Secret 1 of 3: How knowledge or expertise can be used to build a 7-figure expert business…

In today’s episode, we’re going to cover the first of three secrets to success in building your own expert business. Secret number one is the expert business model itself. How knowledge and expertise can be used to build a seven figure automated expert business.

[fusebox_track_player url=”https://episodes.castos.com/buildyourexpertbusiness/BYEB3-Podcast-Final.mp3″]

Some people think that it’s impossible to make six, seven, or even eight figures in online business that it’s all smoke and mirrors, rented Lamborghini’s and private jets and all kinds of fake, nonsense. Or that only a few people can really ever be successful or that it’s limited to just a handful of people that are, that are real outliers.

Here’s what I discovered is when I decided to create a virtual summit and started interviewing dozens of successful online expert business owners.

I began putting together lists of people that I wanted to potentially. I was trying to, thinking to myself, well, how many successful people could there be out there? My bar was really anybody that was full time doing an expert business either by they’re still employed or, or on the side, but basically putting full time effort into it and was making at least six figures a year from their expert business.

So I thought it might take me a couple of days or a week to find the 10 or 20 people that I wanted to interview there. But once I started doing that research, it was actually pretty easy to find a lot of people that we’re reaching those levels of success. So I was pretty quickly able to get to the, 20 or so that I wanted to interview for that particular virtual summit.

It actually only that one sent me an hour or two to discover over a hundred people that fit those categories and was more time. I’m sure I could have found a few thousand at least. So in the end I found a lot of people that were building expert businesses. And then obviously the next question was, well, how are they getting to six and seven figures and beyond?

In this episode, I'm going to cover the first of three secrets to success for building your own expert business. I'd spent the last two years researching and interviewing some of the most successful online entrepreneurs in the world as they built their own expert businesses. Now I'm building an agency that helps skilled professionals like you and me do the same, build a business around their expertise that delivers wealth, impact, and legacy. The real question is this: How can we build six, seven, or even eight-figure expert businesses while still employed without spending all our money or becoming a stranger to our families? This show is here to give you the answers. Join me on this journey and learn how to start, succeed, and scale you're own expert business. My name is David Ziembicki. Welcome to the build your expert business show!

Hey, everybody, David Ziembicki here. Welcome back to the show. In today's episode, we're going to cover the first of three secrets to success in building your own expert business. Secret number one is the expert business model itself. How knowledge and expertise can be used to build a seven figure automated expert business. So some people think that it's impossible to make six, seven, or even eight figures in online business that it's all smoke and mirrors. He rented Lamborghini's and private jets and all kinds of fake, nonsense. Or that only a few people can really ever be successful or that it's limited to, you know, just a handful of people that are, that are real outliers. Now what I discovered is when I decided to create a virtual summit, um, I talked about it a little bit in previous episodes where I started interviewing dozens of successful online expert business owners.

I began putting together lists of people that I wanted to potentially interview, right? And so I was trying to, thinking to myself, well, how many successful people could there be out there? My bar was really anybody that was full time doing an expert business either by they're still employed or, or on the side, but basically putting full time effort into it and was making at least six figures a year from their expert business. So I thought, yeah, you know, it might take me a, you know, a couple of days or a week to find, you know, the 10 or 20 people that I wanted to interview there. But once I started doing that research, it was actually pretty easy to find a lot of people that we're reaching those bars of success. So I was pretty quickly able to get to the, 20 or so that I wanted to interview for that particular virtual summit.

The other bar that I set was people that were doing it, with either themselves or with small teams. What I did find out was like very few people were doing it absolutely alone, but the vast majority of them only had teams of themselves plus maybe one to three or four other people. Um, and that was what took what it took to get them to that six or seven figure range. Then as I interviewed some folks that were, uh, edging into eight figures, you know, so $10 million plus I'm in sales or revenue from their expert businesses. Then of course the team size is starting to get a little bit larger. The cost started to get a little bit higher. But that was the point of the exercise. It was to find out what was possible at the different price points at the different expertise levels and experience levels that people had.

So basically, like I said, it actually only that one sent me an hour or two to discover over a hundred people that fit those categories and was more time. I'm sure I could have found a few thousand at least. So in the end I found a lot of people that were building expert businesses. And then obviously the next question was, well, how are they getting to six and seven figures and beyond? So what I found was confirmation of, of kind of this online urban legend, you know, that's out there. So you may have heard this term, all you need is 1000 true fans, right? 1000 people that are, um, need the information you have or need the products and services that you might be able to create based on your particular expertise. And what I found was that was true. I mean, most of the people that I interviewed did not have tens of thousands or hundreds of thousands of fans and followers and customers, but they did have, you know, the quantity that was needed to get to six seven and eight figures.

So again, it only takes a thousand people buying $1,000 product from you to get to $1 million in revenue. Um, so basically in the grand scheme of things, you need to find 1000 people out of the 7.5 billion people in the world, or in the end, that's a conversion rate of like .000001% right? So if you can find point zero zero zero zero zero 1% of the population that you can serve with some kind of product or service or some value equivalent to $1,000 then that's your first million dollars in revenue. Okay? So that's kind of the surface level stuff. We want to dig a little bit deeper into that. So as I have interviewed and worked with successful expert business owners, what I've also found is there are a lot of different ways to get to those numbers. Yes, you could do a mid level thousand dollars product and then try to get the hundreds or a couple of thousand customers that you need for that.

Other people use what's called a high ticket model. They have a 10 or 15 or $25,000 program. So that, you know, it only takes 40 customers at $25,000 each to get to that million dollar revenue number. And obviously the other end of the spectrum is people at the low end, the people selling, you know, five, 10, 15 or $20 ebooks or you know, really small, you know, uh, physical products or you know, journals or something like that where yeah, you need, you know, 10,000 customers in order for that to come out to $1 million. So there's a lot of different ways to get to those numbers. And that's one of the keys to the expert business model is understanding those numbers, understanding what your market might accept, what type of expertise you have, and what of those price points to target. So in the end, what I found out was that both the people that were successful and the people that were good at teaching a lot of these concepts all landed on a very similar pattern.

And what that was a pattern was with starting out with a middle tier type of offer. So some kind of course program, a set of done for you services, um, you know, any type of thing that could productize your expertise and then basically coming in at a price point of anywhere between $502,000. So that is like what's called a core or flagship type of product. Then once the folks have created those and started generating some sales, then they moved both upstream and downstream from that core product. So what I mean by upstream is you may not be able to sell somebody a 1500 or $2,000 product on your first contact with them. So most of the people that are successful in this business also have lower end entry level products, anywhere from 10 to a couple hundred dollars that are easier for people to buy and consume earlier in your relationship with them.

So as an example, you know, in the information, you know, product type of business, like in my case, one of the, uh, the entry level offers that I have is something that's called the expert business blueprint. So it goes into a lot more detail about a lot of this stuff that we talked about here, how to start succeed, scale, all the different steps in it. Um, you know, but it is information, it's valuable information, but it's something that can be sold for anywhere from 10 to a hundred or $200 depending on which pieces and elements you know, that people buy into. That's an entry level of product that sits upstream of core offerings that I have like larger courses or of course the full agency program, which is more in that, you know, that high ticket type of scenario. So the combination of, you know, entry level, uh, core product, high ticket, that's what's called a value ladder, right?

So the prices are proportional to how much value you provide to a customer. Um, you're not gonna charge somebody $25,000 and they'll never pay for it if, uh, you know, you only get on the phone with them for 10 minutes once a month, right? The value just doesn't equal the price in there. Uh, but at the same time, you don't want to give huge amounts of value in a low dollar, you know, type of product because it's worth more, you know, the person gets more value out of it. So you should charge more for that. So designing your value ladder is one of the core elements of the expert business model. And that's really what makes the numbers work. So a couple of quick examples of numbers. So let's say you create three products, um, and what I mean by products is something that packages up your expertise and ideally something that doesn't require you to deliver it every single time.

And that's what's different between an expert business and something like just pure freelancing or pure consulting where you're just charging dollars for hours, you know, charging somebody to get an hour of your time with an expert business. You're actually doing what I call it, productizing your expertise. So that's taking it and wrapping it up inside of some form of product or delivery where the bulk of the effort or the work you're a customer does themselves with your support, with your knowledge, with your information. Um, so you could think of things like in a business coaching, right? So there could be coaching on starting a business, running a business, operating a business and so forth. There can be courses or information related to marketing, how to design a sales campaign, how to launch it, how to monitor it, how to do analytics on it. I'm in design a bunch of different things.

Teach people how to become designers. There's a million different ways depending on what your specific expertise is to package that and productize that into services. That's one of the things that we help with in my business and spend a lot of time on early on is figuring out the right product decision of your particular expertise. So let's say you've done that, you figured out, okay, I'm going to deliver these types of services. I can do it in a couple of different ways. I'm going to create an entry level product. It's $100 a core product that's a thousand and then a high ticket product like direct coaching or some kind of one on one support that sells for $10,000. So let's presume you've got three products, $100 a product, a thousand dollar product, and a $10,000 product in year one of your business. If you're able to find 200 customers for a year, a low end hundred dollars product, and you're able to find 50 customers for your thousand dollars product and just three customers for your $10,000 product, that totals up to a hundred thousand dollars in revenue.

So that is a six figure revenue business, uh, with only needing 253 sales or customers at those different price points. Is that easy to do? It depends, depends on your market. It depends on how in demand your products and services are, what the value of your expertise. But it's absolutely possible. I mean there's definitely people that have gone from zero to six figure businesses and 12 months. Um, absolutely. Now we're really gets interesting is just think about those numbers. Now say you did that in year one. Now let's say in year two, right? So your second year of business, you've already generated, uh, you know, over $100,000 in revenue. So you understand your market a little bit more. Now if you can get to a thousand customers for your entry level product, a hundred customers for your flagship product, and then 25 for your high ticket offer, now you have a business that's at $450,000 of annual revenue, right?

So almost half a million dollars in revenue from that business at that point by having 1,125 customers. So you're approaching that 1000 true fans type of scenario. You have that many customers, now it's time to ascend them up the value ladder a little bit more. Now you're three is where it could get really interesting. So if you can stay on this growth curve, imagine you're in your third year of business. Now you really have a lot of experience under your belt. If you can get 5,000 customers for your low end product, 250 customers for your flagship product, and then 50 for your high ticket offer, you're at one point $2 million of revenue there. And again, this is with keeping your prices the same over that entire time. Now imagine if by year three, because of all the results that you've delivered, you doubled your prices. Then you're approaching a, you know, a $3 million revenue business annually.

Okay? So when I look at numbers like that, that's when my eyes start to light up. You know, the money guy inside of me is like, wow, that is an incredible path. I mean, there is no way in the corporate world you're getting to, you know, a $3 million a year revenue type of scenario. Um, so that's why I'm really a big fan of expert business model. That's why I'm committing so much of my money and my time towards a building. This model of building an agency that helps people get there is because I think this is an incredible path for people to really change the direction of their life and their lifestyle. So again, what we just talked about is called a value ladder. It's basically putting together a combination of products or services that you can provide to a target market based on the expertise or skills that you have at an increasing, um, you know, pricing level, again, an entry level, a flagship, and in a high ticket offer.

There's one element that I didn't talk about, which also most of the people that I've seen be successful also add into the mix. And that's what's called some form of recurring revenue type of product. So the idea there is that while you can hit all the numbers that I just talked about, um, you're doing that as with one time purchases with customers. Once they've bought each of the things in your value ladder or once they've reached the limit of what they can afford, maybe they can't make that jump yet from you know, your thousand dollars product all the way up here to your $25,000 product. Where recurring revenue models come in is if you can provide some form of value on an ongoing basis, then you can charge an ongoing subscription fee to your potential customers for that, that particular product or service. So you may have heard of this referred to as membership sites, recurring revenue models, subscription models, anything like that.

So in that scenario, now let's say you have like a thousand customers and then you come up with some kind of monthly service that provides enough value that uh, somebody will pay $50 a month for that scenario. Yes, that's three to $600 every year that you can get from your customers if you're delivering them that value. So again, if you get a thousand people to join your $600 a year membership program, you also just added another $600,000 of revenue to your expert business model. Now, it's not easy necessarily to be able to deliver all that value on a continuous basis, but it does provide a huge amount of benefits to the cashflow in your business cause instead of launching and having these like big peaks and valleys and all of that in your, in your revenue, if you have a pretty strong recurring revenue baseline, then you have consistent revenue in your business throughout the year with the spikes when you launch other products are you do particular marketing campaigns and so forth.

Okay, so again, the, the point of the expert business model is there's a lot of different ways to combine the different pieces that I've talked about, but it does give you that flexibility to have business that both can be high revenue and then also consistent revenue. So that's really the key to the expert business model. Now you might be thinking like, what could I possibly sell for $1,000, let alone $10,000 or let alone every month, you know, for $50 a month or something like that. And that's a great question, but you'd be surprised how many consulting, coaching, um, and productized service offerings are out there in these particular price ranges. The real question to ask yourself is to, and the point is, don't get distracted by price. It's really about the value that you provide. I mean, helping someone, let's say double their salary or lose 50 pounds or save their relationship or their marriage, all of those are worth far more than that, far more than $10,000.

Therefore, people will pay for that. You know, if you can solve major business or life or you know, career issues for someone, they are, we'll pay for that, that help and for that assistance. And this is just an increasing market across the board and all kinds of different areas. Um, whether it's health, wealth, fitness, relationships, it's one of the key things too. Um, why the expert business model works. It's a real quick, I'm just going to give you a couple of examples from some of the people that I've interviewed or worked with on basically how they got to some of the numbers that I'm talking about. So I'll start at the low end. Somebody know pretty early in their journey that was able to hit six figures. So I interviewed a guy named Paul. He's a productivity expert. He is really good at helping small and medium sized businesses choose and implement productivity tools to help their workforce being more efficient.

Right? So he basically started a side business where initially he just wrote about some of these productivity tools online, just basic blogging and things like that. Um, and then when he found was, is that because of how expert he was getting in just a couple of particular software products, he actually had those companies coming to him saying, hey, would you be a brand ambassador? Would you be a trainer on some of our, you know, sponsored courses and onboarding types of materials. And so he started to grow a reputation around his knowledge of those particular software packages. Um, so in addition to partnering with some of those companies, he also started doing what he calls virtual consulting, which meant that he would help companies and businesses implement those tools and get the benefit out of them, but he was not going to want, he didn't want to travel all over the world, you know, and get bogged down at individual customers for that amount of time.

So he basically did virtual consulting almost all remote while he continued to build courses and solutions around the same type of productivity. Um, you know, tools. So within about a year of starting this, he was actually able to quit his corporate job because his expert business was, was taking off and was replacing his income. And then when he left his corporate job, he actually traveled the world for six months while he was still performing these virtual consulting services and then grew his business to that six figure level, um, relatively quickly, like within the first year or two. Okay. So that's just one example. I've got a lot more, um, some of the podcast episodes and some of the videos, you know, that we're going to do here are going to have those interviews and have some of the details of how all of these folks started, how they succeeded and then scaled their expert businesses.

But I just wanted to make sure you understood that there are definitely many examples of success in building your own expert business. And one of the main things that I've done with all of this research and all the time that I've spent building up the products and the solutions in the agency I have is reverse engineering the people that have been successful and then packaging that into services just like I've talked about in this video. So you're going to see me doing everything that we talked about in these shows. Um, I'll show you exactly how we do it too. It behind the scenes to show you how this expert business model works and then how you can be successful with it. Now if you want to skip ahead and move faster and you want to see the exact blueprint that I'm talking about that we reverse engineer from people that have been successful building their own expert businesses, I want you to head over to expert business blueprint.com and over there you're gonna see exactly what we're talking about here and the exact blueprint that we're using with our clients to help them build their own expert businesses.

So that secret number one, the expert business model, how knowledge and expertise can be used to build six, seven and even eight figure businesses. And I've shown it in this episode that is not uncommon that people can do this. It is definitely achievable bites, skilled professionals willing to put in the right amount of time, effort, uh, commitment, um, supported by the right coaching programs and materials, uh, to be able to get to those levels of, of financial freedom. In the next episode, we're going to cover secret number two. Um, if you want to jump ahead and get started immediately and I want you to head over to expert business blueprint.com and then check out the exact blueprint that we use with our clients that we have reversed engineered from all the online expert business owners that I've worked with to show you exactly the steps required to build your own expert business.

Hey, thanks for joining me on the build your expert business show. Please be sure to subscribe, rate, and review this podcast. The key to building your own expert business is following a proven blueprint. After two years, $50,000 of research and working with over 20 successful expert business owners, I've created what I believe to be the most valuable resource that I possibly could for you, the exact blueprint for how to build it, your own expert business, to learn more, head over to expert business blueprint.com.

powered by