pay you whatever it is worth to change their life.
I mean think about you for a second.
I gave you this report for free.
Actually, given that I probably paid someone to turn you onto this free report, it COST me for you to read this book.
And you know there are people out there SELLING books that have LESS INFORMATION (maybe more pages, but less information) than this book – for $10 or $37.
But let me ask you this, if I could help you, in just a few hours, put together your own coaching program and double or triple your income with an extra hour or 2 of work each week, what would it be worth to do that?
What would it be worth to you to double your income online in the next 30 days?
$1000? more? less?
Now, I don’t know what your number is, but my guess is if it’s really low, you aren’t making much money anyway, and doubling wouldn’t change things much.
But if you are taking in $2,000 a month right now selling low ticket products, and in 30 days you could double that to $4,000 month in month out – an extra $24,000 a year for an extra hour of work each week – what would that be worth to you?
Would it be worth $2,000 to take in $24,000 in the next 12 months?
Look, it doesn’t matter to me – and this is only an illustration – to show you that YOUR prospects will pay you for results.
The results are where it is.
The only thing that matters is results.
So stop focusing on how much TRAINING and HOURS you have to load into your coaching program.
Because I can hear your inner voice right now – well for someone to pay
me $1000, I would have to work with them personally for 20 hours and give them 100 hours of training.
And that is discouraging, right?
But you DON’T HAVE TO do that.
ALL you have to do is deliver results.
So here’s how you do it:
First, think about what RESULT your client will pay for.
What RESULT will your client pay $1000 for?
Notice I didn’t say, what result can you teach someone, and then how much is it worth?
Because you might say, I can teach them x, y, z and that is worth $300.
And if I you were on the phone with me 1-1, I would ask you, what MORE can you teach that will make it worth $1000?
So make a list – what can you teach someone, not just teach, but get them results, that will be worth $1000?
If it’s only worth $500, add more to it.
What can you help someone do that’s worth $1000 in results?
Ok, now, make a list of what someone needs to DO or LEARN in order to GET those results.
For example, maybe there are 8 things they need to learn, and 10 things they need to do.
Write those out.
Now, if you were to teach someone personally, 1-1, for one hour per week, how many weeks would it take of one hour of teaching each week, to TEACH those 8 things?
(Most people will take about 8 hours to teach the 8 things. Sometimes it might just take 8 sessions of just 30 minutes instead of an hour).
So let’s assume for this example that it would take 8 1-hour sessions.
Ok, now take that list of things someone needs to DO to get results, and determine how LONG each thing on that list will take.
For example, maybe each item would take a client 5 hours to do.
So could you give a home work assignment each week that had the client do ONE thing on that list, so that with 5 hours of work each week, your client would finish that task in one week, and in 10 weeks, your client would have completed all 10 things they need to DO in order to accomplish their result?
Write it out.
You should have a list of all the things you would teach, how long it will take, and a list of what your client needs to do each week (and each one of those things will be one homework assignment)
Now, in this example, it was 8 hours of training, and 10 homework assignments.
But in your case it might be 6 hours or 10 hours of training, or 5 homework assignments or 10 homework assignments.
It doesn’t matter, because in the long run you are going to automate all of it, but I’ll get to that in a sec.
So at this point, you are just teaching 1-1 for an hour a week, and giving a homework assignment.
And there is one more thing your client might need: the ability to ask questions. So at the end of your 1 hour teaching, you simply ask the client: do you have any questions?
And then you answer those questions.
Now, before we go any further, can you see that if your client just shows up each week, listens and learns, and then DOES the weekly homework assignment, that he will get the desired result?
Ok, now, why?
Because they learned the 1 hour’s worth of material, they could ask questions, and they do the weekly homework assignment.
So . . . does the 1 hour of instruction each week HAVE TO BE 1-1?
Because it’s exactly the same for all your clients.
So instead of teaching the same thing to 10 people in a 1 hour 1-1 session, you just put all 10 clients on the call at the same time.
You teach everyone at the same time, then at the end, you give the homework assignment to EVERYONE at the same time.
They learn and do the work exactly the same as if it were 1-1. So they get the same results. It is therefore WORTH the same price as 1-1.
Now, what about questions?
Open the call at the end and ask for questions.
You will find that out of 10 people, only about 1 person will have a question, on average. And the more people you have, the fewer questions per person. And the reason for that is that many of the questions are the same, so if one person asks the same question that 10 others were going to ask, they don’t have to ask it.
So you can have 100 people on the call at the same time and get only 5-6 questions.
Now, let’s take it to the next level.
What if you were to RECORD the first time you did a particular lesson on a particular topic, and then for all FUTURE clients, instead of listening to you LIVE for the learning, they just got a recording in an email that they would listen to on their own time instead.
They would get the EXACT same instruction as if they were live. AND you would give them the homework assignment in the email as well.
So the only thing you would do live is a weekly questions and answers telephone call.
And because they are getting the recordings of the trainings, you can order your autoresponder to send out the lessons sequentially based on when someone enrolls in your coaching program, just like you send out a sequence of 30 sequential emails when a subscriber gets on your list, and this means that your q and a phone call each week can have EVERYONE on the call, no matter if they are in week 1, week 10, or even if after the initial coaching term has finished, they are willing to pay you, say $200 a month to be able to come to the weekly call and talk with you.
Do you see the simplicity of this model?
Do you like this model?
You really can do it.
It really is this easy.
I’ve done it for 5 years. Many of my colleagues do a program just like this. Once you have done a starter class so you can record the initial series of lessons, it is almost autopilot. In fact, all the lesson delivery is autopilot, all the homework assignments are autopilot. The only thing you have to do each week is jump on a live telephone conference call with all your paying clients at one time and answer their questions.
And of course if you want you can teach a little advanced or new material on that live call, if there aren’t enough questions each week. You could even record that call each week and if there are good questions, you could add those recordings to the core coaching material so new people will get the answers to those questions in your coaching delivery email campaign.
This means that over time, people will have fewer and fewer questions because you will be answering their questions before they ask them.
And your program delivery gets easier and easier.