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Suggest You - Notes for Newbies - Part Three - Your List
No one wants their business to fail, but there are 10 main reasons why it may. Discover what these are and what you can do to avoid these problems.1. Insufficient Working Capital It is crucial for businesses to have a financial cushion especially in the start-up phase. Ever changing markets can take many unexpected turns which make financial reserves a must. Ensure that you are realistic in how long it will be your turnover starts and how much money you need to survive until you
I won’t even ask you to calculate his third back-end product he offers at ?2,997 with a 2% conversion.
How you go about building your list will depend on your target market, the products you offer and the model you have decided is the best for your business.
When pundits talk about building their list, they usually describe the people they want to contact as ‘traffic’.
In a later article we shall talk about specific processes for finding new people to add to your list.
Un
Statistics consistently reinforce that the biggest challenge in today’s contact center environment is agent training. Turnover continues to be high; new hire costs are on the rise--$6500 per agent! At the same time, losing customers because of bad call experiences negatively impacts your bottom line. What can you do? How do you justify the training expenditure?Research has been making a case for how spending in human performance areas such as training, translates into bottom line growth. Accenture's st
Today we want to talk about your list. This is the third crucial part of your business if you want to make big money as a direct marketer. If you get this right, you will earn piles of money. :-) If you don’t get it right, you may earn a bit, but not enough to support this lifestyle you have dreamed about.
Your list
You need to spend a great deal of time and effort building your list. This is the key to growing your business.
Your list is simply the names and addresses of people who have bought from you. People on your list are people from your target market who are now your best friends.
Why? Why is your list so important?
Think back to Part One where we talked about your market. We said people in your market are people you think will be interested in buying your products. Now that people from your market have bought the first product you offered them, they go onto your list.
Here’s a little bit of technical jargon: The first product somebody buys from you is called a ‘front-end product’. When they buy something else from you, this is called a ‘back-end product'.
Here is why this business of direct marketing works so well (Drum Roll!): People who have bought a front-end product from you are now even more highly-targeted – people who have bought a front-end product from you are likely to buy a back-end product from you, then another back-end product, then another, and yet another.
Let’s look at some numbers. A good friend of mine has a list of about 30,000 people. He has built this over eight years.
If he were to spend time adding to this list, he might offer a front-end product for perhaps ?27. He would incur some costs – to add to his list he might use classified ads in newspapers and magazines, he might rent a list of names from folks who offer this service, he might use a pay-per-click search engine on the Internet. No matter which technique he used, he would have to spend some money up front.
He would expect sales of the front-end product he offered to cover the costs of adding new people to his list. In this, he is building his list at zero net cost. He may make some money from his front-end product, but, most importantly, he is building his list.
Time for another drum roll (Drum Roll!): Some time later, he will offer these new people on his list a back-end product. His marketing costs now are almost zero – only the cost of a mail shot (paper, envelopes and postage) or an email message (no cost at all).
So now, he offers people on his list a back-end product for ?97. His costs to make this offer are very low. Suppose his conversion is 20%. Do the sums: 20% of 30,000 people multiplied by ?97 per person equals ?582,000. :-)
But wait, this gets even more interesting. Now he offers his list another back-end product. This one will cost ?497. His conversion is 10%. 30,000 people times 10% times ?497 equals ?1,491,000.
I won’t even ask you to calculate his third back-end product he offers at ?2,997 with a 2% conversion.
How you go about building your list will depend on your target market, the products you offer and the model you have decided is the best for your business.
When pundits talk about building their list, they usually describe the people they want to contact as ‘traffic’.
In a later article we shall talk about specific processes for finding new people to add to your list.
Unt
Branding is one of the primary ways of solidifying your business with respect to marketing. Engaging in trade shows another. Recognizing the interrelationship of the two ideas is significant.Here’s why.Experts are cognizant of the fact that it is necessary to promote a consistent image. Effective branding is essential in creating long lives for products and services. When you reflect on brand names like Kodak, Hershey, Levi’s you are most likely reminded of familiarity and convention. Such wel
Here’s a little bit of technical jargon: The first product somebody buys from you is called a ‘front-end product’. When they buy something else from you, this is called a ‘back-end product'.
Here is why this business of direct marketing works so well (Drum Roll!): People who have bought a front-end product from you are now even more highly-targeted – people who have bought a front-end product from you are likely to buy a back-end product from you, then another back-end product, then another, and yet another.
Let’s look at some numbers. A good friend of mine has a list of about 30,000 people. He has built this over eight years.
If he were to spend time adding to this list, he might offer a front-end product for perhaps ?27. He would incur some costs – to add to his list he might use classified ads in newspapers and magazines, he might rent a list of names from folks who offer this service, he might use a pay-per-click search engine on the Internet. No matter which technique he used, he would have to spend some money up front.
He would expect sales of the front-end product he offered to cover the costs of adding new people to his list. In this, he is building his list at zero net cost. He may make some money from his front-end product, but, most importantly, he is building his list.
Time for another drum roll (Drum Roll!): Some time later, he will offer these new people on his list a back-end product. His marketing costs now are almost zero – only the cost of a mail shot (paper, envelopes and postage) or an email message (no cost at all).
So now, he offers people on his list a back-end product for ?97. His costs to make this offer are very low. Suppose his conversion is 20%. Do the sums: 20% of 30,000 people multiplied by ?97 per person equals ?582,000. :-)
But wait, this gets even more interesting. Now he offers his list another back-end product. This one will cost ?497. His conversion is 10%. 30,000 people times 10% times ?497 equals ?1,491,000.
I won’t even ask you to calculate his third back-end product he offers at ?2,997 with a 2% conversion.
How you go about building your list will depend on your target market, the products you offer and the model you have decided is the best for your business.
When pundits talk about building their list, they usually describe the people they want to contact as ‘traffic’.
In a later article we shall talk about specific processes for finding new people to add to your list.
Un
Seven in ten consumers want you to personalize the direct mail you send them. Are you giving them what they want?According to Cap Ventures’ 2003 study of personalization, more than 69% of consumers prefer highly personalized direct mail offers over non-personalized offers.Smart direct mail marketers personalize their mailings because personalization works. Personalization boosts response rates, sometimes by double digits. And it boosts orders. Personalization works be
Let’s look at some numbers. A good friend of mine has a list of about 30,000 people. He has built this over eight years.
If he were to spend time adding to this list, he might offer a front-end product for perhaps ?27. He would incur some costs – to add to his list he might use classified ads in newspapers and magazines, he might rent a list of names from folks who offer this service, he might use a pay-per-click search engine on the Internet. No matter which technique he used, he would have to spend some money up front.
He would expect sales of the front-end product he offered to cover the costs of adding new people to his list. In this, he is building his list at zero net cost. He may make some money from his front-end product, but, most importantly, he is building his list.
Time for another drum roll (Drum Roll!): Some time later, he will offer these new people on his list a back-end product. His marketing costs now are almost zero – only the cost of a mail shot (paper, envelopes and postage) or an email message (no cost at all).
So now, he offers people on his list a back-end product for ?97. His costs to make this offer are very low. Suppose his conversion is 20%. Do the sums: 20% of 30,000 people multiplied by ?97 per person equals ?582,000. :-)
But wait, this gets even more interesting. Now he offers his list another back-end product. This one will cost ?497. His conversion is 10%. 30,000 people times 10% times ?497 equals ?1,491,000.
I won’t even ask you to calculate his third back-end product he offers at ?2,997 with a 2% conversion.
How you go about building your list will depend on your target market, the products you offer and the model you have decided is the best for your business.
When pundits talk about building their list, they usually describe the people they want to contact as ‘traffic’.
In a later article we shall talk about specific processes for finding new people to add to your list.
Un
Exporters seeking information or business contacts in their overseas markets may find it a difficult and time-consuming challenge.The Internet is an invaluable tool for both finding businesses potentially interested in alliances, distribution or purchasing products - and in communicating with them to build and maintain necessary relationships.An observer of the growth of the Internet in its earlier days prophetically noted: “The Internet, like television and the print media, is yet another resourc
Time for another drum roll (Drum Roll!): Some time later, he will offer these new people on his list a back-end product. His marketing costs now are almost zero – only the cost of a mail shot (paper, envelopes and postage) or an email message (no cost at all).
So now, he offers people on his list a back-end product for ?97. His costs to make this offer are very low. Suppose his conversion is 20%. Do the sums: 20% of 30,000 people multiplied by ?97 per person equals ?582,000. :-)
But wait, this gets even more interesting. Now he offers his list another back-end product. This one will cost ?497. His conversion is 10%. 30,000 people times 10% times ?497 equals ?1,491,000.
I won’t even ask you to calculate his third back-end product he offers at ?2,997 with a 2% conversion.
How you go about building your list will depend on your target market, the products you offer and the model you have decided is the best for your business.
When pundits talk about building their list, they usually describe the people they want to contact as ‘traffic’.
In a later article we shall talk about specific processes for finding new people to add to your list.
Un
Enjoying the title of entrepreneur is a hollow feeling.If you have ever been out of work and joined a multi level marketing outfit, or joined the ranks of "commission only" sales reps you are considered to be an entrepreneur.I call it hollow, because the word resonates within us on some fundamental level. Images of independance and success beckon to us as we discard the shackles of a 9-5 job.We are our own boss.The reality is quite different. Ugly even. In fact, other entrepreneurs fe
I won’t even ask you to calculate his third back-end product he offers at ?2,997 with a 2% conversion.
How you go about building your list will depend on your target market, the products you offer and the model you have decided is the best for your business.
When pundits talk about building their list, they usually describe the people they want to contact as ‘traffic’.
In a later article we shall talk about specific processes for finding new people to add to your list.
Until then, the important thing to remember is that your list is precious. Guard it with your life, keep it safe and nurture it with love.
That’s all for this time. See you soon.
Next time we shall talk about the next most important things you must create to build a profitable direct marketing business. This is your business model.
Thanks for listening :-)
William Rice-Johnston
Copyright © 2006 Mary Rice-Johnston & Golden Goose Direct. All rights reserved.
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