| | 1. Sign a contract with an appropriate integrated ad agency (suggested www.IdeaMamaAdNetwork.com). |
| | 2. Build a list of things that you are truly passionate about. |
| | 3. Discuss them with your agency and ideate together on the new web model that can have great market potentials and multiple monetization opportunities. You don’t have to know all of that; the appropriate agency will get it done for you. |
| | 4. Make your agency buy or design the spec for a suitable web product that they can market via their existing channel partners. |
| | NOTE 1: Typical ad agencies cannot serve your needs, as media buy is very costly; with your budget you will go nowhere. You partner agency has to own an advertising network, multiple contracts with large publishers & distribution partners to plan and execute a massive product launch for you. |
| | NOTE 2. Why web product? Online business requires no inventory, no complicated logistics and can be run from your basement or a rental apartment next to the ocean, surrounded by palm trees and beautiful half naked people. LOL |
| | 5. Make your agency identify your target market. |
| | 6. Make your ad agency specify their new product launch marketing plan and allocate resources for implementation of the integrated program. |
| | 7. Make your agency use their outsourced product development team to design a winning product for you. |
| | NOTE: if they don’t have a shop in one of the countries with great talents and low wages, your product is doomed to fail, as $10K will take you as far as user interface design (not even) – forget about product development and marketing. |
| | 8. In 2-5 months (depending on the complexity of the product) you will have a fully functioning web with a sexy digital product, ready for user Beta testing and splendid launch. Get ready to collect your cookies. |
| | 9. Make sure that you run a soft launch first, slow and steady, to make sure that you can catch up with customer service for first 1000 of users that bought your product. |
| | 10. As soon as you have learned all potential pitfalls and designed the process to deal with all question s and concerns, give a green light for your agency to go ahead with full blown product marketing, media buy, advertising and product distribution. |
| | Additional benefits of this approach: |
| | - You need no board of directors over your head. |
| | - You need not waste years of your life selling your idea to investors that cannot care less about your great vision, only ROI. |
| | - You own your business and entitled to 100% of equity in it, and your stocks never dilutes. |
| | - If you decide to sell your business you never need to wait for reaching consensus with your board members on “to sell or not to sell”, when to sell, to whom, and at what price. |
| | - You can run it when you want, from where you want and take as many days off as you wish… yes, to hang out with hot girls (or boys) LOL without being concerned about your business performance data in reporting documents for your board. |
| | - If you decide to sell, you are a holder of 100% of equity; not just 5-10% that is left after you sold your life away - gave away majority of your shares to other co-founders and investors |
| | You might wonder, how exactly you are going to make a million from $10K and at which point your agency will scream “show me the money”, as obviously with your $10K startup capital they are at loss; they act as partner-investor rather than a typical creative services agency. |
| | To have full transparency let’s crunch some numbers: |
| | EXAMPLE: |
| | - Your investment in product development is $10K (heavily discounted development price) |
| | - Your digital product will sell at $19.99 (as example) - monthly subscription or download or… (whatever form of conversion will be there). |
| | - Let’s assume that you agency through its distribution channel sells 6000 units/months (average result, neither optimistic nor pessimistic – will heavily depend on areas of your expertise, interests, selected segment and user demographics). |
| | - Your annual sales in this case will be: $1,439,280. |
| | - Your agency will take 30% (can vary depending on selected industry vertical and customer acquisition cost) |
| | - Out of these affiliate commissions your agency will pay 70-80% to their distribution partners. |
| | NOTE: You will be required to prepay small portion of distribution partners commissions - deposit additional $10K (fully refundable deposit that will ensure all your marketing partners that commissions are actually paid; prepayment is an alternative to an extensive credit and references check, which still might put your partners at risk, if you just decide never pay your commissions - unfortunately it’s not uncommon practice; business integrity is not a default quality… too bad, life would be easier for everybody). |
| | It all means that after commissions are paid, you are left with: $1,007,496 in annual revenue out of which $800,000+ can be your profit (depending on your profit margin and operational costs, of course). Together with your advertising agency – integrated performance marketing partner - you can then design additional monetization ways for your web property and boost your profitability. |