FROM 0 TO $500K IN 2 YEARS-

5 SIMPLE STEPS TO BUILD A

HIGHLY PROFITABLE ONLINE BUSINESS.

By Nick Peroni
 The Profit Model 2

THE PROFIT MODEL

Table of Contents

Introduction to The Profit Model3

Chapter 1: From 0 To $500K In 2-Years..7
Chapter 2: The Truth About Online Marketing14
Chapter 3: Your 5-Step Model To Massive Profits.23
Chapter 4: Step 1- The Life of Your Business....28
Chapter 5: Step 2- Everyone Loves Free....43
Chapter 6: Step 3- Make An Offer They Cant Refuse...56
Chapter 7: Step 4- Would You Like Fries With That? ...65
Chapter 8: Step 5- Your Invisible Sales Machine....72
Chapter 9: Truly Automated Profits81
Chapter 10: Final Thoughts.87
 The Profit Model 3

Introduction To

THE PROFIT MODEL

Every business owner deserves the right to learn how to increase sales, multiply their
profits and mine every hidden asset and overlooked opportunity in their world.

-Jay Abraham, proven business leader and renowned marketing expert whose
ideas have significantly improved the bottom lines of over 10,000 clients in more
than 400 industries and over 7,200 sub-industries worldwide.
 The Profit Model 4

Everything starts with you.

Your business, your sales and your profits are all a reflection of you.
Thats important to understand before we go any further, and why Im starting
with an introduction before getting into the actual model.
Because the truth is that the information contained in these pages, while
powerful, is not really new. It has been used by some of the best entrepreneurs,
marketers, and companies around the world to earn billions of combined dollars
across hundreds of industries.
My business partner and I have used this information to build an online business
from 0 to $500,000 in sales in only 2 years. And as I write this, we are currently
projected to hit the big $1M mark by the end of our third year.
Thats POSSIBLE for you and your business too.
In fact, some people have used this information to earn much more in an even
shorter amount of time.
But in the same respect, some people have seen this information and done
nothing. Their business remains stuck, they have trouble getting any sales or
finding any direction, and they continue to sink deeper into a frustrating cycle of
searching for the answer to their problems.
So whats the difference?
Why do some people make it and others dont?
The answer is as simple as it is concrete: Only YOU can determine your success
or failure as an entrepreneur.
The Profit Model Im going to present in these pages has the power to take any
business from 0 to $500K, just like it did mine. But these pages are only as good
as the action you take after you read them.
As the great Bruce Lee once said, Knowing is not enough, we must apply.
Im writing this e-book to help entrepreneurs achieve massive growth in their
business. Thats my intention. But to be completely frank, it really makes no
difference to me if you act on the information or not. I already know it works and
is working in my business.
What you do with your business is on you.
 The Profit Model 5

But for those of you ready to keep an open mind and take action on what you
learn, I promise The Profit Model will lead you to the results youve been
dreaming of.
You see, over the past few years Ive made it my mission to study everything I
could find in search of how to build a successful online business. Ive spent
thousands of hours and also thousands of dollars in pursuit of a fail-proof system.
Because even when I was broke and struggling, I knew success had nothing to
do with luck. And I wanted the answer.
Youre reading this for that same reason. You may not be broke and struggling,
but your business is not where you want it to be. Or maybe you havent started
your business yet.
But you know that with the right model, any business youre involved will have no
choice but to succeed. And thats true.
Thats why Im happy to inform you that youre about to learn that fail-proof model
in the upcoming chapters.
Youre going to learn the same model that my business is using to generate
massive profits on autopilot every day, and that many other successful
entrepreneurs are using to make quiet fortunes from home all around the world.
Actually, once you understand the model Im going to show you, youll realize
that its the backbone for thousands of successful businesses that you interact
with every day.
Now you can have it too.
And if youre wondering why Im sharing this, its really quite simple. I know what
its like to search for an answer that no ones willing to offer.
I know how it feels to have all the potential and drive in the world, but no one to
guide you through the first steps of getting started. Because the problem is most
successful businesses arent sharing their model; and the successful
entrepreneurs who are sharing want thousands of dollars in return.
I wish I had something like The Profit Model when I began! It would have saved
me countless hours of struggle, frustration, and failure.
However, had I not been forced to pay my dues to gain this knowledge and
experience, this guide wouldnt exist. And to your benefit, my years of struggle
before success are exactly what led to the conception of The Profit Model and
why Im writing this.
Because I want to help you succeed in your business.
 The Profit Model 6

It doesnt matter what business you have, what industry youre in, or even if you
havent started yet. The information inside these pages will arm you with
everything you need to make it in todays fierce economy.
Whats even better is Im going to break it down in a straight-forward, practical
way that anyone can follow to success.
But again, it ultimately comes down to you.
Success is about hard work, dedication, and following the right model. If you are
committed to the first two, Im going to give you the third.
So if youve been dreaming of building a profitable online business, quitting your
9-5 job, and living a life of freedom, then The Profit Model will show you how to
get there.
Ready? Lets get started!
 The Profit Model 7

Chapter 1:

FROM 0 TO $500K IN 2 YEARS

You dont have to be great to start, but you have to start to be great.

-Zig Ziglar, founder of the Zig Ziglar Corporation, New York Times bestselling
author of 33 books, top Fortune 50 Company trainer of sales and personal
development, and one of Americas most beloved encouragers.
 The Profit Model 8

Everyone starts at zero.

Even the most skilled experts, top athletes, and richest self-made tycoons of the
world today all started once as just another person with a big dream.
And thats very encouraging, because it means anyone can do it.
We all have the same opportunity in life.
When I started, I had nothing. I was a broke Army veteran with no job, no degree,
and no money in the bank. I was behind on rent, behind on bills, and barely able
to afford food on a daily basis.
Now Im running whats soon to be a million-dollar empire from a beautiful 3800-
square foot home in Fleming Island, Florida!
And I dont share that to impress you. Im sharing that to impress upon you the
power of The Profit Model.
I remember starting out and not being able to get anyone to take me seriously,
fighting just to be heard and given a chance.
Now Im building partnerships with billion dollar companies like Live Nation.
And everything Ive learned and done to get to this point is what Im sharing with
you in The Profit Model.
I want to tell you in earnest that this is something special, because Im sharing
with you whats working now as Im in the process of building a company thats
leading its industry.
And like everyone, I started from nothing.
You see, the true power of The Profit Model is in the ability to create leverage
from nothing and automate your processes. Youre going to start learning about
this more in the next chapter, and I will outline the entire model over the course
of this guide.
But where does it all start?
How do you go from having nothing, no recognition, no reviews or testimonials,
to becoming one of the dominant players in your industry in only 2 years?
It starts with your foundation.
Before we can even get into the 5 steps, you need to build a rock solid
foundation on which to stand and grow your business with the model that Im
going to share.
 The Profit Model 9

Your business starts with your WHY.

Now you may have heard this before. Its not a new concept in the entrepreneur
world: you have to have a core reason for what youre doing that will drive you
through all the struggles and challenges you need to overcome to be successful.
Thats called your why.
Many coaches and entrepreneurs talk about needing to have a personal why
behind everything you do. It may be your family, or providing for the love of your
life, or building a legacy, etc.
And all of that is important.
But Im going to go a level deeper- Im going to tell you that you need to have a
business why.
What does that mean exactly?
It means the same way you have a motivating force that propels you through life
as an entrepreneur, you need to have a powerful motive behind your business to
propel you through your industry.
And that motive needs to be something your target market can understand.
Were going to talk about connecting with your target market in more detail later,
but for now I want to stress that you need to have a real connection between
your business and your target market.
They need to feel your purpose in everything you do.
This is a somewhat advanced concept that most people dont talk about. But its
so crucial to success in business, regardless of what youre selling.
Your personal why is not enough to build a massively profitable business,
because its personal- its something that only you can connect with.
Success in any business is about giving value in exchange for money. And as
such, its really about other people and the value you add to their lives.
That value needs to come from something outside your personal reasons for
building a business. That motive behind your business needs to be something
that makes your customer the most important person, not you.
Just think about it: Every sale in your business comes from a person.
That may sound simple, but really grasp that. Your business is only as successful
as the amount of people you give value to in exchange for their hard-earned
money. Otherwise, theyll spend their money somewhere else thats offering
more value.
 The Profit Model 10

So if you really want to be successful in your industry, become a leader, and

make lots of sales; then people need to feel a meaningful connection with your
business.
I would argue that anywhere you see a business achieving massive success; you
will find a CEO or Owner who has made their business why clear to their target
market. And I will demonstrate more on that later.
For now, as we build our foundation, lets talk about how we do that.

The way you help people connect with your business is by

defining a clear purpose from the start.
You need to create a vision of exactly how you want people to view and interact
with your company. You need to know how people will perceive your business in
the marketplace.
You need a strategy.
And Im not talking about your business model. Thats different than strategy, and
something a lot of entrepreneurs dont grasp.
Tony Robbins says having a strategy is, probably the biggest overlooked fact of
business life.
Most businesses will simply set up shop, pick a few ways they want to market,
then try to get enough sales every week to cover their overhead and payroll. And
every day they just try to make it to the next.
Thats not a strategic approach to business.
Strategy is about purpose. Strategy is your overall approach to how you run your
business, how you plan to grow and position yourself in the industry, how you
interact with your customers or clients, and how you integrate your business why
into daily operations.
Its the big picture defined in an action plan.
The Profit Model will become your business model, but your business model is
only one part of your business strategy.
Thats why this foundation comes first.
And its important to note that everyone is following some type of strategy, even if
its a poor one and youre unaware youre following it.
 The Profit Model 11

For example, entrepreneurs who start a business and are constantly in a state of
reaction to the market and their environment are following a poor strategy. They
are not in control of their own destiny. Their strategy is react and try to keep up.
Thats why you need a business why. You need to know what it is you are trying
to accomplish, how you want others to view and interact with your business, and
how youre going to grow and sustain that.
So your business why becomes the foundation for your business strategy, and
The Profit Model makes it all work.

Our million dollar business why

When Josh and I decided we wanted to build an online business in the photo
booth niche, nobody thought it would make a lot of money or grow to be big.
Why?
Nobody thought it could be big because there wasnt a strategy yet that had
generated massive success in that type of niche. It was mostly mom and pop
type operations, people who werent marketing effectively, and who didnt look at
the opportunity the same way we were looking at it.
All the entrepreneurs in that niche were in state of reaction to the marketplace.
So people looked at that and thought our big dreams werent realistic.
However, we understood that there was a massive market being completely
underappreciated.
The event industry is huge, and evergreen. Everyone loves photo booths and
having their picture taken, and modern technology has made it more fun and
interactive than ever.
So when we looked at the opportunity, starting out as nobodies with nothing but a
dream of what we could accomplish, we started to form our business why first.
We wanted to change the photo booth niche.
We wanted to make photo booths an easily affordable and much more personal
experience for people everywhere.
And we didnt want to do it small. We wanted to create an idea that was big
enough to spread like wildfire through the industry, and permeate markets across
the entire spectrum.
That was our business why.
 The Profit Model 12

But we didnt just jump from there to a business. We sat down and started
brainstorming our strategy. We researched, planned, and tested for months
before launching full force.
And thats one of the main reasons that when we did launch, we were able to hit
$100K the first year. Then quadruple through the second year and do over
$400K in sales, for a total of over $500K in 2 years.
Into our third year now, were already beating every month we previously had.
Well hit a million in revenue within 3 years, without startup funding or loans, or
taking on any debt to grow.
Because weve had a strategy since day one.
We knew what we were doing and how we wanted to do it before we ever tried to
sell one person on the idea. We formed our business why first, and then turned
that into our overall business strategy.
We figured out how many sales we had to make to operate each month. We set
goals to hit, and then drew up timelines and broke it down into how many
customers and clients that equaled.
We created processes and put together ideas for how to reach those goals.
Everything worked backwards from the business why for what we wanted to
achieve within the business.
And we constantly evaluated our performance as we went, changing things up
and adopting great business ideas we saw in other industries. We were always
looking to improve our strategy.
Thats the type of proactive approach you need to have in your business.
It doesnt matter what business you have or what youre selling, strategy is how
you guide yourself to success.
And through your business why- what you want to accomplish and how you want
to be perceived- is how you form your business strategy.
Then add The Profit Model and watch the magic happen!
If we can build a million dollar online business with photo booths, where no one
ever thought that type of revenue was possible. Imagine what you can do in your
industry with The Profit Model.

This will work in any industry.

Its important to note that I cannot give you your business why or your business
strategy, but theres no wrong answer. You just need to form one.
 The Profit Model 13

And assuming you do, this model will drive your strategy to success, and thats
for any business or industry youre in.
The model works and will continue to work. And when you know the model, you
can decide to apply it however you feel best for your business.
Just remember that your business why should be all about adding value to your
target market. Thats how the model operates best, when you are giving value.
Im going to talk about value a lot throughout this, because it is literally the
currency of your business.
And every industry needs value, which is why I know this works in any industry.
So when you think about these 3 things: Business Why, Business Strategy, and
The Profit Model; think about it from a point of how you plan on contributing.
What value do you plan on adding to your market?
We wanted to give the best quality, the most convenient access, easy custom
options, and affordable prices.
That drove everything we did.

The Profit Model did the rest..

The Profit Model put our strategy into action.
It made our business quicker, more efficient, and cheaper to operate; which
became our way of giving value back to our customers with cheaper prices,
better quality, and more convenience.
It allowed us to build a brand and leverage ourselves above the competition, to
go from nobodies to experts in a fraction of the time it takes most people.
It built us a presence, so clients started finding us. And companies (like Live
Nation) started coming to us and wanting to partner.
Then we turned around and leveraged that to others, and we created a circular
effect of authority within our industry.
The model became an automated process, giving us time to keep thinking and
dreaming up the next evolution.
And it did all that based on leveraging the best opportunity to build any business
from nothing to big profits in todays economy:
Online marketing.
 The Profit Model 14

Chapter 2:

THE TRUTH ABOUT ONLINE MARKETING

Dont find customers for your products; find products for your customers.

-Seth Godin, bestselling author of 18 books, entrepreneur, marketer, and public

speaker who founded both Yoyodyne and Squidoo. His blog is one of the most
popular in the world, and he became one of only three people inducted into the
Direct Marketing Hall of Fame in 2013.
 The Profit Model 15

We live in an amazing time.

You can literally create and run a million dollar business from the comfort of your
home with nothing more than a laptop and an internet connection.
Believe me, I know. For a while, a laptop and internet connection was all I had to
my name.
But thats the beauty of it!
Theres no discrimination online. You can be any age, race, gender, nationality,
or financial status- the opportunity is the same for everyone.
Now that doesnt mean theres not a learning curve involved, or that you wont
need to invest in your education to become successful.
But it does mean that its never been easier to make it than now.
While some students are out there dropping upwards of $100K on 4-years of
college, only to find out when they graduate that theres no job for them
anywhere, you can educate yourself to build a business online by purchasing an
e-course for less than a hundred dollars.
And Im not knocking education at all. I went to college (though I dropped out to
join the Army), and I love educating myself.
However, I believe in self-education.
You dont need a degree to be a successful entrepreneur. In fact, many of the
richest people in the world never graduated college.
And the best advantage you have in the world right now is online marketing.
You can build a business with nothing but a website. I even know some people
who do it with nothing but a Facebook page!
Yet many entrepreneurs and small business owners get this weird sense of
uncertainty when talking about online marketing.
Some think its like this black hole that sucks money and is impossible to figure
out. Some think its all about social media trends. Some think its a giant scam to
avoid. And others act like they dont trust or need it.
Then theres the other side of the spectrum: the people who think online
marketing is a fast road to riches, that it somehow involves finding a magic button
hidden somewhere on the internet that can make you millions overnight.
 The Profit Model 16

The truth is that online marketing is simply a skillset.

Anyone can learn it, and it can be done thousands of different ways to promote
or sell just about anything.
But as a skillset, the core competency of online marketing is the marketing part.
Online marketing just means you are leveraging the internet to market whatever
your business offers.
You need to understand marketing first, then learn how to use the internet as
your medium for marketing. Thats the skillset defined.
Once you learn this skillset, you can use it to sell whatever you want. Could be
photo booths, could be clothes, could be nutrition plans, or business
opportunities, or anything youre passionate about.
But no matter what youre selling, just putting something online doesnt mean that
you are going to make a lot of money. Or any money at all, for that matter.
To be successful with online marketing and grow your business, you must first be
good at marketing.
People seem to get this confused a lot.
I see it all the time. People think because its the internet that all you have to do
is post something and thousands of people will magically flock to your product
and start whipping out their credit cards to buy.
I see people on social media hounding their audiences, or creating ads that make
no sense, and just trying to push their product on everyone.
Now dont get me wrong, theres nothing wrong with trying and learning as you
go. Remember, we all start at zero.
But theres a difference between the spray-and-pray method, and actually having
a marketing strategy from the start.
The truth about online marketing is that its not some magical solution to making
millions of dollars overnight. Just like any skillset, it takes time and dedication to
master.
When I started, I had no idea what I was doing. I was just trying (and failing) my
way forward.
Today our website is ranked among the highest in our industry. Were running
Facebook ads, Google ads, and spending thousands of dollars a month
(effectively) within our online marketing strategy.
But it took time to get there. It didnt start that way.
 The Profit Model 17

I started with Zero marketing dollars..

Yes, you read that right. Zero dollars for marketing.
So if youre worried about not having money to start, dont. It may require more
work and effort without a budget, but youre also saving yourself from wasting
thousands of dollars while you figure it out.
If you watch my favorite show Shark Tank, you know what I mean by that.
Entrepreneurs come on all the time talking about how they blew through their
entire startup investment with failed marketing.
In many ways, its better to start with a bootstrap budget. It makes you more
strategic about what you do.
It also gives you a hunger that only lack of money can create.
And when you have that hunger in the beginning, chances are youll out-hustle all
the people out there spending thousands of dollars frivolously.
Money is not the solution to effective marketing.
However, the goal is of course to get to a point that you have a marketing
budget. Like I said, I run campaigns now that total a couple thousand dollars a
month in marketing.
But Im still careful about every penny, still testing and being cautious. I could
invest more at any time, but I want to make strategic moves.
And thats why I continue to succeed in my marketing efforts.
So if you have money, thats great. But lets get back to the basics of marketing
before you go spending it all.

The reason anyone has the opportunity to be abundantly

successful building a business online is because the internet
is more a part of our lives now than it ever has been.
People shop online, research online, price compare online, share stories and
stay connected with friends and family online, and even find the love of their life
online nowadays.
There are about 7 Billion people in the world, and everyday more and more of
them are getting access to the internet.
 The Profit Model 18

That means that no matter what youre passionate about, no matter what you
want to sell or promote, your target market exists online.
More than that though- your target market interacts in a meaningful way online.
And thats what marketing is all about, creating interaction that drives people
towards a specific goal.
In its simplest terms, building an online business is about finding a group of
people that are interested in a certain thing (call this a target market or niche),
then using online marketing methods to create interaction between your business
and that group of people towards the ultimate goal of selling something for profit.
Interestingly, this is actually where most people get it wrong. They think once you
find a target market, you just need to pick a product and sell.
Thats somewhat true to a point, but just because a target market exists (and
they do for just about any niche you can think of), doesnt mean they will
automatically buy from you simply because you put a website up.
You have to be giving value. Thats why the most important part of the whole
process is creating the interaction.
It has to be meaningful. It has to offer value to that persons life.
Steve Jobs was one of the most brilliant marketers of our time. And one of the
reasons is because he could take what people didnt know yet and make it
meaningful to their lives.
When he created the idea for Apple computers, most people didnt have any
interest in a household computer. They were large and bulky, and mostly
reserved for science labs.
But Steve Jobs wanted to make it an item that improved everyday lives. And he
did that by showing people the value of his product.
Now luckily we dont all have to be marketing geniuses like Steve Jobs to build a
successful business. We just need to understand that everything in business is
about value.
The more value you give, the more people will want to buy from you. And theres
no better medium for which to serve that value than the internet.

The problem-solution method for any niche.

Like I mentioned above, the trouble for most entrepreneurs is they think
marketing is simply about pushing their product onto a certain group of people.
 The Profit Model 19

Some entrepreneurs make the classic mistake of not even defining a target
market; and they just think their product applies to everyone.
But this is a recipe for failure. You need to be very specific about what you do.
Thats what strategic marketing is all about, and why its so effective.
So when we look at the problem-solution style of marketing a business, it works
like this:
First, you need to identify your ideal customer or client. You need to know who
they are, understand them as best as you can.
You want to understand their desires, needs, frustrations, and problems.
What do they love?
What do they fear?
How much money do they make?
What type of home do they live in?
What type of life do they live?
The more detailed you can get, the better.
And this applies to anything you may be selling. Because once you understand
your ideal customer like theyre your best friend, you will know exactly what to
say to them in your marketing.
It may not seem relevant to know their fears, but its a great exercise to get inside
their head. And thats what marketing is all about.
Once you have thought through this information, you should have an avatar of
your ideal customer.
Now its time to identify their problem.
This is where you set yourself apart from other businesses. Most entrepreneurs
are just throwing darts at a wall and hoping something sticks.
You want to identify one problem so you can take a strategic approach and aim
for exactly what you mean to hit.
As an example, when Josh and I decided to build an online business in the photo
booth niche, we identified a problem in the industry:
Most photo booth companies were overpriced, had poor websites, and were not
delivering great quality experiences.
We set out to change that by offering a much cheaper, more interactive photo
booth that was easily accessible and user-friendly.
 The Profit Model 20

That was our solution.

It works for any industry. Whether you want to sell skin care products or be a
motivational coach, always start with a problem.
That allows you to tailor your business to something specific, something you
know will bring value to the ideal customer you defined.
Once you have your problem-solution outlined, now its time to ask yourself some
more questions.
How can I really help my customers with this problem?
What need does my product/service fill?
What is unique about my product/service?
Why should people buy from me?
What type of value am I bringing to my customers life with my product/service?
By the time you get through those questions youll know if you either have a great
business that adds value to your market, or if you need to rework your idea.

But is your target market large enough?

I live in Florida and have a pool in my backyard. And in Florida, its common for
pools and surrounding patios to be completely screened in as a way to keep
bugs out.
Well the problem is that these little twigs fall from the trees and get stuck in the
top of the screen. They fall through enough to dangle, but get caught towards the
bulbous end.
I searched for a solution online to remove them, because the screen is 20ft in the
air and too high to reach. And I actually found one person making a self-designed
scraper that you can attach to any pool cleaning extension pole, and then use to
scrape the twigs out.
Voila! Awesome idea for someone in my situation.
I called him to verify it was legit, and got to talking with him a little. I asked him
about it on the phone, and he said hed only sold about 2,000.
Now thats great for some side money, but hes not going to quit his job off a two
thousand $20 sales spanned across a several years.
Its a great product, but the market is too small to build a sustainable business.
So how do you test this to know if your market is big enough?
 The Profit Model 21

Use a tool called Google Keyword Planner. You can look up your target market
by likely keywords that relate to your business, and see how many people are
searching those keywords in Google on a monthly basis.
For example, I check to see how many times photo booth rentals gets searched
in different cities we want to expand to. That lets me know what type of monthly
activity is there, and if we could get enough sales in that area to grow.
Generally, the rule is that you want to see an audience of about 3,000 6,000
people searching for your keyword (s) to know you have a sustainable business.
If youre brand new to this and just trying to determine what type of business to
start, then you may need to search through lots of different keywords to get
ideas. The power of Keyword Planner is it will bring up similar suggestions to
whatever you search, which may spark new ideas.
If you already have a business, type in the main keywords that you would use to
search your type of business and see what ideas come back. You may find you
should be targeting something a little different.
And even when you have a successful marketing strategy in place, you should
always keep searching. Thats how you grow and expand.
When you start, you want to target one problem-one solution. Once youve
mastered one, you can move on to another.

ADD VALUE!
Once you have that one thing, that one problem-one solution with a viable target
market to build an online business, now you want to figure out how you can add
the MOST value in that one area.
The rest of The Profit Model will talk about exactly how you do that, and how you
structure a business for massive profits within that target market you just defined.
But notice the big difference in what were doing compared to most
entrepreneurs.
Most people are out there trying to build a business based off their idea of what
they think people need. They dont do the research, they dont define their ideal
customer, and they dont identify a problem-solution.
Then they try to sell to all their family and friends, push their product down
everyones throat, attend networking events, and hand out business cards.
However, were operating the smart way.
 The Profit Model 22

We found a market were passionate about and know we can add value to. Then
we researched that market, made sure it was large enough, discovered a
problem that we can offer our solution to, got specific on who we want to sell to,
and figured out a way to actually help those people.
Now we dont have to go chase anyone down. All we have to do is start telling
those people about our business and theyll be interested.
We dont have to force our sales on anyone, because people will find us and
want to do business with us. We have the solution to their problem, and were
offering the most value with our business.
And its so important to understand that, because its the foundation of everything
we do from here on.
Understanding your target market is one of the most overlooked parts of being an
entrepreneur and great marketer, because nobody likes doing the research.
Everyone just wants to sell and make a million dollars without doing any work.
But the research is where the money is made. Once you know your customer as
well as you know yourself, you can sell them anything.
More importantly, youll become a valued part of their life. Because you took the
time to really understand how you can help them with your business.
Even more exciting is the residual effect it will have. This is how you become an
authority in your market, which will in turn bring partners and other people who
want to work with you to help build your business.
It becomes a compound effect all simply based on establishing the right
foundation before building, and always giving value.
And now that you have that foundation of your business, we can start covering
the rest of The Profit Model that will build your empire for you.
 The Profit Model 23

Chapter 3:

YOUR 5-STEP MODEL TO MASSIVE PROFITS

Building a business is not rocket science; its about having a great idea and seeing it
through with integrity.

-Sir Richard Branson, high school dropout who became the billionaire
entrepreneur behind the Virgin brand, a conglomerate of over 400 businesses
worldwide.
 The Profit Model 24

This chapter is meant to give you an overview of the entire model as a whole.
I want you to see the big picture first, and then were going to break it down into
pieces.
The Profit Model is made up of 5 parts.
Each has its own purpose and function within the model, and when you put all 5
together you create a well-functioning machine.
And when your business becomes a well-functioning machine, thats how you
create true automation.
Now thats not to say that once you have this system in place theres no more
work required. You always need to be improving if you want to keep growing and
scaling your business.
What I mean by true automation is that your business is functioning on its own,
whether you take a day off or not.
Of course your business will always be running better when you are present, but
the power of automation is that you dont have to be!
On any given day I can decide to take a trip to the beach, or a trip to anywhere
for that matter. I can go to the gym when I want, go grocery shopping at any time,
take a vacation next week. And my business will keep bringing in leads and sales
without me having to do anything.
Thats because The Profit Model is setup and functioning all the time.
The other beautiful advantage of The Profit Model is it can be run from anywhere
in the world. All you need is an internet connection and computer.
Depending on what type of product or service you offer, you may have to hire
people in the area youre serving; but thats the fulfillment side of business.
Thats actually what we do in my business. Everything about our business is run
online, and we have independent contractors present in all our areas of service
to fulfill what we sell online to our clients.
But that part is easy. Believe me, theres so many people hungry for work right
now that its not hard to outsource whatever work you may need done to keep
your life free.
Now dont get me wrong, it didnt start out that way.
 The Profit Model 25

In no way am I ever telling you that this is a path to overnight riches, or that you
wont have to make sacrifices and work hard to get your Profit Model up and
running.

The point is that once you have it running, youll be enjoying

a level of success and freedom that most people never
experience in their lifetime.
And by using The Profit Model youll be able to scale much quicker than most
entrepreneurs, because youre setting up a system designed to grow with you.
Another massive benefit of The Profit Model besides automation, profits, and
scaling is that it creates automatic leverage.
This is huge for most entrepreneurs. One of the biggest worries people have is
that no one will listen to them because theyre brand new, or because they
havent made any sales yet and have no testimonials.
The Profit Model solves this by creating leverage for you through the way
everything functions together.
It really comes down to doing things a certain way- the smart way.
Remember, weve done our research at this point. So we know the business
were starting solves a specific problem for a specific group of people.
From there were going to leverage the internet in a way that allows those people
to find us, and were going to offer them tons of value with what we do.
By building a brand and giving value to only the people who are already
searching for the solution youre offering, youre going to create authority.
And youll be able to use that authority to create leverage in your industry, which
will constantly build upon itself as The Profit Model keeps working.
Its like a snowball rolling downhill- It starts off small and moving slowly, but soon
begins to grow larger and pick up more momentum as it keeps moving.
Thats how my business is able to pull in big partnerships with companies like
CBS and Live Nation. Weve created online credibility and authority through our
brand, which is how they found us and wanted to work with us.
And when someone finds you, then you have the leverage.
Now you may be wondering how we actually get the ball rolling when youre
starting from nothing, but well get into that more in the next chapter.
 The Profit Model 26

Heres The Profit Model is its full form:

All 5 parts work together with each other, and were going to go over each in the
following chapters.
However, before we start dissecting this piece by piece, I want to talk about one
more thing as a whole.
Youve seen me use the word brand a couple times in this chapter, and thats
because its a really important concept to keep in your mind while building The
Profit Model for your business.
Branding is a complex subject with all kinds of things we could talk about. Entire
books have been devoted to the subject.
I like to keep things simple though.
So when we talk about branding, think of congruency.
 The Profit Model 27

You see that The Profit Model has 5 steps, which means there are 5 different
parts that you will have to build for your business.
Im going to show you how to build all 5, but its your job to make sure you stay
congruent with your brand through all of them.
And by that I mean that you want every layer of your business to be in harmony
with the other. Each part should complement the other, working together with the
same message and same purpose.
Thats really what branding is- consistency.
Now the trick is you want to be consistent with a good brand. Dont just slap
something together and pay no attention to the details.
There are many things that go into an effective brand:
The name (business and website)
The logo
The design
The colors
The tagline
The packaging
And much more, depending on how detailed you want to get.
They are all important to blend together.
Whether you have a business or youre operating as yourself, you always need
to think with a brand mindset.
Everything you do should be planned and done for a reason. Make sure you take
the time to research articles about the subject, play around with a few ideas, and
get sample feedback from your target market.
Think of your brand as we go through every step of The Profit Model, and how
your brand will apply to each step.
Effective branding is how you really create authority and leverage quickly,
because once you adopt that brand mindset, The Profit Model will continually
build your brand and make it more powerful with every passing day.
 The Profit Model 28

Chapter 4:

Step 1- THE LIFE OF YOUR BUSINESS

Success is nothing more than a few disciplines practiced every day.

-Jim Rohn, entrepreneur, author, and motivational speaker, considered by some

to be Americas foremost business philosopher. His rags to riches story inspired
millions as he shared his timeless success principles with the world for over 40
years of his life.
 The Profit Model 29

A highly successful online marketer once explained building an online business

to me in this way:
Your online business is like a car, and it has 3 parts.
The vehicle- This is what you are selling, what you are building a business
around to drive towards your goals and dreams.
The engine- This is how your vehicle runs. In this case, Im giving you The Profit
Model to be your vehicles engine.
The fuel- This is what you feed your engine to make the whole thing go.
This example builds a perfect visual of what we are trying to accomplish. And the
first part of The Profit Model is actually your fuel.
In online marketing its called traffic.
Traffic is the fuel that runs everything in business.
It is literally the life of your business. Without traffic, The Profit Model wont work
and you wont have a business.
And the reason for that is simple: you cant sell something if people dont know
about it.
In order for any business to function and make sales, you need to have people
who are viewing your offer. Whether its a product or service, online of offline
business, you need to get people to see what you are selling.
Thats all traffic is: people seeing what you are selling.
Many people overcomplicate it like its this crazy science or something, like
theyre ever in search of how to find traffic.
But traffic is easy if youre building your business around value.

Dont fuel a broken vehicle.

Theres an important distinction to make if you want to be one of the successful
entrepreneurs of the world. Here it is:
Traffic is the life of your business, but it does you no good if the engine doesnt
work. If the engine doesnt work, its like trying to fuel a broken vehicle.
Thats the mistake I see so many people making today. Your traffic is only as
good as the system you have in place to convert that traffic into sales.
People think traffic is the answer theyre looking for, without even checking to see
if they have a business model that works first.
 The Profit Model 30

All the traffic in the world cant make a broken business model profitable, just like
all the fuel in the world cant make a broken engine run.
You could spend thousands of dollars on Google Ads, but if you dont already
have a good system in place to convert that cold traffic (people who have never
seen your business before) into leads and then buyers; then youre just going to
end up burning through thousands of dollars with nothing to show for it.
I see it in every industry. Traffic has never been easier to get, but people still
dont have a solid grasp of what theyre really doing with that traffic.
So Im going to walk you through it from start to finish.
Well start with traffic itself. This word is used so often nowadays. Struggling
entrepreneurs love to say if they could just get more traffic, theyd be successful.
Wannabe gurus out there talk about their secret traffic sources and sell all kinds
of crazy products to people.
But what is traffic, really?
The answer is as simple as it is overlooked.

Traffic is people.
Now when you read it like that, you may be wondering what the mystery is, right?
It seems so obvious, of course its people.
But if you really look at the marketplace today, or even just consider your own
experiences as a person wandering through your favorite places on the internet,
youll see this is an elusive concept for most businesses.
The thing about the internet is you see it all- the good, the bad, and the ugly.
And as such, I know weve all been on the receiving end of someone trying to
market to us in a cold, distant, and/or impersonal way.
The sad thing is that most of the time people creating the ads dont even realize
it. The internet has this remarkable way of dehumanizing the person on the other
end of the screen.
Just the word traffic itself becomes something where were not really picturing
people; were just picturing a stream of potential dollar signs.
But I would urge you to make the connection concrete in your mind- traffic is
people. The better you grasp that and implement that philosophy into your
marketing, the more effective you will be.
 The Profit Model 31

Because that person on the other end of the screen whos being served your ad,
or your status update, or your link is a person just like you.
They have hopes, fears, dreams, annoyances, pet peeves, ideas, culture, beliefs,
and all the things that make a unique human being.
If you treat them like a number, you will not get a good response.
Maybe that tactic worked years ago when the internet was first being born, but
not anymore. People are smart consumers with multiple options now.
People buy from other people, not faceless corporations trying to sell them on
something. So if they dont feel a connection with you and your business, theyll
find it elsewhere.
Never forget that. You are only as successful as to the value you are serving to
others. The minute you start treating people like faceless numbers, theyll move
on to something else.
People do business with those that they know, like, and trust.
Just think of the word spam. Im sure it brings images to your mind of an
experience youve had with that type of marketing.
Does it work? No.
So you dont want to become the person spamming their wall with links to their
product, or the person spamming forums with endless pitches about what youre
selling.
Thats the wrong way to get traffic, and it wont work. It will only create a poor
image of the type of business and, more importantly, entrepreneur you are.
However, if you come from a place of value and you stick within the target market
of people who can benefit from your business, using the problem-solution
method, then you will have excellent results.
And youll realize that traffic is not difficult.
In fact, if you follow The Profit Model correctly, youll have lots of traffic coming to
you in due time.
We get upwards of 65,000 page views a month on our website after only 2 years,
because weve created a place that offers value back to the people we serve with
our business.
Heres a look at this year so far (current through June 1st as I write this):
 The Profit Model 32

Thats over 400,000 page views in 6 months. Not bad.

Im telling you, I cant stress it enough. When you are actually looking to help
people with what you do, traffic will become easy.

Different types of traffic.

There are many different types of traffic, and choosing the right one for your
business often depends on your target market.
This is not a traffic course, but I do want to give you an overview of all the options
out there, and then go over a few of the main ones.
I believe there are a few strategies every serious business should adopt, and I
will cover those.
But again, traffic is about whats right for you. I really cant answer that in a
general way because you dont have a general business. You have a specific
target market, and you need to know how to talk to them.
And when it comes to talking to your target market, there are many ways.
Here are some of the main types of traffic:
 The Profit Model 33

And much more! Those cover some of the largest types of marketing, but there
are new ways popping up all the time.
They are all effective in their own way, but not all of these are going to be good
for your business.
A few that are relevant to know for just about any business are: Email Marketing,
SEO/Organic, Social Media, Content Syndication, and Referrals.
Now each of these could be an e-book in and of itself (and probably will be for
my next ideas), but its really about how you want to interact with your audience.
You need to know where your audience lives on the internet. Where are they
spending their time? What are their favorite sites?
Thats why its so important to define your target market clearly before you even
start. Because if you have an ideal customer defined, then you will be able to
figure out what type of marketing will be most effective.
However, because a few of these are marketing methods you should be focusing
on with any business, Im going to cover some them specifically.

Email Marketing
This is actually one of the main ways our business got started.
 The Profit Model 34

When The iLOVE Team was just in its early stages, I didnt have a marketing
budget. I didnt have any contacts, and I had no email list to start with already.
But I knew how to write good emails.
So I did my market research, I found all the contacts I could in the target market I
had defined for our business, and I started sending emails every day.
I like emails because its much less intrusive than cold calling, and much less
awkward to get your point across to a complete stranger.
Since I was targeting people that I knew could truly benefit from our service, I
wasnt afraid to tell them about it.
Id send a short, polite email with a call to action.
Most of the emails got ignored, some of them landed. And of the ones that
landed, some of them turned into our first clients that helped build our initial
portfolio.
From there, we began to leverage our results and share with people. This is how
The Profit Model works, and it began to snowball on itself.
The only thing I didnt do at that time, which we do now, is build an email list.
Well talk more about this later in the follow up section- theres a lot more to say
about email marketing and how it works with The Profit Model.
But no matter what business youre in, email marketing is one of the most
effective ways to build your business.
Its a must-have strategy!

Social Media
Everyone and their mother is a self-proclaimed social media expert nowadays,
but social media marketing is really not all that difficult.
Its about being personal, being consistent, and sharing value.
Social media, like traffic, is just about people. And people want to deal with other
people that they know, like, and trust. If you can understand that, then you should
be fine.
Heres the other thing: while Ive seen some people build an entire business
through social media, I wouldnt recommend using only social media as your
form of marketing.
The allure of social media is its free. But most of the largely successful people or
companies with big followings are using the paid platforms on social media.
 The Profit Model 35

The quickest way to build a page with lots of likes on Facebook is by spending
money on ads, not just waiting for people to come to you.
The quickest way to get lots of followers on Instagram is to use a site like
Instagress and automate everything to your target market.
The most effective way of getting leads on LinkedIn is to use their paid
advertising platform.
And so on and so forth. Im not saying it cant be done free, Im just saying its
much quicker and more effective to combine paid with your efforts.
I mention Facebook, Instagram, and LinkedIn because theyre really the biggest
players in my opinion.
Sure Twitter can be effective, and Pinterest, and Google+, and other social
media sites out there. But Facebook, Instagram and LinkedIn are the big three
that almost anyone can learn and become successful in any niche.
But even within those, you need to know which your audience likes best.
Now to be fair, almost everyone is on Facebook. Id recommend Facebook Ads
as soon as you can afford a budget of at least $5-$10 a month. It doesnt take
much to get started.
Instagram is a widely untapped resource. But its all pictures and a mostly
younger crowd, so your business needs to fit.
LinkedIn is considered the Facebook of professionals and extremely effective for
generating contacts and leads. But again, you need a business that will serve the
professional community well.
And each has a different style of marketing approach that you use.
I think its always best to pick a few platforms, watch others who are successful in
your niche (or similar niches), and form a strategy.
Then be consistent, have a purpose with everything you do, dont be spammy or
over-post, and give tons of value as often as possible.

Content Syndication
This is next because it ties in with social media.
One of the best uses for social media is to syndicate content among your
audience, whether to existing followers or new people.
 The Profit Model 36

Content syndication is a strategy based on sharing valuable content to people

who hopefully will in turn become followers, fans, and customers.
The ultimate dream of content syndication is to go viral, but it doesnt have to
happen on that large of a scale to be effective.
Content syndication can be anything from a video to an infographic to a blog
post, or whatever you create that you feel will add value to your community.
It doesnt always have to be something educational or informative. It could be
something newsworthy, or funny, of touching.
Mostly it should have a purpose though. The best content syndication links back
to your business in a meaningful way.
That way youre not just some random post of the day, but youre building
authority within a target market that has the potential to generate customers to
whatever youre selling.
The ultimate goal of effective content syndication is to bring people back to your
website, or blog, or wherever your business lives. The more shares and channels
you can syndicate your content, the more people you can bring back to whatever
it is youre selling.
There are multiple channels through which you can syndicate something. Social
media is the popular one. But there are also article sites like iReport on CNN,
Web 2.0 sites like HubPages, or RSS Feeds like BusinessWire and Slashdot.
But no matter what, content syndication always works best if you have a well-laid
out blog or website that becomes your central hub to everything youre sharing.

SEO/Organic
Im not going to go too deeply into Search Engine Optimization because its a
lengthy topic, and I have another training Im planning on releasing for this.
However, if you have a website or blog and youre building a brand for the long-
term, then you should definitely be focusing on SEO. To some degree.
Its not an overnight solution, but with time can become extremely powerful.
Thats why you need a few strategies to get you started in the beginning, but
SEO should always be a strategy you keep improving as you go.
We get a lot of organic traffic now, which means that people simply find us when
searching Google for related products/services to our business.
 The Profit Model 37

And part of that is from great content syndication. Its one of the biggest things
Google looks at- the quality of your content, the freshness of your content, and
the frequency of your content.
So from day 1 just make it a priority to have an ever-expanding site with great
content. And one of the best ways to do that is have a blog, because it can
always be updated and added to. And Google loves that.
Now of course there is a lot more that goes into a strong SEO strategy, but by
just creating great content youre already on the right track.
The other thing you want to do is create content with a purpose.
Research the top keywords relating to your business, find multiple variations of
them, and fill your website/blog with content that relates to and contains those
keywords. And if you use Wordpress, get the free Yoast plugin.
This is a good start. Just remember, you have to patient and consistent with
SEO. However, the rewards can be really great when you get there.
You can find a lot of free info on SEO by just searching Google.

Referrals
Its amazing how many businesses dont have a referral strategy.
In fact, most traffic gurus out there arent even mentioning this as a traffic
source for business.
But referrals are one of the best ways to boost traffic to your business.
Why?
Because its coming from people who have already done business with you! So a
recommendation from them is 10x stronger than any ad you can post.
Its the same concept as why reviews and testimonials are so important
nowadays- because they give credibility.
Plus if you already have a happy customer in your target market, chances are
some of that persons friends are in the same target market youre trying to
reach. This is an excellent way to grow your business.
There are many different referral strategies you could implement, even though
many of them are not being talked about.
The easiest is an incentive through some form of follow up to existing customers.
 The Profit Model 38

With the power of the internet, there are now many ways to offer a referral
incentive without having to feel awkward about asking.
You can send a follow up email that offers them something in exchange for a
referral, or include a referral offer in your packaging, or send a follow up survey
with a link for referrals.
Its really got to fit your business and the type of product or service you offer, but
there are many options.
Not everyone will, but youre missing out big if youre not implementing a referral
strategy.

These ideas are just the tip of the iceberg. With just these methods you could get
your business off and running, and for a low to almost free cost. But again, its
about finding what works for your business.
However, I know that traffic is something difficult to understand for most people
when starting out.
I remember when I started, I was lost. Of course I didnt have a guide like this,
but there were just things I didnt know.
So I want to give you a few rock-solid guidelines about traffic, that way youll be
able to find something that truly does work for your business.

Free vs Paid
Theres always a slight debate about whats better.
Both sides have their merits, and Im not really here to convince you of either.
But understand this: there is no such thing as truly free traffic. You are always
either paying with your time or with your money.
Thats something a lot of new entrepreneurs miss, but that becomes clear as you
become more successful.
Your time is your most valuable asset.
So when you are considering traffic, you need to consider what its really costing
you. Heres an example:
I told you in the beginning I started out with emailing people in my target market.
That didnt cost me anything in money.
 The Profit Model 39

But it was a long process. I had to go through a lot of people to get to the ones
who were willing to hear me out and respond.
Now I run Google Ads. I still do email marketing, but only to people on our email
list. Most of our new clients come through Google Ads, because it is an awesome
platform for my business.
It costs me thousands of dollars to keep a continuous Google Ads campaign
running, but it returns many more thousands of dollars.
And its completely automated!
So whats better? Spending my entire day researching contacts and sending
emails to people, only to get a few responses; or setting up a Google Ad and
spending money to run an automated campaign that converts?
I think the answer is obvious.
So my point is this: youre always spending something. In the beginning, spend
your time to make money. Then as you start to build capital, spend your money
to make more money.
That way you keep your time to focus on growth and other opportunities.

Quality vs Quantity
This is another huge oversight with most newbies.
And I made the same mistakes when I started.
I mean its really hard to resist when youre new and dont know any better. You
see someone on Fiverr promising you 100,000 clicks to your website for only a
few dollars, and it seems like a no-brainer.
But quality is the most important part of traffic, because not all traffic is created
equal.
You see, as youve probably figured out by now, the point of traffic is to turn a
cold visitor into a lead, and then turn a lead into a sale.
Its much easier to do that with quality, targeted traffic. And to put that in human
terms- its much easier to make sales if youre marketing to people who are
already interested in what you are offering.
Theres no such thing as a push-button software to riches. Believe me, I
probably tried them all at one point.
Your goal is to define your target market, then focus on finding ways to bring
value to them and market your business.
 The Profit Model 40

Its much better to have 10 pre-qualified, interested people visit your website,
than to have 1,000 random people click to a page they dont care about.
I wish someone had explained the difference to me when I started, but I learned
the hard way over time. Always focus on finding the best people you can, even if
it costs more (in time or money).
Why? Because the return on your investment will be better.
Thats why its important to know what your customer is worth to you, because
then you can determine how much youre able to spend to get that person.
Always remember that traffic is an investment.
Sure, it may cost $3 a lead to get the quality traffic you want. But if that customer
is worth $10 on every sale, then the investment is probably worth it if youre
converting at a good rate.

Start Small, Test, and Scale

All of marketing is a test, and traffic is no different. Thats why you never want to
dump a ton of money into something before testing.
Its always best to start small and get a feel for it, see how it works and how the
traffic responds to your marketing.
Take time to tweak what you need to, figure out if this is a good and reliable
source of traffic for your business.
And how do you determine that?
I look at three things:
Can I get it on demand? (Meaning when I want)
Can I scale it? (Meaning Im not limited)
Is it evergreen? (Meaning it wont run out or get saturated)
These three things are important because you always want to have room for
growth in your business.
You may find a traffic source that works for a little while, but if it runs out and you
have no other source, then your business is done.
So the best traffic is always going to be something you can get on demand, that
can be scaled fast, and wont run out.
For my business as an example, Google Ads is a traffic source that fits those
criteria.
 The Profit Model 41

I just created a new campaign for a new city in our expansion the other day.
Within a day of creating that campaign I had leads coming in.
I know that at any time I can add more money and I will get more leads from the
campaigns I have running.
And I know its not going to run out, because I see the search volume on a
monthly basis.
But Im still testing as I go. Because even if the traffic source is great and meets
all three of those conditions, maybe my ad isnt great. Or maybe my website
needs work, or something is keeping me from converting at a higher rate.
You never want to dump your money until youre sure you have a winner.
Test, test, test.. and when you have something that is performing well, scale it up
as largely and as quickly as youre able.
Thats the method to getting the most out of your dollar with traffic.

How to find the right people..

Here are some ideas about how you can get started finding and reaching the
right people in your target market:
Write down a list of whatever phrases you think people would use that could
identify them as potential customers of yours.
Search different social sites like Facebook, Youtube, and Instagram to find out
which people are related to these phrases online, and also what brands,
products, or services are out there in these categories.
Start listening to the social web as much as you can to pick up on insight in your
market and find out where people frequent most and how they like to interact.
Take notice of the different types of advertising you see in those areas, and start
forming your own plan about how you can start reaching people with your
business.
Its best to implement and learn one strategy before moving to another.
You can have multiple traffic sources, but its much better to have one great
source than 5 weak sources. Once you have mastered one, get it automated,
and then start to implement another.
Thats how you grow.
And youll find that if you put in the time to understand and interact with your
audience in a meaningful way, traffic becomes easy to get.
 The Profit Model 42

Its what happens after you get traffic that determines the level of your success.
 The Profit Model 43

Chapter 5:

Step 2- EVERYONE LOVES FREE

A satisfied customer is the best strategy of all.

-Michael LeBoeuf, internationally published business author and professional

speaker whose books have sold over two million copies in a dozen languages,
and whose been interviewed on hundreds of talk shows for his amazing insight
into business management.
 The Profit Model 44

Now before you start thinking anything crazy, this chapter is not about giving
away all your products or services for free.
What it is about is learning to give value before you expect the sale.
Thats something most businesses and aspiring entrepreneurs are missing today,
and as such, one of the reasons many arent succeeding.
There is an amazing principle I heard from visionary scientist Gregg Braden that
goes, Dont seek what you can get from the existing world, but instead seek a
way you can add value to the world.
And that is the guiding principle of a changing economy.
Its no longer a game of how much companies can take from consumers that
have no choice.
This is a world unlike any other before it.
Never have people had so many options available to them at the ease of their
fingertips from the comfort of their own home.
I mean with Amazon Prime you can get almost anything you want shipped to
your front door in 2 days flat. Now that doesnt apply to service-based
businesses, but you get my point.
With a business nowadays, you need to stand above the noise.
And more importantly, you need to give people a reason to trust you.
Its the age old problem- when youre starting out, youre brand new and have
zero credibility. But to get credibility, you have to get your first customers and
start getting results. But its hard to get your first customers because you dont
actually have any yet to convince those first people.
In fact, some entrepreneurs give up before ever making it out of that stage. It can
be very frustrating when trying to build a business.
Thats why you need to remember that everyone loves free.
You cant go wrong with free- people have nothing to lose! So if they are in your
target market and youre offering something of value for no cost, then they really
have no reason not to try it.
Now the crazy thing is that by giving something away for free in the beginning
you can actually make more money!
 The Profit Model 45

The Lead Magnet

You want to gain trust by giving something of value at no cost to the consumer,
something so good that people really dont have to think about it. Its something
that they dont want to pass up because of the value.
That brings them into your business, introduces them to your product or service,
and (if what you give is actually of value) builds the trust that will eventually turn
them into a customer.
Its often referred to in online marketing as a lead magnet.
But before I break down what goes into an effective lead magnet, I want to make
sure you understand the concept.
When we were starting out with selling photo booths, we had zero credibility in an
industry swarmed with competition. So we needed a way to build that credibility
and start gaining a name for ourselves.
This is where the email marketing came in that I mentioned in the last chapter.
I went online and found all the major events happening in the area we serviced.
Then I researched deeper and found the event coordinator for each of those
events.
Once I had that information, I got as many email addresses as I could and sent
out emails offering our service.
But I didnt try to sell them anything.
Instead I offered to send one of our contractors for free, give them free service
for their event, but reserve the right to sell on-site prints to guests.
That allowed us a chance to build up satisfied clients, get our service out there to
others to see what we were all about, and give the clients something for free
while still being able to earn money at the same time.
Clients got a full gallery of photos for no cost; they loved it.
We got reviews and started to build a portfolio. It worked beautifully. In fact, we
still use that model for some really large, special events.
The point is we had to be willing to give something for free in the beginning to
gain trust and credibility in the industry.
The result just over 2 years later is a company thats well on track for a million
dollars in revenue by the end of this year.
Now of course whatever you give has to be something relevant to your business.
And it doesnt mean you have to do something as extreme as what we did.
 The Profit Model 46

But the more youre willing to give, the more youre probably going to get.
No matter what type of business, what product or service or business opportunity
youre selling, you need to have a lead magnet.
Its the best way to build your business, and to build it quickly.

Chinese chicken samples at the food court.

Think of the Chinese restaurant in the malls, one of the most classic lead
magnets ever- youre much more likely to buy food there once youve had that
sample taste of chicken!

Does it work every time? No. But I know its worked on me several times
throughout my life. And the amount of business it helps them pull in is definitely
worth the overall cost to give out samples.
Its the same principle in any business.

So what is a lead magnet?

Its basically an ethical bribe. And when were talking about online marketing, its
an ethical bribe in exchange for someones information.
 The Profit Model 47

Usually what youre going for is an email address, but it could be a phone
number too. Or it could be something like the Chinese restaurants at the mall,
where youre trying to bring them into your establishment.
Either way, the lead magnet is a way of ethically bribing someone into taking
action towards your business. And its a positive thing, because youre giving
something of value.
Most often lead magnets are used in conjunction with an opt-in form (a digital
form where you opt in with info to receive something) on your website or blog.
Something like this example from Ikea:

In exchange for your email, name, and zip code they are giving you exclusive
access to their 2015 catalog.
And what do you think the chances are of someone being more likely to order or
visit the store if they already signed up for the magazine?
 The Profit Model 48

Exactly. Lead magnets increase conversions, plain and simple.

They will often double or even triple your conversion rate of traffic youre sending
to your website.
And you dont always need to give something away completely free.
Think of the amazing results some businesses get with sites like Groupon and
Living Social. Theyre not giving something away for free, theyre just offering it at
a massive discount to make it like a no-brainer to buy.
And thats a completely free way to generate traffic as well.
Youre not going to make as much money on the front end, but as youll see in
the following chapters, sometimes the backend is the most valuable part of your
business.
So thats a lead magnet too- giving away a coupon or discount.
At all of our events we have business cards that act as a $150 coupon towards
any package someone wants to book with us.
Thats a lead magnet.
What makes a good lead magnet is something that grabs the attention of your
visitors. It has to be relevant to your target market- something that deals with
their biggest challenges, problems, fears, questions, etc.
And it has to be useful! You cant give away something no one will ever need or
want, because it defeats the purpose.

Put yourself in your audiences shoes.

If you can give them something they cant find anywhere else, thats a great lead
magnet.
We gave away our service for free to events that had a lot to benefit from it-
thats something nobody else was doing, so it would be almost stupid to pass up.
You have to get creative about how to apply it to your business.
If youre a coach, maybe you give away a free fifteen minute session.
If youre a restaurant, give away a free signature appetizer and free drinks on the
first meal.
If youre a business opportunity, give away free coaching strategies.
If youre selling some type of new software, give away a free trial.
 The Profit Model 49

Remember, the point isnt to try getting as much money from people as possible
up front. The point is to get people involved with your business, which will create
happy customers, referrals, reviews, and credibility. Then you leverage that and
build momentum, and your business will grow.
It will always work if youre doing it right. And if you have the entire Profit Model
already set up in your business, it will work.
Every major business I know of has deals and sales all the time. And every time
you end up purchasing because of a deal or sale, you just experienced a lead
magnet.
However, were going to build more on this concept in future chapters.
Not everyone will buy just because you sent them a deal or because you gave
something away for free. Thats why you need to have a follow up strategy.
The lead magnet is the second step in The Profit Model because thats where
you want to send your traffic.
You dont just want to expose them to your offer right away, because most
people wont respond well to that.
You want to find targeted traffic thats in your niche, give lots of value and base
your brand around helping them with something, and then direct that traffic to
your lead magnet.
For example, my traffic was the email addresses I looked up. Once I had those
emails addresses, I sent them something of value for their event. Then I directed
them to our lead magnet, which was the free service.
Once we gave them free service, we had a right to pitch them on other things
that we sold.
It works a little differently for every type of business, but the concept is the same.
You direct traffic to the lead magnet, then after that you earn the right to present
them with what you want to sell.
Now lets talk about constructing your own lead magnet.

1. Decide What Your Target Market Wants

This is what weve talked about up to this point. Find the thing for your business
that your ideal customer really wants, and make that your lead magnet.
Here are some tricks to help get you on the right path:
 The Profit Model 50

Make a list of everything you think you would want to know if you were
researching the same topic that your business is centered around. Cross out all
the easy ideas, and find one that is difficult to get an answer to. Solve something
for people that they cant find (or have trouble finding) anywhere else.
Check forums and blogs in your niche for ideas. Find the most popular sites for
your target market and see what people are saying.
Check social media groups and pages. Same concept here as forums and blogs-
youre going right to the source of what your target market is talking about.
Look for product reviews on Amazon and Ebay. Find closely related items or
books about your topic, and see what people are saying in the reviews section.

2. Decide What Type Of Lead Magnet You Want To Use

There are many different types of lead magnets, and we named a few of them
already. You need to choose one that works for your business.
And remember, you can have multiple. The idea behind a good lead magnet is
that it will be paired with a certain traffic source.
Here are a few types to consider:

Guides/Reports- These are common and effective. Just make sure its specific,
sticks to one idea and delivers on that idea.
 The Profit Model 51

Cheat Sheet- Similar to a guide, but can be much simpler. Its basically a short
mind map, checklist, or blueprint to answer something like you see below.

Tools and Resources- This is more business specific, but can be effective.
Youre just saving time for someone by giving them a curated list of resources to
what they need to accomplish something in your niche.
 The Profit Model 52

Video Training- Pretty self-explanatory. You offer a video (or video series) that
shows how to do something of interest to your target market.

Discounts and Deals- One of my favorites. Who doesnt love receiving an

exclusive discount, or free shipping? This always works.
 The Profit Model 53

Free Trial- Very common for software and services, and also extremely effective.
Remember, everyone loves free. You get to try it before you buy it.. and if its
good, its almost a guaranteed sale. Netflix does this with amazing effectiveness-
I know it worked on me.

3. Get Signed Up With An AutoResponder Service

For those of you who may not know what an autoresponder service is, its an
automated system that allows you to collect email addresses through an opt-in
form, and then send auto responses back to your subscribers.
A subscriber is someone who opts in to your lead magnet with their email
address, and the opt-in form is simply the special box that allows them to enter
their information.
Once the info is in and they click submit (or whatever call to action the button
says), then they are automatically signed up to your email subscriber list, and
you can now send them emails by pre-determined auto responses that are set to
be delivered at time-based intervals.
Autoresponders can be both simple and complex, allowing you to email and
communicate in a number of ways. There are even autoresponders for phone
services.
 The Profit Model 54

But the basic point is that you are collecting an email address and adding it to
your list, which gives you a chance to follow up.
(More on that in a later chapter.)
There are several well-known services that offer free trials and include
complimentary training to get started. I use Getresponse personally, because I
love their easy templates and user-friendly system. They even have a
complimentary 30-day to 1000 subscribers training.

4. Create Your Landing Page

A landing page is exactly what it sounds like. Its where you send your traffic to
land and view your lead magnet. All the picture examples I showed above are
landing pages.
Most of your autoresponder services will have a tool for you to create landing
pages.
Were not going to go into the full science of creating a landing page here, just
remember to keep it simple, clean, and to the point.
Youll notice with all the examples I showed that a landing page consists of a big
headline, a few bullets points, and a call to action (do this, click here). Theres a
place to submit their email address and sign up to receive the promised value.

5. Create Your Thank You Page

This is the last step to your lead magnet, and something a lot of people skip.
To be fair, you can still have an effective lead magnet without a thank you page.
But its so much better to have one, because it gives you an extra chance to
market, brand, and build relationships.
At its core purpose, the thank you page should deliver on exactly what your lead
magnet promised. So if you promised a video training, that will be your thank you
page. If you promised a cheat sheet download, that will be on your thank you
page.
And of course its called the thank you page because you are thanking the
person for subscribing to your list and being interested in your business.
 The Profit Model 55

You can also add social links on there to encourage people to share with others
on different sites. You can even add a link to your core offer or affiliate offers of
related types to try making sales right away.
Theres a lot you can do with the thank you page, and your autoresponder will
allow you to set the thank you page automatically. Youll just have to create it
first. You can do that in Wordpress by adding a page to your site, or you can use
a site like Instapage to use a template and create one without a site.
 The Profit Model 56

Chapter 6:

Step 3- MAKE AN OFFER THEY CANT REFUSE

Innovation distinguishes between a leader and a follower.

-Steve Jobs, entrepreneur, marketer, and inventor who was the cofounder,
chairman, and CEO of Apple, a company that pioneered some of the most
revolutionary technologies of our generation and has grown into the most
valuable company on the planet at a value of over $700 Billion.
 The Profit Model 57

The first principle of your offer should always be innovation.

You are unique and your business, as an extension of you, should be unique as
well. It should be something fresh, something new and exciting.
Sure, you can sell just about anything. But The Profit Model is not about some
played-out internet plan to make $100 a day.
This is about building and scaling a real business from nothing to hundreds of
thousands a dollars a year, and then onto millions.
Those types of businesses are born of innovation.
And Im not saying you have to reinvent the wheel or design a brand new product
like the iPod.
When I made the decision to get involved in selling photo booths online, I knew
we were not the only ones out there doing it. I also knew we were not inventing
the photo booth and bringing a brand new concept to market.
But I saw ways for us to innovate the process. And Josh saw ways for us to
innovate the experience.
Together we innovated an old concept into something new for the modern world,
and it took off quicker than we ever expected.
Thats why I know The Profit Model works. But you have to apply it creatively to
your ideas and your business, and you have to come from a place of innovation.
Your product, or service, or opportunity, or whatever it is youre selling- it should
be something that has whats known as a unique selling point.
A unique selling point is basically your key differentiation from all the other
entrepreneurs and businesses out there doing the same thing.
What makes you different?
How do you better fulfill your markets needs than current solutions?
Why should people buy from you?
When you answer these questions from a place of innovation, you will distinguish
yourself above the competition.
And heres why: Because when you are in a mindset of innovating, meaning you
are trying to look at things from a new perspective, you are trying to create
instead of compete.
 The Profit Model 58

If you get caught up in the world of competition, youll always be reacting to

market circumstances. Someone beats your price, someone offers something
extra, etc.
But if you realize that your target market is full of abundance and waiting for a
better and more valuable answer to their problem, then you can lead your
industry as a creator.
Thats what innovation is all about.
We didnt create the photo booth, but we innovated a new way to sell it and
experience it. And through that, we were creating our business outside the
competition of the masses.
Weve done things in our industry that nobody thought possible with the type of
product/service we offer.
We were able to do that because when we designed our core offer, we looked at
the market and thought about what we could do differently.
We of course researched our market and did all the homework, but we were
doing that as a foundation from which to innovate for what we wanted.
Please make sure youre following that concept.
I know it may seem very metaphysical at first, but youll find that pattern among
all the best and most successful entrepreneurs out there.
Its talked about in much greater eloquence in the book The Science of Getting
Rich by Wallace Wattles.
And it has everything to do with creating the best core offer for your business.
Zig Ziglar says that sales are all about, transferring of emotion.
And the best way to create that transfer is to have a unique selling point that
speaks directly to what the consumer really wants.
Here are some examples:
The Profit Model 59
 The Profit Model 60

These are awesome examples of what an effective unique selling point is all
about. It gets right to the heart of what their target market really wants, while
creating a lasting benefit that distinguishes them above the competition.
And though these companies are huge now, they didnt start that way.
They started out as any other company does- built from the ground up on a
single idea.
Because these companies were able to brand themselves with such great
innovation in what they do, they have grown into billion dollar giants.
Its the same principle for your business and my business.

Your core offer

Once you have that unique selling point and you understand exactly what it is
that will make your business so awesome to people, youre ready to start working
out the specifics of your core offer.
And by core offer I mean your main product or service for sale.
In the last chapter we talked about your lead magnet and creating something of
value to offer people as a way to build trust, credibility, and authority within your
target market.
But of course you need to have something to sell too. The whole point of creating
the lead magnet is to eventually turn them into a customer.
 The Profit Model 61

Maybe your lead magnet is simply an exclusive discount to your core offer, or
maybe its something like a sample. But either way, your purpose with the lead
magnet is to transition your lead into purchasing.
Thats why its important to first build a lead magnet that is meaningful and gives
value. It has to be free and it has to be a bridge to your core offer.
It makes no sense to have a lead magnet for losing 10lbs in 2 weeks if your core
offer is bodybuilding protein shakes. While they both may be health and fitness,
they represent completely different goals.
If Walmart published ads for rollback items, but in the store actually marked down
different items than what was published, that would annoy people.
Everything has to be congruent.
And it helps to note here that most businesses are built around the core offer
first. For example, we knew we wanted to sell photo booth rentals. And from
there, we built a lead magnet that made sense.
Now into some of the mechanics..

Designing Your Core Offer

Its called the core offer because its the center around which your business
revolves. Its the main thing that youre selling to bring in revenue.
And as such, it needs to be very specific in its purpose.
For our business, the core offer is our basic photo booth package, and everything
we do is designed around that offer.
Oddly enough, this is where a lot of entrepreneurs miss the mark. They dont
understand what theyre selling and who theyre selling it to, so they create a
mixed signal with their core offer.
Thats why market research and building a foundation is so crucial, so you know
how to craft a core offer that your target market wants and is happy to pay for.
People love to spend money on things that bring value to their life. Some would
argue its the entire purpose of working for money.

Step number one is give value.

If youre not giving value with what youre selling, it wont sell. Simple as that.
 The Profit Model 62

People are more than willing to spend money on something that enriches their
life, solves a problem, entertains them, fulfills a need or desire, etc. But with so
many ways to spend money online, they are only going to buy the stuff that gives
them the most value.
You need to understand your market and what they want, and then craft an offer
that fits that need.

Step number two is your unique selling point.

Why should people buy from you?
Weve already talked about that as the introduction to this chapter. Its so
important in helping you understand what makes a great core offer.
You need a unique selling point to distinguish yourself.

Step number three is your packaging.

There are both physical products and digital products, services and intangible
things you can sell. They all have different types of packaging.
If its a physical product, you literally need to decide how youre going to package
that product. What type of material? What type of design? What type of
branding?
If its a digital product, youre not usually selling something physical. But you still
need to think about design and utility. Will it be a pdf, or an audio, or video file?
If its a service, how are you going to deliver that service?
Packaging is about branding. How are you getting your message across to your
customers through your product? And how are you delivering it?

Step number four is your price point.

This is where many people get lost- they have no idea how to set a price on what
theyre selling.
Another reason why market research is so important. You need to look at what
others are doing and determine what your worth is. Dont undersell yourself, but
dont be greedy either.
Theres a great quote by Harland David Sanders, founder of KFC, that goes,
Feed the poor and get rich or feed the rich and get poor.
 The Profit Model 63

I love that. And Im not saying that you cant get rich by selling an expensive
product to an affluent target market, because you can.
But we came to a crossroads in our business early on, where we had to look at
our price point and decide if wed rather have a lot of customers at a lower price
point, or a few customers at a high price point.
We chose the former, and weve had more leads and sales than we know what to
do with since then.
Your price point will be an experiment. Dont be afraid to go in high, you can
always reduce it.
And dont be afraid to set a high price point, but then sell off sales and discounts
all the time. This is a well-known tactic that will always be effective, because
people love to feel like theyre getting a deal.
Another important part about your price is setting it high enough to build a
profitable business. You cant have razor-thin margins unless youre capable of
selling at massive quantities.
Make sure youre selling something that returns enough money for not only
marketing, but growth and profit as well.
And finally, step number 5 is your delivery.
This is closely related to packaging. Once the customer purchases, how are you
delivering the product to them?
Again, theres a big difference here in the type of product that youre selling. A
physical product will need to be shipped or picked up, while a digital product can
be an instant download.
If you provide a service like my company does, then youll need to deliver the
service through yourself or other people. We use independent contractors.
The main factor through all of this is that it has to be congruent. Dont make
promises in the beginning that you cant fulfill in delivery.
Dominos Pizza guarantees 30 minutes or less because they can deliver in that
time. And if they dont, then your pizza is free. That promise is what brings in a lot
of their business, so its only as good as the fulfillment all the way through.
Same thing with your offer. You want your message to continually build on itself
as your customers go through the process.
We promise to provide the best and most affordable photo booth rentals, and
we work extremely hard to deliver on that through every step of a persons
dealings with us.
 The Profit Model 64

Thats it. And I know 5 steps may not seem like a lot, but I dont believe in
overcomplicating it. People like simple, and simple messages that deliver value
will always sell.
Theres not one formula to creating a great core offer for your business, but I
believe these 5 steps are all you need.
Thats what we started with and were growing at crazy speed.
Of course you will refine the process as you go, and youll get more details
figured out that help you increase conversions, but that comes with time.
You have to get started now, and the best way to start is to create something
simple and effective. Then build upon that as you go.
Follow these 5 steps and youll be on your way.
Then start getting traffic and selling!
 The Profit Model 65

Chapter 7:

Step 4- Would You Like Fries With That?

Make your product easier to buy than your competition, or youll find your customers
buying from them, not you.

-Mark Cuban, serial entrepreneur, businessman, investor, film producer, and

owner of the NBAs Dallas Mavervicks, Landmark Theatres, Magnolia Pictures,
and chairman of AXS TV, who made his billion dollar fortune when he sold
Broadcast.com to Yahoo for over $5 Billion.
 The Profit Model 66

Most of us can immediately relate to that question.

Youre in the drive through line, ordering a quick burger on a busy day to satisfy
your appetite. You know its not healthy, but its only a $1 and it tastes so good!
Your plan is to just get the burger. But as soon as you order and youre waiting
for the order-taker to acknowledge, they ask you that famous question..
Would you like fries with that?
Or Would you like a drink with that?
And chances are, over 50% of the time someone is going to respond with a yes
and order something extra.
And after all, why not?
Fries or a drink, or both, are the perfect complement to your delicious burger.
And it only costs you another $1 or so.
Seems like an easy decision.
And its supposed to, thats why its so effective.
But that easy question makes McDonalds millions of dollars a year!
Its called an upsell, and its one of the most fundamentally important parts of
your business in reaching massive profits.
Were all familiar with it. We all experience it.
When you go to a car dealership, they want to upsell you on the better speaker
system or leather seats. If your car payment is $247 a month, whats another $28
to drive in luxury?
When you buy a laptop at Best Buy, they want to sell you on the protection plan.
I experienced this at T-Mobile recently when I went in to purchase the new
Galaxy S6 Edge.
I wanted to finance the phone through my bill, cause I didnt have an upgrade,
and they had a great deal going on. Then once I got the phone, they offered me
the full protection kit for only another $3 a month.
I was already paying like $30 a month to finance the phone, so whats another $3
to protect it, right?
Easy decision, great upsell.
Amazon has an amazing upsell process. As soon as you buy something or put
something in your cart, they show you other recommended products with a
headline like this:
 The Profit Model 67

Principle of the upsell

There are many different forms of an upsell, each relating to the type of product
or service that is being sold. But the principle of the upsell is always the same:
offer customers a chance to purchase something extra.
An effective upsell can triple your overall revenue in business, while also helping
you grow much more quickly
But an upsell must be strategic. Its not just something random you throw into the
buying process in hopes that the customer may purchase if theyre in a good
mood.
A strategic upsell will enhance, supplement, or somehow improve the buyers
current purchase or experience with your business.
You dont want to upsell your customer too early in the process, and you dont
want to assume they will buy just because you have an upsell.
Your upsell must offer even more value than the original purchase, or
compliment the purchase.
For example, we have numerous upsells to our basic photo booth rental
package. Customers can upgrade prints, buy custom logos or memory albums,
and even get additional services attached to their photo booth.
The upsells add more value to the overall experience, and they also compliment
the original purchase in a way that benefits the customer.
 The Profit Model 68

Upsells could be a high-ticket item like personal coaching sessions for someone
who buys an introductory package to your service, or they could be small items
like adding fries to your cheeseburger order.
It has to make sense for your business, and it has to add value. If it seems like
youre just trying to profit off the customer, people will see right through it.
Having an upsell strategy is an absolute must. Doesnt matter what youre core
offer is, you need to have at least one type of upsell.
Otherwise it will be so much more difficult to build your business to massive
profits and sustainability.

Psychology behind the upsell

The idea behind the upsell is that once the buyer already makes that first
purchase, they are now in buying mode.
Theyve already committed to the act of spending their money on something,
they have their credit card out and theyre ready to make the buy.
Theres nothing more difficult than getting a lead to make that initial purchase.
Once youve done that, youve already gained their trust.
Now is when you want to present them with an opportunity to spend more
money, because they are much more likely to spend once they are already in
that buying mode.
Its the classic thought process we can all relate too, like my T-Mobile experience
I shared above.
Im already financing this phone for $30 a month, whats an extra $3 to get the
protection pack that goes along with it? After all, I do want that.
There are two important principles Id like to point out about my thought process
there, because they apply to how you get your customer to buy your upsell.
The first is that they presented me something I really did want. I was buying an
$850 phone, of course I wanted to protect it. Thats a big investment into a
phone. And they knew that.
And the second principle is that they presented it to me in a way that was almost
a no-brainer. I was already paying $30 a month, so another $3 seemed almost
like being cheap to refuse. I felt like it was the only decision.
And since I was already standing there with my credit card out, ready to buy and
sign the dotted line, they had me.
 The Profit Model 69

For me, it was only an additional $3 a month. But imagine how many people they
upsell like that all across every T-Mobile store worldwide! Theyre literally making
millions of dollars with that strategy.
So when youve already made the sale and you can present something of value
that relates to your core offer, then its time to make that upsell.
And if its something that you know will actually benefit your customer, then theyll
be happy to spend the money.
I was happy to pay another $3 to protect my phone, and I actually thanked the T-
Mobile guy for letting me know about it.

Crafting an effective upsell to maximize profits

The type of upsell you have will depend on your business and core offer. But
most importantly, your upsell should depend on your target market.
As weve been saying since the beginning, the quickest way for you to make a lot
of money is to research exactly what your target market wants, and give it to
them in an innovative way.
Here are some tips for creating an effective upsell for your business:
Keep your upsell relevant. I mentioned this one already, but its so important
not to overlook. Dont try to force something on your customers that you think
they should want; research what they want and offer them something that you
know fits that need or desire.
Another way to find out what is really relevant to your audience is to think about
what motivates them to take action. Present an upsell that inspires action without
requiring a hard sell.
Play off perceived value. This is a great way to help sell not only your upsell,
but also your core offer. The perceived value of your offer is what the customer
sees and how they feel about what is being sold.
Groupon is a great example of this. Weve used Groupon to boost sales many
times, because you take a package that is normally sold at a much higher price
and offer it at something like 50% off. For anyone in the market for that particular
item or service, its almost a no-brainer to get it on sale.
Bundling items is another great way. You see this with game consoles a lot.
Theyll release the console with an extra controller and a certain game for one
package price. And even though the price is even higher than just buying the
console by itself, it entices people to make that buying decision because of the
perceived value of getting more for their money.
 The Profit Model 70

If you can get your customers to feel they are receiving more for their dollar, then
you will make a lot more sales on that perceived value.
Over-deliver on your promises. Remember that up to this point, your customer
has already seen your lead magnet, and now they have purchased your core
offer. If you have over-delivered on expectations every step of the way, then your
customers are much more likely to buy an upsell that adds value.
Your goal as a business should always be to over-deliver in value on everything
you do. Of course you cant give more in cash value than you receive. But you
can give more in use value than the money you receive, and that is far more
important to your customer. They are willing to spend their money; they just want
to receive something that was worth it.
And if you are building that trust every step of the way, and they buy from you
and then see your value-driven upsell, youll have a high chance of selling them.
Make it easy to buy. This may sound obvious, but its still worth mentioning. Ive
seen a lot of different business and sales processes as a consumer who loves to
buy things. And some businesses do not think about user-friendliness.
Buy Now buttons or 1-click purchase buttons are the easiest way to make a
sale, and its surprising how many businesses dont incorporate that.
No one wants to call to purchase an extra, or fill out a bunch of paperwork that
needs to be submitted. By making someone go through that process you are
losing that buyers emotion they already have. Theyll start to question if they
really need it or not.
With one of our upsell processes, we send customers an email leading up to their
event. It offers them things like extra prints and such, and if they want to
purchase, they simply need to click and pay. Very easy, and effective because it
catches them in the emotion of thinking about their upcoming event and how
excited they are for their photo booth.
If you can make the upsell process fun and playful, then even better. But most
important is to keep it simple, easy, and quick.
Create a sense of urgency. This can be very effective when done correctly. You
dont want to seem pushy or salesy, but if you can instill a genuine reason for the
importance of buying now, then customers will react to the fear of loss.
Fear of loss is a powerful motivator in sales, and something you can use to your
advantage in a good way. Again, if you know that what you are offering is
valuable and will improve your customers experience, then you have an
obligation to guide them through the upsell.
 The Profit Model 71

Amazon has an awesome yet subtle way they create a sense of urgency. They
show you how many of an item is left underneath the price, letting you know if
that item is close to running out.
They also plaster their Prime sticker everywhere and remind you that if you
want free 2-day shipping, you can sign up for a Prime account. They give you a
free trial, but its an upsell into a premium yearly membership service.
That fear of loss of an item running out, or of not getting the item in a quick
enough time to start enjoying it is powerful.
Most of selling is based on emotion, and the fear of loss is one of the strongest
emotions we have. Thats why a sense of urgency works so well.
Create scarcity. This is closely related to urgency, but somewhat different in the
intent. When you create scarcity, youre trying to create a higher sense of value
and exclusivity.
Youre increasing the demand for your product, and that motivates people to take
action more quickly.
This can be done by only releasing a certain number of items.
Jonny Cupcakes, the cult t-shirt brand, did this to an amazing effect. He would
design a shirt and release only a small number for sale, then never reprint that
design.
So every time he released something, there was an automatic sense of scarcity
and hed sell out quickly. And people who got that shirt were happy to pay
because they knew they were wearing an exclusive design that only a few other
people had.
Same thing with limited edition items, private coaching spots, one-time offers for
only a few hours, etc. The value goes up as the scarcity goes up, and people will
be willing to pay more and more quickly to have it.

Those are just a few great tips to get you started.

I believe that every successful business has an upsell of some type. Unless you
invent a product so ingenious that everyone wants it, like the Scrub Daddy from
Shark Tank or something, you need to have more than one way to make money.
And more to the point, theres no reason you shouldnt.
Having a value-drive upsell will increase profits massively, and your business will
grow twice as fast than without one.
 The Profit Model 72

Chapter 8:

Step 5- YOUR INVISIBLE SALES MACHINE

If you give people a good enough why, they will always figure out the how.

-Jordan Belfort, bestselling author and motivational speaker, and former stock
broker who made tens of millions of dollars selling penny stocks; and although he
spent 22 months in prison after pleading guilty to stock fraud, his Straight Line
Persuasion System is considered one of the best sales systems you can learn,
he has acted as a consultant to more than 50 public companies, and has been
written about by almost every major newspaper and magazine in the world.
 The Profit Model 73

This is where everything comes together in a beautiful way.

Your invisible sales machine that loops The Profit Model together and continually
drives your business is the follow up.
Or more specifically to building an online business, email marketing.
Your follow up process is where most of the money is made in your business,
because only a small percentage of people are going to buy the first time theyre
exposed to something.
And if youve been paying attention, our goal is not to come right at our
audiences face with something to sell right away. We want to bring them in with
our lead magnet, give value first, and then gain the right to sell.
Thats where the follow up comes into play.
Your lead magnet is the ethical bribe where you give value in exchange for the
persons information, so that you can follow up with them afterwards. If your lead
magnet is high quality, you will gain the right to sell them something.
In the earlier chapter on lead magnets, I mentioned landing pages and gave the
Ikea example of asking for your email in exchange for their 2015 catalogue.
I talked about how to create a lead magnet for your business, and then how to
turn that into a landing page and get ready for your traffic.
Heres another example of the completed landing page:
 The Profit Model 74

You can see I chose a simple example. Its literally just a headline, and opt-in
form, and an attractive picture. For someone in that target market, its a very
alluring capture page. It makes you want to find out more.
Thats the point.
Youre not trying to sell them right away; youre showing them that you have
something of value to offer. And that its worth their email address.
Then once you get that email address, you now have the ability to follow up with
them and build a relationship. And you start by delivering whatever it is you
promised in your lead magnet.
Thats actually the first step of the follow up, the very first email that you should
be sending- delivering on the promise you made in exchange for their email.
Now depending on the type of business you have, your follow up process will
take different directions from there. The type of emails you send to promote a
cleaning service will be much different than the type you send to promote a
business opportunity for investing in the stock market.
However, there are some definite truths to this process no matter what type of
business youre in.
And the great part is that it doesnt matter if youre selling direct to consumers or
to businesses; if youre a million dollar enterprise or a small mom and pop shop;
if you have a team of hundreds or youre a solopreneur..
Email marketing always works.
The reason it works is because people use and check email regularly.
For businesses, email marketing is an easy and unobtrusive way to build a
relationship, give value, and gain customers. It lets people absorb information on
their own time, while giving you the ability to build authority and trust over an
extended period of time.
It can increase your revenue in multiples, allow you to gain customers that didnt
buy the first time, and foster repeat customers and referrals. It can even boost
your website ranking and SEO.
And best of all, its all done through the click of a few buttons.
Well, almost.. You do have to write the emails and build your subscriber list. But
The Profit Model will take care of the latter, and anyone can learn the former with
practice and sincerity.
But to be honest, what really makes email marketing so amazing is the
autoresponder.
 The Profit Model 75

I talked about autoresponders in the lead magnet chapter. You need an

autoresponder service to collect and store email addresses, which you can then
use templates as a way to send out mass emails to that list of subscribers, both
as time-based emails and instant broadcasts.

The follow up process

Heres an example of how the process works with my company:
We sell photo booth rentals online, and we have a photo booth discount we use
as one of our lead magnets.
People in our target market see the ad and click on it when searching for a photo
booth. The source of traffic we use with this lead magnet is Google Adwords.
Heres one of the ads that I ran recently:

Thats our lead magnet. It takes them to a landing page with a contact form that
looks like this:
 The Profit Model 76

Theres more above the contact form that I didnt include in the screenshot, but
you get the idea. Its really simple, because simple usually works best.
The ad is the lead magnet offering a great deal, they click to learn more about
the deal, and then theres a contact form they need to fill out to reserve their
event date.
Thats our hook: reserving the date.
You always want to have a reason they are filling out the form, a hook thats
going to reel them in.
Now youre not selling photo booth rentals, so you will have something different.
But that gives you an idea of how it works from one step to the next.
Once they fill that form out, now we have them in our email list and we can follow
up with them to build a relationship and get the sale.
We like to have a phone number in our contact form because it gives our people
two ways to get in touch, but usually email is enough to get the conversation
started.
For your business, you may use something as simple as the first example I
showed, nothing but an email box. Its up to you and what youre promoting.
If youre a real estate company, you probably need even more info, like address.
But no matter what youre asking for, if you have a good lead magnet for your
target market, getting the info is easy.
The magic is in the follow up.
Its called your invisible sales machine because when its all put together and
running, youll start seeing numbers show up in your payment processor in the
form of sales from customers you never even met.
You know its coming from people somewhere buying, and you may have
employees of contractors on your staff that are working to keep your process
running, but you have set up a system that is bringing people in and following up
with them and making sales on autopilot.
You cant touch it, you cant really see it in action, but its powerful and it can
make you lots of money.
So lets break down the parts for building your own follow up process:
 The Profit Model 77

1. Two Types Of Autoresponder Emails

The first thing I want to do is just break down the two different ways you can use
your autoresponder service.
One type of email is time-based, and the other is broadcast.
The time-based is something you set up for an ongoing email campaign. For
example, when someone opts in to your subscriber list you send them 3 emails in
a row for a 3-part training series.
Those emails you can set ahead of time in your autoresponder to automatically
go out on certain days, based on when the person subscribed- so day 0, day 1,
day 2, etc. And you can even set a certain time of day for the emails to send.
Just set it and forget it. Email marketing has never been so easy.
The other type is broadcasts. Thats when you just create an email and send it
out in real time to your whole list, or to a certain segment of your list.
Youll want to use both in your email marketing. Its good to have at least a few
time-based autoresponders that go out automatically. And then stay up to date
with current stuff using broadcasts.

2. Hi, Nice To Meet You..

Its amazing how many people and businesses lose any sense of personality
when it comes to email marketing.
Just because its transmitted through a computer doesnt mean it needs to be
completely without emotion or manners.
The best way to start your email campaign is just like you would when meeting a
new person.. you introduce yourself.
This is such a crucial step because it sets the tone for everything that comes
after. And its so easy to do- just be polite and tell them about yourself and/or
your business.
Be personal, talk about your company, your purpose, your mission, and how you
plan to bring value to their life. Let them know how this relationship works, how
often theyll hear from you, and what to do next.
It doesnt have to be too long, and it doesnt have to hit all those points. Just be
creative and make sure you remind them why they signed up with you. It can be
more than one email too. In fact, sometimes a few introductory emails are better.
And sign your emails as a person, not a company. It increases engagement.
 The Profit Model 78

3. Ask For The Sale

Once youve introduced yourself with a few emails, youve delivered value
through your lead magnet, and youve stayed true to any offers or promises you
made; now its time to ask for the sale.
Remember, this is a business and youve got to make money. Dont be afraid to
send emails that direct people to buy from you.
In fact, if your business is providing value and solving a problem for people in
your target market, then you have an obligation to make the sale. Otherwise
theyll have to go find it somewhere else and not get as good a solution.
But you dont want to rush the process either. Dont be pushy or scare them off
by moving too quickly.
The best thing to do is first restate the reason that they are there in the first
place. What topic brought them to you? Why did they subscribe to your list?
Write an email that goes back to that original idea, talk about the problem and
what youre company is there to do, remind them of the lead magnet, and then
offer your product.
It doesnt have to be long, and it doesnt have to be salesy. As you write more
emails and study copywriting, youll get better. But sincerity always does well if
youre providing real value.
And dont just write one email. You can write a few, word them different ways,
and speak to different benefits, or use customer testimonials and stories.
If its a low-priced item, maybe send them 2 or 3 emails spread out over a couple
days. If its mid-priced item, you may want to write more like 5-7 emails over a
couple weeks. And high-priced could stretch out as long as 3 weeks with 9-10
emails (or even more).

4. Segment, Resell, and Upsell

Once you have a customer, you no longer want to keep that person in the same
group as people who have not yet purchased anything. Youre not going to talk to
them the same.
Thats called segmenting your list. Youll create different groups within your list,
and you can shuffle contacts around from one group to another. That way you
can keep track of certain segments within your list.
The main two groups to know are buyers and non-buyers.
 The Profit Model 79

Once someone buys your core offer, they get segmented for a different type of
follow up. This is where you can direct them to your upsell. Or if you have a
product that can be reused, you can resell.
So many businesses let someone buy once and move on. Thats a horrible
mistake!
These should be your best customers for future business- they already know,
like, and trust you now. You want to segment them into a buyers list and keep
giving value to them, that way you can keep selling to them as well.
You can have immediate upsells that improve the original purchase.
You can have cross-sells to other related items.
You can offer bundle sales to include other related items.
You can offer a premium service or subscription.
You can also get referrals and reviews.
Treat these people like your best friends, give them tons of value, and always try
to over-deliver. It can be through a pre-determined email series, or it can be with
weekly to monthly broadcasts, or both.
In my campaign for existing customers, they are immediately introduced to a
time-based sequence that delivers value after their purchase over the course of a
month. And then I send monthly emails with certain deals and promotions.

5. Are You Still Interested?

The last part of your email campaign that I want to talk about is what to do with
the people who never respond.
This will happen, youre going to have people who sign up and you never hear or
see them again. They take no action, they just receive emails.
You cant sell everyone, no matter how great a salesman you are or how
awesome a system you have. Your goal is just to make sure everyone has the
opportunity to buy.
So towards the end of your follow up series, maybe after a few weeks (or
months, depending on your business and topic), you want to have some type of
email that is designed to be a last chance type of deal.
Ask them if theyre still interested, offer them a crazy discount, tell them its their
last chance to act, etc. Just try something to get them react, and also to let them
 The Profit Model 80

know that theyve reached the end of your correspondence with them if they
dont.
Im not saying you should take them off your email list, because you can still
send broadcast emails that they may receive. And some people dont respond for
months and months, and then will pop up out of nowhere to buy.
When I was internet manager at a Subaru dealership, they had a 90-day follow
up process. Their 90-day email was a link back to their website, informing them
of their current deals, and telling them to contact us if they ever had any
questions or needs.
That was it; they get no more emails after that. And the email was written in that
tone, while also directing them to action.
And sometimes it worked.
The point is you want to try one last effort to get them to take action.

For my final thoughts on email marketing, I want to say that this is hardly an
exhaustive guide. Email marketing has become something of a science
nowadays, and there are lots of nuances to learn within the many different parts
of email marketing.
Engagement, conversions, split testing, headlines, structure, content, different
types, different uses, etc.
But we have built this company to $500K in sales in 2 years with no more than
what I have shared with you in here. In fact, it was probably less. Most of this
stuff I learned along the way.
And what I have given you is enough to get you started, plug your emails into
your Profit Model and have you building a six-figures business.
As you progress, keep studying and learning. Theres always more to know and
ways to improve.
 The Profit Model 81

Chapter 9:

TRULY AUTOMATED PROFITS

Only a handful of companies understand that business comes down to three basic
principles: People, Product, Profit.

-Malcolm Forbes, entrepreneur, author, and publishing magnate, most

prominently known as publisher, chairman, and editor-in-chief of the famous
Forbes magazine.
 The Profit Model 82

There are a lot of self-proclaimed gurus out there talking about automation and
how to build a business online. But most of them are either repeating something
they heard, or not really achieving anything close to true automation.
Automation is when you set something up once, get it running, and then you no
longer need to mess with it for it to work.
My business brings in thousands of dollars a week on automation, meaning all I
need to do is read the reports at the end of the week.
In fact, the only thing stopping it from making more is our rate of expansion- right
now we are literally pulling in more leads and clients than we can fulfill!
And I dont say that to impress you, because you can do the same thing in your
business. Thats what The Profit Model is for.
When you apply this model, you can achieve the same results. And you can do
that because the model will sustain itself once you have it running.
Now that doesnt mean you wont have to hire people or build an infrastructure. I
dont know what type of business you plan to build, but people and infrastructure
are crucial to any growing organization.
This guide is not meant to talk about that part of your business.
But The Profit Model will get you there, and youll be overseeing it all. And your
business will run continually, even if you take the day off. Thats how automation
works, and really how all big businesses essentially get to be big.
So now that weve been through all 5 steps, lets review The Profit Model and
how it all integrates together as a system.

The 5 pieces are:

1. Traffic

2. Lead Magnet

3. Core Offer

4. Upsell

5. Follow Up
 The Profit Model 83

I want to note here that you will not necessarily build your profit model in this
order. Of course you need to have a lead magnet before you can start sending
traffic, and you want to have a core offer before you start collecting emails with a
lead magnet.
Youre going to start where we started in this e-book: with market research,
finding a niche and understanding the problems your target market has within
that niche; then creating a way to give value and solve that problem through
something you can sell. And youll decide on your business, your product or
service, your message, branding, and unique selling points.
Once you have all of that, youre going to create your core offer. This is what
your business is based around, so you need to understand it and be very specific
about what it is youre selling. Even if its not your product and youre an affiliate
or direct sales rep, you still want to understand and treat it as your own.
Once you have the core offer established as we talked about in the earlier
chapter on core offers, then you want to figure out your upsells. They can always
be added later, but definitely get some upsells integrated into your process.
 The Profit Model 84

Now that you have all that, youre ready to build a lead magnet and get your
landing page ready.
Its important to note here that I dont specifically talk about websites, or blogs, or
Facebook pages, or shopping carts, because you can literally run a business on
any of the above.
Ive seen people build successful businesses on all of them. I personally like
having a Wordpress site because it gives you multiple options and unlimited
pages and plugins to use, but you dont need it.
You can create your landing page through a service like Leadpages or
Instapage. When starting out, all you really need is a few pages- a landing page
for the lead magnet, a thank you page for delivery, and a page to sell your
product and upsells, with another thank you page after that.
If your business is run shopping cart style, you dont even need a website, there
are plenty of hosted services. You can do it right through a Facebook page too.
Its all about what you want for your business. Just do some research of similar
people in your space and get ideas.
Then once you have that setup, get your autoresponder service activated, create
a few follow up emails to introduce yourself/business, give value, and sell your
products/services.
And then youre ready to start getting traffic.
You send traffic to your landing page, they opt-in for value, and then you build a
relationship through follow up, sell your product and offer upsells.

The sales funnel

All together The Profit Model acts as whats called a sales funnel.

Heres an example of what a traditional sales funnel

looks like. It represents the way a person is supposed
to funnel through your sales process to go from new
lead all the way to paying customer.
This picture should give you an idea of how The Profit
Model works in automation.
Once you have it setup like I described, it really
becomes a matter of just putting more traffic into the
 The Profit Model 85

funnel. Traffic goes in through the top and funnels out as sales on the other end.
Of course its not all sales, which is why the funnel starts wide and gets more
narrow- to represent your conversion rate.
Then you monitor your process and conversion rate so you know how many
customers you get for how many leads coming in.
Please note, I am not saying that we are treating people like cattle through a
gate. Remember, I said earlier NOT to take that approach to people in your
business. This is simply a diagram to show you how the process works on
automation.
And to show you that your main job becomes understanding your lead cost to get
a new customer, conversion rate, and customer value.
For example, lets switch to numbers:
If you know it costs $2 to get a new lead and your conversion rate is at 60%, then
you know that every 100 people you bring through the top costs you $200 and
results in 60 customers out the bottom.
If your customer value is $25, then you made $1500. You know you can scale up
immediately and start making a lot of money.
Now of course that wont all be profit- you have taxes to account for, cost of
marketing and goods, and any people you pay. So you need to know your profit
margin as well.
Dont make the mistake most entrepreneurs make and ignore the numbers, just
hoping for the best at the end of the month. Your numbers are the most important
part. And when you know them and you have this system in place, it become a
science. You control your growth and scalability.
Its not something I will go too deep into in this guide, because your main focus
should be getting The Profit Model up and running. Just be conscious that once it
is running, you need to know your numbers to be most effective.

The Profit Model Funnel

Now that weve been through everything from front to back, and Ive show you
what a traditional sales funnel looks like, I want to give you my version of The
Profit Model sales funnel and how this all works as one continuous system.
You can see I didnt really change anything, except to add ongoing follow up:
 The Profit Model 86

However, adding that last part about ongoing follow up is going to add thousands
of dollars to your bottom line every year.
Remember from our earlier chapter on follow ups, once we have a customer its
not time to forget and move on to the next.
We want to always be bringing new customers into our funnel, but we want to
pay just as much attention to building relationships with existing customers and
getting them back into the funnel.
This is called a viral loop, and works that way because it creates a never-ending
loop of business for you. And that loop will only grow in size and power as your
business grows and you gain more customers.
This is how the best entrepreneurs and businesses are operating, and it all
comes down to the steps we covered in the follow up process.
And now you have the whole formula.
Apply this and be prepared for rapid growth in your business!
 The Profit Model 87

Chapter 10:

FINAL THOUGHTS

Genius is one percent inspiration, ninety-nine percent perspiration.

-Thomas Edison, inventor and businessman, owner of a record 1,094 patents,

and the mind behind some of the greatest innovations that changed the course of
history, including the phonograph, the motion picture camera, and the
incandescent light bulb.
 The Profit Model 88

There are a lot of different quotes I looked at to set the tone for this final thoughts
chapter, but I settled on that one by Edison for one reason:
Your future from here is all about how much youre willing to work.
You have the same model and system that I have used with my partner to build
our online business from nothing to $500K in sales in 2 years, and well on our
way to a million in sales by this end of year.
This is the same system that thousands of successful entrepreneurs and
businesses use all around the world to bank millions of dollars.
And through my years of study, trial and error, and practice I have done my best
to distill it down to this easy-to-follow model.
When you get it running, it will compound on itself and your business will start to
grow quickly.
As I finish this up, its June 5, 2015. Look at these results comparing the first half
of last year to the first half of this year:

We did $78,370.60 is gross sales through June 1st in 2014. Which right there
says something, because that year ended at over $400K.
 The Profit Model 89

And heres what we have done so far this year:

Weve more than doubled our sales through the same time period this year, at
$179.993.25 in gross sales!
And we havent even hit the busiest season yet! The last half of the year is where
we really make the money.
I show you that so you can see how this system just constantly keeps growing as
you let it run and build on itself.
Now of course it takes time and dedication to get started. But the beauty is once
its started, you just need to maintain it.
Add to it, improve it where you can, keep making it better, scaling up and
expanding as growth allows.
This will be the most challenging and exciting time of your life.
Theres a lot of pressure as your business grows, because the stakes get higher.
You make that leap from the 9-5 world and start providing your own income, and
eventually providing others with income, and its on you to keep growing.
 The Profit Model 90

But you can do it, I promise.

I came from nothing, and using this system has completely changed my life
around. And now more and more opportunities roll in every day without even
asking for them.
In fact, just today we were emailed about a contract for a TBS party coming up in
September. They found us online and went through our funnel.
Thats how it works!
Doesnt matter who your client is- an everyday person or a large company, this
process works. And it works because youre giving value, youre creating instead
of competing, and youre leveraging online marketing to build authority and trust
and bring the right people to you.
Everything in here will help you get your business from 0 to six-figures and
beyond. But I cant do it for you.
Jim Rohn says, You cant hire someone else to do your pushups.
You have the tools, you have the model, now you just have to apply it and make
it happen.
Refer back to this guide as often as you need, follow the Facebook page I
created and linked at the end of this e-book, and look out for more content. I will
be delivering more stuff to help you build your business regularly.
And dont worry if you fail- everyone does.
Just keep moving and persevering, ignore the haters and the critics, do your best
and constantly seek to give real value, and youll make it.
All it takes is one breakthrough and youll be on your way to your dreams quicker
than you ever thought possible.
Now go get it!
The Profit Model 91
 The Profit Model 92

Income Disclosure:

It is my intention that you will use The Profit Model and the information contained in
these pages to go out and create your own million dollar empire. However, I cannot
guarantee you any type of results and would never try to.
I can tell you that The Profit Model works, because it does. But I dont know what type of
business you have, what youre selling, how youre selling it, or any of a number of
variables that will determine your success. Plus I dont know your work ethic.
But I will say this. If you are following everything in this guide, you have a great product
for sale in a strong niche, and youre willing to never quit, then you will be able to build
the business of your dreams.
And I can say that because its science, not luck.
But I cannot and will not guarantee you making any certain dollar amount. Thats up to
you. Dream big, work hard, and never limit yourself.

--------------------------------------

Thanks for reading, and best of luck on your journey!

-Nick Peroni