An information business is a service-based business where you can use a skill, talent or experience that you already have and package it up to share your knowledge with your clients.. These skills could be anything - from parenting to sales consulting to playing the guitar to sewing. Almost any information can be packaged up to create a product you can sell.
There are a variety of options to communicate your service or information:
- Private tutoring
- Live group classes - online or in-person
- Online programmes
- 1:1 Coaching, Consulting or Teaching
In the beginning of your business, you are going to have a limited audience. It takes time and effort to grow your presence online.
For example, imagine that you want to sell an e-book at $10 each and you need to make $3,000 per month. You'd need to sell 300 e-books a month! About 1% of your audience will buy, so you will need to reach about 30,000 people! It takes a long time to grow a 30,000 person audience!
Contrast that with a premium package costing $1,000 or more. You would need to sell just 3 premium packages to earn your $3,000 and so you would only need 300 people on your list! That’s just 10 people a day for a month!
Now, naturally, you can only charge a premium price if you can create premium value for your clients.
Here are three ways you can do this:
If you wanted to lose weight, which would be more effective - buying a $10 workout DVD and a healthy eating cookbook or hiring a personal chef and trainer to work with you every day?
In the former case, you would probably do great the first day. But pretty soon, it would be hard to get up for the gym on that rainy day, or you would work late and forget to buy all those fresh ingredients for your healthy dinner. In short, you would slip up. Instead, imagine if delicious healthy meals are being delivered every day and a trainer is knocking up at your doorstep every morning at 6:00 AM on the dot. Would you be more likely to stick to your diet? For sure!
This is because of accountability and expertise. When you have someone else showing up with you, it helps you stay committed.
The chef would know what he was cooking, and the trainer would make sure you gave your best for every exercise. Accountability is a hugely valuable resource. It is often the reason people succeed or fail. It is exceedingly valuable to add a personal or bespoke element to your offer.
FOCUS ON RESULTS
You can do this by creating a series of coaching sessions, a curriculum of lessons, or a set project for consulting. Focus on a specific outcome you would want your clients to achieve. By going through the whole series, they can accomplish their goals.
For example, if you want to teach French to someone for their job, what is one class going to do? Not much. But if you would give them a curriculum over 6 months, they can probably learn decent French and fulfil their objective of being able to work with French clients.
Once you’ve got your package, you need to consider the price. It is very important to look at the value you are offering. If your French course helps your client get a promotion and earn $5,000 more per year - that’s super valuable! Plus, they can be able to work in Paris and eat baguette and macarons a few times a year! Amazing! What would that be worth if they had to pay for their trips themselves? Maybe another $5,000? That’s $10,000 of value total.
Can you see how amazingly valuable your work can be for other people? There are skills that you often take for granted - like speaking French or having confidence or getting over a breakup. It is not just from a monetary perspective, but how it can help them in their personal lives too?
UNDERSTAND THE WHOLE VALUE
My clients come to me to build a business and it’s so great when they start getting clients and making money. But, they also become so much more confident through the mindset work I do with them. They set better boundaries with others, they speak to themselves more lovingly, and they create priceless freedom lifestyles, too.
When you list out all the ancillary benefits the client receives, you will see just how much your product is worth. Once you know the value you offer, you can create a price that is a fraction of the value offered, but also premium enough that you are well paid for your time.
What do you think about premium businesses? Is this something you could incorporate into your current or future business? Leave a comment and let me know!