This guest post is by Michael Alexis.
In this post, I’m going to show you the exact steps one blogger used to earn over $1 million. That’s making some serious money blogging!
I interviewed Ramit Sethi of I Will Teach You To Be Rich and if you’re serious about making money blogging, then you need to read this interview.
But a heads-up: this post is long and extremely detailed. It took me over 20 hours to write. It will take you about 15 minutes to read.
I know you may be skeptical about the $1 million, so let’s start by looking at the facts.
Ramit Sethi and I Will Teach You To Be Rich
Ramit’s advice on money has been featured on CNN, Wall Street Journal, ABC News, FOX Business, PBS, The New York Times, CNBC, Yahoo! Finance, npr, REUTERS, and most recently in a major feature in Fortune Magazine.
His personal finance book, I Will Teach You To Be Rich, is a New York Times bestseller, and a Wall Street Journal bestseller.
IWTYTBR is ranked 19,466 on Alexa. It hosts over 250,000 monthly readers, and has 100,000+ newsletter subscribers. Prices of IWTYTBR products range from $4.95 to $12,000. But most importantly, Ramit’s tactics get his readers results. See this post, where over 500 readers wrote 54,818 words that say so. That’s as long as a novel!
Now, let’s break down Ramit’s five-step system for creating and earning immense value.
- Do Research That Gets Inside Your Readers Head
- Examples of research insights for IWTYTBR
- Use surveys to uncover the words readers use
- Collect words from your email subscribers
- When to ignore your readers
- Don’t refer to comments on other blogs
- Collect all the testimonials you will ever need
- It’s your birthday: ask for feedback
- Target your customers closely
- Write a sales page that makes your fortune
- Naming your product
- Answer objections before your customers even have them
- Don’t waste time A/B testing: it’s about the offer
- Understand the taxonomy of pricing
- Write Super Specific Headlines
- Give Your Product An Unbeatable Guarantee
- What to do right after the customer buys
- Using ethical persuasion
1. Do research that gets inside your reader’s head
When you can truly deeply understand people, even in fact better than they understand themselves, then your sales skyrocket.—Ramit Sethi
There are two reasons getting inside a readers head will skyrocket your sales.
First, you will use the information to create a product or service that matches their wants and needs.
Second, you can use their exact language in your copywriting to reach them at a deeper level.
A big part of selling a product is being able to understand your reader’s barriers. What’s holding them back from their goals? In terms of money, people already know they need to manage and invest it. In terms of weight loss, people already know they need to lose weight and eat better. And in blogging, you know it’s offering immense value to your readers that will make you a problogger.
But they aren’t doing it. There is something much deeper than this goal, which is the barrier to achieving it. You’ll only discover that by doing enough research.
Maybe you’ll find out that in finance, nobody wakes up in the morning and says, “I really need to study a compound interest chart and start investing!” Nobody. They say, “this year I am going to try harder,” or “yeah, I should probably do that, but first I need to figure it out.”
When you know that language, you are inside your reader’s head.
Imagine you are a weight loss blogger. I want you to write a headline for a coaching session on losing weight. Go!
Wait. You don’t have enough information to write an effective headline. The best you can do is generic stuff like, “Lose 10 pounds in 10 days with our experienced coach!”
“Weight loss” is too broad a topic. Maybe your reader wants to lose fat from a specific area. Or perhaps they want to lose weight for a specific reason. A 50-year-old mother of two will have different reasons than a 28-year-old guy living in Manhattan.
So, you do some research and find out your target customer is a single woman who wants to lose weight from her thighs. You could write a killer headline pretty quick, right?
Soon, you’ll be able to truly understand your reader’s hopes, fears and dreams—and articulate them even better than they can. That’s the power of research.
Examples of research insights for IWTYTBR
During our interview, I asked Ramit to share some of the specific insights he has applied from his research. Here’s a big one.
A couple of years ago Ramit was doing a book tour, and he’d ask readers what they really want to learn. Everywhere he went, people were telling him they want to earn more money. That’s why he decided to create his flagship course, Earn 1k On The Side.
But just like “I want to lose weight” is too generic, so is “I want to earn more money.” Here’s what Ramit thought: “I’m so smart. I know my audience so well! They want to live a better lifestyle—fly to Vegas for the weekend and drop a couple grand.”
Then he did his research.
It turned out the real reason his readers wanted to earn more money was so they’d have the option of quitting their jobs. Yeah, just the option. This insight profoundly changed how Ramit created and positioned his course.
By the way, take a look at the signup page for Earn 1k. How much do you want to bet “I can’t freelance … I don’t even have an idea” was one of the objections Ramit was hearing over and over?
So, how do you go about doing research that gets you inside your reader’s head?
Use surveys to uncover the words readers use
The beautiful part is that because so few people are doing this, if you do even a small amount—you completely stand out. You don’t need 25,000 data points. That’s ridiculous. It took me years to be able to get to that. If you have 20 qualitative responses to one survey question, that’s pretty informative.—Ramit Sethi
Before launching Earn1k, Ramit collected 25,000 data points, and then over 50,000 for version 2.0. He calls this his “secret sauce,” which allows him to be the “wife who knows her husband better than he knows himself.” Most of that data came from surveys.
He says that a lot of people don’t use surveys at all, so they come up with useless advice like “keep a budget.” So if you survey even a little bit, you’ll be way ahead of the competition.
Ramit starts with really broad surveys, and narrows the questions down over time. He asks the questions four or five times until he really gets at the truth. Sometimes it takes Ramit four months and 6,000 answers to get at a single nugget of truth. You don’t need that many responses, though: even 20 qualitative responses to one survey question can be extremely informative.
Preparing your survey
- Sign up for a free or $20 account at Survey Monkey.
- Ask open-ended essay-style questions. You aren’t aiming for statistical validity here.
- Ask five questions. Keep them short and specific.
- Include examples of the kinds of answers you want: really long, detailed responses, not one-liners.
- The two most important questions are “What is it you’ve tried and failed at?” and “What do you want?”
Here’s an example of a question from one of Ramit’s surveys:
“In your own words, what skill would you use to earn more $ on the side? (For example, “I’m good at writing, but I just don’t know how to earn $1,000 using my writing skills…”)”
Download copies of Ramit’s surveys—and an audio case study that walks through an example step by step—here.
Never do this on your survey
I asked Ramit if there was anything we shouldn’t ask on a survey. Here’s what he said.
Don’t ask them what they would be willing to pay. They don’t know. They will tell you an untruthful answer, and it’s pointless to ask them. Okay. People don’t know how to do pricing, so they get lazy and they are like “hey, what would you pay for this special mastermind ebook bootcamp” and you get the worst answers in the world. By the way they are total lies. People aren’t intentionally lying, they just don’t actually know what they would pay for something.—Ramit Sethi
Another thing you shouldn’t do is try to sell. You are doing research. How do these two research questions make you feel?
- If I told you I had an eight-week course that was guaranteed to make you 1k a month on the side, would that interest you?
- Have you ever tried earning money on the side? What happened?
Aim for the second option. It’s like my mom always said: “treat people how you want to be treated.”
Getting people to take your survey
You write great material, you are adding value for your readers. They love you. They wake up in the morning and see you in their reader, or come to your website or see you on Twitter. They like you.—Ramit Sethi
The key to getting readers to take your surveys is that they have to like you.
If you don’t have a good relationship with your readers, then none of this stuff matters. You can stop reading this post and go read How To Build The Relationship With Your Readers instead.
But if your readers like you, you are set. You don’t need thousands of them either.
Step two is to reach out to your readers via email and social media, saying something like this: “Hey guys, I’m looking for some help here. I’m trying to figure out how I can help you best. Would you mind taking like 5 minutes to give me your thoughts?”
That’s enough. You are set to start getting in your readers’ heads via surveys. But there’s another way you can do it.
Collect words from your email subscribers
You can also use email to better understand your readers.
Here’s what Ramit does.
- He writes a big, detailed email with a story about something that happened to himself or to a friend.
- He finishes it with a call to action, “Hey, I’d love to hear your story. Please email me back, I read every one.”
- He responds to some of the replies. The recipients of those personal responses think, “Wow, this dude actually reads his emails and he cares”.
That last point is pretty good for relationship building, too. These are the little things you can do that will bring you disproportionate results.
When to ignore your readers
Sometimes you’ll get reader feedback that you disagree with. Over time, you will develop a filter for what to listen to and what to discard.
Here’s a way to start developing your filter. When you get a good response, try to find out a little more about the person who wrote it. If everyone who buys from you is a 26-year-old man living in the USA, then listen to them. Ignore the 72-year-old grandma who’s complaining your font size is too small.
If you haven’t made sales yet, focus on getting to know your target audience. As Ramit advised in a previous interview,. For Ramit, IWTYTBR isn’t just another blog, so he isn’t interested in people reading just for intellectual entertainment. He wants people who will take action.
Don’t refer to comments on other blogs
You’ve probably heard this advice before: look at comments on other blogs in your niche, then blog about the questions they ask. Ramit says there is no value in this kind of research.
Why? Because audiences on different sites are so profoundly different.
Ramit recently wrote a post called The worst career advice in the world. It received over 200 long comments and was very well regarded. The article was syndicated by another site where the audience didn’t know him at all. On that site, the article got 24 comments, most of which were super-negative.
Your audience is unique and special—that’s why they are your audience.
Collect all the testimonials you will ever need
Another part of your research and development should involve collecting testimonials. We’ve all seen those generic testimonials that are totally contrived: “Oh wow, this is the best product I ever bought and it changed my life forever!”
You need real testimonials, and the best source is people that have bought your products. Send them an email that says, “Hey, hope things are going well. So happy to see how everyone is doing.” Then tell them to click the appropriate link: “If you accomplished x in 5 hours a week, click here. If you did y, but you were skeptical, click here.” This gives you testimonials for all those options.
Here’s another tip for getting rock-solid testimonials. As readers are going through you course, get them to fill out progress reports. That way, feedback is part of the funnel. Believe it or not, Ramit gets so much feedback this way he hired a guy whose sole job is to manage them.
And if you’re developing your first product, Ramit suggests two ways to get testimonials.
First, you may have some respondents you’ve never engaged with before. In your survey, include a comment like, “Hey, if you’ve used any of my free material for x/y/z, I’d love to hear your story. Please be specific”. All of a sudden you have 20 testimonials!
Another way is to offer free trials for your product. So, find five to ten friends or readers. Tell them “Guys, I’m planning to release this thing. It will be about $100. I’m looking for ten people to go through it and give me feedback. If you agree to fill out three surveys, you get this trial for free—and the final product as well.”
It’s your birthday: ask for feedback
During our interview, I asked Ramit about one other way I’ve seen him get people to leave feedback at IWTYTBR.
On his birthday this year, Ramit wrote a post and included this call to action at the bottom: “Nothing could be better than hearing how my material has helped you. Just leave a comment on this post. Or, upload a video to YouTube and tag it “iwillteachyoutoberich.”
“The more specific, the better Share a story. Tell us how IWT helped you hit a goal, pay off debt, earn more, get a better job — whatever. Provide specific, concrete #’s. Tell me what it meant to you. It would make my day.”
You know how many responses he got? Over 500. Check the post out at It’s my birthday today. Will you do me a favor?
The comments are people saying things like “I’m earning $70k more than I was before”, “I was able to quit my job and move across the country” and “I was earning $10 an hour, now I’m earning $40”.
These comments weren’t destined to be testimonials, but here’s one way Ramit uses them. When he makes a post about how he’s able to charge 100x what others do, and why his students are delighted to pay it, he includes the link. It proves that he’s not just providing information, but is also delivering actual results.
2. Target your customers closely
We saw earlier that Ramit targets his customers closely. He targets people who take action. He says it’s better to have a small core audience that takes action, respects what you have to say and gets results from your material, than a massive audience that doesn’t open your emails.
Here is a way to filter them out. Don’t sell via a squeeze page. Ramit sends subscribers through weeks of free material before giving them a chance to buy. If people complain, he unsubscribes them.
Then he tells the subscribers who can and can’t buy the course. For example, people with credit card debt are prohibited from buying his courses. If he finds out they bought it, he will ban them for life. Why? For one, Ramit doesn’t believe it’s right to take that money when he knows it will end up costing the customer twice as much. Second: it sends a message to the other readers.
3. Write a sales page that makes your fortune
We’ve had pages that convert at 68.7%, which in the online world is unheard of.—Ramit Sethi
Ramit spends months (or even years) doing research and development. He spends a lot of time crafting his product and offer, and he has converted as high as 68.7%. In our industry the average is 2-4%.
Realistically, you won’t get conversions that high. But could you improve your sales? Of course. If you don’t you are leaving a ton of value on the table—not just money—but value that users aren’t receiving because you aren’t messaging correctly.
Your blog doesn’t need as big a following as IWTYTBR to implement this. The basic patterns Ramit uses are modeled by people in businesses much larger and smaller. To succeed, you need to deeply understand your readers, then spend time on stuff that matters, and avoid what doesn’t.
Naming your product
Naming your product is some of the most important language on your sales page. If you want inspiration, check out Chris Guillebeau’s work at The Art of Non-Conformity. Chris names products like The Travel Hacking Cartel, Empire Building Kit and A Brief Guide To World Domination.
Let’s look more closely at how Ramit names his products. Why did he call his earning money course Earn 1k on the side? Because $1000 is an achievable figure. A lot of students go on to earn much more. But Ramit says if you tell them they will earn $10,000 they go “I don’t believe you, I’m not the kind of person”. Earning an extra $1,000 a month is life changing for most people. And it’s “on the side” because to become richer, people tend to think that they have to quit their job and start the next Google. The vast majority will not and cannot. But anyone can do five to ten hours a week on the side.
For Ramit’s new Find Your Dream Job course the naming process was similar. Even though the long-term goal is to help people find their dream career, he is using their language. If you are sitting around with your buddies, what you actually say is “I wish I could find a new…” What?
And “dream job” is what people are thinking.
Answer objections before customers even have them
Remember all those testimonials you collected? Now it is time to use them, and they are very strategic.
Imagine you find in your research that people don’t believe they have enough time to implement your advice. Great. Now you go to customers who are really happy and say “Hey, I’m looking for anyone who thought they wouldn’t have time to complete this program, but now you’ve achieved x results.”
Add that testimonial to your sales page, and when the reader’s there, they’ll find an answer to their objection before they even had it.
Don’t waste your time A/B testing: it’s about the offer
So few of us are even spending time on language. We are spending time on things that give us a shiny pop. You know you might be able to measure an increase in conversion by 1.6%. But when you do can things like this you can increase every other conceivable measure. Revenues up 500%. Engagement up 750%. Because you are actually speaking to people in the language that works with them, and not at them.—Ramit Sethi
Ramit really emphasizes how you should spend your time on the things that matter. “My point is, focus on the stuff that matters and is going to make the biggest most valuable gain for you… don’t get caught up in this microtesting world. It’s sexy. It’s fun. We see a 1.3% increase in open rates because we tweaked our subject lines. Or, you can get a 500% increase in revenue because you came up with a better offer,” he says.
Why all the hate? Two reasons. One is that even if you change the color of your button and improve opt-ins by 24%, it doesn’t mean you are going to convert any more sales. Second, even if you do increase the conversions to opt-in, they will eventually regress to the mean. You know who actually gets results from testing button color? Amazon.com.
Ramit says one area to test that can skyrocket your sales is your offers. Do your research and find out what people want. Do they want a standalone ebook? Maybe, and they’ll be happy to pay $97 for it. Or if someone doesn’t want a full video course, maybe they do want transcripts at a lower price. Others want accountability, like live calls every week or even a one-on-one call. Ramit warns that people might say they want an ebook but they may really need someone to check in.
One way to craft your offers is to study people you admire in both the online and offline worlds. What do they offer and how do they offer it?
McDonald’s created the kids’ meal. That’s an offer. They packaged up certain things in a certain way. Offered bonuses. Changed pricing. And the kids’ meal is one of the most successful packages ever created in the history of business.
When I interviewed Neil Patel of Quicksprout he told me about a $199 traffic generation system he offered. He also gave buyers a 30-minute phone call, and after hundreds of sales, is buried in scheduled calls. Ramit says Neil learned two things: that he will never do it again, and that people want his time. That’s very valuable.
Understand the taxonomy of pricing
There is a taxonomy of pricing that is well understood in the information product world.
It goes like this:
- blog post: no one will pay for
- PDF/ebook: $27-$97
- audio/video course: $497-$997
- must have video or live component: $997+
- in person, one-on-one: the most
If you are putting out a book, and all the others in the store sell for $10 or $15, it’s going to be awfully difficult to roll in and get $200 for yours. Stick to the taxonomy.
Write super-specific headlines
There are plenty of great posts on writing headlines, so I won’t dwell on it here. Check out Copyblogger’s How to Write Headlines That Work instead.
I will note that Ramit says headlines matter profoundly. So spend 50% of your time on them and get super-specific. Doing this, you might decrease conversions, but the people that come through are worth so much more—not just in terms of money, but also in terms of the value you offer them.
Then you want to start thinking about your guarantee.
Give your product an unbeatable guarantee
Offering a money-back guarantee forces you to step up your game, because if your product isn’t good, you don’t get food on the table. I think all of us in this market need that, because there have been so many sleazy people that released substandard products. So I’d like all those people to go out of business, and I’d like the best people, the ones who say “look, my product is so good you try the entire thing and if you don’t like it I’ll send all your money back, even the credit card processing fees.” I want more people like that, because that is a product with integrity versus a fly by night product.—Ramit Sethi.
A big barrier for business people who want to offer guarantees is that they are afraid people will rip them off. Guess what? Some people probably will. But the ability to get a refund will drive more revenue and expose you to many more great people than the few bad apples acting illegitimately.
People expect the opportunity to get 100% of their money back. If your product is good enough, why not let people try the whole thing and get their money back? You have nothing to worry about.
But you should monitor your percentages. On a $97 product you can expect a return rate of about 10%. If you are getting 40% of sales returned, your product is not good. If you are getting 2% returned, that’s a problem too. Why? You probably aren’t selling to enough people. Generally the higher the price, the more refunds are requested.
Ramit offered some tips on creating an unbeatable guarantee. First, the more powerful you can make your guarantee, the better. In The Four Hour Work Week, Tim Ferriss talks about offering a 110% money back guarantee.
Second, the best guarantees are very specific. So don’t just write, “if you are not satisfied for any reason, we’ll give your money back.” Instead try something like, “if you don’t get three paying clients within 60 days, then write me and I’ll send all your money back.”
Third, take as much risk as possible onto yourself. That means offering refunds greater than 100%, paying for shipping, whatever—as much as is economically feasible.
Neil Patel says you can reduce refunds by sending people free stuff you didn’t tell them about during the sale. Just before the refund period is up, send them an email that says, “Hey, next week I’ll be sending you a document that breaks all this down.” Or, “I’ve got a special bonus for you that I’ll be sending along next week,” for example.
So you’ve created a sales page that converts like crazy. But what do you do after your reader buys?
4. What to do right after the customer buys
When they buy, think through their experience. What are they feeling? Nervous. Don’t want to have gotten ripped off. Don’t want to have been taken advantage of. Don’t want their friends to think they bought a weird internet course.—Ramit Sethi
If you told your friends you bought a $2000 video course, they would probably say you got scammed. Normal people don’t buy stuff online, right?
So your newly acquired purchaser is nervous. And after you ease those nerves, they’ll be excited. They can’t wait. Where do they start?
Welcome your customers with a video—Ramit recorded his first one with his MacBook. Tell them something like, “You made a great decision. This is what you are going to get. If you ever have problems, contact us at…” Then give them the material.
It’s important to curate the material your customers see. If you ask people do they want all the information up front, they say “yes.” But if you give it all at once they will be overwhelmed and more likely to cancel or ask for a refund. So tell them, “Here’s why I’m not giving you everything—trust me, and take these action steps.”
I recently watched a Mixergy Master Class called. It was about how to keep customers that signup for your membership site or courses.
led the course and said there are three essential Cs: Character, Content, and Community.
In the case of IWTYTBR, the character is Ramit. He’s the personality that readers buy from. The content is what you offer—Noah also emphasized not dumping it all on new buyers all at once.
Community is the elements of your product that let buyers interact with each other. Noah says this is a great way to keep people around, and suggested the idea of forming small groups and giving them tasks: like creating a product together, or developing a landing page.
Ramit tried community by including a forum for Earn1K buyers. He took it down when he found people were spending more time on that than doing work. People still ask him for a forum. It’s what people want—but not what they need.
5. Using ethical persuasion
Life is not just about more conversions. You want to be classy. You want to be respectful. Yeah, you could make more money, but that’s not the goal—the goal is to help them make an informed decision.—Ramit Sethi
Why is ethical persuasion so important? Because now that you know Ramit’s techniques and frameworks for sales, you’d find it just as easy to implement them on the dark side. There are many ways you can use persuasion nefariously, like to convince people to buy things they don’t really need. Ramit says he knows of hucksters who find out how much money their leads have available on their credit cards, then charge that.
Here’s Ramit’s framework for knowing who to sell to.
rational (information + motivation) = decision?
- Rational requires that the potential buyer is in a sound state of mind and able to make their decision. Someone in desperate financial circumstances might not be.
- Information assumes the potential buyer has all the information in the world about Ramit’s product.
- And motivation means it is something they want.
If those three criteria are met, and the lead would buy the product, then Ramit has the privilege to persuade them to buy.
For example, take someone who’s earning $60,000, has $25,000 in the bank and works 9-5 but really wants to earn more. The person has the time, energy, and no credit card debt. If they took the time to go through Ramit’s program, and they trust him, would they buy it? If the answer’s “yes,” it’s a sale.
If someone makes $30,000, has $20,000 in debt, and is looking for a magic bullet, Ramit won’t let the person make the decision to buy.
So, I asked Ramit about those guys who run sites like www.SuperInstantMoneyMakingMachine.com. You know the kind—the ones where they tell you about their life on the beach, drinking margaritas, and chasing women. And there’s a picture of the guy in front of a jet. There is always a jet shot.
Ramit says if that guy has a product that would genuinely change a customer’s life, and gives them an out in the form of a full refund period, then it’s ethical to aggressively pursue the sale. He warns that many pages of long copy, flashing icons, the jet shot, and highlights are scams. Those guys do it because it works, and there are deep psychological reasons for it.
Can you do me a favor and leave a comment sharing the most important insight you got from hearing what Ramit has to say? Be specific—tell us a story, please.
Inspired by this? Start a Blog Today
This post has inspired a lot of people to start blogging – if you’re one of them please check out these two tutorials. Firsly our 5 step guide to starting a blog and our guide to making money blogging.