"Case
study of a booming online cash-machine
that earned $200,000 last year -- with a single
product!"
For
over a year and a half, my marketing team and I have published
a private web site -- "Secrets
To Their Success" -- that every month profiles two
successful entrepreneurs who are making $30,000 to $2,000,000
per year with their Internet home businesses.
Each interview
tells a real-life story of hard work and dedication, but every
once in a while a success story really strikes a chord... and
I'm reminded of my own early start in the world of online marketing.
When I interviewed
19-year-old Jermaine Griggs -- a college student who earned
$200,000 from his HearandPlay.com
web site last year -- I knew I simply had to share at least
some of his story with my "Marketing Tips" subscribers
for a couple of reasons.
First, Jermaine's
story is a lot like my own. He didn't start with any kind of
special knowledge or a whole lot of money. In fact, he grew
up in a rough neighborhood where his life could have easily
gone wrong.
And second,
Jermaine is successfully using a ton of the strategies I teach
to my subscribers. So by sharing his interview with you, I'll
be showing you a real-life example of the success it's possible
to achieve with a few of the simple techniques I recommend.
As you read
this very special interview, keep in mind that the success Jermaine
has already achieved is just the beginnning... since he keeps
testing and refining his marketing strategies every day!
So let's
dive in and see exactly how Jermaine's doing it!
QUESTION:
Jermaine, to start with, would you mind giving our readers some
background on what your site is all about?
Jermaine:
HearandPlay.com specializes
in teaching students how to play the piano by ear.
The site features
over 60 free piano lessons and six newsletters ranging from
beginner lessons to advanced music theory. So there is a wide
variety of topics musicians can explore.
QUESTION: Can you tell us about how you
first got started on the Internet? What was your first web site,
and how did you grow from there?
Jermaine:
I started on the Internet when I was about 15 years old. Basically,
I had become an affiliate of over 1,000 online merchants and
had my own virtual shopping mall. It took weeks to create --
but it only made money from ONE web site that was willing to
pay me $.50 per click!
To my surprise,
at the age of 15, I received my first check for $800 (all based
on click-throughs from my site to theirs). This was a quarterly
check, however, so I definitely couldn't get rich making $266.66
a month.
After that
experience, I was thirsty for another venture. I had taught
myself how to play the piano by ear at the age of nine and had
been asked to teach several children in the community. I developed
workbooks for all of my students, composed of several exercises
and worksheets.
Then one day
a parent said to me, “You should sell these workbooks to other
piano students.” That thought had never really crossed my mind.
So I took what I had and I made some flyers and posted them
in laundromats, grocery stores, thrift shops, etc. No one called.
Then I thought:
“What about creating a web site marketing these piano workbooks?”
And to make a very long story short, that was how HearandPlay.com started.
QUESTION: How did this site do when you
first launched it?
Jermaine:
Well, I sold my first set of five music workbooks in November of
2000. Boy, was I overjoyed. Since then, I have combined the
five-book series into a 300-page book (released in March 2002),
which has been a great success with revenues of over $200,000
so far!
I've also
created a software program aimed at helping students train their
ears. Basically, while students are studying my 300-page course,
this program will test them on the various sounds of different
scales and chords. I offer this program as a bonus item to encourage
customer orders.
QUESTION: Can you give us some background
on yourself? What was your experience before you first got started
online?
Jermaine:
Fortunately, I wasn't born with a silver spoon in my mouth. I say
fortunately because perhaps if I was, I wouldn't have had a
reason to work so hard for my success. My mom raised my sister
and me all by herself for most of our childhood. We grew up
in the inner city and I could have easily hung out with the
wrong crowd, but my mom raised us in the church.
When I was
15, I went to live with my grandmother because she needed someone
around to help. That's when my first web site was conceived.
My grandmother would beg me to go to bed at night, but I would
hear this imaginary voice telling me to stay awake and work.
I was always
studying how to make money, how to market, what customers wanted,
what customers needed, what to do, and what not to do.
So I am proof
that it is possible to start a company from your home with very
little money and the right “know-how.” It all started from my small office in the corner of the living
room of my grandma's one-bedroom apartment.
QUESTION: And
how big is your site today?
Jermaine:
Annual revenues last year were about $200,000. This year, we project
sales to be in the $350,000 to $400,000 range, with 2004 forecast
to hit $500,000.
QUESTION: How long did it take for HearandPlay.com to
start making a profit?
Jermaine:
I made just $60 my first month. It wasn't until March of 2002 that
I started making over $5,000 a month. That soon doubled, then
quadrupled.
QUESTION: How
much time and money did it take for you to initially get the
site up and running?
Jermaine:
I spent $70 because I wanted a real domain name. Besides that initial
investment, I never really spent a dime to get started, just
a lot of time.
QUESTION: Did
you design the site yourself?
Jermaine:
I've never outsourced any of my design, advertising, or other functions
of my business. Everything that you see on the site, I had to
learn how to do. That's why I stayed up so late at night, read
so many books, and invested in products that would teach me
how to do what I needed to do.
QUESTION: How much traffic are you seeing
to your site? And where is your traffic predominantly coming
from?
Jermaine:
We get about 30,000 to 40,000 visitors a month, and roughly 15,000
of them are new to the site. From that, I pull in about 3,000
to 3,500 new subscribers to my general newsletter each month.
We currently have a growing list of about 23,000 pianists who
I've managed to build a lot of credibility with.
The bulk of
our traffic comes from search engines and pay-per-click placements.
QUESTION: What are you doing to collect
the opt-in e-mail addresses of potential customers?
Jermaine:
I've included a pull-down menu on my homepage that lists all 60
of the free lessons (as though you could actually click on one
and go to that lesson). But right next to the pull-down menu
are fields that ask for your first name and e-mail address.
This form adds subscribers to my general mailing list.
But that's
just the beginning...
After they
choose a lesson on the homepage, I take them to the second part
of the sign-up process, where they can subscribe to one of my
six specialized newsletters. (According to my stats, about 70%
will do this.)This
second page collectsmore detailed information.
After completing
this form (which takes about a minute), they get access to the
member's section. That's
how I collect so many names. Out of 15,000 new visitors a month,
you have to admit that 3,000 sign-ups is pretty good!
QUESTION: No kidding! That's a 20% conversion
rate! What strategies have you used to get your sign-up rate
so high?
Jermaine:
In the beginning, I was averaging about 10 to 15 subscribers a day.
I needed a way to increase this number, so I did some research
on how other sites increase their newsletter lists quickly.
I soon found
out that all the sites I believed were making real money at
the time had one thing in common: They all had pop-ups. Not
just basic pop-ups, but more sophisticated ones. Some popped
under where you couldn't see them until you left the site. Some
could pop up 10, 30, or 120 seconds after you left the site.
So I thought,
why not put some pop-ups on my site? I figured it wouldn't annoy
someone who actually wanted good information on playing the
piano by ear. Why risk the chance of them not seeing my newsletter
sign-up form when I can put it right in front of their face?
No matter
what anyone says about pop-ups, they have increased my subscriber
rate by 10 times! I now get about 100 new members every day!
QUESTION: How often do you make a point
of following up with your leads and previous customers?
Jermaine:
Well, I actually have a number of systems in place. I mail out my
regular newsletter once a month, but the specialized newsletters
are all a bit different.
For the beginner's
newsletter, for instance, I send new subscribers a welcome letter
and inform them that I will be sending them a 10-day beginner's
course by e-mail for free. If they don't want this free e-mail
course, they are instructed to unsubscribe (but of course, no
one does).
So I get an
opportunity to send them 10 consecutive e-mails for 10 days.
You know how many end up ordering my 300-page course? About
60%!
I have a 1%
to 1.5% unsubscribe rate for my general newsletter, but the
unsubscribe rates for my specialized letters are under 1%.
Beyond the
monthly and specialized newsletters, each opt-in is automatically
put in a rotation to receive a message every 60 days saying:
“How is your piano playing coming along, Bob...?”
This works
out well because customers feel that we really want to help
them (which we do!). We even send out a message one year from
the date they first joined, saying: “It's been a year since
your first piano lessons with us, Marge...”
Not only does
each message contain a plug for my course, but each one also
helps establish credibility when they see how much they can
learn.
Follow up
is so important for me! I wouldn't be able to survive without
it.
QUESTION: So what would you say are the
top marketing strategies that you use on a regular basis?
Jermaine:
- Search
engine sponsorship --
I make sure to stay in the top threesearch results on Overture
pertaining to “piano lessons,” “learn piano,” “learn piano
by ear,” or any combination like that. I have about 250 to
300 search terms I use. I also use Google
AdWords from time to time.
My rule is that if a search engine doesn't produce $2 profit
for every $1 spent, I won't do it. So if I invest $1, I would
expect to make $3, of which $2 would be profit. The formula
really works and ultimately search engine sponsorship becomes
a numbers game.
- Affiliate
program -- I have about 350+ affiliates.
Some draw thousands of visitors a month, which turns into
thousands of dollars in sales a year.
- Advertising
on highly related sites -- I look for sites with massive
amounts of my target audience. If you find a site that attracts
exactly who you are looking for, you've probably got a goldmine
waiting to be tapped.
I've also noticed
that banners at the top of a site's homepage get click-through
rates as high as 4%. Bottom banners only get a 1% click-through
rate.
- Partnerships
and joint ventures -- I use LinkPartner Pro to find related web sites. I then contact
those webmasters and ask them if they'd be interested in partnering
for a certain period of time. From these e-mails, I've had
instructors buy my course for their gospel piano workshops.
In fact, from one e-mail and phone conversation, I closed
a deal that makes HearandPlay.com
the sole provider of material for a traveling gospel music
workshop (which reaches 500 students a year and means 500
more courses sold that wouldn't have been sold otherwise).
Joint ventures work!
NOTE
FROM COREY:
You
probably don't know this, but my original interview
with Jermaine was over 20+ pages -- far too
long to include here in full -- so I've just chosen
some of the juicier tidbits to share with all of my
subscribers.
The
full interview included tons more tips and strategies
that I just couldn't fit into this newsletter, including:
-
The exact tools Jermaine's using
to automate everything from order processing to toll-free
calls
-
The exact pop-up Jermaine uses to
convert 20% of his vistors to subscribers
-
The
one strategy Jermaine uses to get 3,000 free
ads for his web site every day!
Jermaine
was really generous about sharing EXACTLY what he's doing
to make his business work, so I would highly recommend
taking the time to check out the full interview.
|
--
INTERVIEW CONTINUED --
QUESTION:
You mention that you're tracking the visitor-to-sale
conversion rate of your traffic, both from the pay-per-click
search engines and your banner advertising... How do you do
this, and how do you monitor your conversion rates?
Jermaine:
I just assign each banner or keyword campaign a unique ID in AssocTRAC, which lets me keep track of a person from their
first visit to my site to any purchases they make. That way
I know exactly where I'm getting my best customers, which is
crucial to get the best return on pay-per-click campaigns.
For example,
according to AssocTRAC, when someone clicks on my listing after searching
for “piano lessons” in the pay-per-click search engines, one
out of 33 will buy. So if the listing “piano lessons” costs
me $.25 per click, it takes $.25 x 33 to get one sale. That
is, it takes $8.25 to get one sale, which brings in an average
of $75).
So in terms
of numbers, $8.25 yields $75 (but that's just for this particular
listing). Now wait, $75 is just for their first sale. This person
is now a lifetime customer!
QUESTION: Could
you tell us about a “light bulb” moment that you've had? A moment
when you've thought to yourself, “If only I'd known that earlier...”
Jermaine:
Originally, I was just focused on getting the sale. But I soon realized
that my mission was to help musicians reach their music goals.
After that realization, I added message boards, chat rooms,
and the like, and sales skyrocketed! Why? Because members saw
that we were a legitimate company willing to help them.
People have
no reservations buying from a company they trust and feel helped
by.
QUESTION: What have you done to automate your
site?
Jermaine:
Well, pretty much everything is automated. I don't really do anything
anymore other than look for new partners.
My shopping
cart takes the order, confirms it, and sends it to my credit
card processor. The customer then automatically receives a thank-you
e-mail.
After two
weeks, the customer automatically gets an e-mail asking how
their course is coming along. Customers are thrilled at our
customer service and actually believe that I sit down each time
to send them e-mails.
QUESTION: What would you consider to be your
major achievements?
Jermaine:
My all-time greatest achievement would be the fact that I took absolutely
nothing and made something out of it.
I hope this
encourages people not to give up because start-up capital may
be low. Make the best out of what you have! With research, dedication,
and patience, a “little” will eventually turn into a “little
more,” and a “little more” will turn into “some,” and “some”
will turn into “a lot” -- I know because I've been there, and
I'm still working on getting “a lot”!
QUESTION: What do you think has helped to make
your site so successful?
Jermaine:
It wasn't until I created a long, catchy information-packed salesletter
(set up as one long piano lesson) and asked for the sale that
my sales skyrocketed! No matter what I sell in the future, I
will never ever use a simple “buy me” link again. People aren't
online with the intention of buying, they are online for information
-- and that's just what I give them! Lots of it!
Corey, you're
my main influence and I like to use your structure (even though
we're selling totally different products). I hardly ever got
sales when I just listed a few points about the book and a picture
of it. Now, despite what anyone says about people not reading
long sales material, sales continue to pour in day after day.
QUESTION: What is the biggest mistake you
have made since you first launched your site?
Jermaine:
Hmm... When I first got started, the biggest mistake I made was placing
advertisements on my site because I thought they looked good.
Now I understand
that this is one of the biggest mistakes a webmaster can make
(especially with untargeted ads). I will never again show a
banner advertisement on my site unless it is advertising another
product of mine.
QUESTION: What major mistakes do you see other
Internet entrepreneurs making?
Jermaine:
I think the number-one mistake Internet entrepreneurs make is not
taking the time to make their site as professional as possible.
Credibility is a huge issue on the Internet and if you can't
convince your customer that you are a trustworthy company, then
you won't get a sale from them
QUESTION: What advice do you have for beginners
who are interested in selling over the Web?
Jermaine:
You need a good product! And you also need good marketing, because
a good product without the proper marketing techniques yields
nothing!
I would say,
design your product and your sales page first, test it with
various audiences, and release it to the public to see how it
does -- and never quit testing ideas and new products. Always
ask yourself, “What can I do to increase sales?” I ask this
question every night before I go to bed. It has led to so many
new thoughts and concepts. With a good product and effective
marketing, you're destined to succeed.
QUESTION: Finally, how has running HearandPlay.com impacted
your personal and professional life?
Jermaine:
The site has allowed me to become independent from my parents at
an early age while everyone else I know either still lives at
home or depends on their parents. I have been able to live alone,
furnish my home, upgrade my music studio, and attend college
without worrying about finances.
Most importantly,
it has allowed me to employ my mom, who was laid off last year.
I soon look to employ my sister and grandmother (part-time because
she loves to have something to do). Basically, everyone around
us knows about HearandPlay.com and
I think it will be in the family for generations to come (if
it doesn't get bought by a major corporation).
Without this
site, I would still be living at home depending on my parents
for money. I feel blessed and thankful for the ability and mindset
to start a business at such an early age, and I pray that I'll
have the know-how to take this venture and other endeavors to
the next level!
Final Thoughts from Corey:
HearandPlay.com
is a perfect example of how to profit from a niche you're passionate
about! Jermaine has studied all the marketing strategies he
could get his hands on and adopted the winning techniques of
successful sites.
What can
you learn from Jermaine's success? Well, if you have a service
business, sell information, or want to boost your subscription
rates, here are some of Jermaine's strategies you can start
using right away.
- Help
people, don't sell people:
Once Jermaine realized that his visitors were looking for
information and were not necessarily ready to buy right away,
he focused on creating credibility and offering tons of value
through free courses and e-mail newsletters.
-
Follow up with your visitors:
Offering free courses as daily e-mails over the space of a
week or more is a great way of building a relationship with
your vistors. If you have any information that lends itself
to a daily or weekly "lesson," experiment with presenting
it as an autoresponder series from your site!
-
Create a great opt-in offer -- and make sure people see it:
No matter what your opt-in offer, make sure your vistors see
it! Jermaine reports that his subscription rates jumped to
nearly ten times previous levels once he introduced strategic
pop-ups to encourage visitors to sign up for one of his newsletters.
-
Know the value of your marketing:
Jermaine manages to squeeze great value out of his $1,500
a month marketing budget, thanks to his ability to use AssocTRAC
to track the value of every single cent he spends on pay-per-clicks,
banner campaigns, and any other advertising. If a specific
keyword or web site is under- performing, he can pull it right
away (or tweak it to boost value). By not relying on instinct
alone, he's making the most of every penny.
-
Long copy sells:
Jermaine reports an explosive growth in sales once he switched
from simply listing the features of his course to providing
a full-length salesletter -- presented as a lesson -- and
asking for the sale.
Remember,
Jermaine's story is just one of the in-depth interviews at Secrets
To Their Success. Every month, I post two new interviews and
a site review, so there's always tons of great material for
you to check out.
In fact,
right now there are over 250 pages of information already posted
on the site. And I always make sure to get the real "nitty-gritty"
info from the netrepreneurs I interview so that you can literally
model their success. (And find out exactly which tools and resources
they're using!)
It's a really
great resource site that I'm actually pretty proud of, so I'd
love it if you could check it out. Just go to:
www.SecretsToTheirSuccess.com |