Thursday, May 17, 2012

Internet marketing Systems

How to create a system for your business based on Henry Fords Model T ideas of assembly line automation.

In order to ever have any success and then grow your business you will have to create or use someone Else's business system. Henry Ford mastered building an assembly line system and in the process created the most affordable car ever at that time. Within 6 years he owned approx 40% of the auto market.

You've probably heard of automating your business to save you time and make more money. But don't put the cart before the horse. You need a system that should be mapped out first so that you know exactly step by step what you should do.

Henry Ford would divide tasks into units of work then rearrange them until everything flowed. Then he would divide the materials into slow moving and fast moving materials which would be brought to the assembly line at appropriate times.

When I first started in Internet marketing I setup a process map for it then adjusted it accordingly. They are always evolving.I implemented these ideas in my Internet marketing website/blog business by:

1)creating a system for market research
2)creating a system for kw research
3)creating a system for setting up sites/blogs and doing domain research
4)creating a system for putting in content or copy writing
5)creating a system for each traffic getting strategy eg.article marketing system, video creation and distribution system
6)created a listing building system
7)created a offer research and product creation system

So I started testing different ways of doing market research and still am today but you need to pick one and just go with it.

Once you think you have a system that will be at least moderately success full you can outsource the tasks once they are clearly defined or get software to do the grunt work. Automation and outsourcing puts your system on steroids and allows you to test the systems rapidly.

There will always be bugs in your system that you will have to work out. You should always build feedback loops into everything so its measurable to you can tell if its working or not. Analytics tools are an excellent start.

If you are not sure where to start or are like me having way too many things and just need a little clarification then start with these 5 fundamentals of business to draw insights from.

1)Number of leads- Basically you could divide this further in traffic or opt-ins or FB likes. You need a consistent stream of leads. If you are using PPC traffic you could look at things like CPA(Cost per aquisition) of each lead not just in terms or money but in terms of how much time you have to spend to aquire each lead

2)Conversions- How many leads are you converting into buyers? This can be complex. You may want to look at not just your email and article or sales copy but what sources of traffic are converting the best. Or you may want to rearrange the offer. Add more bonuses etc.

3)Average sale price- How much does the average customer buy in terms of dollar value?

4)Average number of transactions- How many transactions does the average customer make? You could combine these last 2 numbers to get you the average lifetime value of each customer which would determine the maximum amount you should spend in acquisition of each customer.

5)Profit Margins-Are you charging enough for each product? Is there a way to increase the prices by maybe adding a little more value or finding a new audience for your product?

I have created different systems for my eCommerce sites and other projects as well.