How Self-Liquidating Offers Can Build Business Empires

As a business owner, you understand the importance of generating profit. Without profit, the business dies. But, it's how you generate these profits that matters most.

Many business owners push for each product to be profitable. It's understandable, but it's also a short-sighted mistake. You see, it focuses on the front end of the sales funnel only. Assumes that each new customer only buy once from you.

Think of it this way. If every customer you signed up, spent on average $50 upfront but then a further $500 later, how much would you spend to get this customer?

$50 would be great right?

Because you would earn profit of $450 over the lifetime of the customer ($500 revenue - $50 ad spend). And yet, paying $50 eliminates any profit you make on the first sale. Violating what you know to be business 101.

So, you can see the power of this initial sale. The importance of the offer itself, which is why you need to pay attention. you need to create a similar offer.

An offer otherwise known as the Self Liquidating Offer (SLO)

Introducing Mike Dillard And Magnetic Sponsoring

Some of you might know of the name Mike Dillard. Well, Mike is the subject of today's articles. Primarily because he is an entrepreneur with a successful track record.

But, also because I know there are many entrepreneurs who have followed Mike’s training over the years. Indeed, I am one of them.

In 2010, Mike founded a financial education company called The Elevation Group (EVG). Their mission was to teach middle class people the strategies of the ultra-rich.

It was a huge success, generating over 50,000 clients in 60 different countries. Their signature product was an online course retailing at almost $2,000.

So, you would be forgiven for thinking you should follow a similar model. Find a niche and create one product for $2,000. Sell 500 copies and hey presto, you’ve just built a million dollar business empire.

Needless to say, it doesn’t work that way.

In fact, the success of EVG was not borne from the superior marketing of their specific product. It was as a result of the leverage he created from his first business…

Magnetic Sponsoring!

The Offer That Started An Empire

In 2005, Mike wrote his first ebook called Magnetic Sponsoring. The book was targeted at entrepreneurs in the network marketing industry. Entrepreneurs who were trying to generate a stream of leads in their business.

This was Mike Dillard’s SLO. A short ebook that sold for as little as $29. But, that little ebook kickstarted a business empire of over $50 million.

The book sold over 100,000 copies, cementing Dillards reputation as an expert internet marketer. He then leveraged the success of the book by creating online courses and membership site.

Just like he created online courses for most of his businesses.

Think about it for a second. What do you think would have happened if Mike had skipped the self liquidating offer. If he had gone ahead and sold a Magnetic Sponsoring course off the bat for $997?

It almost certainly wouldn’t have succeeded.

Far from cheapening his brand name, his SLO gave him new found expert status in his community. The rest, as they say, is history!

Creating Your Self-Liquidating Offer

First of all, get clear on what the goals of your self liquidating offer.

The purpose is to get it into the hands of as many people as you can, so you can build reputation and credibility.

Now, you might be thinking, why not just give it for free?

Well, you could. But what message does it send? And more importantly, what type of lead does it attract into your business?

Remember also, a paying customer is far more valuable than a free lead.

The second thing to note is this.

The goal of the SLO is to breakeven. To promote the offer, you will need to pay for some ads. So, you want the revenue from the SLO to cover the cost of these ads.

For example, let's say you have an SLO priced at $50. For every $50 you spend in ads, you need to convert one person into a customer.

Ideas for Your Self-Liquidating Offer

Here are some ideas for SLOs.


  • Like Magnetic Sponsoring, you could create a comprehensive guide to solving a specific problem.

Physical Book

  • Publishing your own book is easier than it has ever been. A physical book serves as a great way to build your reputation.

Online Course

  • Just by creating a few screen capture videos, you can have an online course up in no time. It could even be an extension of the ebook.

Physical Product

  • Particularly suited the razor blade-type business model. Meaning, if you know you will be selling razor blades as your upsell, sell your razors today at a low price.

Needless to say, this list is not exhaustive, but a starting point.

Final Thoughts on Self-Liquidating Offers

To launch your business empire, you only need one product or service. Yes…just one.

Think that's unconventional?

Well, the goal with this one product was to breakeven. That's it. Sounds crazy I know. But you've seen just how powerful a Self Liquidating Offer (SLO) can be.

Sacrificing profits on the front end of the sales funnel to reap the benefits at a later date. Understanding this is understanding customer lifetime value.

So, right now, go grab a pen and jot down 5-10 ideas you have for an SLO. Research these ideas. Select one. Then commit.

It’s time to kickstart your business empire!

About the Author James Brooks

James is a digital marketing consultant and online business strategist. He helps coaches, consultants, and solo professionals market their business online so they establish authority positioning and predictably generate 5-20 high-ticket, new clients every month.

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