I have prepared for you a summary of the book by Anik Singal titled The Circle of Profit.
Who is Anik Singal?
He is a person who has sold digital products worth a total of 100 million dollars. BusinessWeek ranked him among the TOP 3 best American entrepreneurs under the age of 25. Twice, his company appeared on the list of the fastest-growing companies in America.
Anik says that digital products are much more worthwhile to create than physical ones, mainly due to higher margins. The digital products described in the book primarily involve recommending other products in exchange for a certain percentage of sales (known abroad as affiliate marketing), where through the Clickbank platform, which is the world leader in this field, you can receive up to 75 percent margin.
The three steps Anik recommends for success in the world of digital entrepreneurship are:
- Find a topic that interests you.
- Gather information about it and offer as much useful content as possible.
- Then start thinking about earning money and monetizing that content.
Two interesting statistics that Anik mentions in the book:
- By 2020, 5 billion people will be online.
- The e-book market in the USA is growing approximately 250 percent per year.
What is the essence of the book The Circle of Profit?
It is a system for building a target audience interested in a specific topic, to whom you recommend other products via emails, from which you then receive a certain commission. In the second phase, you create your own digital product, which leaves you with a higher margin.
Anik advises that before you decide to enter a particular niche, you check 5 key indicators of niche profitability:
1.) The product must be digitally friendly: for example, you can create a digital product about how to invest in stocks.
2.) Competition: never be the first to publish digital products in that niche. Check Clickbank, which I already mentioned, and the world’s leading platform for video learning Udemy, as well as the search engine Google.
3.) Market size: On Facebook, for example, under Size of audience, according to Anik’s opinion, there should be a minimum of 1 million users in your area of interest. Anik recommends the countries United States of America, Canada, Australia, New Zealand, United Kingdom, France and Germany.
4.) Use the Google Keyword Planner tool: It shows you a certain number of searches for the keyword you choose (there should be at least 10,000 searches per month for the most important keywords).
5.) Long-term potential: How long will your customers be interested in purchasing your information products?
The THREE most profitable niches according to Anik are:
- Health (mental, spiritual, emotional)
- Wealth (business, investing)
- Relationships (marriage, dating, parenting)
What is the biggest fear of everyone who gets into this business?
How to attract visitors to your website. Anik says there are several free options that can help you gain visitors:
- Participating in blogs, forums – some forums have 2,000 views on a specific topic; in your post, don’t forget to add a link to your website in the signature. It was through forums that Anik made his first $10,000 online.
- Advertising on Facebook, social media, writing articles for others.
- Participating in affiliate networks, etc.
To start, Anik recommends offering someone payment to use their email list. To find people who are willing to offer you this, visit for example Clickonomy.
What kind of website do you need for this business?
Anik recommends a single-page website that should be as simple as possible. Its goal should be a good headline, a free gift, and a call to action for visitors to submit their email in exchange for the gift. The best word to use in the headline on your website is “free.” Such a simple website can be quickly created through Leadpages.
How often and what kind of emails should you send to your target audience?
Send emails 5x-6x per week to your target audience, which means you send 20 emails per month. Focus on emails with useful content and send at least one promotional email per week in which you recommend a product in exchange for a commission. For the first 10 days, tell stories about yourself to build trust.
How many emails per month do you need to start earning?
Anik recommends a first goal of 10,000 emails, and if at least 5 percent click on the link, that means 500 visitors to your website, which has, for example, a 2 percent conversion rate. Conversion in this case means how many people will actually buy the product you are recommending, and at this conversion rate that means 10 purchases. If you recommend a product that costs, for example, $97, you earn $727.50 at a 75 percent commission.
What is the value of the emails that are key to earning in this system, according to Anik?
The average value is said to be $1/one email per month (in some niches it may be €0.50 or even €5). This means that with a list of 15,000 emails you can generate €15,000 in monthly revenue with the right system and product recommendation opportunities.
What is the most overlooked method for earning money in this system?
After your audience gives you their email in exchange for a freebie, a so-called thank-you page should appear, which most people leave blank. Anik recommends immediately redirecting them to a new offer, as this way you can start earning right away. According to him, this is the most overlooked method for making money.
I also suggest you check out Anik’s blog at www.lurn.com/blog, where there is a lot of useful content on this topic.
