Before JVZoo There Was Warrior Forum
Back when I started out all the launch action was happening on the infamous Warrior Forum where you could learn how to generate an income of eleventy billion dollars in 5 nano seconds even if you’re 90 and have never heard of the Internet.
What was great about Warrior Forum is it gave access to a community of product creators and affiliate marketers who could give even a newbie with a half decent product a great start.
Here’s one of the products I created back in 2012. To say I ‘launched’ it on the Warrior Forum is far too flattering to my strategy skills at the time. I paid the $20 listing fee and waited to see what would happen. I had no JV’s and no list either! So when I made a profit of $7706.28, with zero marketing effort, I was pretty pleased but I knew I needed to learn strategy. It’s a work in progress 😉
Later that year when JVZoo emerged, the established players from the Warrior community supported their own and many of the bigger launches by the strongest Warriors were taken to this new platform.
I toddled along not too long after and a quick look at my stats today tells me I’ve been a JVZoo member for almost 5 years.
Let’s see what we can learn by taking a look at the JVZoo market place and the top launches that have happened there.
What is JVZoo?
JVZoo is a popular marketplace for selling digital products, largely through their huge affiliate network. It processes your payments, pays your affiliate commissions and delivers your product if you want it to. In JVZoo you are an affiliate, a vendor or both.
Products tend to fall into several categories; software, ebooks, video courses, WordPress themes and plugins, and all things related to lead generation, list building, productivity, product development, marketing and more.
What does it take to create a million dollar product?
Almost every week on JVZoo somebody is cracking five, six, or seven figure launches. For many, it’s their first product. So what are they doing right? Is there a formula? Is there one product type that will do better than another? Is it about who you know, not what you’re selling? C’mon … what’s is the secret?
Let’s take a look.
For this post, we were interested in the types of products that have created the highest sales revenues over the last two years. (Credit to Anthony for doing most of the analytics on this!) So we analyzed the top sellers, focusing on gross turnover and the niche the product serves. The objective was to reveal what is possible within the product developer market with a combination of the right product, sales platform, and approach to marketing (partnerships, pricing and promotion).
So Here’s What We Did …
We analyzed the first two pages of product listings on the JVZoo launch platform to identify the top-selling products, including information on the product, the niche targeted, the quantity sold, the average turnover, and the market need that was satisfied. These listing and figures are available to any affiliate doing research on the best products to promote.
The end goal was to identify trends in what sells best, with a view to helping predict what kind of product can hit high six or even seven figures. Although there are other issues around product launches which are important to consider, such as the product price, the structure of the sales funnel (upsells, downsells, where to place them in the funnel, and at what price), JV partnering, and when to launch, by focusing initially on user needs, we can get enough information to help identify a starting point for those considering building and launching a product on JVZoo.
And Here’s What We Found …
Four of the top five products broke the $1 million dollar mark, with the top product generating $2.9 million.
Three of the five top selling JVZoo products over the last two years were video products.
Let’s look at why. Video marketing has been on the rise as more and more people try to tap into video’s powerful conversion rates. But videos are difficult to create and typically making a video was a specialist skill.
The products below the top five are a mixed bag, even so, all grossed between $300K and $760K. In total, twelve of the top 19 products examined grossed over $500K.
We’ve prepared a spreadsheet to show you estimated revenue for the top 19 products on JVZoo up to 24 October 2015.
A quick caveat, while we used all the data available to affiliates on JVZoo to estimate the earning of the top selling figures, they are just that … estimates. We can’t account for factors such as higher commissions to top affiliates, refunds or fees to JVZoo or PayPal.
Video, graphics, mobile applications, SEO, landing pages, content generation, and ecommerce are the product niches that seem to do best.
Another reason for such high revenues is that the price point of many of the top sellers was high for the IM product launch market. Until a a couple of years back, product pricing in the internet marketing niche was a race to the bottom. It seems that the market demand has finally risen to accept higher priced products.
This means it’s not necessary to create low price products to generate high revenues, but rather to have a good product meeting a pressing market need. Of course, all products launches can benefit from a well-thought-out sales funnel, good marketing, and JV partnerships.
I’ll look at some of these issues briefly later.
But first …
Every Successful Product Must Meet A Need
Creating and launching a successful product requires a combination of different factors coming together. These include identifying and filling a need, developing your product, creating a workable sales funnel, and finding partners and affiliates.
If you want to create a successful product you need to serve a specific need in your target market. Most products in the online workplace market will likely meet one, or more, of the following four need types:
1. Fills a Skills Gap
In this scenario, the product helps the buyer do something which requires a skill to do, a skill which requires money, and or, effort and time to acquire. For example creating websites, content, graphics, video, or mobile applications. These skills are often time-consuming and expensive to learn.
Recently launched products filling this need also tend to do a much more professional job than earlier similar software. For example Zapable, VideoMakerFX, Explaindio and Pixel Studio FX, allow users to complete tasks that previously only professionals could do, with far less steep a learning curve than before.
For small businesses this creates an opportunity to offer new, or extra, products and services that they could not otherwise provide to their customers. For online marketers, it allows them to create solutions they would otherwise need to outsource.
2. Saves Time
Products which save time usually help do some task faster than would otherwise be possible. For example building a mobile application, or website, writing content (for example SEO content for a blog post, or social media), creating a video, driving traffic, managing ads or managing social media profiles and content.
Many of the best selling products have upsells offering template packs or solutions to allows buyers to continue to save time on creative or repetitive tasks.
3. Saves Money
If by investing in a relatively cheap product it is possible to eliminate outsourcing costs (copywriting, software development, web, and graphic design), the cost of software licensing, or costs of purchasing pre-made items, then this helps makes some small businesses both more viable and more competitive.
4. Helps Generate an Income
Being able to create graphics, for example logos; create short animated videos; creating cross-platform websites, or mobile applications; or, provide SEO ready content is a great way of generating a full-time, or side income for many individuals or small businesses.
This is even better if buyers don’t have to spend much money, or time learning a skill as they can build an instant business or revenue stream around the product. These type of buyers are why product vendors now typically offer personal use and developer licences for their products.
The Role of The Funnel In Million Dollar Product Launches
Without going into much detail (it would require a whole new blog post) the mix of product items throughout the sales funnel is important to achieving optimal revenue.
Usually there will be upsells and downsells within your funnel. These should be add-ons, for example as I mentioned, monthly memberships providing complimentary products (extra graphics, content, videos etc…) that are not generally available outside of the membership area; different licensing options, for example developer, multisite, commercial etc., or training on how to make better use of the product, or use it for a different purpose.
Partnering, Affiliates, and Launch Managers
It is not obvious from the figures provided, but aside from a well-managed mailing list, partnering and affiliate sales make up a huge chunk of the revenue generated. This is true for most product launches.
Proper partnering and affiliate recruitment takes time and effort, but can definitely make the difference between mediocre 4, 5 figure launch and the stellar 6, 7 figure launch.
If you are not confident in writing sales copy, or building relationships with people, then hiring a launch manager might be a good option. A launch manager will look after copywriting, recruiting affiliates and driving sales. They can arrange prelaunch events and webinars if necessary. Launch Managers can be expensive and sometime require an upfront fee and/or a percentage of sales.
It’s a worthwhile expense as a great launch manager can increase your sales tenfold.