Virtually anybody who owns a business or is thinking about starting one should abide by the 80/20 rule.
This advice is well taken, but it raises a couple of questions, like how does it really apply to everyday life?
Dr Glenn Livingston is a psychologist and research savant who has become a true guru in online marketing.
He’s developed a simple but effective survey method to identify the 20% of your market that will produce 80% of your revenues. It poses three questions to visitors regarding your product or service:
Create a spreadsheet and load all the responses you received. Then, separate everyone who selected the first two options in Question 3 and dial in on those who said the solution they’re seeking was very hard to find.
There’s your 20%.
Getting traffic to your product or service is a wonderful thing, but conversions are your goal. Those visitors who intensely searched for a solution are the ones who will provide them.
Perry Marshall is a renowned marketing strategist. He makes a salient point regarding compensation for those who provide solutions to those who do intense searches for them:
- $10 per hour jobs solve small problems.
- $100 per hour jobs connect people who have small problems to better solutions than before.
- $1000 per hour jobs solve hard problems with better solutions that hardly anyone else even knows about.
- $10,000 per hour jobs solve hard problems by creating new solutions that did not previously exist.
By extension, that’s why marketing high-ticket solutions are the stalwarts of a successful e-commerce entrepreneur’s portfolio.
So, there’s your action plan. Attract traffic to a high-ticket item and identify those who are truly looking for it. The elements and method are there. Make use of them, and your quest to achieve the Dot Com lifestyle will be well underway.