[ Pobierz całość w formacie PDF ]
investing was right for them. My client got approximately fifty thousand people the first year they made this offer to
buy the coins at a breakeven. Of the fifty thousand initial clients, nearly ten thousand came back and bought $5,000
worth of additional coins within six months at full margin. Of those ten thousand people, about two thousand people
came back and bought $10,000 or more additional coins at full margin. Of those two thousand people, five hundred
came back and bought at least $50,000 of coins, all before the first year was over. And approximately two thousand of
those people kept buying over and over again. The result was tens of millions of dollars in profit that resulted from
fifty thousand new clients acquired at a slight loss.
Same Strategy, Different Approaches
Once you've calculated the lifetime value of a client, you have many ways to accomplish your break-even objective.
- 31 -
Remember, the goal isn t just to cut the price of the first purchase. The goal is to make that first purchase so much
more appealing that people find it harder to say no than yes . . please!
While reducing the price of your product or service is the most common and obvious way to get the first sale, there are
other powerful ways to obtain first-time buyers.
For example, you can calculate your allowable marketing or selling cost, which is how much money you're willing to
either spend or forgo receiving (by reducing the selling price), in order to make that very first purchase more appealing
to a prospective client.
Let's say your product or service sells for $200 and your cost is $100. Also assume your average client repurchases
several times a year for several years and you will realize a good longterm profit. Obviously you can reduce your price
by $100 on the first sale to reach a break-even point and gain a new client. But you could put that $100 to a number of
other uses.
You could keep the price at $200 and use the $100 as "spiff" or extra selling incentives to your salespeople. Giving
salespeople greater financial incentive to bring in new, first-time clients can produce tremendous results in the right
situation.
You could also use that same $100 to buy more of your product or service. So you still charge the full $200, but you
give prospects twice the quantity on the first purchase.
Or you could take the $100 and use it to buy other complementary products or services (at wholesale) to package and
add to your product or service without raising the $200 price-so the value of your offer becomes far greater and thus
more attractive.
Or you could use that $100 to invest in advertising, sales letters, additional salespeople, free seminars, or any other
marketing and selling programs. Or you could rent promotional space
in someone's store or trade-show booth and pay them the $100 for every new client you gain through their facility.
The only limitation you have on how to use your allowable marketing or selling cost to help you strategically break
even on the initial sale is that it must be ethical and legal. And after testing it out it must be economically viable in the
long term.
This strategy, when applied, will make your conventionalthinking, nonstrategic competitors look far more expensive
and appear to offer significantly less value. And you will gain visible distinction, attract more clients, and seed
significant profits for the future.
Action Steps
Make a list of every product or service you or your company sells. Then figure out how you can lower the resistance
barrier to a prospective client, employer, or prospect by lowering the entrance fee you ask. Remember, focus attention
on the fact that where you begin has nothing to do with where you end up. A new client first coming in for a lower-
priced starter offer will turn into a client who buys over and over at full margin. Likewise, an employer who promotes
you to a higher position (or a new employer who hires you) but will pay you only your previous salary for the first
thirty or sixty or ninety days is the same employer who will probably agree to pay you 30 or 50 or 100 percent more in
the long term. But before you get that 30 or 50 or 100 percent salary increase, you have to get in the door.
Try it out in a small, safe test approach first. You might offer to do a project for your current employer or work in a
new position for three months with no raise. You'll be pleasantly surprised by how many people take you up on your [ Pobierz całość w formacie PDF ]
zanotowane.pl doc.pisz.pl pdf.pisz.pl szkicerysunki.xlx.pl
investing was right for them. My client got approximately fifty thousand people the first year they made this offer to
buy the coins at a breakeven. Of the fifty thousand initial clients, nearly ten thousand came back and bought $5,000
worth of additional coins within six months at full margin. Of those ten thousand people, about two thousand people
came back and bought $10,000 or more additional coins at full margin. Of those two thousand people, five hundred
came back and bought at least $50,000 of coins, all before the first year was over. And approximately two thousand of
those people kept buying over and over again. The result was tens of millions of dollars in profit that resulted from
fifty thousand new clients acquired at a slight loss.
Same Strategy, Different Approaches
Once you've calculated the lifetime value of a client, you have many ways to accomplish your break-even objective.
- 31 -
Remember, the goal isn t just to cut the price of the first purchase. The goal is to make that first purchase so much
more appealing that people find it harder to say no than yes . . please!
While reducing the price of your product or service is the most common and obvious way to get the first sale, there are
other powerful ways to obtain first-time buyers.
For example, you can calculate your allowable marketing or selling cost, which is how much money you're willing to
either spend or forgo receiving (by reducing the selling price), in order to make that very first purchase more appealing
to a prospective client.
Let's say your product or service sells for $200 and your cost is $100. Also assume your average client repurchases
several times a year for several years and you will realize a good longterm profit. Obviously you can reduce your price
by $100 on the first sale to reach a break-even point and gain a new client. But you could put that $100 to a number of
other uses.
You could keep the price at $200 and use the $100 as "spiff" or extra selling incentives to your salespeople. Giving
salespeople greater financial incentive to bring in new, first-time clients can produce tremendous results in the right
situation.
You could also use that same $100 to buy more of your product or service. So you still charge the full $200, but you
give prospects twice the quantity on the first purchase.
Or you could take the $100 and use it to buy other complementary products or services (at wholesale) to package and
add to your product or service without raising the $200 price-so the value of your offer becomes far greater and thus
more attractive.
Or you could use that $100 to invest in advertising, sales letters, additional salespeople, free seminars, or any other
marketing and selling programs. Or you could rent promotional space
in someone's store or trade-show booth and pay them the $100 for every new client you gain through their facility.
The only limitation you have on how to use your allowable marketing or selling cost to help you strategically break
even on the initial sale is that it must be ethical and legal. And after testing it out it must be economically viable in the
long term.
This strategy, when applied, will make your conventionalthinking, nonstrategic competitors look far more expensive
and appear to offer significantly less value. And you will gain visible distinction, attract more clients, and seed
significant profits for the future.
Action Steps
Make a list of every product or service you or your company sells. Then figure out how you can lower the resistance
barrier to a prospective client, employer, or prospect by lowering the entrance fee you ask. Remember, focus attention
on the fact that where you begin has nothing to do with where you end up. A new client first coming in for a lower-
priced starter offer will turn into a client who buys over and over at full margin. Likewise, an employer who promotes
you to a higher position (or a new employer who hires you) but will pay you only your previous salary for the first
thirty or sixty or ninety days is the same employer who will probably agree to pay you 30 or 50 or 100 percent more in
the long term. But before you get that 30 or 50 or 100 percent salary increase, you have to get in the door.
Try it out in a small, safe test approach first. You might offer to do a project for your current employer or work in a
new position for three months with no raise. You'll be pleasantly surprised by how many people take you up on your [ Pobierz całość w formacie PDF ]