Simplify your product offerings
Building your community is, in large part, the essence of building your new business. Your community will consist of a tribe full of fans who will become your cheerleaders, loyal customers and refer others to you.
When you take the community-building approach to building your business, you don’t always have to focus on the sale itself, you can focus on building a loyal fan base of people who are interested and value what you are doing.
Your community will consist of a range of fans, including those who may only be interested in your free products and advice, as well as those who are interested in your highest priced product.
Having a strong community makes product-building easier. You no longer have to guess at what your audience needs, you can simply ask them, consult with them, and focus on serving them with your expertise.
Product Mix Funnel
A product mix funnel refers to the process of first introducing potential customers to a low commitment offer that you have, then channeling these new fans into your marketing and sales process where you can offer higher value, higher priced items based on a shared, common need or benefit you address with your products and services.
Often times we have multiple products or services we are considering, and multiples types of audiences… and it can get complex trying to build separate sales funnels for each. When you are starting out, I encourage you to simplify your online community-building efforts, when you start out, to one product funnel.
Focusing on one product funnel will help you get started with your new marketing sooner, create something of value, understand what your audience needs, and begin selling quicker than dividing your efforts.
Breaking down the marketing funnel levels
Level 1: Free Offer
This should be something of value that you can give away in exchange for the customer’s e-mail address. A free guide, worksheet, daily email series, challenge, ebook or checklist in PDF format are good examples.
Examples of free offers:
- 30 day smoothie challenge with recipes
- “Date night in a box” PDF
- Free meditation
Level 2: Mid-Priced Product/Services
This can be one or more products at a low or middle price level. This is a good level to experiment with products to understand what your audience values from you. You can start with just one product or service, then add more later. This is often where the bulk of your product/service creation efforts will go.
Your lower priced offering can start as one item, or can be several. . Because your high priced offering will likely only be something you can sell after establishing your brand and expertise, It is likely what you will spend most of your time creating when you are just getting started.
Level 3: Top-Priced Product/Service
This is your top tier, most expensive product or service. It usually involves individual time with/from you, or customized products or services. It may take some time to build up to selling your high-price product, but it often is where the majority of your profit will come from down the road.
It is highly recommended that you only have one top-priced product or service that you promote at a time (or no more frequently than every 1-3 months, depending on how regularly you introduce new offerings). You only want to do so many “asks” of your audience. While this offer can have different add-ons and versions the buyer can choose from at the point of purchase, it is best not to dilute your message by continually offering up different high-priced products/services.
Fewer clients will buy at the price-point, but you won’t need many to purchase this price point to make it profitable. You are giving your most precious value here – your time and full expertise – so it should be adequately priced based on your value.