In this Product Launch Strategy update, I have a a couple of very important questions to ask you about your business. By answering these questions, you’ll be able to get a better handle on getting new customers, and you should be able to easily double your profits using what you learn.
So here’s question #1 – Do you know exactly much does it costs you to acquire a new customer?
Question #2 is – And how much do you spend on marketing and advertising, as well as management and employee time to get that new customer?
If you answer those questions honestly, and if you are like most businesses, your answer is going to be quite a lot!
How To Get All The Customers You Want
Today we’re going to look at one of the most underused ways of getting new customers we use all the time at Product Launch Strategy, but it won’t work for you until you first realize one very important fact. If your customers, clients or patients have the ability to purchase from your business over and over again, your most important job is to get new customers to make a first purchase from you as soon as you possibly can.
The reason your focus should be on this one key metric is because the lifetime value of each new customer can be very high, and that’s where you should be looking to grow your sales. The future sales you make to your customers are where the majority of your profits are made, not on the front end.
And since you’ve realized how much profit each new customer generates over their life time buying relationship with you, you know how much effort and expense you can spend in order to get each new customer to get started in that relationship.
But there’s even more to this dynamic…
Understanding Lifetime Customer Value
If your business is like most of the companies our Product Launch Strategy team consult to, most of the profit you’ll make comes from customers who keep repurchasing from you over and over again. In some cases, customers can keep coming back regularly for months, years, or even for decades. I’ve been buying one financial newsletter since 1987, and I’ve spent thousands of dollars with our local tyre dealer over the years.
Now when you add up these additional sales over the years, the amount of increased profit you put into your pocket can be 2, 5 or 10 times more than the profit you make on that first transaction, especially after you factor in the cost of marketing and advertising to get that customer in the first place. Many times, you make nothing on the first transaction, and you can even end up with a small loss in some industries.
The most important thing to remember is that not one dollar of that long-term backend profit would have come to you if you didn’t attract those new customers in the first place. That’s why so many people use systems like Product Launch Formula to generate their initial front end sales. You can build a big list of targeted prospects very easily, using all of the traffic your joint venture partners send you, and grow a really big business quite quickly.
But I digress…
Two More Critical Questions
So now that you can see why it’s so important to generate as many new customers as possible as quickly as possible, you should ask yourself these two questions.
Question 1 – What would it be worth to me and my business if I could sell an entry level product to an extra 10 or 110, or 1010 customers this month (and every month from now on), even if I didn’t make any money on that first transaction.
Question 2 – What if I stopped worrying about trying to make a profit on my initial sales, and instead I focused on the huge, long term combined profits I can make from all the repeat transactions I do with these new customers in the years ahead?
When you’ve answered these 2 questions, you’ll no doubt realize the implications. Then all you need to do is decide on what methods you will use to generate as many new customers as you possibly can, starting as soon as possible. As I said above, you can use a system like Product Launch Formula to get a jump start on those initial sales, or you can use another method.
And a good way to do that is sell a front end product or service at break-even or even at a small loss, so people get to know you and start buying from you instead of somebody else.
Once you are making a lot more initial front end sales, you’ll see your backend and overall profits grow much more quickly than they are now as you sell more products and services to all of these new customers. You gotta love that…
If you’d like to know how you can use the Product Launch model to grow your sales and profits even more quickly, then check out this Product Launch Formula Review, where we look at Jeff Walker’s flagship product and see what’s under the hood.
And to learn more about creating a profitable product launch for your business, check out Jeff Walker’s free Product Launch Masterclass here.
PLUS: When you’re ready, here are 4 ways I can help you to grow your business using product launches:
1. How To Create A Signature Product Out Of Thin Air In 72 Hours Or Less
Creating your product does not need to take weeks or months. My 72 Hour Product Creation Guide shows you how to build high value products one after the other in 72 hours or less. Click Here
2. How To Outsource Your Product Creation And Make It Hands Free.
Outsourcing the creation of some or all of your products and bonuses is a great way to save your time for the more important (and more fun) things you’d rather be doing. Grab my Hands Free Outsourcing Cheat Sheet to learn more. Click Here
3. How To Build A Profitable Launch List.
Building an email list is critical if you plan on doing a launch for your product, service or business. My 1-2-3 List Building Cheat Sheet will show you how to build a responsive list of prospects who are ready to buy from you during your launch. Click Here
4. Work One-On-One With Me
If you’d like to work directly with me to run a launch for your business… just send me a message by emailing me at rocky [at] localwebsolutions.com and put “One-on-One” in the subject line… tell me a little about your business and what you’d like to work on together, and I’ll get you all the details!
Also, check this out 🙂