How many times have you opened the local paper or tuned into the local evening news and there is yet another small to midsize business owner and or (these days) some once seemingly unsinkable Titanic of a company like the late great Lehman Brothers or Crispy Cream that is having a liquidation sale!

Most Companies Don't Start Selling Everything They Have For 50 Cents On The Dollar Until They're About To Go Out Of Business!

Or some former big time Wall St. Executive who is now being profiled on one of those 20/20 type news shows and they are auctioning off this and that on good old Ebay!

Trying desperately to raise some much needed cash! In order to avoid having their luxury car reposessed or worst yet, they're trying to avoid foreclosure!

And then there is your small business.

Which in the big picture is basically invisible to both the on and offline general public!

Your Businesses Long Term Growth Will Be Tied To Selling Some Of Your Best Products And Services For 50 Cents On The Dollar!...

Whether you primarily market your business on or offline; you need to realize that the top 2% of online marketers make an absolute fortune selling (actually strategically marketing) their best selling products and services for a whopping 50% cents on the dollar!

No kidding! Of course you don't believe that yet but it's true! Now that's not to say that a brand new startup can and should be using this particular strategy just yet!

But at some point you simply must start incorporating this incredibly powerful profit producing technique into long your long range marketing plans.

Here is a graphic example: Strictly for illustration purposes only.

 

 

 

By Knowing The Total Dollar Value Of Your Best Long Term Customers And Clients Allows You To Easily Out Promote Your Big Buck Major Competitors!

Suppose you sell a digital ebook about "How To Improve Your Cardiovascular Health In The Next 90 Days Without Becoming A Fitness Junkie!" that currently retails for $47.00 dollars.

But actually before you get too far into this powerful money making concept. You must also totally understand another very powerful marketing concept as well.

Sometimes you will hear this powerful concept referred to as your customer's Marginal Net Worth ,Total Customer Value(TCV) or the LifeTime Value of your customer.

Here's a simple but powerful eye opening example; Suppose you run a high end Hair Salon that specializes in women's hair grooming.

Let's further say that your typical customer pays $75.00 for a shampoo, wash and cut; and a trim normally retails for just $15.00 dollars.

And let's further say that your typical customer comes to you once every 60 days or every two months. So that they are going to come to you for a shampoo, wash, cut and trim for a total of $90.00 dollars.

So that works out to them visiting your shop (on average) at least six times per year (once every two months) or six visits per year.

And let's futher say ( in order to ) keep the math fairly simple that they spend exactly $90.00 dollars per visit.

And let's also say that after you run your numbers you find out that on average your typical customer will stay with you for about four years or 48 months.

So their annual investment with you is $540.00 dollars ( $90.00 dollars per visit x 6 visits per year = A gross profit of $540.00 .)

Of course these simple calculations do not include any type of upselling marketing techniques that would create additional long range profits as well.

And since they will (on average) remain a steady dependable customer for at least 48 months or four years.

Their actually worth a grand total gross profit of $2,160.00 big one's! And let's say you work off of a 60% profit margin; so their actually worth ($1,296).

($2,160.00 x .60% = $1,2960.00 in gross net profits or total LifeTime Customer value.)

That is your typical customer's Total Customer Value or their LifeTime Value to your business.

Again; in order to keep the math fairly simple this TCV calculation doesn't include any referrals that they might send you within those four years!

Now knowing this; how much could you actually afford to invest on a yearly basis in order to acquire them as a long term customer? Your answer is no more than 60% of whatever their annual worth is, correct?

 

 

 

(Homework assignment; Calculate your ideal customer's and clients LifeTime Value to your business and or service!)

In this particular case, you probably better not spend more on your advertising or marketing than $324.00 dollars per customer otherwise your business could be headed towards bankruptcy!

($540.00 in annual gross profits x .60% profit margin = in gross annual profits of $324.00 per customer.)

A Staggering 94% Of Your On And Offline Competitors Don't Have A Clue How Much They Can Actually Afford To Spend In Order To Acquire A First Time Customer!

Now: you just took a giant step past a staggering 94% of your so called competitors on or offline who are completely clueless about this powerful and yet incredibly simple calculation!

Since you now realize what your typical customer is worth to your business on an annual basis.

You could easily allow another struggling cash starved small business owner ( a potential JV - Joint Venture Partner) that has a product or service that compliments yours to give away one of your Free Trim with any shampoo,cut and wash coupons for New Customers Only! A $15.00 dollar( or X dollar ) value!

Hopefully you can see that just by knowing how to calculate this fiqure you now have tremendous room for new customer acquisition marketing creativity!

Because if need be you could also offer a monthly "Free Drawing" in order to build your list and your Grand Prize Winner gets One year or six wash,cuts and trims for the price of just one visit! A $540.00 total dollar value!

And if they do like your typical customer, you'll net three more years at the full retail price of $540.00 dollars! So those three years are worth $540.00 per year x 3 years x .60% = an overall gross profit of $972.00 dollars!

And you gave them the first six visits for just $90.00 dollars!

Now then your almost ready to get back to your digital ebook that currently retails for just $47.00 dollars.

if you also have other more expensive products and services (upselling) that you can offer your clientele like perhaps ongoing hourly, monthly or annual coaching/mentoring services.

You are potentially sitting on a proverbial goldmine! Here's how!

When You Add Your Commissiom Only Affliate Army To Your Long Range Marketing Plans Your Business Will Simply Explode!

There is simply a never ending supply of (sadly) untrained wannabe online marketers who have no idea how to build their own highly effective lead capture pages or sales converting website or how to properly setup their own autoresponer messages etc.

And get this: just like in the offline world. They are more than willing to aggressively market your product or service (are you sitting down?) on a commission only basis!

Yep! That's right! They are affectionately referred to as affliates! Fancy name but boy oh boy! They can and will make you a proverbial fortune in a heart beat!

Now: before you start pre-maturely counting your money! There is one teeny weeny little tid bit of info you need to understand about this highly motivated group!

Sadly: it is a statistical and undeniable proven fact! That on average only a dismal 2% of these online wannabees will ever make a dime! Nod your head it's true!

That being the case: you can still play the law of large averages (just like the) Network Marketing Industry Giants have! And still make a bundle!

Case in point: since you truly recognize that on average for every 100 people that signup for your free to join affliate program, only two ( at best) are going to be able to consistently earn a dime!

Your mission is to simply create an army (over time of course) of them! Because once you reach say the 10,000 affliates level and beyond!

You can expect at least 2% of them ( or 200 people) to bring home the bacon!Either every few days, weeks or months!

(10,000 commission only affliates or sales people x .02% success rate =200 successes!)

Once You Have Established A Dependable Long Range Market Tested Backend Marketing Strategy You Can Comfortably Afford To Giveaway 100% Of Your Lower Cost Frontend Products And Services To Your Affliates And Still Make A Fortune!

And finally: here is the real kicker where you can (hopefully) from this day forward hit it out of the park, on or offline! Simply by understanding and applying these two incredibly powerful long range money making secrets!

Again: just for illustration purposes. Since your digital ebook currently retails for $47.00 dollars ( or X). Why not let your affilates sell it for just $27.00 dollars ( or half price) say what?

But here's the kicker! So pay close attention! Let them keep 100% of the sale!Huh?

Remember: you know that a certain percentage of your customer base (say roughly 40%) are going to upsell to your more advanced $97.00 dollar product.

And another 25% are going to upsell even further to your $697.00 dollar even more advanced product.

And another 20% will join (you or your JV partners) monthly membership site and pay anywhere from $47.00 - $297.00 dollars per month! And at least 60% of them will stay enrolled at least 12 months!

And finally! at least 5 - 10% of your valued customer base will upgrade to the big enchillada and take an advanced 3 - 5 day workshop more affectionately referred to as a Bootcamp for anywhere from a low of $2,497.00 per person!

If you can call it that! To a high of $25,000.00 dollars per year(and up!) to join a Master Mind Group!

Again; the final percentage of whether it's the lower perecentage of 5 or the higher percentage of 10 really is going to depend on the final cost and how valuable your customer base thinks the long term value is.

Now then based on that simple math; Doesn't it just make sense to allow and encourage your commission only sales force to go forth and conquer!

And let them keep 100% of the front end $27.00 dollar sale! And you just net all the rest!

Technically speaking; all of this additional income is referred to as your backend income!

If need be: you could sweeten the pot by offering every affliate that does X amount of volume per year; a monthly percentage of every membership upsell that you get!

And if your truly wise you will allocate some of your resources into Professionally training them how to market online so that maybe 5-30% of your affliates make sales!

And once your army reaches the 10,000 plus level! You'll probably be a much sought after teaching commodity!

Hopefully now; you can plainly see how you can easily sell your product or service for half price and still make a proverbial fortune! Good! Go forth and conquer!