Are you happy constantly fighting for small checks?
Posted 12-20-2009 at 05:45 PM by RussReynolds
I see a lot of people on this board with a 'poor' mentality. I don't know whether it is a self-confidence thing or lack of understanding about bigger opportunities out there.
When you meet a potential new client you should be trying to assess how you can help his business. Really there are only 3 ways - make him more money, save him money or save him time.
But instead, many of you walk in already having decided that Mr. prospect needs an email autoresponder set-up. It never occurred to you that his customer base doesn't use computers (for an example).
What you need to do is to find ways to be able to make your client more money or save him time. The thing is - often your internet marketing services are not the most effective at doing this. Sure, you can make him some more money with SEO but often there are far more effective things that should be done first - things that you likely already know how to do but don't give yourself credit for.
Here's an example. How many businesses do you walk into that either have no database at all or have never communicated with it?
I have a new client that has 15,000 inactive customers in his database - they have captured no e-mails. If you walked in their suggesting an autoresponder set up, you likely would get the job but you would be leaving money on the table.
This customers average sale is $200. I am going to send out a letter to all 15,000 inactive customers (I'm going to test first).
If I get a 1% response, then here is the math:
expenses 15,000*0.50 (postage) = $7,500
sales 15,000*1%*200 = $30,000
profit = $22,500
Of course these reactivated customers will also buy in the future so the profit does not stop there.
Do you think $5,000 would be a fair price to charge? Obviously anybody would pay $5,000 to get $22,500.
[I know that likely now you are thinking 'what if I can't write a letter that pulls 1%?
Well, there is a ton of free information online - whole letters you can swipe (make sure it is in a different industry and just tailor it to the industry you want).
The other key is to test in smaller batches - say 500 where you are not spending too much of the clients money without a predictable return.
Probably a few years ago you thought you couldn't design a website or do SEO or whatever. If you think you can do it, you can do it.]
You could even approach your client to work on a results only basis - ask for 25% of the increased profits you bring him - hard for him to say no to that.
Please don't limit yourself to internet marketing - there are so many other things that you can do to really help your customer that are more lucrative for you as well.
Here's a really cool strategy - pick a vertical industry (say dentists). Become the marekting guru for dentists and you can develop an information product full of tested marketing strategies for dentists. Then you can sell your information product to make a living and only take on new consulting clients when you want to.
If you have any questions/comments please leave them here.
Russ
When you meet a potential new client you should be trying to assess how you can help his business. Really there are only 3 ways - make him more money, save him money or save him time.
But instead, many of you walk in already having decided that Mr. prospect needs an email autoresponder set-up. It never occurred to you that his customer base doesn't use computers (for an example).
What you need to do is to find ways to be able to make your client more money or save him time. The thing is - often your internet marketing services are not the most effective at doing this. Sure, you can make him some more money with SEO but often there are far more effective things that should be done first - things that you likely already know how to do but don't give yourself credit for.
Here's an example. How many businesses do you walk into that either have no database at all or have never communicated with it?
I have a new client that has 15,000 inactive customers in his database - they have captured no e-mails. If you walked in their suggesting an autoresponder set up, you likely would get the job but you would be leaving money on the table.
This customers average sale is $200. I am going to send out a letter to all 15,000 inactive customers (I'm going to test first).
If I get a 1% response, then here is the math:
expenses 15,000*0.50 (postage) = $7,500
sales 15,000*1%*200 = $30,000
profit = $22,500
Of course these reactivated customers will also buy in the future so the profit does not stop there.
Do you think $5,000 would be a fair price to charge? Obviously anybody would pay $5,000 to get $22,500.
[I know that likely now you are thinking 'what if I can't write a letter that pulls 1%?
Well, there is a ton of free information online - whole letters you can swipe (make sure it is in a different industry and just tailor it to the industry you want).
The other key is to test in smaller batches - say 500 where you are not spending too much of the clients money without a predictable return.
Probably a few years ago you thought you couldn't design a website or do SEO or whatever. If you think you can do it, you can do it.]
You could even approach your client to work on a results only basis - ask for 25% of the increased profits you bring him - hard for him to say no to that.
Please don't limit yourself to internet marketing - there are so many other things that you can do to really help your customer that are more lucrative for you as well.
Here's a really cool strategy - pick a vertical industry (say dentists). Become the marekting guru for dentists and you can develop an information product full of tested marketing strategies for dentists. Then you can sell your information product to make a living and only take on new consulting clients when you want to.
If you have any questions/comments please leave them here.
Russ
Total Comments 6
Comments
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I see a lot of people on this board with a 'poor' mentality.
Glad I didn't say that.
I don't know whether it is a self-confidence thing or lack of understanding about bigger opportunities out there.
I think it's a Confidence and Experience factor.
When you meet a potential new client you should be trying to assess how you can help his business. Really there are only 3 ways - make him more money, save him money or save him time.
I do all 3.
But instead, many of you walk in already having decided that Mr. prospect needs an email autoresponder set-up. It never occurred to you that his customer base doesn't use computers (for an example).
Hmmm, that would maybe apply to the Over 65 crowd. Every bus should have an A/R.
What you need to do is to find ways to be able to make your client more money or save him time.
Absolutely. That's why I have a 2 hour Questionnaire before I start to implement anything.
The thing is - often your internet marketing services are not the most effective at doing this.
100% correct, I've been preaching this to everyone. IM is one of the Last things I implement.
Sure, you can make him some more money with SEO
NOT always.
but often there are far more effective things that should be done first - things that you likely already know how to do but don't give yourself credit for.
Here's an example. How many businesses do you walk into that either have no database at all or have never communicated with it?
I rarely come across a bus that has a complete CRM in place.
I have a new client that has 15,000 inactive customers in his database - they have captured no e-mails.
A few weeks ago I had an interview with a client who has 30,000 names, no emails. They do no direct mail, nothing with this list.
If you walked in their suggesting an autoresponder set up, you likely would get the job but you would be leaving money on the table.
About Eleventy Billion.
This customers average sale is $200. I am going to send out a letter to all 15,000 inactive customers (I'm going to test first).
If I get a 1% response, then here is the math:
expenses 15,000*0.50 (postage) = $7,500
How do you get .50? Are these postcards? A properly formatted letter with a live 1st class stamp cost closer to a $1.00.
sales 15,000*1%*200 = $30,000
It would be higher, so your theory still works.
profit = $22,500
That would be if you had NO Upsells, Cross Sells, Downsells, Maintanence Agreements, Bundled pricing, etc.. So the profits would be even higher.
Of course these reactivated customers will also buy in the future so the profit does not stop there. Yep, work the Backend.
Do you think $5,000 would be a fair price to charge?
$4,997 ;-)
Obviously anybody would pay $5,000 to get $22,500.
Don't agree with that statement. A customer won't pay you $5,000 upfront, but maybe after the campaign is complete.
[I know that likely now you are thinking 'what if I can't write a letter that pulls 1%?
Well, there is a ton of free information online - whole letters you can swipe (make sure it is in a different industry and just tailor it to the industry you want).
The other key is to test in smaller batches - say 500 where you are not spending too much of the clients money without a predictable return.
Probably a few years ago you thought you couldn't design a website or do SEO or whatever. If you think you can do it, you can do it.]
You could even approach your client to work on a results only basis - ask for 25% of the increased profits you bring him - hard for him to say no to that.
Please don't limit yourself to internet marketing - there are so many other things that you can do to really help your customer that are more lucrative for you as well.
Here's a really cool strategy - pick a vertical industry (say dentists).
Funny you should mention Dentist. My neighbor is the #1 Marketer in the world for Dentist. In 2009 he made 13 Million, yeah 13M. His goal is 40 Million within 5 years. Six years ago he was Broke and working as a bartender.
Become the marketing guru for dentists and you can develop an information product full of tested marketing strategies for dentists. Then you can sell your information product to make a living and only take on new consulting clients when you want to.
If you have any questions/comments please leave them here.
RussPosted 12-20-2009 at 09:11 PM by Chicago 
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Russ,
Great post. I agree with everything you said, and have seen the "mentality" myself.
I think it lies primarily with lack of confidence, but with experience comes confidence(double edged sword)
I myself do not target internet based strategies right away, as for me, its only a small percentage of the job. Most businesses need to clean up in-house first and take care of the things they are doing, THEN I usually work with them to make an effective net marketing program that revolves around what they do in-house.
One without the other is pointless.
KeithPosted 12-21-2009 at 06:26 AM by Keith Boisvert 
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"I myself do not target internet based strategies right away, as for me, its only a small percentage of the job. Most businesses need to clean up in-house first and take care of the things they are doing, THEN I usually work with them to make an effective net marketing program that revolves around what they do in-house."
This is without a doubt the way to proceed. Where the heck were you guys when I was running my management company? Sheesh!
Great post Russ. Keep em coming.Posted 12-23-2009 at 02:21 AM by FredAcker
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Thanks for the comments guys.
Just to illustrate the point - I have 2 big contracts under discussion right now. One is heavily internet based (95%) while the other is 0% internet based.
Same objectives - grow the business drastically - very different approaches.
The reason is - I went in like a partner and through questioning figured out what I would do if it was my company to grow sales quickly and that is what I based my proposal around.
I posted this in the forum but my mantra for 2010 will be "no more tire kickers, no more tire kickers..."
Thanks again guys,
RussPosted 12-23-2009 at 05:54 AM by RussReynolds
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Great Post Russ...
Secrets of a Millionaire Mind - Mastering the Inner Game of Wealth by T. Harv Ecker is one (of many) books that talks about "your financial blueprint" and how to work on changing it.
ilenePosted 12-23-2009 at 07:54 AM by ileneg
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Totally agree with Russ and Keith makes an excellent point about the owner cleaning house first. Many owners shoot themselves in the foot by what they don't do on a daily basis.
Having a website is a waste of money and time when you have 'Bonnie the Barmaid' answering your phones while popping gum or 'Cuss 'em First Jim' greeting prospects. Yes, it's really true that some businesses have these problems and they can't be ignored.
As for Chicago's comment that every business should have an a/r - no, not every business needs one. It depends on the business. For example Boots & Coots are the guys you want to cap an oil well fire...why would they need an autoresponder?
Some industries are best with a 'here's what I got-Here's what it does-Call me!" site that works.
IMHO, it's best to follow Russ's take on things and get to know what the business really needs instead of getting fascinated with online tools to the exclusion of making business sense.Posted 07-02-2010 at 02:04 PM by Dee
