Back to PodcastThe Back of a Napkin Test – Would You Pass or Fail? In this episode we talk about the “back of the napkin” test and why it’s SO important for both YOU and your audience. Download as an MP3 by right clicking here and choosing “save as.” RSS feed for Marketing Your Business Big Ideas Can You Map Out Your Entire Business Model on the Back of a Napkin? [1:27] Last week, we had a pop-up mastermind for people who had donated a significant amount to our nonprofit Village Impact. We came together and we had two days of back-to-back supporting one another hotseat shares and presentations. But one of the things with this pop-up mastermind is that nobody really knew each other. So, we wanted to create a way for everybody to not only get familiar with one another, but to be able to have insight into each other’s business so that we could contribute and give ideas, suggestions, strategies, etc., that would be beneficial for every single person. The question I would ask is, can you map out your entire business model from a high-level overview? It was fascinating because we got to see how everybody was structuring their business, how they put their energy into how they’re attracting people, how they are converting people, and how they are keeping their audience happy, and certainly serving them at higher and higher levels. And this is the way that I would encourage you to really drill down and think about your business. 3 Key Questions to Ask [3:18] First off, if I were to ask you, how are you attracting your audience, would you be able to tell me? If I were to ask you, what are you using to convert those who are following you into becoming those who buy from you, would you be able to tell me? And if I were to ask you, how do you continue to serve those customers and clients who want more from you, how would you respond? Whatever your answers are, use that to begin mapping out your business model. Let me give you a couple of examples. The first example is Corinne Crabtree, who helps women lose weight. She’s got an amazing podcast, an amazing program and membership, and when we asked her about her business, she mapped it out in a pretty clear way. On the front end, she has her free course and her podcast – both are used to attract her audience. Then, the first offer she typically makes is her $289 course. Once people go through the course, they naturally want ongoing support, accountability and ongoing training, which they then find in her monthly membership. And then, for those who want that more personal touch, she has her one-on-one coaching. She’s used this model to attract tens of thousands of people into her monthly membership. And she’s super clear on how to attract people, where she’s driving them to, and how she can continue to provide a higher level of service for those that need it. Another example was Jamie Sears, who helps teachers. When we asked about a high-level overview of her business model, it was pretty straightforward. First and foremost, she attracts people through her free Facebook group, where she’s got over 180,000 people now. From there, she sells her PDF tools in a marketplace. These are one-off templates and tools that teachers can buy, which helps her attract a paying client. She then has her course, and then her membership. In our business model, we have our list builder, which is the Get TRIBE Guide. It’s the tool we use to attract our audience and begin building the relationship. Then, our front end is our signature program, TRIBE. Next, for those that want to continue all the awesomeness, we have our TRIBE membership. And for those that get to the level of a membership that’s earning $50,000 or more, we then have our TRIBE Mastermind. And finally, on the very high end, for those who have a membership that’s seven figures plus, we have our Impact Mastermind. That’s our business model summed up on the back of a napkin. Simplify Your Business Model [8:22] Can you sum up your business, and if we were sitting across from each other, outline on the back of a napkin? The reason this is important is because it helps simplify where you put your focus. Too often, I see so many entrepreneurs scattered – they’re doing all kinds of things, they have all kinds of different products, they don’t know where to drive their audience’s attention, their audience doesn’t know where to put their attention, and it’s utter chaos. But when you can simplify your business model and you can distill it down into a very clear process and flow, everything becomes so much easier, not only for yourself, but for your audience. Memorable Quote “When you can simplify your business model and you can distill it down into a very clear process and flow, everything becomes so much easier, not only for yourself, but for your audience.” – Stu McLaren Resources Village Impact Phit-n-Phat by Corinne Crabtree Corinne Crabtree’s podcast Diary of a Not So Wimpy Teacher by Jamie Sears Jamie Sear’s Facebook Facebook groups Get TRIBE Guide 12 Membership Tips to Boost Your Business TRIBE Stu McLaren’s website Searchie Rate & Review the Podcast Reviews for the podcast on iTunes and greatly appreciated! They help us build awareness for the show, which in turn allows us to bring value to more listeners like you. Not only that, but they help us better understand what matters the most to you so that we can constantly improve. If you received value from this episode, it would mean the world if you could take a moment and leave your honest rating and review. You can do that by clicking here.