The Strategist

Today's Top 5

Whatever helps you stay positive is what you need to do first thing each morning…and whenever you find yourself getting off track. Negative messages may be all around, but you don’t have to be adversely affected by them.

Look for opportunities to add additional products, services, packages or expertise in addition to that which you currently offer. Electronics and appliance retailers offer extended warranties as an extra option.

As outlandish as the above headline may sound – it's possible to purchase thousands of dollars in profit each and every year – for a one-time investment of $500 or less.

Try to make it real easy for first-time customers to buy from you. You don’t have to sell new customers on the whole package or deluxe version of your product or service. Instead, offer something as an introductory level purchase.

Advertising gives you total control of your message and allows you to deliver it in a way that captures attention, interest, curiosity and response. Effective advertising is the engine that powers many successful businesses.

June 4, 2012

As outlandish as the above headline may sound – it's possible to purchase thousands of dollars in profit each and every year – for a one-time investment of $500 or less. In fact, it is a lot easier in some cases, and certainly less expensive, than the execution of an integrated marketing campaign.

As a marketer, you understand that you have to spend money to make money. And that explains why you pit thousands, perhaps even hundreds of thousands of dollars each and every year in your hunt for the right clients.

But in your attempt to win this high stakes game, it's possible to become enamored with the process – and completely forget what it is you are trying to accomplish.

You spend weeks, months, and even years counting leads, identifying prospects, and courting the best prospects – all in an attempt to convert them to paying customers. Meanwhile the buying cycle for most customers continues to get longer – particularly for products or services that are expensive. Does any of this sound familiar to you?

Put another way, you and I spend a lot of money and a lot of time on marketing - when all we really care about are results.

Marketing Guru Jay Abraham thinks that sometimes this marketing process actually gets in the way of the results we want to achieve.

“Why not just “buy” the business,” Jay suggests. "It’s not hard to do once you know what that business could be worth to you over the long haul."

Jay calls this “the Marginal Net Worth of a Client”. Others who work in results-based marketing call it the “Lifetime Value of a Customer”. No matter what you call it – it’s the one piece of information you need to know if you want to bypass conventional marketing and start “buying” results.

You see, what most folks do is try to keep their advertising expenditure below their cost for providing the first product or service to the new customer. What they're trying to do is to at least breakeven on their advertising investment.

But if your business is any thing like mine, that new client may be worth thousands, even millions of dollars over their buying lifetime.

This means you can theoretically spend many many more times what you are currently spending and still come out with a substantial profit.

And that means that you might be better off simply "giving" the prospect the first widget, the first month’s service, or whatever you denominate your particular product or service to be.

Jay suggests that this may explain those seemingly "crazy" offers we all get from companies like banks, stock brokers, or even office supply houses. You know the ones I mean. These companies contact us by email, mail, or phone and tell us that they have already opened an account in our names and pre-funded it with a $75, $100, or even $300 credit. All we have to do is spend the money.

Of course, they realize that once we “buy” we are likely to continue buying for months, years, and even decades to come. And since they have done their homework, they can predict with uncanny accuracy the amount that cash stream might be over time.

The key here is to first figure out how long you keep an average client and how much that client may be worth to you over their purchasing lifespan. You also have to figure out how much you can afford to spend before the real profit starts to accrue. This is a cash flow issue and has to carefully considered before any program of this type is implemented.

Admittedly, this can be a somewhat daunting task depending on the complexity of your particular enterprise. And it's not going to work for certain kinds of businesses.

On the other hand, “buying” an annual profit stream of $1000, $5000, or even $50,000 for a two to five hundred dollar investment makes it something you'll want to investigate a little further.

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