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Video transcript:
Did you know the ability to earn money in business really comes down to your products and services, the things that you offer. And if you offer the right things, you will earn a lot of money and your business will grow rapidly.
But if you have the wrong things on offer, then customers are not interested and often they will ignore you for years at a time until you find the right offer.
Most businesses can massively improve if they put a little bit of thought into how they offer their products and services and the types of products and services that they bring to the marketplace. Today we're going to explore something called a product and service ecosystem.
Now this is the key to get to seven-figure revenue in business. Every business that you start, should always start with mapping out the product and service ecosystem. Every business where you build a product and service ecosystem can get to seven figures in the first 12 months.
If you've ever wanted to have a business that does more than a million of revenue and more than six figures of profit, this is the place to start. So let’s explore your products and services. Now to start with, I want you to think about this sentence.
Products and services don't make money. Product and service ecosystems make money. It's not any particular product and service on its own that makes money.
It's the way that you build the product and service ecosystem so that one thing flows to the next and flows to the next. And today we're going to explore an idea called the ascending transaction model. And these are the four products and services that all fit together really nicely that will grow your business.
This is going to be the key for you to scale. It's going to be the key for you adding at least a million of revenue. So let's get into it.
Now the main product that most people already have is called the core offer. So the core product or the core offer or the core service, this is the main thing that the business is known for. So if you're Apple, the main thing you're known for are Iphones.
If you run an AI agency for example, the main thing that you might be known for is building AI automations for local home improvement service businesses. Whatever it is that you do, this is the core thing. This is the main thing.
So the core product or service. A lot of AI businesses, their core service is the AI automations packages they offer. This is your main form of revenue.
So what we want to do is start with, what do we want that core offer to be. Now there's a few things that you can do with a core offer. You can do a gold, silver and a bronze version.
So you might not just want one core offer, you might want to have three versions of it. You might have a basic, medium and complete package. So gold, silver and bronze versions.
One of the smartest things you can do with your core product is to break it up into a couple of different versions so that people can choose. Do they want an entry-level or an advanced version? There are different customers, there are different buyers out there, and each one has a different amount to spend.
So one of the first things that you can do with any business is you can break your core offering into a gold, silver and bronze version that can address different types of customers who have different types of budgets.
So the next thing you want to do is you want to create the collateral or I'm just going to call it the brochure. So the brochure is the central document that explains what your product is about. It's going to talk about the features, advantages and benefits.
It's going to have case studies and testimonials. It's going to have reviews or the independent analysis of the product. It's going to talk about the intangible stories about the product.
It's going to have some data, some facts, some hard insights about the product. All of that will go into the brochure. Now the brochure can be digital, it can be presented on a website as a landing page, it could be a downloadable PDF file, or it could be a physical document that you can hand over to people.
If you've got employees, it's really powerful to have a physical brochure that explains the core product or service, so everyone in the company understands what is the main thing that you sell. And it's funny, but a lot of businesses that have been in business for years have never actually created a brochure that explains their core product or service.
So one of the first things you need is to create a central document for anyone who's interested that explains your core product and service which you can offer in gold, silver and bronze. So that's the core offer.
So the next product you're going to offer is the product for prospects. This is the thing that people buy before they buy the core offering.
So I'll give you an example. As an AI automation agency you could offer a Google review management service to a local business for a small monthly fee before you present your core offer such as AI voice agents to book appointments and do customer support.
Some other examples of product for prospects could be workshops, mini courses, or books.
So the product for prospects needs to lead perfectly into the core product. Now when it comes to pricing, the core product is probably going to be thousands or tens of thousands of dollars as a full and remarkable transformation. It's going to be something that is worth a lot of money.
On each sale, each time someone agrees, it could have a lifetime value that is thousands or tens of thousands. So the core product is typically a good chunk of revenue. The product for prospects should be a very small commitment.
You don't want a barrier to entry. So if you're selling to corporate, you might keep it hundreds or thousands of dollars which they can easily approve. If you're selling to small businesses, you might make it free in exchange for their data and their time and attention or you might make it a few hundred dollars in order for it to be an easy thing that they can just put on their credit card.
So the goal here is that the product for prospects should not feel like a big barrier relative to the core. In my example I gave earlier, a core product for an AI automation setup is probably over 5 thousand dollars, the Google review management package is usually going between 3 and 500 hundred dollars. So it's not a big barrier relative to the value of the core product.
So it should be something that people can easily say, yep it's not a difficult decision to get a first experience with this business. Okay, let me quickly interrupt this video. Now, when it comes to marketing tools, and resources, and software to build and grow your business, there are a ton of choices available. Some are good, some are bad, and some are just downright ugly.
I know, because after over 10 years in this game, I've used pretty much all of them. That's why my suggestion here is actually going to be pretty simple and pretty straightforward, which is to check out a piece of software called High Level, which is what I use in my business and with all of my clients.
Now, this video is not sponsored, but you can visit the first link down in the description below, which is going to allow you to sign up for an extended free trial and all my marketing training for free, as well as a completely free strategy session with the High Level team, where they'll walk you through exactly how to use and set up the software so it's perfectly customized to you and your business needs. Now let's get back to the video.
Okay, let's add two more products. The next one I want to add is called a gift. So a gift is something that you can give freely with no strings attached.
It's something that you can put out there into the world. It's a very easy product for people to access without even telling you who they are. The key with a gift is that there are no strings attached and that it's packaged beautifully in a way that people feel that they got great value without having to exchange anything.
That's what makes it a gift a gift. So the best gifts that I really love are things like podcasts where people get lots of value by listening to a podcast. A video that's for free on a YouTube channel is a great gift because people don't have to necessarily even subscribe in order to get the value of that.
You might gift people a book. Now if you're gifting people a book, you're not asking people to pay for it, you're not asking for people to opt in for it, you're just giving it freely.
Whereas if you charged people $10 for the book, that would be a product for prospects. If you give it away for free and ask nothing in return, that would be a gift.
So the key here is no strings attached and beautifully packaged. It’s nicely done, with lots of design elements, it's lovely to receive, it feels like a gift and there are no strings attached. So that's what makes a gift a gift.
Now this gift is designed to get attention. It's designed to get lots of people paying attention to you. So the more people who can receive this, the better. For that reason, typically a digital gift is going to be the best kind of gift. Think about Stephen Bartlett for example who does Diary of a CEO.
Every week, he has three episodes, one to two hours each. You can just watch them for free on YouTube or listen to them on Spotify and people can get lots and lots of value without having to exchange anything. It just feels like a gift.
So it's nice and easy and it goes out to millions of people, so it’s a great gift. Now let's explore the fourth product.
So the fourth product is called a product for clients, a product for customers, a product for people who have already bought the core product. So the core product delivers a transformation. The product for clients maintains high standards. So your core product is transforming someone in some way.
There was life before the product and then there's life after the product and something changed, something was different. So it's a transformation that took place. The transformation that occurred after the AI automation setup I mentioned before can be maintained through a monthly recurring subscription fee, your fourth product.
So subscription products create recurring revenue and recurring revenue is the thing that gives the business longevity. Any business that has lots of recurring revenue is going to be surviving for a long period of time. So core products tend to be packages where you buy a gold, silver or bronze package.
A product for clients, the perfect ones tend to be subscriptions and you can also have a gold, silver or bronze subscription and it might be $97 a month, $297 a month and $497 a month, whatever it is, that subscription revenue allows you to stack revenue over time, it allows you to build and build, and it gives your business stability.
So to finish up, let's think about what each product is there to do. The first one is the gift, it's there to get attention.
The second one for the product for prospects is there to build trust. The third one is the core product offering and that is there to transform, so it's there to deliver a transformation and the product for clients is there to maintain. So these are the four things you want to do, get attention, build trust, deliver a transformation and maintain high standards over time.
These are the four products that go together nicely. If you do this, you'll have plenty of customers who are paying a lot of money over time to get something that they really want, to deliver outcomes that they're looking for, and this is how you can build a very scalable business.
Now the order that you want to do these is you want to think about your core product offer first, then you want to think about your product for prospects.
Now, most businesses you can get to seven figures with just a product for prospects and a core offering, then you add some attention through the gifts, you scale this up and then you have the longevity of the business through the product for clients which is the subscription revenue over time.
When you've got all four of those products, your business is going to do, really well. If you would like to have a scalable, stable, profitable business, you need to put this time and attention into your product ecosystem and you need to deliver all four products.
You have absolutely no idea what your business is capable of until all four products are in place. So this is your product and service ecosystem, it's not any one particular product or service that makes money, it's the product and service ecosystem that produces the value and produces the profit. You've got to get all four of these done.
I hope you've enjoyed this video, if you have, leave the channel a like and subscribe. Leave me a comment below, and in particular, I would love to know which one of these products do you already have, which one was missing, which one are you going to develop next. I would love to see all of that in the comments below.
I hope you found this valuable, I look forward to seeing you in the next video that will show up right about now.