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Brightside Business
Helping online entrepreneurs create systems for predictable profitability and scale to 7 figures!
Brightside Business
The 3 Biggest Product Design Sins (For Online Entrepreneurs) Ep 006
Ever wondered how to transform your small business into a six or seven-figure powerhouse? Join us on Brightside Business as Joey Young unfolds his incredible journey of turning his family's professional service business from a modest $19K to a remarkable $100,000 monthly revenue. Joey reveals the secret sauce: focusing on solving one urgent and expensive problem with a single, high-impact offer.
You'll grasp the essence of leveraging one lead generation channel to create exceptional customer experiences, driving word-of-mouth marketing and optimizing your approach by concentrating efforts rather than diversifying. Joey's philosophy is simple yet profound—craft an offer that perfectly blends the specific results it provides with your personal values and characteristics.
In the next chapter, Joey shifts gears to discuss scaling with high-ticket offers. Discover why opting for solutions priced between $1,000 and $5,000 not only boosts your profitability but also elevates customer satisfaction and product quality. Joey explains how these higher ticket sales grant you the financial latitude to reinvest in your business, hire additional support, and deliver unparalleled customer experiences. With insights into understanding customer expectations based on income levels and reducing customer support issues, Joey guides you toward a more streamlined and efficient growth strategy. Tune in for actionable advice and don't forget to book a strategy call for personalized insights, plus follow Joey on Instagram for ongoing inspiration.
Got Questions? Send them here and I'll tackle them on the show: joey@joeyhyoung.com
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Ready to scale your business? Book a free connection call here and let's chat!
Welcome to Breadside Business, where we talk to online entrepreneurs like yourself about how to grow to seven figures and beyond. My name is Joey Young. I helped grow my family's professional service business from about $19K to over $100,000 a month in revenue and I learned a lot along the way. One of those things is how to build great products and the mistakes people make when trying to build exceptional products. See, all these online entrepreneurs are focused on marketing and sales and they think, oh, if I just had more leads or if I just was a better salesperson or I wasn't so nervous to talk about my offer, I would have more revenue. When the reality is, in 2024, the number one marketing strategy is still word of mouth, and word of mouth is created with exceptional customer experiences. So let's talk about a product that'll create an exceptional customer experience and help you grow your business to six or seven figures. This was actually inspired by a guy I talked to recently. He had a videography business making about 5k a month, very project based. You know, from this to this, to this sort of every month was a different project, different customer, and he was asking me how I can scale, how I can double my income to 10K a month and this is what I told him and this is what I'll tell you today. This is how you create a really exceptional six or seven-figure business through great product.
Joey Young:The first is a company that scales the seven figures has one problem they solve through one offer, through one lead generation channel. That's the reality. If a company out there has told you you need to diversify, you need to try different offers, you need to have multiple product lines and you're making less than seven figures, that is complete crap. You need to focus in this sub seven figure level to one problem that you solve through one product that you sell through one lead generation channel. The issue I see people make with the problem that they solve is A they don't know what problem they solve and they don't have clarity around that. But B let's say they do have clarity about what problem they solve. That problem that they solve with their business is not an urgent or a painful or an expensive problem for their ideal client. That problem that they solve for their ideal client isn't something that is needing to be solved quickly, is emotionally turbulent and painful for the client, or it's not, and or it's not costing them a lot of money. And so if you want to build a product that has exceptional returns and grows quickly, especially through word of mouth, you want to make sure that it's solving something that's really urgent. That's why business coaches do so well online, because they're solving expensive problems for businesses. That's why, you know, online PT coaches solve an excellent problem because their clients often are in physical pain, and so they literally help their clients get out of physical pain with their offers. But that's also why a you know Brazilian butterfly history, you know educator online has a little bit harder time selling their course. You know, and if you're a Brazilian butterfly history person trying to sell your online product, bless you. I'm not saying that you're not going to be successful. I'm just saying it's a lot easier to sell a product that solves a very expensive, very painful or very urgent problem.
Joey Young:You know, when it comes to the best offers that are sold, you know when you're focusing on that one offer, there's one aspect of them that are always emphasized for online entrepreneurs, and that's you know the results. You know a great offer has a specific result. Right, we want to solve something that helps our client move forward and we want to know what that problem is, that we solve that, that, that transformation. That's great. But a great offer is a little bit more than that. There's only half the picture. The other side of an offer is the person selling it and their value system and their personality and their characteristics. And the perfect offer is the blend of a result that someone wants and the value system of the person who's selling it, and that's what makes it attractive for the prospective client. So think about how your offer, your one offer, is both solving the urgent, expensive and painful problem and how it represents you and your values and your quirks. Because one thing is true if you try to sell to everybody, you're not going to sell to anybody. So make sure that your offer is a blend of the personal and the practical when it comes to solving through one marketing channel.
Joey Young:This is often the mistake other entrepreneurs make is they think, well, I'll try this one lead gen strategy this month, and then it doesn't work. I try this one, try that one, and they bounce between. They try to do multiple lead gen strategies at once. This is a mistake. I mean, obviously you'd like to have leads coming in from multiple places, but usually it takes time for your business to get to that point where there's a lot of word of mouth, creating a consistent amount of referrals and leads. So in the beginning you need to focus on one specific channel. If it seems boring, that's probably because it is more boring than jumping in between different lead gen strategies. But what's necessary in this very crowded online world right now, with a lot of people trying to make money online, is optimization. There's no new marketing channel that's going to suddenly burst your offer onto this gigantic blue ocean of opportunity. It's really about optimizing one specific channel, like an Instagram account or email marketing or direct marketing, whatever it is. You have to really spend the four, five, six, seven plus months making yourself really excellent on that platform so that you can get the leads. That's what's going to drive the sales for you. So one problem with one offer, with one lead generation channel.
Joey Young:Second point to creating a killer product that'll take you to 10K and beyond is you need to think about customer lifetime value. Customer lifetime value is simply the amount of money a customer brings in over their life cycle of buying from your company. You know how much money is one customer worth to you at the beginning of their relationship with you and your business, and this guy I was talking to about this problem. He had a very project-based business that said you know, okay, you know, I'll make you a video and I'll go and record it for you, edit it, deliver it. Okay, have a great life. So he's meeting with people one time and getting money from them one time, and so think about lifetime value.
Joey Young:It kind of expands your horizons a little bit to think, okay, how do I solve bigger problems that don't just create a one and done solution for them, but problems that maybe crop up more than once in the future? So I need to be there multiple times for them to solve the problems as they pop up, therefore earning more revenue from them. So, thinking about, how can I create something that solves a problem that happens over time, or a repeat problem, or something that solves a problem that takes a long time to solve? Maybe it's just one issue, but it does take six months or a year to really turn that thing around that they want to solve. And a lot of people think immediately they're like oh, like a subscription model You're talking about, like a monthly membership, like a subscription or something like Netflix, and it's like yes, that's one version of it, but there are others. Here's another way to think about it.
Joey Young:So if you've got a package let's say it's $3,000, you know you can sell that package to a client and you don't have to necessarily charge that full amount upfront. You can break that package up into payments, that full amount up front. You can break that package up into payments. So when you have your $3,000 a month offer, you could say, all right, it's either 3,000 up front or it's 1,100 a month for three months. So now you're working with your client to maybe create an affordable product for them to buy, because it's only 1,100100 a month instead of $3,000 right up front. But you're building in your lifetime value with that customer and you're creating reoccurring revenue for your business.
Joey Young:As opposed to, let's say, saying you didn't have a package offer and you said, oh, all you can afford is $1,100 a month. Okay, well, I'll just sell you this one thing at $1,100 and have a great life. It's like no, you're taking your problem that you solve, you're expanding it a little bit and you're saying how can I extend this problem to either five or six resolutions throughout the next six months? So they have to spend more money to solve it, or you solve a problem that takes a long time to solve, like I said. So that's a really easy way to increase your revenue is think about how can I get more per client, and that probably means you need to solve a bigger problem. It probably means you need to develop more infrastructure and more deliverables in your program. Probably means you need to upskill a little bit to be able to handle more problems, but it's going to be huge for your business to think about the lifetime value of a customer, not just the one-time sale.
Joey Young:The last big idea I told this guy about was the idea of the value ladder, and starting at the top of the value ladder, now, there's three general categories on a value ladder of solutions for people, and the bottom tier would be the cheap stuff. We're talking products or services less than 50 bucks a month, and these work really well for influencers who have a million Instagram followers and can put out something cheap like a $50 ebook, and even if only 0.5% of people buy, that's still a lot of money. But for the rest of us out there who aren't influencers, they don't work as well. So we gotta look at maybe something a bit more expensive. And now we're looking at mid-range.
Joey Young:Now, mid-range is okay, but it's not great. Mid-range is like that $100 to $600 product or service that you're selling. This is fine, but you can spend literally the same time and energy selling five people a $600 product as selling five people a $3,000 product. So it's not a great focus to have to really create that scale in your business you want and create an excellent product that actually delivers the solution. Because if you sell a more expensive product, you're going to have more profits to be able to hire more support to deliver a better solution, better customer support. You're going to be able to reinvest more money to improve the product and you're going to have happier customers than if you're trying to squeeze a $500 sale out of someone who is expecting a lot more.
Joey Young:Because if someone let's say they make $50,000 a year and they buy a $500 product, that's a big part of their world. So they're going to have a lot of expectations towards the solution. Versus someone who makes a quarter million dollars a year and buys a $5,000 product, that is such a smaller piece of their world. They're probably not going to have as many complaints about it because they're not expecting it to be, as the return to be, as much as someone who's spending so much of their world $500 out of their $50,000 salary, right? So again, the mid-range product you know $500 products anywhere from 100 to 600, it's like good for a downsell, but even not at the beginning. If you're not making six you know seven figures, it's really not even a good downsell idea because, again, it's just another distraction from your higher ticket offer and of course, that's the last chain in the value ladder. So at the bottom, you got your cheap, you got your mid tier.
Joey Young:At the highest point of the value ladder there is your high ticket offers. That's the $1,000 or more product or service that you offer. It's white glove, it's comprehensive. It solves the root problem. You have really good attention to detail, a lot of like high touch support.
Joey Young:With this solution. It promises transformation, not just a deliverable, not just like okay, thanks for buying, here's your thing. It's like we're going to help you or your or your business or whatever your your solution is. You're going to help it transform and get to a certain result. You're going to help them actually achieve something or be able to do something or stop doing something, not just give them a deliverable for that product.
Joey Young:This is the perfect point to start a business and all the way up to seven figures, because if you have a high ticket offer now, you're able to spend more money on acquiring leads and acquiring you know booked sales calls. You also have more money for fulfillment. You have more money to then go back and to create a better product in the future. There's more margin there. You can hire more people. It also again puts you in that tier where you're working with people who have enough money, where they're dropping $3,000, $4,000. It's not as huge part of their world as someone who's buying a $50 e-book but makes $40,000 a year. So it creates a lot better customer experience and a lot less customer support tickets per se.
Joey Young:When you create a higher ticket offer, there's probably going to be a direct like here's my time solution as part of the offer and you're probably going to have some more done for you stuff. But that's good. You know if you're still early around in your business and you're in this, you know mid six figure range or below, you know you really should be spending a lot of time with your customers, hearing their language, understanding their problems. You know, hearing what parts of your solution, your offer, are really helping them and what parts are not so helpful so you can improve the product in the future. Like the higher ticket, you know white glove service model to scale your business is so super helpful.
Joey Young:And again, this is different than the previous point. Like, lifetime value is all about how you structure your pricing. You don't want to. You want to have a product that solves problems over a long period of time or solves a problem that takes a long time to solve. That's a lifetime value. This is about solving an expensive problem, a problem that's higher ticket. A more comprehensive problem that's bigger. That's what high ticket is and that's really important. A more comprehensive problem that's bigger. That's what high ticket is and that's really important. So hopefully this has been helpful in helping you decide on how to improve your product or what product to start here.
Joey Young:If you have any thoughts, any questions, shoot me an email joey at joeyhyoungcom, I would love to hear your feedback. Or shoot me a DM on Instagram. That's at joeyhyoung. On Instagram, and while you're there, click the link in my bio there on Instagram, you can book a 20-minute strategy call. We'll talk through your business, your bottlenecks, we'll get you real clarity on where you need to go next to scale your business. And hey, while you're here, if you're already at the end of the episode, you must have loved something about this. So hit the like button, hit the subscribe button, the follow button, whatever. That really helps me. I'm really really grateful for you doing that sort of feedback, because it helps the algorithm push the show out to more people. Hit the share button and until next time, my friends, happy scaling.
