Aaron Hoos

In a previous blog post, I listed 99 ways to optimize your sales funnel and grow your business. One of the tips I gave was to “Look at businesses you’ve bought from who share a similar business model. Map out their business plan to see how it compares to yours.”

Here’s how to do that:

STEP 1: KNOW YOUR BUSINESS MODEL
First, you need to know what kind of business model you have. If you already know your business model, you can skip this step. However, it might be useful to do it anyway. Although there are different ways to define a business model, here’s a few ways that you can narrow down the search:

• Do you sell products and or services?
• Do you sell something you, yourself, provide or are you a broker/agent/affiliate?
• Do you sell a one-time purchase (i.e. an ebook) or an on-going purchase (i.e. a subscription)?
• Do you sell primarily to consumers or businesses?
• What problems does your product/service solve or what needs does your product/service fulfill?
• What does your target market look like? What does it NOT look like? (i.e. who do you sell to versus who don’t you sell to?)

STEP 2: FIND OTHER COMPANIES THAT YOU’VE BOUGHT FROM
Now that you have some notes about your business model, think about other companies you’ve bought from in the past that are similar. You’ve defined a sort-of “mosaic” and you probably won’t find a company that is exactly the same. Try to find a company that fits parts of this model. In fact, try to find a few companies like this.

And, I’m advising that these be companies you’ve bought from, simply because you’ll have gained a great view into their sales funnel – you’ll have seen every step of their sales funnel from the “inside” of their sales funnel!

STEP 3: COMPARE SALES FUNNELS AND TAKE NOTES
Now, compare their sales funnel with yours and take notes. Use the Sales Funnel Worksheet to track how you entered their sales funnel as an Audience member, how you moved through the Lead and Prospect stage, and finally how you became a Customer. And, if you became one of their Evangelists, track that, too. In particular, take note of:

• How you entered their sales funnel as an Audience member.
• What they said or did that convinced you to listen to them as a Lead.
• What sales techniques and marketing collateral they used to sell you as a Prospect.
• What objections you had and how they overcame those objections.
• How long it took you to go through each stage.
• What actions (“triggers”) you performed to move from one stage to the next.
• How you responded to the product/service when it was delivered. (Was it quick? Did you sense the value you hoped would be present?)

STEP 4: MODIFY YOUR SALES FUNNEL
Draw inspiration from the successful ideas that worked on you – the techniques that moved you through their sales funnel from their Audience stage to their Customer stage – and apply them to your own sales funnel.

If your sales funnel is completely different, consider setting up and testing a sales funnel that is very similar to theirs to test against your existing sales funnel.

Or, start smaller by integrating some of the more successful tactics on a regular basis.

STEP 5: REPEAT
This is one of those exercises where it doesn’t hurt to do it again from time to time. Depending on how often you buy, consider doing this at least once a quarter or even as often as once a month. You’ll progressively improve your sales funnel!

A friend of mine wants to start blogging — specifically to become an affiliate marketer — and he asked for some tips to successful (monetized) blogging. I started writing an email to him and then realized that I answer this question for people quite frequently so I’m posting the answer here and I’ll link to it whenever I’m asked. (#lazy)

Here’s a list of my top tips for becoming a successful monetized blogger (in no particular order):

1. Pick a niche. If you want to monetize your blog, choose a target market and write for them. It’s okay to weave in other topics (I primarily write about sales funnels and related topics, but I’m also an amateur economist and write occasionally about the economy, which is probably interesting only to me). And it’s okay to share some of your own personal life (I’m sure your kid’s first words are fascinating to every imaginable niche) but try to keep the majority of your posts relevant to your niche. And it *almost* goes without saying that your affiliate offerings should be related to your niche.
2. Add value. If you want people to come to your site, give them a reason. If they can get the same information anywhere else there’s not much reason to read your blog. Add value and have a point of difference compared to your competition. (Oh, which reminds me, you’ll probably want to do some competitive research at some point — get a feel for what other people are doing in the same space and figure out why you’re unique).
3. Add value first. I get that you want to monetize your blog. But add value first. Don’t stuff your blog so full of “monetizationness” that the good content is hard to find because there are too many shimmery, flashy ads. It’s like the seedy side of downtown: There might be a cool little bar, but it’s hard to find because there are so many skanky bars and hotel signs offering rooms for rent by the quarter-hour. Post good content. Make it central. Then integrate your ads and affiliates. Once you’ve build up some credibility as a quality blogger, you can integrate blogs that are specifically about an affiliate product. But it shouldn’t be your first blog post and it shouldn’t be the only thing you blog about. (“That hilarious story about my puppy driving my car reminds me of this fabulous network marketing opportunity that you’ll want to get in on the ground floor right now!”)
4. Be business-minded. Treat your blog like a business. Take it seriously. Be customer-service oriented. Be fair. Offer value. Think strategically. Most importantly, keep focused on why you’re doing this and remember that your up-front time writing good content is an investment into a payoff that will happen later. I say that because you’ll grow tired of blogging in a few months. You might even give it up for a while. And then you’ll write a post that says “I haven’t updated in a while”. Check out this blog post (from waaaay back in the day) about some ideas for a variety of different kinds of blog posts to write. So it’s important that you always keep reminding yourself why you’re doing it. Oh, and this might be helpful: Here are some ideas to monetize your content if you ever want to move beyond affiliates.
5. Write for the long-haul. Monetizing a blog is a long-term effort so don’t start rubbing sun tan lotion on yourself just yet. You can eventually enjoy a drunken week on the beach while your bank account rings like a cash register, but it won’t happen tomorrow.
6. Plan the hell out of your subject matter. I’ve seen want-to-be bloggers with dollar signs in their eyes burn out in a week. They write a bunch of stuff — maybe material for a week or two — then stare blankly at their monitor. It feels like writer’s block but it’s not. It’s horrible planning. Whenever I work with a client to help them develop a sales funnel that includes blogging, I typically create at least 3 months of blog post topics. For myself, I usually have a year’s worth of blog topics on paper, I prefer to have 1-3 months of blog posts scheduled (i.e., I know what I’m going to post 1-3 months in advance) and I try to have 1-4 weeks of blog posts pre-written. Of course, if I need to move them around, I can, but I want a rolling batch of pre-written work. You’ll be amazed at how fast you go through them if you don’t! (How do I know that? I’m writing this the night before I want to publish it… #failtofollowmyownadvice).
7. It’s a sales funnel. It shouldn’t surprise you that I’m mentioning this. Your awesome blog that is stuffed with high-value content and insanely compelling affiliate links will earn you a big fat $0.00 if you don’t get people to visit your site. There isn’t a magical genie that tells people to go to your site. (Well, there is, and his name is Guy Kawasaki but you have to leave more than a measely quarter under your pillow for him to send people to your site). So market your site like crazy: Twitter, articles, press releases, guest blogs. At some point, you might even want to experiment with advertising (like Google AdWords).

There are other things you can do, too: Build a list and send out emails. That’s big, but I think that’s “step 2″. Step 1 should be: Just get your blog up and running and follow these tips to get started.

Oh, and while I’m dishing out free advice like a late-night buffet, here’s another blog post that you might find useful: “The Entrepreneur’s Silver Bullet“.

In the American Express OpenForum, author Braden Kelley explore an equation he calls “the innovation equation”. You can read the full article here.

But calling this equation an innovation equation falls far short of what it really is (in my opinion). I think this equation is brilliant but it is so much MORE about your sales funnel. In a way, it’s your entire business model summarized in one small sentence.

Kelley’s equation is this:

Innovation = Value Creation x Friction Reduction x Value Translation

In short, he says that your innovation is the result you get when you combine the value you create for customers (what benefits do they enjoy when they buy from you?), the ease with which they interact with your business (how simple is it for your customers to buy, use, and benefit from your product or service?), and the way that you communicate your value with your buyers (how do you express your value to your sales funnel contacts?).

I agree that this is an innovation equation but I truly think it’s much more. It’s a business model equation; it’s a sales funnel equation. It’s a way for an entrepreneur to sit down and think about how they’ll sell to customers.

Understanding these three elements is a huge step toward starting a business.If you’re a business owner who is just getting started in business, and you’re not sure yet what you want to do and how you’re going to do it, start with this equation. Work through each of the three elements listed above and you’ll end up with some significant headway in understanding your business opportunity.

If you run an existing business, this is a useful way to re-evaluate your business: Are you adding as much value as you can? Are you reducing friction? Are you communicating your value effectively? Chances are, if your business is struggling, the problem exists in one of these three areas.

The secret to being a successful, profitable freelancer is to treat it like a business. Set aside time to work, set aside time to live. Manage your expenses and income. And most importantly, build a sales funnel and fill it with contacts from your target market.

If you’re thinking about becoming a freelancer, or if you are already one and trying to improve your success, start by creating a sales funnel. A freelance sales funnel will help you to focus your time by marketing in the right ways to the people who are most likely going to buy from you. And, by constructing your sales funnel effectively, you will reduce the amount that you need to sell (and increase the amount of people who come flocking to you).

ANSWER THESE QUESTIONS TO BUILD YOUR FREELANCE SALES FUNNEL
Start with the Audience stage of your sales funnel.

• Who is your target market?
• Where do those people spend time?
• What problems do they have?

Next, think about the Leads stage of your sales funnel.

• How will you know that they are Leads?
• How can you show them that you are an expert at what you do?

Next, think about the Prospects stage of your sales funnel.

• How will you know that they are Prospects?
• How can you offer your services to them?
• What specifically will you sell to them?
• How can you provide your Prospects with the assurance that you can be trusted?
• How will you know when they’ve agreed to buy from you?

Next, think about the Customer stage of your sales funnel.

• How will you know that they are Customers?
• How will you deliver your services?
• How will they pay you?

Lastly, think about the Evangelist stage of your sales funnel.

• How will you know that they are Evangelists?
• How can you get them to buy from you again?
• How can you get them to promote your services for you?

MY FREELANCE SALES FUNNEL
I’m now going to write out the sales funnel I used when I was a freelancer. I’m only going to give you the most basic version of my sales funnel. There were other elements, but you can build out and scale up (or down) your sales funnel as you see fit. But here’s a starting place if you want it:

• Audience: I would search Guru.com for freelance writing projects posted by business owners.
• Leads: When I found a particular project, I added it to my Watchlist (a sort-of short list that is built into Guru’s interface).
• Prospects: This was a multi-step stage of the sales funnel for me: I would submit a proposal and then point the business owner to my blog. We would usually exchange emails or a phone call and then he or she would accept me as the professional for their project.
• Customers: I would write the content they needed and submit it. When they were happy with it, they would pay me.
• Evangelists: This was another multi-step stage of the sales funnel: I would usually connect with them on LinkedIn and Twitter, solicit at least one testimonial from them, and offer them additional services from time to time.

That’s it! That was a very basic version of my sales funnel. Over time, I added other elements at each stage, but if I ever had to start back at zero all over again, I’d do the same thing with this basic sales funnel.

If you’re a freelancer, feel free to adopt this sales funnel and apply it to your business. You don’t have to be a freelance writer — it works for all kinds of freelancers, consultants, coaches, and more.

Throughout history, humankind has followed the same cycle again and again: Explorers discover a place, settlers follow, and builders develop that location. People live there for a long time. The the place becomes built up, even to the point of becoming in-grown. Land becomes a premium. Organization and structure reign (and can even oppress). Then, new horizons are spotted and the cycle repeats.

This was the case when humans journeyed out of the cradle of civilization. It was the case as people spread across the continents and the oceans. And it’s the case today as we reach for the stars.

The same thing happens in business with three kinds of entrepreneurs: The explorers create innovative new opportunities, the settlers follow, and then builders arrive later and develop.

• The first wave of entrepreneurs are the explorers who are trying completely new things. They’re creating new spaces. They’re discovering. Think: Ebay, Paypal, Yahoo, Google, Twitter, Facebook… and don’t miss the important lesson that there are other search engines and other social media that were there first but didn’t make this list. And I’m only using a marketing example here, but this explorer/settler/builder model is true in every industry.
• The people we call “early adopters” are actually setters — the second wave of entrepreneurs who see the opportunity explored and know that more people are coming. Think: People who cashed in early on Ebay or sold Google AdWords services. Or, think of Chris Brogan’s position in Twitter or Mari Smith’s position in Facebook. (And again, don’t miss the important lesson that there are other entrepreneurs who tried to settle and didn’t.
• The final wave of entrepreneurs are the builders. They may not do really innovative things but they create systems and structures and franchises so that many others can inhabit these spaces.

What kind of entrepreneur are you? Knowing this changes everything and prompts a number of question: How does it impact the work you do? Where should you invest your time and money? Who should you partner with? How does it influence how you define “success”?

SO WHAT’S NEXT?
If you’re an explorer, you need to be searching for the parts of the map that say “here be dragons.” Consider where are the frontiers are — overall and in your industry — and push them.

If you’re a settler, you need to be thinking about the frontiers, too, but you also need to keep your eye on the explorers. You need to think about how you can get in early.

If you’re a builder, you need to watch the headlines and see what’s coming up on the public’s radar. Get in as early as you can and create franchisable systems.