The problem with ship burning – and my big announcement

According to popular legend, when Hernan Cortes landed in Veracruz on his campaign to conquer the Aztec Empire, he instructed his captains to burn all the ships. With no avenue for retreat, they would either be successful or perish.

And many consultants and business owners refer to this model of “burning your ships” as a powerful leadership tool.

In fact, when I interviewed Tony Hsieh, CEO of Zappos.com for my ebook “10-Minute Business Success”, he talked about how this approach motivated him when they “burned” $25 million in business in a single day, by terminating their relationships with all shoe companies that required drop shipping rather than providing Zappos with inventory directly.

At the time, Zappos revenue was about $100 million annually. So they were burning a full 25% of their revenue. At the same time, Tony was convinced that Zappos could never meet their customer service goals as long as shipping was in the hands of a third party.

Turned out he was right, as Zappos grew steadily to the point where there annual revenue now tops $1 billion.

My own experience with ship burning

 About 12 years ago, I was lured away from my consulting and information products business to co-found a software company with two partners. The software was a unique testing and assessment suite for the online training industry.

Since one of my partners had recently sold his business to Bill Gates and my second partner was a senior professor in the Graduate School of Education at UCLA, we all thought this would be a slam dunk.

So I burned all my ships.

I sold off the rights to all my information products and my list, which included a non-compete clause prohibiting me from creating any similar information products for 5 years. And I handed off my consulting clients to other consultants who I trusted.

After all, I was just months away from becoming the next gazillionaire cover story, right?

Well, it didn’t quite work out that way.

Reality soon set in and although we had made great progress, had a couple of Fortune 500 clients and seemed to be well on our way, one of our key investors bailed on us due to family circumstances.

Cut off from our main source of funding, we were forced to either lay off most of our staff and attempt to stay operational with a skeleton crew, or sell the business.

We opted to sell the business. All in all, we came out alright, getting a decent price from a company we believed would handle the technology properly. And they did.

But now I was left empty handed, with 3-1/2 years to go on my non-compete deal.

In short, I had burned all my ships and had no transportation to take me home!

If only I had known the truth about Cortes

Back to our guy conquering the Aztecs.

As it turns out, Cortes did NOT actually burn all his ships. According to Harvard historian, John H. Coatsworth, what Cortes really did was have the captains of nine of his twelve ships run them aground, so they could not be used in a retreat.

But as a safety valve, Cortes kept three ships in working order along with a master shipbuilder among the crew. So he had a “Plan B” just in case.

And even in Zappos’ case, they still had their own Plan B, which was the other $75 million in annual revenue they could build upon.

But in my case, there was no Plan B. So I had to start all over again from scratch.

Big mistake.

So the lesson is, whenever you’re  contemplating making a bold move or a drastic change, ALWAYS have a well-established back-up in place. And limit your burning to just some of your ships.

My big announcement – a modified form of ship building

Each year, I lock myself away for a few days and review what’s worked well for my business in the past year… what hasn’t worked as well… and what new areas I could potentially help my subscribers and clients with.

And by “help” I mean both free content and paid products and services.

One of the ways I advise my clients to explore these new areas is to look at 3 components:

1. What you do well

2. What you have a passion for

3. Where you can help people by putting the previous two points together

This is not always an easy exercise to do. For it to be as productive as possible, you have to be rigorously honest with yourself. And that includes a clear assessment of both your strengths and your weaknesses.

So, in doing this for my own business (and my personal goals), I realized that my greatest strength is in identifying “leverage points” you can use to grow your business with less money, less time and less friction.

And much of what that boils down to is leveraging your own assets as well as other peoples’ assets to multiply your profits rather than grow them in a linear fashion.

Let me give you a couple examples of both that you can use in your own business right away.

Leveraging your own assets to produce more sales

with no added expense and just minimal effort

A great way to get more mileage, and more profit, out of your own assets is to go back and review your best performing marketing pieces for the previous year. Let’s say you have two or three emails that outperformed all other emails you sent to your list.

Take these same emails and do nothing but create new subject lines for them. One example I like to cite (and you may have seen) is how I tested three different subject lines with essentially the same body copy.

The first subject line focused on the benefit the prospect would receive. The second focused on a key problem the prospect would like to solve. And the third was very quirky and created a strong sense of curiosity.

After testing all three, the problem solving subject line and the quirky subject line both performed strongly, with the benefit subject line coming in a distant third.

So I continued to run the emails with the two winning subject lines, while testing new subject lines against them. Each time, I would keep the winners and eliminate the losers.

By doing this, I gained tremendous leverage of my assets by being able to sell the same product over and over again with essentially the same body copy. This saved a tremendous amount of time and added a substantial amount of additional profit to my business that I wouldn’t have seen if I had abandoned those old emails and started from scratch as so many businesses do.

The big takeaway: There is almost always a large reserve of untapped profits in what you’re already doing well. Mining those profits is a faster, more certain way to make more money than to constantly be starting over with each marketing campaign.

 Leveraging other peoples’ assets to ramp up your profits

with no risk and no additional cost

One of the most frequent questions I’m asked when working with clients goes something like this, “What do you think about me creating a new blue gizmo to sell to the buyers of our red thigamajig? We could have it designed, manufactured and take it to market in just 10 months.”

My answer, although obvious once you’ve heard it, always takes my clients by surprise.

“Instead of going to all the time, trouble and expense to develop something that may or may not sell, why not sell another company’s yellow thigamajig first as a test? Sure, the color is a bit different, but in most other respects, it’s very similar. This way, you may not make as much profit starting out, but you could quickly test the market and move forward with your own version if the results are good, but save yourself an enormous headache if the results are not so good.”

Regardless of what industry you may be in, nearly every business can use this fast-to-market approach to product development. Why waste significant resources developing a product BEFORE you know for certain that your customers will actually buy it?

The big takeaway: There’s tremendous leverage in sacrificing a bit of profit now to quickly and safely test another company’s product before making a major commitment of time, effort and money to your own version. It takes what was a gamble and converts it to a sure thing.

And now for that announcement I was telling you about

I hope you’ve enjoyed my quick tour of two ways to leverage assets – your own and other peoples’ – to multiply your profits. More importantly, I strongly recommend that you put them to use.

And, I also recommend that you take some time each year away from your office and do the “business soul searching” I mentioned above.

After doing that this year, I’ve come to the conclusion that the way I can best serve you and everyone else on my list is to focus my products and services on these “leverage points” that I mentioned. So for the foreseeable future, everything I do is going to show you how to get greater returns for less time, effort and money by leveraging your own assets and other peoples’ assets in all areas of your marketing.

This will include copywriting, prospecting and lead generation, traffic generation, converting more prospects to paying customers, joint ventures, licensing, ways to increase the lifetime value of each customer – and much more.

With the daily challenge of so many different things competing for your interests – and not knowing which ones are truly valuable or just an empty promise – I think we can all benefit from making life easier and more productive, not harder and more frustrating.

If you agree with me, stay tuned for more to come.

Am I nuts? Am I right on target?

Feel free to let me know – or share your own experience with this topic – by leaving your comment below.

 * * * * * * * * * * * * * * * * * * * * * * * *

 If you need a coach to help grow your business, why not hire one who pays YOU first? Find out how by clicking here

 

Posted in Uncategorized | 13 Comments

Is this critical component missing from your online marketing?

I hate to be the voice of doom and gloom, but I have to tell you that I’m concerned that online marketing is so easy to do, that most people are leaving out a critical component.

And if you don’t have this component built into all your marketing, you’re losing out on a lot of additional sales you could be making.

So what is this all important component I’m talking about?

It’s accountability.

You see, in the old days of direct marketing before the Internet, you paid through the nose to test most forms of marketing. Space ads, post cards, direct mail, radio and television were (and still are) expensive to use.

So much more effort was put into getting it right. And every marketing campaign was measured and held accountable.

If a postcard mailing didn’t beat your previously best performing postcard, then it was either modified and tested again or sent to the trash.

But these days, because clicks are so cheap, people don’t seem to hold their marketing accountable anymore.

For example, it’s been proven that a customer who has bought something from you is 5 to 10 times more valuable – and easier to sell other things to – than a prospect who hasn’t bought from you.

Yet when I ask most new clients how many people on their list are prospects and how many are customers, they usually have no idea.

They also don’t know who their “multi-buyers” are. By this, I mean people who have bought more than one of your products or services and are by far the “golden” portion of your list. These multi-buyers should be marketed to differently than everyone else, given more care and attention, and treated especially well. In turn, they’ll reward you by buying even more of what you offer!

Building accountability into the key areas of your marketing

If you want to maximize your sales and profits – and do so with just a minimum amount of effort – it’s essential that you build an accountability component into all aspects of your marketing. Here are three areas where you can start.

List accountability. Start segmenting your list today. Organize your list by prospects and paying customers. Then, organize your customers by the products they’ve bought. Running a quick spread sheet against your list will show you who the multi-buyers are. Devoting more of your marketing to your existing customers and multi-buyers is a fast, certain way to increase your profits.

Campaign accountability. Measure the results of every marketing campaign you use. Did it hold up to your best campaign? If not, tweak and test again or get rid of it. Then run your most successful campaigns on a regular basis.

One of the secrets of successful marketers is that they never retire a successful campaign simply because they’re bored with it. They keep running it until it no longer performs.  Plus, they never retire it completely. After taking it out of circulation for 3 to 6 months, they’ll run it again. Often it will perform just as well as it did previously.

Product accountability. Be merciless about eliminating your lowest selling products or services. By measuring the sales of each product you offer, you can quickly tell which products sell best and which don’t.

Divide your products into thirds. Each year, you should aim to cut out your underperforming products, develop more products similar to those that sell best, and replace the lowest third with new products. Just remember to hold your new products accountable – if they sell well, keep them. If not, put them out to pasture as quickly as possible.

Got a comment?

Do you agree or disagree with me? Or do you have an experience with this topic that you’d like to share? Then feel free to leave a comment below.

* * * * * * * * * * * * * * * * * * * * * * * *

If you need a coach to help grow your business, why not hire one who pays YOU first? Find out how by clicking here

Case study shows how a simple email campaign increased sales by 337%. Read it here

 

 

Posted in Uncategorized | 3 Comments

Which of these 2 list types is best for your business?

There are two very different types of lists that get the best results for any business. Knowing which type is best for your business can make all the difference between lukewarm sales and truly exceptional sales.

So let’s dive in and look at each of these distinct types of lists. And by the end of this short post, you’ll know exactly which type of list will be the most profitable for your business.

Old school becomes new school

The other day I was working with one of my consulting clients on driving more traffic to his web site. He lamented that in the “old days” – meaning before the internet when list building was done with direct mail and space ads – it was a lot easier to build a list of qualified leads.

“How so?” I asked.

“Well, all you had to do was find the right list or trade journals,” he replied. “For example, if I wanted to find more gym and spa owners for our training programs for that industry, all I had to do was rent a list of the gym and spa owners in the state where we would be presenting our next seminar. We’d send out the mailing and fill up the room.”

“And what’s different now?” I asked.

“Well, first of all, the email lists that you can rent pretty much all stink,” he said. “How are you supposed to build a big list when the lists you’re renting are garbage?”

Now, for the most part, what he said is true, so what he was asking looks to be a fair question. But there’s a lot more to this. You see, while it appeared that he was comparing old school results to new school results, he was missing a critical factor.

And that critical factor is…

What type of list are you trying to build?

“OK, let’s put this theory to the test,” I suggested. “When you were presenting your seminars in the ‘old days’, how many people did you need to put in the room for it to be profitable?”

“20 to 30 would do the trick. Our training programs sell for around $60,000, so if we closed just a couple, we were doing great,” he answered.

“And how do you sell the program now? Are you still doing live seminars?” I asked.

“No, now we have a live webinar, but the problem is that only half the people actually show up who register,” he answered.

“OK, that’s pretty typical, but I don’t think that’s your real problem. How many people do you need to have attend your webinar in order to close two sales like you used to at your seminars?” I asked.

“As many as possible. Because only half of them show up and a lot of those are just tire kickers, the more we can get to attend, the better,” he answered.

And that is the real problem. The fact is, my client is trying to build the wrong type of list for his business – and because of this, he’s going about it in the wrong way. So he’s compounding his own problems without even knowing it!

A simple solution – understanding the 2 types of lists and building the type that’s right for your business

Let me start by showing you exactly what my client’s real problem is. His business sells high-ticket training programs to gym and spa owners who want to increase their customer base, expand their sales, lower costs and increase profitability. And the average fee for these programs ranges from $40,000 to $60,000 per client.

His overall sales are in the range of $4 million annually. Because of the nature of his business, he actually has relatively low traffic needs. But he’s renting large email lists and mailing to them in hopes of trying to build the largest list he can. He figures – incorrectly, I might add – that because the quality of the leads on the lists he can rent are so poor, he needs a massive list.

Big mistake.

All he’s really doing is spending more and more money to build a larger and larger list of unqualified prospects!

What he really needs is to build a smaller list, but one that’s made up of far more qualified prospects.

There are any number of ways to do this including paying more for only certain segments of the lists he rents, placing ads in highly targeted ezines and banners on highly targeted web sites.

Now, on the surface, all of these methods appear to be a lot more expensive than the lower rates he’s paying for poor quality lists.

But when you’re in a low traffic business like he is, you’re far better off paying through the nose to build a smaller list of highly qualified prospects than you are wasting nearly as much money on renting and mailing to large, unqualified lists but at a far lower return on investment.

For nearly all the clients I consult with who sell high-ticket products or services, this logic is counter-intuitive. After all, doesn’t nearly every expert and every article you read tell you to build as large a list as possible?

But that simply isn’t accurate with high-ticket sales. Because far fewer customers will be qualified to buy at higher prices, the quality of the list trumps the size of that list every time.

Flipping to the other side of the coin

So when do you want to build as large a list as possible? Primarily if you sell “commodity” type products or low-priced products.

For example, if you sell knitting supplies that are the same as the majority of your competitors, you’re going to need as large a list as possible to maintain a reasonable sales volume. You’ll also need to distinguish your business from your competitors’ with better pricing, better service or some other advantage. But even with a strong distinguishing factor working for you, you’re still going to need to build this second type of list – a list driven by quantity more than quality.

This isn’t to say that quality doesn’t matter. But for products where price isn’t a barrier, the quality of your prospects tends to be much more even than with high-ticket products and services.

Grow your business by building the right type of list

What I’ve just shown you here may seem obvious once you think about it. But in my experience, most businesses don’t intentionally build the type of list that’s best suited to their business.

It’s easy to fall into the trap of trying to collect as many names as possible on your list. But as you’ve just seen, the quality of your prospects should always be your main priority over the quantity of your list when you’re selling a high-ticket product or service.

And with lower-priced products or products that are nearly identical to your competitors, you’ll want to focus on quantity with the understanding that the quality of most of your prospects will be the same.

By choosing which of these two list types is right for your business, you’ll save a substantial amount of time and money and get much better results than you would by shooting in the dark.

Got a comment?

Do you agree or disagree with me? Or do you have an experience with this topic that you’d like to share? Then feel free to leave a comment below.

 * * * * * * * * * * * * * * * * * * * * * * * *

Having trouble getting all the traffic you need for your business? Here’s the solution:

Group coaching to double your traffic

Individual coaching to double your traffic

Posted in Uncategorized | 5 Comments

The Art of Polarization

In my last post to this blog, I made a number of statements that contradicted the conventional wisdom on how marketing will evolve over the next 12 months.

I did this intentionally.

First, because I believe what I said (that’s critical).

Second, because I wanted to stir things up a bit. To get people thinking. To get people to side with me – or against me.

Why would I do this? Because offering ideas that have a polarizing effect – that get people to side with you or against you – is a great way to command more readership.

People who agree with you will pass your information on to others. “Hey, remember what I was telling you about how I don’t see mobile marketing being a good investment? This guy Serling is saying the same thing!”

But here’s what makes it really interesting. People who disagree with you will also pass your information on. Partially because they disagree, but also because they respect a well thought out argument. “Hey, you won’t believe what this doofus Serling is saying about mobile marketing fizzling out. Check it out though, the guy could be right.”

Either way, your readership increases and people view you as having a fresh and unique take on things. And that can only be good for your business.

So let me dig a bit deeper and give you my four rules on the Art of Polarization. I’ll start by listing them all here, then go into detail on each rule:

Rule #1: Make a controversial statement

Rule #2: Back it up

Rule #3: You only have to be mildly controversial

Rule #4: Don’t take yourself too seriously

Rule #1: Make a controversial statement

One of the statements I made in my last post was, “Social media marketing will work for some and be a total bust for others.”

This completely contradicts all the rosy projections you’re hearing about social media being the greatest thing since sliced bread.

Note too the specific language I’ve used to stir up the controversy, “be a total bust for others”. I didn’t say it won’t work so well. Or it requires more time to tell. Or mince my words in any way. I declared it to be “a total bust”.

Hey, if you’re going to stir up a reaction, you have to make a truly controversial statement.

Rule #2: Back it up

Once you’ve made a controversial statement, you can’t just leave it hanging. You must provide proof that what you’re saying has real substance.

Here’s the proof I provided:

“This isn’t surprising. People use social media to visit, connect with friends, look at  pictures, watch goofy videos, waste time when they’re supposed to be working, and rant about their likes and dislikes. So it isn’t any wonder that nearly all marketing messages fall flat in that environment.

 The trick, of course, is to engage with people in a way that moves them off of social media and onto your contact list. But that’s no easy task. The few that succeed at this will benefit from social media. All others will be spinning their wheels.”

Now, that didn’t take long. I was able to prove my position in just two paragraphs. All I did was tap into what people already are experiencing in their own efforts to make social media pay off as a marketing vehicle. And one of the best ways to provide proof is to bring to the surface what people already suspect but haven’t yet verbalized.

Rule #3: You only have to be mildly controversial

Here’s the best part. Making crazy or irrational statements is not the way to successfully employ this strategy. If you come across as mean, attack others, or make statements that don’t ring true, you’ll spoil the entire effect of this strategy.

Be sincere, be kind, and state an opposing position you truly believe in. Because so much of what people see and hear is the same old cookie-cutter advice, all you have to do is take a small departure from the conventional wisdom to get the desired result.

Rule #4: Don’t take yourself too seriously

Another component that really helps is not taking yourself too seriously. Have a little fun with your contrarian advice. Poke fun at yourself. It makes you come across as more human and people will appreciate you for it.

For example, in my post, one of my sub-heads was, “6 wild-eyed, raving, possibly even usable predictions”.

You’re not looking to seriously tick people off. Your real goal is to get people thinking. To start a discussion where people feel free to give their own feedback whether they agree with you or not. And to get them to pass your information on to others.

Using a light touch goes a long way. Not only does it make your writing more interesting, but when people view you as being truly human, it contributes significantly in getting them to tell others about your “wild-eyed, raving, possibly even usable” ideas.

Ready, set, stir things up

One final point. The somewhat controversial and polarizing post I wrote got more attention than any other post I’ve put up during the last year.

I got tons of comments and emails. A number of people wrote to ask for permission to reprint the post. And I received multiple requests to write articles for other blogs and ezines.

So give this simple polarization strategy a try. Then let me know how it worked for you.

And feel free to leave a comment below, whether you agree with me or not.

* * * * * * * * * * * * * * * * * * * * * * * *

 Let my team set up lucrative joint ventures for your business. A great way to add a new profit center with almost no work on your part. Get the details here

If you need a coach to help grow your business, why not hire one who pays YOU first? Find out how by clicking here

Posted in Uncategorized | 8 Comments

Boldly inaccurate predictions for 2012

Every year at this time, just about every “expert” imaginable issues their list of predictions for the coming year. And if you do even a minor bit of tracking, the majority of those predictions will end up being way off the mark.

So, heck, why should I be any different? In this post, I’ll give you 6 of my own wildly inventive predictions. And I advise you to take them with a grain of salt as they could easily prove to be inaccurate.

But never fear. I’ll then give you 2 important predictions that are utterly reliable and will produce more sales and profits for your business with minimal effort.

Ready? Strap on your seat belt and let’s go!

 6 wild-eyed, raving, possibly even usable predictions

 #1 – Mobile marketing will prove to be far more elusive than many people imagine. Yep, I know that every marketing rag out there is predicting that 2012 is “the year of mobile”. But think about it, how many people really want to pay for a flood of marketing promotions being sent to their mobile devices? I would not be surprised if there’s a huge backlash and many people block these messages – or buy an app that will automatically block mobile marketing for them.

#2 – Social media marketing will work for some and be a total bust for others. For most businesses, the score on social media marketing is still an incomplete. True, it holds great promise. But in an informal survey I did with my clients and many marketing experts, few are making any serious money with social media marketing.

This isn’t surprising. People use social media to visit, connect with friends, look at pictures, watch goofy videos, waste time when they’re supposed to be working, and rant about their likes and dislikes. So it isn’t any wonder that nearly all marketing messages fall flat in that environment.

The trick, of course, is to engage with people in a way that moves them off of social media and onto your contact list. But that’s no easy task. The few that succeed at this will benefit from social media. All others will be spinning their wheels.

#3 – Rewards and couponing programs will continue to work – but primarily for the vendors who sell you rewards and couponing programs. When you give away a coupon with a deep discount, what do you get? A customer who is being trained to expect deep discounts!

These programs work well for the middle-man companies that operate them, but for the business that uses these services, they DO bring in more business, but it’s always the lowest level of customers possible. And those kind of customers tend to jump from deal to deal rather than sticking with you beyond the first sale.

#4 – Information overload is a fact of life. There are too many web pages, too many options, too many new technologies and too little time to sort through them all. Because of this, people will be in a continual overload loop and it will take superior messaging to have any hope of cutting through the fog.

#5 – Community will become more critical to making sales. This one may not be so wild-eyed, but it depends on how you go about building your community. These days, people are looking for authentic, true connections they can rely on. That’s why many forms of couponing, contests, games and poor use of social media fail to build a real community. They lack authenticity.

Building a community can be done through all kinds of methods including, but not limited to: social media, copy tone on your web pages, customer service, your unique and authentic take on a variety of issues, personally contacting customers and prospects, and what your prospects and customers tell others about you. Every one of these areas can be dramatically improved with a strong dose of authenticity. And it doesn’t cost you a penny.

#6 – Unlimited free traffic! There’s no such thing. Flee as quickly as you can from anyone who promises you this. If it sounds like a load of bull, I can promise you it IS a load of bull.

 2 utterly reliable predictions you can take to the bank

 #1 – Customer loyalty is the overlooked “app”. While everyone else is scrambling to find “the next big thing”, if you want a completely reliable way to lock in more sales, put more time and effort into developing unassailable customer loyalty. The best way to do this is to treat your customers exactly the way you’d like to be treated.

Don’t take them for granted – keep in touch with them, even when there’s nothing in it for you. Become the guardian of their trust. Don’t use sleazy or manipulative tactics regardless of how well you’ve heard they work. Once you breach your customer’s trust, it can’t be won back.

When you constantly strive to treat your customers and prospects exactly the way you expect to be treated by companies you buy from, you can’t go wrong. Few businesses use this simple, common sense approach. So you can dominate your market just by doing the right thing.

 #2 – Content is still king. Because there’s so much competition for your prospect’s eyeballs, you can’t get by with skimpy or low quality content. If you really want to set your company distinctly apart from all competitors, you must have high quality content.

High quality content starts working by commanding your prospect’s attention. Then it moves you even further ahead by establishing your credibility. And if you do this enough, that credibility transforms into a powerful bond of trust. And people greatly prefer to buy from someone they trust rather than from someone they don’t know.

 BONUS prediction

 #3 – Giving people more than you promised is always a winning strategy. So here’s one more prediction you can take to the bank.

Marketing tactics and technology change in a nanosecond, but marketing fundamentals never change. What his means is that understanding what truly drives your market to make a positive buying decision will always trump whatever media or technology you’re employing.

And by extension, this can easily be used to reduce the amount of time and money you invest in marketing while dramatically improving your results at the same time. How? By mastering just a couple forms of marketing media or technologies and ignoring all the rest.

When you apply solid marketing principles to any form of marketing media or technology, you’ll always be ahead of the game. And by focusing on just one or two forms of media or technology, you can truly master them, get the full advantage of this mastery, and leave your competitors wondering just what hit them.

So what’s your take? Do you agree, disagree, or simply don’t give a hoot? Leave a comment below and let me know.

 * * * * * * * * * * * * * * * * * * * * * * * *

 Discover how to make six to seven-figures each year by brokering joint ventures – even if you have little or no experience. Free teleclass lays out the entire system

 

 

 

 

Posted in Uncategorized | 17 Comments

Never pet a dog when it’s sleeping (a marketing lesson)

My wife and I are dog lovers. We currently own two dogs and foster others. And we donate both time and money to our local shelter.

So I’ve been surprised at how bad much of the experts’ advice is on how to properly care for your dogs.

Oh, and don’t worry, this is definitely going to include a marketing lesson.

Anyway, the bad advice can basically be divided into two camps.

Camp #1 is the “too restrictive” camp.

Camp #2 is the “too touchy feely” camp.

Let’s take a look at both and see how this can help you market more effectively.

Bad Advice Camp #1: Too restrictive

Here’s an example of overly restrictive advice I see many experts touting. They’ll tell you to “always make your dog heel and walk at the rear of your left foot”.

OK, so I have just one question…

Why?

Supposedly, making your dog heel and stay tightly close to you establishes you as the “pack leader” and teaches your dog discipline.

But my problem with that is that a dog’s keenest sense is it’s sense of smell. So for a dog, the greatest joy in taking a walk is being able to smell every leave, blade of grass and dead
insect they come across. And I’m not about to make my dogs’ walks a joyless lesson in
useless discipline.

So I let them stop and smell just about anything they want to. And you know what? They’re still happy, come when called and well behaved.

So much for the “experts” advice!

Bad Advice Camp #2: Too touchy feely

On the other end of the spectrum are the experts who are illogically lenient. Their working
philosophy is that you need to respect and treat your dog exactly the way you would a person.

For example, you wouldn’t want your sleep interrupted by someone petting you, so respect
your dog’s right to privacy and never pet it while it’s sleeping.

No kidding – I’ve seen and heard this advice from a number of “animals are human” experts.

But here’s the problem with that foolish load of bull. One of our dogs lives to be petted. And
she actually gets so relaxed from petting, that it frequently causes her to fall asleep. Plus, if
you pet her while she’s sleeping, she rolls over on her back to give you better access.

Our other dog doesn’t give a hoot about being petted any time. He can take it or leave it. So
we don’t pet him as frequently.

Now, here comes that marketing lesson…

So what does all of this have to do with marketing?

Quite simply, there’s a lot of bad and often contradictory advice from the experts.

One expert says Google Adwords is dead, the other says it’s the only way to build your list.

One expert cautions against sending email to your list too frequently, another tells you to
send it out daily.

And on and on.

So who do you believe?

No one – and every one.

What I mean by this is that each expert is working from their own experiences and
their own biases (except for me, of course :-).

And some are even trying to use their advice to steer you toward purchasing their products or services. (Me? Never!)

But even assuming that they all genuinely believe their own advice, my recommendation
is to take anything new with a grain of salt and test it in a very limited way at first.

The fact is, some strategies and tactics work better for some businesses than
others. And some forms of media work better for some businesses than others.

And the only way to know for certain is to conservatively test new ideas for your
own business.

You’ll soon discover that “petting” one sleeping dog of a marketing tactic works wonders. And “petting” another dog of a marketing tactic falls flat for your business.

But at least you’ll know for certain what really works and what doesn’t.

* * * * * * * * * * * * * * * * * * * * * * * *

If you need a coach to help grow your business, why not hire one who pays YOU first? Get the details by clicking here

Posted in Uncategorized | 5 Comments

Small offer, big profits

In a bad economy, it’s always tempting to increase the “thud factor” of your offer. Give away more bonuses… offer better payment terms… special discounts for repeat customers… longer guarantee period… you get the picture.

The problem with this is that you cut your profit margins to the bone and can easily look just like all your competitors’ offers. So why not turn this on its ear and go in the complete opposite direction?

I’m talking about shrinking your offer in order to generate a lot more business – without compromising your profits. Here’s how to do that.

How I discovered the immense value of a tiny offer

About 25 years ago (yes in the dark ages of pre-Internet history), I published a newsletter about direct marketing called “Results” that sold for $97 per year. I had been invited to speak at a business conference about my experience with publishing newsletters and building a loyal subscriber base.

The conference presenter said that instead of paying the normal speakers’ fees, he was going to allow all the speakers to sell from the stage and keep the proceeds. Although this is a common practice now, this form of compensation was new at that time.

Two days before the event, which required that I fly 3,000 miles, I received a call from the conference presenter informing me that the terms had changed. He was now demanding a 50% share of my sales.

I told him that if that was the case, I’d pass and wouldn’t be participating. He became irate and threatened to sue me because my name and picture had been featured in the promotional materials and people were expecting to hear me speak. Being fairly new to the game, I was properly intimidated and reluctantly agreed to show up.

But I was determined to turn the tables on him…and still get paid handsomely at the same time.

Selling a “slice of the pie”

Originally, I was planning to sell my copywriting program which was priced around $500. But I couldn’t help but do a slow burn every time I thought about giving the conference presenter $250 for every copy I sold after he pulled his bait and switch on me.

So here’s how I created my tiny offer and the very interesting results it produced.

Once I got on stage, I did everything in my power to deliver the most valuable, usable content I possibly could. And the audience seemed fully engaged.

After sharing a lot of great information for creating a paid newsletter and selling subscriptions, I closed with my offer for the audience.

Now, remember, a subscription to my newsletter was priced at $97. And in those days, that was considered a fairly high price.

But what I offered the audience members was a 3-month subscription for just $1. All they had to do was meet me at the back of the room and give me one dollar and their business card to get a full 3-month subscription delivered to their mailbox.

Now, financially they were getting a great deal. But at the same time, they were also getting a “slice of the pie” – a mini-subscription rather than a discounted offer on a full year subscription.

I can still recall the exact numbers. There were 360 attendees in the room and I sold 342 mini-subscriptions!

After I collected all the money and business cards, I walked over to the conference presenter and handed him a stack of 171 dollar bills and said with a big smile, “Here’s your 50% share”. He looked dumbfounded as he took the stack of bills.

The real magic of the tiny offer

So maybe you’re wondering what the big deal is. After all, I traveled 3,000 miles and paid my own plane fare and hotel to make a measly $171.

True.

But that’s just the starting point. Once I got back to my office, my assistant entered all the names and addresses into our database and we sent out the first issue. Along with that first issue, these new subscribers also received a flier promoting my copywriting course.

Then, when it came time to mail the third issue, we included a flier offering the one-year subscription at the full price of $97.

Between the copywriting course, the paid subscriptions and a couple of consulting engagements I got from those new subscribers, I ended up taking in about $60,000 in sales.

And the conference promoter? He didn’t receive a penny of that. His total take was the stack of 171 dollar bills I handed him.

And that’s where the real magic comes in. You see, anyone who pays for a product – even if it’s just a small amount – is far more likely to buy from you again than someone who starts by getting something for free.

So why not take advantage of this for your business? Take a popular product or service and create a “slice of the pie” that you can sell at a low price. I’ve done this many times for my own business and for my clients. I’ve used it to successfully sell software, information products, vitamins, health club memberships, consulting services, newsletters, electronics, dental and medical services, and much more.

Two key points to remember. First, because you’re selling a “slice of the pie” rather than discounting the full version of your product or service, all future sales are at full price. But when you start by selling the full version at a discount, it’s extremely difficult to ever get the full price later.

Second, my extensive testing has shown that it’s important to keep your price below $10. I’ve had excellent results with prices of $4 or $7. Once you break the $10 barrier, it no longer seems like such a great deal. So keep your price low, remembering that a customer who pays any amount for a product is far more likely to buy that same product later at full price than someone who took a freebie offer.

Alright, now it’s time to go slice up your pie.

* * * * * * * * * * * * * * * * * * * * * * * *

If you need a coach to help grow your business, why not hire one who pays YOU first? Get the details by clicking here

Posted in Uncategorized | 12 Comments

3 Secrets to Higher Conversion Rates

Conversions of prospects to paying customers seem to be getting tougher and tougher to generate. Particularly in this stubborn, downward economy.

But at the same time, many marketers cloud the issue of poor conversion rates by blaming it all on the economy. And that’s never the case.

More likely, it’s because you’re actually trying to sell the wrong thing – and by that, I mean the wrong attribute of your product. And if you dig just a bit deeper, it’s easy to find other, more meaningful attributes that will ramp up your conversion rates in any economy.

The “headline test” for determining if you’re selling the right – or wrong – attribute

Every marketing piece must have a “hook” – some important element of your product or service that you build your marketing piece around. One of the easiest and most effective ways to tell if you’ve picked the right hook is to give it my two-step “headline test”.

        Step 1: Write a headline (or subject line if you’re using it for an email) that focuses on            your hook

       Step 2: Read your headline or subject line, then based only on that answer the question         “Does this make me urgently want to read further to find out more?”

Using my “headline test” in the real world

Let’s take a couple of examples of actual subject lines that landed in my inbox today as I’m writing this. The first subject line comes from Apple and reads:

Make their holiday light with MacBook Air

The second subject line comes from Inc. Magazine and reads:

Renew and give a subscription completely free!

Now, let’s apply my headline test. For each of these subject lines, when you read them, do either of them give you any sense of urgency about opening the email to find out all the details?

Of course not. They are sloppy, lazy subject lines. So it’s a foregone conclusion that a much smaller percentage of readers will actually open those emails. And fewer opens clearly means fewer conversions.

So where did they go wrong?

To refresh your memory, every marketing piece must have a hook that the entire piece is built around. And that hook is some attribute of the product you’re selling.

In Apple’s case, the hook is the light weight of the MacBook Air. But the way they use this attribute is almost nonsensical. By attempting to connect it to the holidays, they’ve created a subject line that makes no sense whatsoever in the real world.

I mean, how many times have you ever woke up in the morning with a burning desire to “make yours or someone else’s holiday light?”

The obvious answer is that it’s never crossed your mind.

Now, let’s take a look at Inc’s subject line: “Renew and give a subscription completely free!”

This one is a prime example of lazily leaning on one of the most abused words in all of marketing – the word “free”. Many marketers believe that “free” is a magical word that cures all manner of ills. And if you use it, you don’t have to do much else to generate a great response.

That, my friend, is a fatal error.

“Free” is only relevant if what you’re offering is truly valued by your prospects – and the more value they attach to it, the better off you are. But in this case, there’s very little value attached to this at all.

So let me ask you the same question I posed about Apple’s subject line: How many times have you woke up in the morning with the burning desire to renew your subscription to anything so you could give another subscription to someone else?

Hmm, let me count the number of times. A bit of quick math comes up with… zero.

And I’m sure that zero is not the answer you want when your own prospects consider the attribute of your product that you’ve built your hook around.

So let’s take a look at how to correct this common problem and bump your conversions up to where you’d really like them to be.

3 secrets to creating compelling hooks that convert more prospects to paying customers

We’ve actually covered the first secret already, which is applying my two-step headline test to any marketing piece. First, build your subject line or headline around an attribute your prospects highly value.

Then, read your headline or subject line. If it makes you feel a real sense of urgency about reading more to find out exactly how you get what’s promised in the headline or subject line, you’re in good shape. If not, then you need to move on to the next two secrets.

Conversion Secret #2: Sell the outcome

The reason why so many marketers have such ineffective hooks is that they choose to focus on some feature of the product they want to sell. The lightness of the MacBook Air is simply a feature. Yeah, it’s a pretty cool feature, but not strong enough to get me out from behind my desk and into the Apple store.

A great way to solve this is to focus on the outcome your prospect wants most when using your product. So let me show you a headline from one of my own web sales pages that demonstrates exactly what I mean. Here’s the headline I recently used for selling my coaching services:

      Now you can build your business with greater ease…

      Increase your sales and profits — even in a down economy…

     And reignite the purpose and pleasure you once felt from being in business

     (And see a very real increase in sales of at least $25,000 in the first two           weeks or it costs you nothing)

This is what’s called a “stacked headline” and while it obviously takes more space than a subject line, I’ll also give you an illustration of a single line in just a minute. But the important point is whether by reading just this headline, you’d feel a real urgency to find out more details of what this is about.

My conversion rate for this piece tells me that the answer was a clear “Yes”.

What I’ve done here is focus on the outcome my prospects think about on a regular basis and value the most. I can assure you that they would like to build their businesses with less difficulty, they’d like to increase sales and profits in these tough economic times, and they’d like to feel revved up about being in business again.

In fact, the promise sounds almost too good to be true, so I have to temper it by locking it down with a powerful guarantee right up front. And that guarantee further promotes the sense of urgency to find out exactly what I’m talking about.

Now, in order to come up with the outcomes that your prospects frequently think about and value the most, you have to “enter the conversation that exists in the prospect’s mind” as the legendary copywriter Robert Collier said.

What is it that keeps your prospect up at night? What goal do they want to achieve that would mean more to them than anything else? What problem do they repeatedly encounter that takes away from working on things that are more important? What robs them of the pleasure they’d like to be enjoying?

Answer those questions, then focus on one or more of the attributes you come up with and you’ll have a powerful, authentic subject line or headline that will get far more people to read your marketing piece. And far more people to buy your product.

Conversion Secret #3: Sell the offer

The third secret to higher conversions is focusing on the offer, rather than on the product itself. If you can make an offer that gets directly to the heart of “the conversation that exists in the prospect’s mind”, you’ll enjoy much higher conversion rates than you would with typical sales copy.

Here again, it’s best to feature this offer in your headline or subject line. To illustrate exactly what I mean, take a look at an alternate, offer-driven headline I created for the same sales piece that used the stacked headline I showed you above:

What if your business coach absolutely guaranteed
you’d make money?

It doesn’t take much effort to see that I’ve used this headline to enter that all-important conversation going on in a prospect’s mind when considering hiring a coach. The biggest question they have is, “How do I know this is going to work and I’m not going to lose a lot of money?”

The headline addresses that concern directly, creating a sense of urgency to find out how the heck I’m able to do this. Here again, the readership was very high and the conversion rate shows this was very successful.

Don’t let your conversion rate be a victim of lazy marketing

The fact is, it’s always easier to pick some feature of your product and focus your hook on that. But it’s a very lazy way to market and your conversion rates will continue to be low if you rely on this method.

But when you put a bit of effort into determining the exact outcome your prospects really want or an offer that solves one of their greatest problems or helps them achieve an important goal, you simply can’t lose.

So why not exercise your hook creation muscles now and start enjoying higher conversion rates regardless of what condition the economy is in.

P.S.  If you’d like to see the entire marketing piece that’s built around this hook,
just click the “Coaching” link in the navigation bar at the top of this page.

Posted in Uncategorized | 4 Comments

Learning vs Doing

Learning is a wonderful thing – and it should be a lifelong endeavor.

But learning can also be a stumbling block when used incorrectly. What I mean by this is when you use learning in place of activity.

Many people are going to create that new product, re-do a dated web site, install a new piece of software, test a new marketing strategy, etc. – once they feel they’ve learned enough to master it.

That’s a big mistake.

Once you have the basic skills, you’re ready to go. You don’t need to be the master of some skill, have the hottest web site, the most dazzling graphics, or have an airtight plan that will get you a first page ranking on Google.

Just start. It’s the best thing you could possibly do for your business.

In their book, “Rework”, authors Jason Fried and David Hansson, founders of 37signals (they make Basecamp) talk about a concept called “Build half a product, not a half-assed product”.

What they mean by this is once you have a basic plan for a good product, get started. And once it’s good enough, launch it. You can always add more bells and whistles later. And half of a good product is always superior to all of a half-assed product.

A real life example

Most entrepreneurs have at least a bit of a perfectionist streak. And they usually strive to make whatever they have better. And better, and better and better.

Yep, I admit to having that tendency myself.

So last month, I decided to challenge myself to act rather than perfect. I created a new training program and used only the most basic methods to put together the content. And we used a simple, inexpensive WordPress plug-in to manage and deliver that content.

Most of the members of my mastermind group told me I was nuts. That I needed a hot “theme” to really give the site some sizzle. That I needed more expensive, more powerful software to manage the content delivery. That I needed broadcast quality videos to really capture peoples’ attention.

I ignored all their well intentioned advice and did it the “simple is better way” instead.

This allowed me to have the pilot project up, running, and on sale in just four days. And within eight days, we were sold out and took in $121,000.

Had I spent more time learning and developing, it would have taken at least three months to have the pilot project ready to go. That’s a far cry from four days!

And now that I have my “half a product” version done and it’s profitable, I can relax and use some of the proceeds to fine tune and improve it on a much more leisurely schedule.

Hey, if I can learn to put a limit on learning, you can too. Give it a try and let me know how it works for you.

Posted in Uncategorized | 14 Comments