"Leads...Under Your Nose"
By Christopher Wright
Leads...the life blood of any business. You must constantly seek new leads to sustain your business. One of the most overlooked places to find leads is the business' own assets...their customers. If they're pleased with your product or service, they'll usually have no problem recommending your service to someone else.
Often times though, your customers need a little push. Incentive. Unless your product is truly original and unique (ie Amazon.com or Ebay when they first began), most of your customers will need a little incentive to 'spread the word'. Cash is always a good motivator or offering a gift or gift certificate. If offering a cash incentive is not proper, offer to donate it to their favorite charity in their name.
What's A New Customer Worth?
This is the first thing you need to find out, without it you'll be shooting in the dark. Let's say your product retails for $60 and you have a profit margin of 30% ($18). Each customer buys your product five times per year on average. This means each new customer is worth $300 in sales and $90 in profit. Here's how to make everyone happy!
Why not offer your customers a referral fee of the full (first time purchase) profit of $18? At the same time, you offer anyone they refer a 30% discount on your product. Present it in a way as to seem that they're only getting this discount because of their relationship with your present customers. To be truly effective, this discount should be greater than what the company regularly advertises.
You make nothing on this sale...but look long term! Remember, your average customers purchases your product/service five times per year. This means you'll most likely make four more sales and profit $72 on each new customer. If you can obtain an extra 100, 500, or 1,000 new customers per year...well you can do the math.
Your potential is only limited by your ability to orchestrate these deals. This strategy applies whether on or offline. Remeber, business tactics don't change becaue you're on the Internet...just the way you implement the tactics.
Applying To The Internet
One way to make this happen is by creating your own affiliate program. There a plenty of services that will allow you to set up your program FREE! ClickXchange.com, ClickBank.com, Ibill.com and others will let you set this up. Then simply set up the system to collect the payment info and contact info (such as email addresses). Make the sale and collect the follow up information, then do just that...follow up.
Copyright New Innovations
Christopher Wright, Guerrilla Marketer
"Make Money...Or Make Excuses"