IN THIS ISSUE
- The idea I’m stealing from Dan Kennedy
- A profitable back-end agency pattern you can steal
- Why you don’t need to tweet every day (do this instead)
- What I’m niching down to and how I’m optimizing for that niche
This is the 25th issue of this newsletter since I started in mid January this year.
I feel accomplished for publishing every week, but I don’t feel successful.
It’s time for a change.
My writings have been high-concept and generally focused on the pursuit of building digital assets.
I’m still all-in on building digital assets, so that’s not changing.
But the newsletters, they weren’t cohesive and actionable enough to be of much help to you.
They ended up being more infotainment than anything.
Infotainment doesn’t actually help you much and eventually you stop reading my stuff.
To solve that, I’m niching down.
My new narrow focus is actually a return to my original focus of the Back End Marketing Agency.
Anyone can start one of these little agencies and create some compelling profit partnerships.
With all the layoffs and the possibility of a recession, this seems important?
As far as I know, there aren’t many people talking deeply about this topic, so I’d like to bring you along for this important journey.
I hope you’ll stay.
The Distribution Asset
I’ve written about the importance of building a distribution asset.
In simpler terms, a distribution asset is a following of some kind. Most of the time, people try to build one on Twitter or Instagram.
I put some energy into building a Twitter following and then decided that was a really poor use of my time—I was copycatting other people and wasting time.
Writing a bunch of generic tweets or cozying up to “big accounts” on Twitter is the long way to go.
I think you’re better off tapping into someone else’s distribution asset and jumping the line.
So as part of my new focus, the only distribution asset I’m building is my subscriber list.
But there will be plenty of distribution assets in my future, they just won’t be mine.
I share an example later in this issue, so keep reading.
Pivoting to a New Plan
With time and energy being finite, it makes sense to optimize for the highest, best use for each.
So there’s more to the pivot.
It takes quite a bit of time and energy to write these newsletters and this has kept me from ramping up my agency activities.
And as a consequence, I’ve had fewer experiential stories to pass on in the newsletter.
So going forward I’m going to optimize for deal-making as the highest priority.
When I say deal-making, I’m just talking about agency work which comes in the form of partnership deals.
I’m going to share the good, the bad, and the frustrating times with you which should help you go from high concept to concrete, tactical, and replicable.
I don’t care if you copy me or even get to some of my coveted partners first because there’s such an abundance for the few of us.
I’ve lacked a legitimate front-end offer, so I’m going to transition to a paid monthly newsletter with an accompanying community site.
It’s the kind of thing Dan Kennedy used to do and many, many others.
I know it’s all the rage to do the weekly newsletter and monetize it, but I think this tribe would benefit more from a collaborative structure with richer content.
This is really promising stuff and people need to get their hands on these life-changing concepts and skills.
Plus, I need a few accountability partners to push me.
Obviously, this is an in-flight pivot and you’ll know when we’re there.
And now onto this issue’s braingasm…
Here’s an example of a back-end agency deal pattern.
Business A recommends and sells an expensive Widget.
Because the Widget is expensive, some Customers pass on the recommendation.
Business B sells less expensive Widgets.
Customers who need a Widget eventually buy from Business B.
Business A knew those Customers needed a Widget first, but let those leads leak through their fingers.
The Value of a Lead
Business B spends a decent amount on marketing to find their Customers because they know if they buy one Widget, they buy several Widgets over their lifetime.
A Customer lead is worth a lot!
A Customer fresh from buying at Business A is a recent Buyer.
A Buyer lead is worth more than a lot!
Do you think Business B has an interest in these Buyer leads?
You bet they do!
Let’s Make a Deal
As an opportunity-spotting deal-maker, you need only propose a deal that enables Business B to get Business A‘s Buyer leads.
You approach Business B and represent the idea that you can deliver Buyer leads and you’ll do all the work.
They are interested and want to know more.
You approach Business A and represent the idea that you can develop an income stream with the Buyer leads they are throwing away. And you’ll do all the work.
They are interested and want to know more.
You then create a joint venture deal whereby Business A gets revenue share compensation from the Buyer sales converted by Business B.
That’s a win-win deal.
The only thing better than a win-win deal is a win-win-win deal.
And that’s what you’ve accomplished because the joint venture deal that you put together earns you a finder’s fee revenue share similar to Business A.
You recognized the opportunity.
You matched them up.
You did the work.
And now you’ve tapped into the business flow of each of those companies.
Realize something subtle here…
Those companies probably built their distribution assets (their demand) over many, many years.
You tapped into it within a matter of days!
Here’s where it gets good!
These Widgets sell retail for $2,000 (on average) and have a 20-30% markup at least.
There’s $600 in there for Company A, Company B, and me.
Remember, this is just one conversion.
We were all going to get nothing before this deal alchemy, so what’s a fair split?
For simplicity, let’s say we split it evenly and each takes $200.
Company A gets 10% of the sale they lost previously.
Company B gets 10% of the sale from a Customer they didn’t know about.
And me, I get 10% of the sale ($200) for seeing the opportunity and creating the system (e.g. coupons, no-code automation, whatever) that runs forever.
If these sales happen every day and I can replicate and scale this to other companies, how many of these do I really need before life gets easier and much interesting?
So now, do you really need to post useless platitudes every day on Twitter?
…and hope those Likes and Follows might someday turn into something?
Squint your eyes for a few minutes and I’ll bet you can “see” tons of these opportunities.
They are available RIGHT NOW.
So now you know I’m pivoting this newsletter in focus, format, and cadence.
I don’t know many others that are talking about this type of thing, so I hope you’ll stay long enough to let it sink in.
No promises, but if you “get it” you’ll be able to create little income streams.
…and that seems useful now or at any time?
Live long and prosper.
P.S. If you liked this newsletter, please consider leaving me a testimonial to help me spread the word.