I prepared a summary of The Circle of Profit, a book by Anik Signal.
Who is Anik Signal?
He sold many digital products worth over 100 million dollars. BusinessWeek has listed him in the top 3 best American entrepreneurs under the age of 25. His company was listed twice as the fastest growing business in America.
Anik states that there is a lot more potential in producing digital products than physical ones because there is a higher margin. Digital products described in this book are based on recommending other products in return for a percentage of sales known as affiliate. You can get up to 75 % margin through the Clickbank page.
The three steps to succeeding in digital business recommended by Anik are:
- find a topic that interests you,
- get as much information on that topic as you can or offer valuable informative content,
- start thinking about monetizing the content and making money.
Interesting statistical information: by 2020 there will be 5 billion people online and the ebook market in the USA is growing by 250% each year.
The essence of the book The Circle of Profit:
It’s a system where you first need to build your targeted audience based on your topic and then recommend them other products over email and get a percentage from every bought product.
When you achieve this, you can produce your own digital product and get higher margins.
Before you decide on a niche, Anik suggests that you look through the 5 key components which will help you determine whether the niche you have chosen is profitable:
- your product can be a digital product (you can create a digital product on how to invest in stocks),
- competition (never be the first to produce digital products in the niche. Check Clickbank and the world leading platform for video studying Udemy and, of course, search on Google).
- market size – Anik suggests that the audience in your niche should be at least one million (on Facebook, under Size of audience) and based on these countries: USA, Canada, Australia, New Zealand, Great Britain, France, and Germany,
- Use the Google Keyword Planner tool to show you the number of searches for a specific keyword that you have chosen. It should be at least 10 thousand searches per month.
- long-term potential – how long will your buyer be interested in buying your digital products.
Top 3 profitable niches for this system are health (psychic, spiritual, emotional), wealth (business, investment) and relationships (marriage, dating, parenthood).
What is the biggest fear people are facing in the digital product business?
How to get visitors to your website. There are a lot of free possibilities that can help you get traffic to your website such as blogs and forums (some forums have over 2,000 views per topic). Remember to include a link to your web page in the signature when writing on a forum (Anik was able to get his first 10,000 dollars online by using forums), use Facebook ads, social media, affiliate networks, etc. If you are totally new to this, you can pay someone to use their mailing list. People who are willing to sell you their mailing lists are on Clickonomy.
What kind of website do you need for this business?
Anik recommends a one page website as simple as possible. The goal of your site is to have a great title, a free gift, and a call to action – visitors will leave their email in exchange for your free gift. Make sure you include the word free in the title to get more attention. You can create your page with Leadpages.
How many emails should I send to my audience and what should they contain?
Anik recommends that you send emails 4 to 5 times per week – 20 emails per month. Focus on emails with valuable content, but send a promotional email once a week as well, recommend the product and get your commissions. For the first 10 days focus on creating stories about yourself and building trust. Once they trust you, it is easier to sell them your products.
How many emails should I have per month to start making money?
Your first goal should be 10,000 emails. If 5% of the readers of emails click on your link, it means you will get 500 visitors to your page, and if the conversion rate is 2% it means 10 sales. If you are recommending a product that costs 97 dollars and get 75% commission, your profit will be 727,5 dollars.
Emails are the key – how much are they worth?
The average price of an email should be around 1 dollar. Based on the niche you are working in, the price can be from 50 cents to 5 euros. With the right system, you can generate a profit of 15,000 euros per month if you have a base of 15,000 emails.
What is the selling method that is being overlooked?
After visitors give you their email to receive a free gift, be sure to send them to your thank you page, include another offer on it, and create sales right away. This is something that people are not using.
I also recommend that you check out Anik’s blog and get more detailed information.