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How To Make

Money Online...
If I Only Had
$1,000 In The
Bank!
(2010 Edition)

By Andre Chaperon
AutoresponderMadness.com
Af6iliateBully.com

The biggest mistake people make in life is not


making a living at doing what they most enjoy.
Malcolm S. Forbes (1919-1990)

Prelude
Not too long ago a friend and fellow marketer asked me a question ... a
question that a customer of his had asked him:
If you only had $1,000 left in the bank, what
would you do to make money online?
Its a really interesting question ... and it got me thinking.
Truth is ... there are a lot of different ways to generate money online. Most
work, in one way or another. Some are effective. Others less so.
So the question was asked of me (Andre) .... what would I do if I had only
1,000 bucks left to make money online.
Important Insight: This is the big picture. The birds eye-view of what I would
do if I woke up one morning and my bank accounts were all dry. I had no
contacts. I had no email list. Just $1,000 worth of credit on my credit card.
So within that context, this is my story of what I would do to make money
online.
Rock on!
Andre $1,000 to his name Chaperon

http://Af6iliateBully.com
http://AutoresponderMadness.com

an Autoresponder Madness report (page 2 |15)

I Would Build an Automated


Lean-Gen System
I would build an automated lead generation system. In a nutshell it would
look like this:

There is nothing new to this model. Its a tried and tested universal marketing
framework.
STEP 1: Build a lead generation website and send trafIic to it.
STEP 2: Get leads to add themselves to your list, or buy something from you.
STEP 3: Based on what they want, segment them - then sell stuff to them on
the backend ... ideally over and over again ... for ever!

an Autoresponder Madness report (page 3 |15)

Decisions
Before I start I have a decision to make:
1. I can capture a lead by giving away something of value in exchange for
their email address - then promote afIiliate products to the list like a mad
man.
1.1.

Pro: Ill get more people through the door if I only go after their
email address on the frontend.

1.2.

Con: A lead is not a customer. Meaning that a lead has earned me no


money yet. There is still work to do to convert the lead to a customer.
And selling an af6iliate product to this list, would offer me little
leverage. I would need to presell real well to make af6iliate sales.

2. Or I can create a high-value, low priced product. The idea is to have a


barrier to entry, but to keep it relatively low. Build up the value. Make it a
no-brainer purchase. Stack everything in the prospects favor.
2.1.

Pro: I get a customer from the get-go. This person has already
demonstrated that they have the intent and means to spend money
with me. Far more quali6ied.

2.2.

Con: Ill get fewer people through the door.

3. A hybrid of #1 and #2. Capture leads up front, but instead of selling an


afIiliate product to the list - I would sell a high-value, low priced product
that I create. Better. More leverage. Its almost the best of both scenarios.
3.1.

Con: Lots of JV partners dont like to promote directly to a squeeze


page ... especially for someone they dont really know. No marketer
likes their list getting harvested - even for commissions.

Decisions, decisions ... but ultimately I would opt for option 2. It offers
immediate leverage and the biggest beneIits.
Ill own the product for starters. This will allow me to setup an afIiliate
program. Meaning I get to do deals with joint venture partners. Meaning I get
access to their customers. Meaning I can potentially earn a lot of money
relatively quickly.
I also wont be seen as trying to harvest their lists. Meaning itll make it easier
for me to persuade JV partners to promote my offer. (Hence option-2 over
option-3 in this scenario.)

an Autoresponder Madness report (page 4 |15)

The Master Plan

Now ... the Iirst thing is that I dont need to create everything above all in
one hit before I can go live and earn money.
I would break down my tasks into phases. Actionable chunks. Then go from
there.

an Autoresponder Madness report (page 5 |15)

Actionable Phases
Phase 1 ... Phase 2 ... Phase 3 ... Phase 4 ... would all be spread out over a
number of months.
Phase 1 and 2 would be my immediate goal and only focus out the gate.
I would sell a low-cost, high-value report on the frontend. This will earn
me initial cash Ilow and allow me to build a targeted list of customers to
market to.
Phase 3 and 4 would come later. This will be a continuity/membership site
(meaning: recurring income model).
Phase 1 and 2 will eventually be the funnel to the continuity backend (the
6lagship product in The Master Plan diagram above).
Phase 1: I would create the frontend product. Id create a report that would
help solve a problem ... help a person get closer to a desired goal or outcome.
The report would deliver a real result.
It would be a short 15 to 20 page report. Id probly price it somewhere
between $27 and $47 ... depending on the niche. I could add audio and/or
video too, to bump up the real and perceived value.
Phase 2: Create a backend customer soap opera email sequence that
delivered real value. (Ill explain a bit later what exactly a Soap Opera
Sequence is ... and why it is the key to long term wealth.)
It would help the customer take action. Help them understand and consume
the information. Help them get results.
It would also build on from where the report left off. Deliver more world-class
content.
As a side effect ... it would also act to reduce refunds. Always does.
But the main focus of phase 2 is to create rapport and build trust with the
customer. I would continue to develop the relationship.
Id position myself as their trusted advisor. Someone that has their best
interest at heart.
As part of the soap opera sequence, Id introduce three afIiliate products into
the story line. These products would work to enhance the value of the report
I sold on the frontend.

an Autoresponder Madness report (page 6 |15)

I saw Frank Kern once create a really cool illustration (similar to the one
below) to represent the steps a person would need to take, before they can
reach their desired goal.

Meaning there are logical steps that exit between where the customer is
now, and where they want to go. (Represented as roadblocks in the
illustration.)
It is my responsibility to help each customer move closer to their desired end
result with the information I give away and sell to them.
These roadblocks need to be Iigured out upfront of course.
So I would map out the 3 biggest roadblocks that my ideal target customer
would need to overcome in order to be able to reach their desired end result.
(Every niche as at least 3 big roadblocks.)
Want to know more about Qinding your ideal target customer?
You can read how I go about 6inding an ideal target customer, here:
http://afQiliatebully.com/identify-your-audience/
The frontend report I sell will focus on the Pirst big roadblock.
The soap opera email sequence I create on the backend will address the
remaining biggest roadblocks. It would recommend an afIiliate product as the
ideal solutions for each of these major roadblocks.
Phase 3: This phase only comes after Ive made money. Phase 3 would be a
backend continuity (read: recurring income) program.
It would teach my customers how to go from roadblock #1 all the way to the
big end result.
I would frame this as an exclusive hold-your-hand-step-by-step blueprint from
point A to Z. Detailed blueprints. Videos. Mindmaps. Whatever. Everything.
The kitchen sink.
Depending on the market, Id price this between $27/month to $97/month.
an Autoresponder Madness report (page 7 |15)

Phase 4: I would do a big launch to promote the continuity membership


program. Id get afIiliates involved. Id of course promote this to my customer
list too.
In fact Id Pirst do a pre-launch to my own list to test the system and to
establish some conversion metrics. Only then would I approach JVs with an
offer.
This is essentially the whole master plan. Its what I would do if I only had a
grand in the bank to invest in an online business.

an Autoresponder Madness report (page 8 |15)

Costs So Far...
Phase 1 and 2 would cost me the price of getting an AWeber account. $1 for
the Iirst month ... then $29/month.
Id do initial upfront solution research myself. Free. Just a time cost.
Based on my Iindings ... Id create the 15 to 20 page report myself too to keep
costs to a minimum. (Id only do this in a market/niche that I have an af6inity
with!)
The backend soap opera email sequence Id also write myself.
To sell the report Id use ClickBank. Cost: $49.95.
Sure, I could use PayPal which is free - but the exposure I can get from
ClickBank is well worth the investment. Plus this means the afIiliate program
is all built-in too.
Id need hosting. Id signup for a 12 month plan at Bluehost. Cost: $83.40 for
the 12 months.
Meaning the costs to me would be $1 + $49.95 + $83.40 = $134.35.
Spend to far: $134.35
Cash left: $865.65
Id be able to have phase 1 and 2 Iinished and ready to go live within 2 weeks,
maximum. Beginning to end.
To help make what Ive explained here more real, and to demonstrate
how this could all pan out - Ill plug some hypothetical numbers in for
you now.
Im going to speed up a bit now ... so hang in there. Stay with me.

an Autoresponder Madness report (page 9 |15)

Customer Value
Phase 1 and 2 would need to be in place in order to go live. That would be the
immediate goal and only initial focus.
Lets look at some hypothetical numbers:
(Depending on the niche I choose, Id ratchet these numbers up or down. For the
sake of demonstration Ill keep them middle-of-the-road.)
1. Frontend report: $37
2. Backend af6iliate product 1 (roadblock #2): $67 ($33 commission)
3. Backend af6iliate product 2 (roadblock #3): $97 ($48 commission)
4. Backend af6iliate product 3 (roadblock #4): $29/month ($10/month
commission)
So in this scenario I have the potential of earning $128 per customer ... with a
$10/month recurring component.
Not bad. Not bad at all.
Of course, this is the best case scenario. In reality itll be a mixed bag. Some
people will buy nothing more (after the initial report) ... a few will get
everything.
However ... the truth is - with a well sculpted soap opera email sequence, I
could get the average customer value way way up ... probly into the $60 to
$90 range for this scenario.
Down the line when phase 3 is rolled out - and presuming, for example, I
charged $47/month for the monthly membership ... and the stick rate was,
say 5 months - Id have the ability to earn $272/customer.
Thats over double the best case scenario of phase 1+2.
Not bad. Not bad at all.
Id pay afIiliates 75% of the report on the frontend. Id also pay em 50% of
the monthly continuity on the backend. Meaning that Id earn about $126
once all was said and done. (This would be the average lifetime value of each
customer.)
Not bad. Not bad at all.

an Autoresponder Madness report (page 10|15)

Promotion: Phase 1+2


Id do two things here:
1. Seek out JV partners. Id want to initially target 10 good partners. Thats
all I need. Just 10. Which will allow me to give them the red carpet
treatment.
2. Id create a Google Display Network campaign. (Not Search!) I have a
potential $865.65 on hand to spend ... but instead Id put aside a $500
budget for this.
This would leave me $365.65 in the bank for beer and Champagne. :-)
Id create a bunch of highly targeted managed placement campaigns.
Perhaps 5, each with a $100 budget.
Phase 1 and 2 allow me to earn a maximum of $128 per customer ($37 for
the report + a potential $91 in backend afIiliate commissions).
But to play things safe - Ill presume that Id only be able to achieve 20%
of the backend commissions on the table, on average. ($91 * 20% = $18.20
+ $37.)
So $55.20/customer ... meaning that at a 2% conversion rate I could
spend $1.10/click to break even.
I know I can get good trafIic in the $0.25 to $0.50 range ... meaning that I
could potentially DOUBLE my money without even breaking a sweat.
Ill run the numbers again now, for illustration purposes:
Id expect 100 sales (minimum) from each JV partner. My frontend product is
a high-value low barrier to entry offer, remember.
These would be hand-picked partners ... and Id be giving them the red carpet
treatment. Whatever they wanted - bonuses, audio interviews, whatever - Id
do it. Whatever it takes to make them happy.
So 10 JVs would result in 1000 frontend sales, minimum. $2,775 per partner
(75%), $925 for me (25%) ... earning me $9,250 once all was said and done:

an Autoresponder Madness report (page 11|15)

Not bad. Not bad at all.


Id now have more money to plow back into paid trafIic. With paid trafIic my
aim is to always double my money. Put in $500, get back $1,000. Put in
$10,000 ... get back $20,000.
Over time the optimization process will be better and better. Meaning that $1
in could eventually result in $3 or $4 or $5 back.

an Autoresponder Madness report (page 12|15)

Phase 3+4
At this point I would work towards rolling out phase 3. This will take longer.
Perhaps a few months beginning to end. There is a fair bit of content Id need
to get created.
Phase 3 out of the way, projections for phase 4 could look something like
this ... hypnotically, of course:

So my afIiliates would each earn around $1100/month in proIits. That


translates into over $20K per month for me. :-)
This is how a 6 Iigure business is created within 6 months. Err ... and all from
an initial starting budget of just $1,000 which I didnt even fully spend.

an Autoresponder Madness report (page 13|15)

HOLY GRAIL: Repeat Customers


The success of this model hinges on your ability to sell other stuff to your
crowd ... over and over again.
Repeat customers represent the cornerstone of long term wealth. (Most
marketers screw this part up totally!)
It all starts with the relationship ... the relationship you develop by creating
communications that are valuable.
I have an advanced strategy for doing this using email.
I create what I call a soap opera email followup sequence. Its essentially a
big story. But a story that is written in a very special way.
The story allows me to bond with my audience. It allows me to establish
empathy and build trust and rapport. It allows me to demonstrate value.
Stories have almost a magical ability to connect with people. Draw people in.
Its the perfect way to get their complete attention for a period of time that
you control.
Within the context of this story, I offer solutions to various roadblocks that I
know my audience has. Through this kind of storytelling I get to sell stuff and
earn money ... over and over again - over time.
I call my system Autoresponder Madness ... and it looks like this:

an Autoresponder Madness report (page 14|15)

On Monday July 26th @ 10:30am Easter Time Ill be opening up access to


Autoresponder Madness (v2) ... but Im only selling 500 copies.
Ill then be closing access to Autoresponder Madness for another 6 to 12
months.
You can learn more about ARM here:
http://autorespondermadness.com/jorge/private-invite/
Be Bold. Make Things Happen.

P.S. Hope you 6ind some value in the report. I hope it gave you some perspective
of what is possible online ... with a little knowledge and a dollop of action.

an Autoresponder Madness report (page 15|15)

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