TOP THREE MOST PROFITABLE ONLINE BUSINESS SYSTEM AND HOW TO AVOID SCAM AND WIN BIG? PART 3 of 3
The Licensing Model
The licensing model can be a pure private licensing or a hybrid licensing model. The most popular licensing model is hybrid licensing model. It is a model combines the benefits of affiliate marketing, yet you own the product with the resell right. This model can remove some of the disadvantages that you see in the affiliate model.
Comparing to owning your product model, the licensing model allows you to create your own information products without spending thousands of development cost. It is like an on-line franchise system that allows you to duplicate the system and market it as your own. Another word, you own the system, the customer you acquired belongs to yours. If the company sell something to your customer in the future, you receive the commission from the company. Since the money is in the list, therefore, you can continue to market your customer in the future.
It is like a McDonald franchise. Think about the McDonald, instead of trying to figure out the number, cost, labor, real estate, etc., the McDonald system shows you everything and ensure your success. When you just start the online marketing system, it makes sense to follow the model that works.
A company that I am working has a hybrid licensing model. They have affiliate product and the licensing product structure. Just to show you some number, for example, during the promote, I sold 100 copies of $1 trials, and I make 60% of a dollar. The company sales teams followed up with these customers and sold additional $25,000 worth of product. If I am only an affiliate, I would have made 60% on the trial offer or $60. But since I have the licensing to the product, I get 60% on the backend sales as well. I didn’t sell it yourself; it is the company’s sales team sell it for you. You pay 20% to the sales. You still make 40% of the $25000. Plus, I still can login to the system and get all customer’s email and include them to my own mailing list. Comparing to the affiliate system, I would have made only $60 and left $10,000 on the table.
The only disadvantage I can see is that you have to buy the product (licensing) in order to sell it. If you are an affiliate, most of the time, you don’t require to buy any of the product yourself before you promoting it. But for the licensing model, you have to actually purchase the product before you can sell it. Actually, it sounds much more integrity in it because thinking about a Lexus car sales person try to sell you the Lexus, but he / she never drive one before. Would that sound right to you?
Since the real business are built from a repeat customer that keep buying from you because they trust you. Therefore, you have a powerful repeat business. Even though they might not be able to make the purchase today, but some day, if they make the decision, you will still earn the commission.
Digital Altitude is an excellent example of licensing model. They offer both the affiliate package and licensing package. You can market Digital Altitude as an affiliate program as an Internet business.
The model is based on Apple’s ascension model that offers customers cheaper iPhone product line to the expensive Mac book product line. Digital Altitude has product cost up to $30,000. The idea about ascension model is really meant big ticket product equal to big profit. Suppose you want to make $100,000 in one year and you have two chooses. Selling 10,000 copy of $10 eBook. Or you can sell 10 coaching program of $10,000 each. The big ticket item is 1000 times more than the low ticket items; however, it will not take you 1000 times more effort to sell it. It can be 5, 6, 7 or may be 10 times more difficult, but it cannot be 1000 time more difficult. Plus, the sales team sell it for you, not you.
My Digital Altitude bonus to you when you join the $1 trail with me:
1. The complete WP Blog Videos Library ($497 value)
2. Free WordPress installation and setup ($150 value)
3. Unlimited Traffic System Full Yeas Coaching ($150 value)
That’s near $797 in bonuses, and it’s all yours for free when you apply for Digital Altitude.
Here’s the kicker. If you decide that Digital Altitude is not for you, they you will receive a full refund. However, you can keep these bonuses as my gift to you, just for trying it.
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You’ll also find my entire WP Blog Videos library. WP Blog Videos is made up of seven modules that will take you from how to register a domain name to RSS, SEO, email and social media marketing.
But Wait, There’s More!
Your Own Sales Funnel Worth $10,000
I know you’re probably looking at my sales set up and thinking, “How am I going to set up something like this all by myself?” Well, you don’t because I’m going to do it for you! ........
Read the complete description in my blog: http://paulfan.org/how-licensing-model-make-you-rich/