These 10 “Marketing Principles” are designed to grow your cash and the number of clients in your business! They have been proven to help thousands of businesses kick-start their sales and profits – regardless of the size of their operation.
1. Don’t Limit Your Clients Buying!
Most owners put a limit on the business scope that their clients want to do with them. Innumerable amounts of profitable sales, growth, and opportunities to provide a full, satisfying service are missed. The key is to let clients buy as much as they want to buy.
Look at your marketing method through a funnel. Think in geometric terms and be creative. Calculate your client’s worth over a purchasing lifetime – the aggregate profit after deducting advertising, marketing, and service fulfilment expenses.
Test and retest your sales messages, use various marketing platforms. Re-examine and increase your allowable acquisition budget. This is the most lucrative short-term way to get more starter clients. After a few months, you can reduce your cost per acquisition.
To calculate the marginal net worth yet, here are the steps to follow:
Step 1: Compute your average sale and your average profit per sale.
Step 2: Calculate conservatively how much additional profit a client is worth to you based on frequency of repurchase throughout their patronage lifetime.
Step 3: Divide your marketing budget by the number of clients it produces.
Step 4: Repeat to compute the cost of a prospect.
Step 5: Calculate how many sales you get from these prospects (that’s the percentage of
prospects who convert into clients).
Step 6: Compute the marginal net worth of a client by subtracting the cost from the expected profit
2. Use Test Marketing to Maximize Your Sales Results
Test and retest, then try out different platforms. Continuously improve your advertising copy by comparing different variables – be it the sales letter, promotional offer, or sales pitch.
Ascertain the most effective basic offer, headline and copy. This would lower your selling expense, as you would be maximising every marketing dollar spent.
Test variations of each step of your marketing process, these components can be cross tested. Pricing is also a key factor, as different prices for the same product can outperform or outpull another by large margins. Test and retest to discover what the market believes is the “right” price.
3. Build and Profit From a “USP”
What differentiates your business from others in the industry? More specifically, what is your comparative advantage? Put your USP at the heart of all your marketing campaigns. Then make sure you consistently fulfil the promises that form the basis of your USP, if not you risk losing your clients.
Find your USP by asking yourself “Most businesses in my industry do __________. But what we do is ________.”. The blank is your Unique Selling Proposition – something that you provide more successfully than others. It may be the niche demographic you serve or the specific after-service you provide that no one else does.
4. Through Endorsements
Don’t be shy about requesting endorsements from your clients, especially if they are influencers in their fields. They lend credibility to a sales message and boost sales! Be creative in your endorsements – get someone to write a letter.
Referrals provided by your clients or even competitors tremendously grow your business. Tell them that if the client doesn’t want to buy from them, they can still make a profit by introducing the client to you. A win-win situation.
Ask for access to clients who rejected them and get them to introduce your business instead. Pay the competitor for the referral up to a 100% for the first transaction.
To convince your competitors tell them that clients who don’t buy from them are sunk costs and lost assets, but they can be monetized by referring them to you. Then write them a cheque to prove you are willing to pay them for every first referred transaction.
5. Reverse Risk to Put Your Sales in Forward Drive
Overcome “buyer hesitation” by offering a guarantee. It is short-sighted to be unwilling to assume the transactional risk, because standing behind your offering lends greater power to your sales proposition.
“Risk reversal” assures more buyers to buy with confidence, compared to the number of people who would take advantage of your guarantee. You can even turn your refund requests into profits.
Sceptical? Offer the client who had a bad experience the opportunity to purchase good quality alternatives and steep discounts – refund the difference and earn. A stronger guarantee is to let prospects try your product free of charge, billing them only after 30 days have expired. Stronger still is the “pay only if it validates” guarantee: The client pays only if your offer delivers them a value that is five times the product price.
If your product or service is of good quality – you have nothing to fear in offering a clear, risk-free guarantee.
6. Make Top Quality a Top Priority
Be unrelenting in providing the highest quality in the products and services you sell – even in the work produced for you! Make this part of your “USP”. Because any “quality” gap in your business, marks a reason for clients to switch to your competitors. Take it as a self-improvement challenge!
2 key essential attributes to achieve this:
1. You must develop the ability to see the needs and wants of others.
2. You must find a market gap.
7. Link Your Business to a Strong Partner
Host/parasite (or marketing joint-venture) relationship
Leverage your sales network, client network, employees – everything, even your competitors. Find your competitors through your vendors. Whenever they referral someone to you they get a referral profit -a low cost, high impact win-win solution.
8. Pay Only for Results
Pay in performance-based compensation agreements. Pay your employees in direct proportion to the results they help you achieve.
This assures the top-notch service you desire to provide. Leverage Per-inquiry advertising to reduce your advertising risk, but frame it as “shared revenue”.
“I will pay whatever your advertising costs are, as long as you’ll guarantee me a minimum number of sales from that advertiser.” Make sure everyone working for you are invested in your goals and have a shared vision, if not you’re losing potential.
9. Manage Your Assets Wisely
All things being equal, I’d much rather put all my available dollars into marketing and pay a supplier 105% in exchange for having him keep inventory accessible. That can free up thousands, sometimes even millions, of marketing dollars. Leverage on other people’s spare capacity.
Rule One: Pay your payment obligations after the end of the deal, once the results are known.
Rule Two: If a deal is risky, structure it so that you won’t have to invest too much money in the early stages
Rule Three: Start the negotiations by offering less than you’re willing to give.
Rule Four: Ask for joint tenancy of all the client lists or buyer prospect names.
Rule Five: Add the right to assign your interest to others in any deal you negotiate.
Rule Six: State your proprietary interest in the original concept in the contract, before you start dealing.
Rule Seven: Don’t do anything till the “contract of agreement” is fully agreed upon and signed.
Rule Eight: Reserve the right to audit the other person while the deal is ongoing.
Rule Nine: Get an expert negotiator to help. (Don’t get a lawyer)
10. Borrowing Winning Strategies
Emulate and adapt other people’s good business ideas to grow your own.