Understanding The Internet Growth Cycle
There’s a recurring pattern that can be described as The Internet Growth Cycle, which you’ll notice while studying various online information marketing businesses and gurus. Despite its dominance in the world of information marketing, it can also be applied to many other types of businesses.
The cycle is not a clean-cut one, meaning that there are ways of adapting and modifying it, but it helps to have a clear understanding of the principles and rules before trying to alter it to suit your business. The four steps to The Internet Growth Cycle are as follows:
Step One – Build A List
You’ve probably heard how important it is to build a list. What you have to do is create a list of people who are interested in your particular niche. There are several ways to do this, but a common way for information marketers is to offer something of value for free (such as a free report) so that you can collect the optin list. This is a classic model that is used time and time again.
Step Two – Become An Affiliate
Becoming an affiliate means that you start promoting other people’s products. This is a necessary step because it saves you a lot of time, and allows you to start making money as well. In the world of information marketing, it’s common to get paid 50% or more for promoting other people’s information products, software or products, without having to create anything (e.g. customer support, merchant gateways, sales copy, etc.).
Step two allows you to begin monetising your list at a much faster rate by simply tying it to other people’s products that are already available. Step two can be thought of as a verification process that also gives us the confidence and knowledge to move on to step 3.
Step Three – Create And Sell Your Own Products
This step is much more complex to set up, but it’s a vital one that is worth taking the time to understand. During this phase, you’ll have to create your own service or product, provide sales pages, handle customer support, deal with merchant gateways, etc.
The beauty of performing step two prior to this step is that you’re already generating revenue. Another plus is that you’ve already been able to identify what types of products sell well, so you can have an inkling of whether your idea for a product or service will be successful and whether you’ve found a niche that is willing to spend money.
Step Four – Build Your Own Affiliate Program
Once you set up your own affiliate program, you’ll start recruiting other people and having them send you more traffic. Once they begin sending you more traffic, and the traffic leads to sales or optins, then you start building your list. As you can see, you’ll start again from step 1. However, now you’re building a list that has more qualified traffic and you have a higher quality customer list.
To put it simply, the Internet Growth Cycle works like this – The customers that you collect from step four are going to convert better when you present them with new affiliate offers (step two), which allows you to develop more products in the future (step three) and then allows you to recruit more affiliates to generate more traffic, which will come back around to step one.
Once you understand this four-step process, you can start learning how you can apply it to virtually all types of businesses (both offline and online). Take a look at the cycle and find out where you currently stand. If you are trying to do all of it at once, take a step back and focus your attention on where you need to be, to get even better results.
This article touches on one of the many topics that are discussed in Leon Jay’s latest book: Create, Automate Accelerate. For more information, visit CreateAutomateAccelerate.com