In Week 1 you identified a demand for your idea and found out what your unique insight is in this opportunity.
In Week 2 You created the perfect product. This is a combination of market demand and your unique insight.
This week we are going to focus on Promotion and Growth–specifically getting more customers.
We will look at 3 simple ways to increase your income and clients using marketing and systems.
The 3 main strategies for growing a business:
1. Increase number of clients
Most people only focus on this way to grow a business.
My barber does not know how to get most of his clients to keep coming back so he is always making the same money as most barbers in his town. If a client does not return, he just hopes others will walk in. Many restaurants are the same way. They concentrate more on the food than the customer.
2. Increase size of transaction or increase price
The more people spend with you, the more money you make. The issue is that many entrepreneurs don’t know how to get their clients to pay more.
3. Increase repeat sales
This is the step that the longest lasting businesses have gotten right. They know how to keep you coming back after the first sale. Sometimes through loyalty programs, email follow-ups, coupons and other strategies.
Here is some quick math to show you the importance of keeping these steps in your mind.
Let’s say you have 100 clients and let’s say they average $100 per transaction/purchase/sale. And let’s also say they make only two purchases in a year.
Number of Clients x Purchase/Sale Value x Number of purchases in a year=Total Income
100 x $100 x 2 = $20,000
Now comes the fun part. If you increase all three numbers by 10%
110 x $110 x 2.2 = $26,620
Just a 10% increase grew your income by 33.1%.
Let’s be very optimistic and increase each segment
300 clients x $200 x 4=$240,000
We live in a world with over 6 billion people. If you cannot get 300 clients in 12 months then you may have a hobby and not a business.
Look at the numbers above. The formula is simple but the results are just spectacular.
2. Strategy versus Tactics
Buying ads, your website, your social media pages, your blogs and brochures are just tactics. They are things we do just do to get a quick result but may not lead to repeat sales or exponential growth however Strategies are systems that work the same way most of the time and offer a predictable result. Have you ever been to McDonald’s or KFC in two different nations or two different cities? You will notice their offers and value are the same. If you closed your eyes, you may not even be able to tell that you were in another location. The young person at the counter will ask you the same questions and offer you the same bundles without blinking. This ensures a consistency and allows them to offer high value regardless of the city and regardless of the personnel at the counter.
Create amazing value and get your ideal client to experience it in order to create a business relationship by using the strategy of Risk Reversal and leverage.
Whether you build website or you sell natural hair products, it is important to attract clients to your offer. One way to do this is to create a small sample that solves their problem the quickest way possible and gives them a taste of what you have to offer.
I will share with you a strategy I used when I was a web developer. You can pitch a prospective client perhaps a big one by creating a sample homepage redesign of their current website. Offer to do it for a very low fee in exchange for a testimonial. After that project, pitch two other clients who respect the former one and use the testimonial (or endorsement) as bait. What you will be saying is “I have social proof. Client A, who is bigger than you is a client, this means I know what I’m doing and I deliver value.”
Another way of creating samples especially for businesses that have a physical product is to create a brochure that has four main pages or pieces of content i.e. Benefits page, Testimonial page, Product page, Limited Offer/Promotion/Special service page
For online marketers and internet entrepreneurs, I suggest you have 5 main blog posts that offer your highest value. I call these your Greatest Hits. You can send these blog posts or better still videos to prospective clients so they see what your benefit is to them. By giving you this free
EBook, I am giving you a glimpse of what to expect from my courses and website.
Tip for designers and creatives: People have moved on from beautiful colors and fonts. They want someone who understands their business and can help them with ideas to grow it. If you go in just showing your portfolio without exhibiting an understanding of their business, they will
have no reason to pay you what you are asking for. In addition to this, always carry testimonials into a meeting.
People love to see that other people have tried you and proven you better them.
4. Risk reversal to get leads on and offline
This strategy takes the risk away from the client’s mind and lets them see that you are not just in for the money but that you really care about them. Think about it, every time you are going to make a purchase, the risk is usually on you until you notice the money back guarantee.
Risk reversal is an advanced way to guarantee a product or service. An entrepreneur says “here is my product, after purchase, you have up to 12 months to use it. If at any time in those 12 months you do not think it was a good decision you can return it for an exchange or full refund.”
In my consulting business I offer a full $25,000 refund to clients who after the first month do not feel they made the right decision. This is on condition that they use the strategies I teach them and have proof that it did not work.
I have never had a client refuse this offer since risk reversal pulls them to trust me. After all, it’s a very bold thing to stand by your offer. Please tweak the above scripts to suit your business. Pick a risk that you believe is manageable since some clients may not be the most honorable people to deal with. I advise clients start by testing all the strategies outlined here with 4 to 8 clients to see what works.
5. Leverage and Joint Ventures done right
This is one of the most overlooked and yet perhaps one of the easiest ways to become rich in business.
Leverage is when you find someone who has a huge list of customers that you would like to cater to.
What you do next is to have them recommend, endorse or introduce you to their past or current clients. Ever heard of the Oprah effect? During the two or so decades that the Oprah Winfrey show was on TV, it is reported that about 48 million people tuned in every week. This is like having 48 million people walk into your store every week for at least half an hour. Oprah provided leverage for brands by featuring them on her show before her audience. Those brands skyrocketed in value overnight. Others like Suze Orman, Rachael Ray, Dr. Phil and Dr. Mehmet Oz now have their own shows and have shot to stardom. It is also reported that through her recommendations, over 55 million
books have been sold.
In an example of how you can use this strategy online, I once read about entrepreneur who sold about
$25,000 worth of socks using models on Instagram.
What he did was he noticed the guys he wanted to buy his socks usually check profiles of girls who are scantily clad or are models. He also found out that a lot of these women are either unpaid or receive very little income.
What he did was simple. He contacted a few of these girls and offered them about $30. All they had to do was wear his socks in exchange for the money. Very soon, his target started noticing these colorful socks online and started buying. A simple strategy that made about $25,000 in sales.
First, find out whose products or services are complimentary to yours.
Ask yourself, what do people buy before, with and after they purchase my product. When I was selling shoes, we realized people who sold shirts, belts, wallets, suits, luxury cars, hospitality services and grooming services were all good leverage partners to collaborate with. The best kind of leverage I know of is called a host beneficiary or advanced joint venture system.
Let’s say you sell suits. You contact another entrepreneur who sells shoes that you believe are complimentary to your product and do the following.
1. You show him the value of your business, testimonials (endorsements) and why you think this joint venture is of benefit to his clients
2. You then ask for an endorsement, introduction or presentation of your products or offer. You can also suggest that you will organize an event where you will handle all the marketing costs and all the Host has to do is invite his clients. Another way to do this is to offer to teach a free class or webinar in exchange for the contact details of his past or present clients.
3. Offer to give the Host i.e. other business a share of the profits every time any of his clients buy from you for the next 3 months or 1 year depending on what your business goals are. The reason this works is that say I refer 100 of my clients to you and each of them buys twice in the next 12 months. Assuming our agreement is that you will give me $100 from each sale, I just made $20,000 without lifting a finger. From an entrepreneur’s perspective, that is money that can be used for a vacation or to pay some bills.
4. State clearly what the other entrepreneur will get out of this. Not everyone has a fast mind like yours so paint the picture of how this is going to pan out.
NB: Ask for introductions to past clients as well because some of those clients may have only purchased once from the Host but would love to do business with you.
This works beautifully for online businesses as well. You can contact other blogs and websites offering their clients value in exchange for traffic and leads that you can convert at your sales/opt-in page.
6. Referral System
Most small businesses and even very large businesses get most of their clients from word of mouth. I am more likely to buy a car because a friend recommends it than from seeing a billboard or talking to a salesman who I don’t know. Use this strategy to your advantage daily. There are
two kinds of referral systems you can practice today that can lead to sales without leaving your seat.
Casual referrals: Call 6 people you have not spoken to in the last 4 weeks and do the following.
1. Ask them how they are doing and enquire about their livelihood, business, family etc.
2. Share what you have been up in your life and business, specifically if you have any products or services.
3. Ask them for the name, phone number or email of 1 person they know who has not bought from you yet but is your ideal client. Mention that you are going to send them a sample of your value
Most of your friends and family know other people who would like to buy from you but have not taken the time to get that sale for you. What is surprising about this strategy is that if you pitch this right, many people may even give you the contact details of more than 2 people.
If your 6 friends refer 2 clients each, that is 12 prospective buyers. If 6 of them convert and purchase a $100 product in the next month that is $600 you got without leaving your seat. With what you know now about repeat sales, you can get these clients to buy from you for life. Do this every day and you will see amazing results.
This is similar to the above strategy but here instead of calling close friends, you will be speaking with vendors, suppliers and past or current clients asking them for the referral.
1. Remind them via phone or email of the value you provide them
2. Acknowledge them by mentioning how you appreciate who they are and the quality of the relationship you share.
3. Ask for the contact details of someone just like them or someone they believe would benefit greatly from your product.
If the need arises, you can even offer them a commission for referring someone to you. I have seen a client receive up to 10 new high paying clients in less than 5 hours from this
This can grow your business without needing to spend money on ads.
There are many more strategies to build a business quickly