The hardest, most expensive thing to do in just about any business is to get new customers.
It’s also one of the most important things you can do. And it’s, by far, the most coveted marketing goal.
When you hear about all the top marketing consultants and copywriters, they built their reputation on being able to get new customers. “Acquisition” is the industry jargon.
Once you know how to get new customers for your business — consistently — without losing money, you have a business.
Before that, only an experiment — a test to see if a business can be created where one didn’t exist before.
And in an existing business, the goal should always be to see how many ways you can get new customers.
After you have your first method figured out, find another. And another. And another.
The strongest, best businesses have a dozen or more — sometimes hundreds — of ways they’re bringing new customers in.
A customer here, two there, another over here…
All adding up to a consistent flow of new business.
Here’s the big challenge about getting new customers…
Getting new customers is expensive. And unprofitable. And it should be that way. Because if you’re wildly profitable in acquiring new customers, it means you’re not casting a wide enough net.
For the most rapid business growth, you always seek to acquire new customers at break even — or even a slight loss.
That means you’re reaching into every media and leveraging every opportunity your current marketing can support.
As long as you consistently make offers to your past customers, you’ll have no problem making up those sales on the back end.
When you get into a competitive industry however — where the best marketers play…
You need an advantage!
For example, in financial newsletters, where I do a lot of work, the standard price for a “front-end” newsletter… One sold to get new customers… Is $49 for the first year. Really, between $39 and $99. But $49 seems to be a sweet spot.
And some of the world’s best ROI-oriented direct marketers play here — meaning when you’re buying media, and email list rentals, and so on, you’re paying more to get to those customers.
If you’re not willing to spend $49 or more to get a new customer, you’ll be crowded out of the market by competitors who can and will.
But if you’re only making $49 on the first sale, how can you afford to spend more than $49 to get that customer?
Most businesses will never figure this out. But I’ll tell you right now.
There are actually two ways.
1. Know your numbers, and be cash-rich. With a vault full of cash you can spend on acquiring new customers… You can afford to be in the hole for 6 to 12 months on getting new customers. I know of one business (not in financial newsletters) that spends upwards of $1,200 to get a new customer for a $99/month subscription. You can’t afford to do that without seriously knowing your numbers, knowing you’ll make that back and more, and having a cash cache to back you up.
2. Or you can use innovative offers and sales funnels to get payback almost immediately.
This has become popular in the internet marketing world recently. (While you may not like the “Snake Oil” nature of a lot of folks playing in that space, they are consistently the most innovative in terms of direct marketing tactics, and worth paying attention to.)
Here’s the fastest, easiest way to do this…
Yet another example of how getting the math right can be the marketing secret to rapid business growth!
If you have a sales letter or other marketing piece that’s currently working now, bringing in new customers…
Simply take everyone that responds to that offer…
And instead of showing them a “thank you” or receipt page after their order…
Immediately stick them onto another page that says something to the effect of, “Thanks for your order… We have everything we need and are processing your order now… And while that’s processing, we wanted to make sure you saw this other highly-relevant item…”
From here, you go on to an upsell pitch for a higher-priced item.
This is the next-higher level of value you can deliver to a customer of the first item…
The next-higher level of engagement a customer would normally have with you…
But instead of the 3-week “rest” period that direct mail marketers are too-often still caught up on…
You’re striking while the iron is hot…
While they’re still in “buying mode…”
And you’re making it easy for them to take the next step with you.
Here’s the general rule that will double your revenues…
The next item you sell, after the first, should be for roughly 10X the price of the first…
With a 10% conversion rate, you’re doubling your revenue.
(Hint: you can also stack these offers, one after another — I like to do up to about 3-4 in a funnel.)
Now just think about what this does in a market where everyone is paying $49 to get new customers, and breaking even…
Without taking out a loan, or having extra cash lying around, you can suddenly spend as much as double on getting that new customer…
And still be doing it at break even or better!
Or if all your competitors have been doing this (as it becoming the case more and more in the financial newsletter industry), this is becoming NECESSARY just to keep up.
I’ve been going to some of the top financial publishers in the world and introducing this concept with some success…
Simply going to folks who aren’t doing this yet, and helping them implement…
And it makes a huge difference!
Test it, try it in your business (or with your clients), take advantage of being nimble…
The folks who seem to have the most trouble implementing this are the big, entrenched companies.
More entrepreneurial folks are turning around and doing this within a day or two…
Either way, it’s worth doing! (And for consultants and copywriters, can significantly increase your project size and profits!)
Yours for bigger breakthroughs,
Roy Furr
Editor, Breakthrough Marketing Secrets
