Brand New From Harvey & King Inc.
"The 'Million-Dollar' Profit Center Nearly Every Business Owner Overlooks"
How to Generate Risk-Free Profits From Past Customers...
...Even If They NEVER Buy From You Again
Joe Puskar MBA
Harvey & King Inc.
From the desk of Joe Puskar
In the next 3 minutes, I’m going to share how you can generate profits from your past customers without ever selling a single thing.
This works great during slow times of the year or if they’ve already bought everything you have to sell.
We often see businesses like jewelers make the bulk of their sales during the holidays and then hunker down and wait out the summer. Most reduce or even eliminate marketing during these “famine” periods.
We think that’s a mistake.
We also see businesses like carpet and flooring providers sell a hardwood floor package to a customer and then have little else to sell three months, six months and twelve months down the road.
Both these businesses have a problem — and maybe you do too.
They’ve both, no doubt, spent 10’s or even 100’s of thousands of dollars in marketing and advertising to attract all those customers.
They’ve spent years building trust and goodwill with their community.
They’ve invested heavily in building relationships with their customers.
They’ve already made the sunk cost investment to acquire all those customers. But every day those customers don’t come back and buy is money coming right out of their pockets (and maybe yours too).
It's like buying stock in a company that goes out of business. You made the investment, but you’re no longer getting the return.
I think that’s a shame. Especially when generating profits from those people is just so simple — if you can open your mind to a new perspective and see the logical connections.
What I want to share with you now is a simple strategy to extend your business by a huge margin...to continue to generate profits from all those people you already paid to acquire.
It will cost you almost nothing to put together.
It won't increase your overhead.
It won't take away from anything you're currently doing now.
In fact, it actually has the great side benefit of increasing customer satisfaction and generating a flood of new referrals.
Over time, you might even find that you make more from doing this than you do in your primary business.
Most companies have established a high level of trust and credibility with their customers and clients but they very rarely use these relationships to their full advantage.
Just because your customers are not currently buying from you, it doesn’t mean they aren’t buying lots of other things.
You share a common customer with hundreds of other great businesses. And those other businesses are spending boatloads of money on marketing and advertising to reach the EXACT same people that are just sitting there in your customer list — producing NOTHING for you.
You have the power to not only bring incredible value to your customers but to also save those other businesses a king’s ransom in ad costs.
What I am proposing is a few simple joint venture promotions.
A joint venture is nothing more than two or more companies coming together to achieve a common purpose, where the success of one business is tied to the success of the other.
Jay Abraham, the world’s #1 business-growth strategist calls joint ventures, “the most powerful business-building strategy there is.”
Here’s An Example
Let’s take the jeweler example first. People may not be buying jewelry in the summer but they’re most definitely buying lots of other things.
Why not figure out what those things are and team up with those business owners?
After a deep examination of your customer base, you may find that your customers are very interested in spa services.
But, on their own, your clients are left to the vagaries of the market. Which spas to trust?
You could solve that problem for them. And bring them a special benefit and advantage that they just can’t get on their own.
So you would put a deal together with the spa where you mail a letter to your customers recommending the spa.
Get the spa owner to give some sort of special offer available only for your customers.
Maybe a big discount or a special package not available to the public.
In exchange for getting her services promoted to your customer list and piggy-backing on the years of financial investment and relationship building you’ve made, the owner of the spa would share back with you a portion of the profits your promotion generates.
Fifty percent of gross profits is a good starting point, but you can structure the deal any way that makes sense for all parties.
If you’ll be creating the sales copy and paying for the mailing — and taking all the risk — I’d probably ask for a lot more.
And remember, the other company gets all the residual sales. [For more info, check this out: “What EVERY Small Business Owner Ought To Know About Marketing”]
This type of joint venture is called an endorsed mailing.
Where mailing an offer to a cold list may generate only a 1% to 3% response, we’ve seen these types of offers pull over 30%.
It’s important to note that you’re NOT giving away your customer list. No one sees your list except for you (or possibly someone like me who does this for a living). Your customers are buying from these other companies anyway. The only difference is that you’re not getting any of the goodwill or profit from those transactions.
So, what’s possible?
Let’s say you have 5000 people on your list and you get a very conservative 10% response. (We’ve seen response rates over 30% for this type of offer.)
And let’s say you earn $125 for every spa package sold.
That’s 5000 x 10% = 500 x $125 = $62,500 in extra profits.
You didn’t have to sell a single piece of jewelry.
You have zero fulfillment costs.
You paid out zero sales commissions.
And this was just one promotion. If done correctly, you could easily repeat this process 6 or more times per year.
That’s 6 x $62,500 = $375,000 in pure profit.
Remember when I said earlier that you might make more doing this than in your primary business?
The sales you make from your primary business contain all the costs of marketing and all the costs of doing business.
Your joint venture income is pure windfall profit.
That’s all newfound money that you can use to open a new location, expand your facility, pay down debt or if you’re wise...invest back into more marketing.
You could use that new money to massively grow your customer list and front end profits.
The bigger your customer list is, the more profits you’ll earn from your joint ventures — which gives you more to reinvest back in to more marketing.
What you’ve done is increase the Lifetime Value of each new customer.
When YOUR customers are worth more than your competitors’ customers, you can easily afford to outspend them to acquire new customers.
This is how you steal market share and it’s the difference between average businesses that always seem to struggle and great businesses that thrive in ANY economy.
Let’s say you owned the carpet/flooring company.
Someone who upgrades their home to hardwood floors will probably also need new furniture to go with their new floors.
You could put together a deal with a great furniture store to secure your customers 20% off their next purchase.
Depending on your clientele, that furniture purchase could easily be several thousand dollars.
If you had 3000 people in your database and 10% took you up on your offer, you’d generate 300 new sales for the furniture store.
If your share was just $500, you’d pocket an easy $150,000 in profit.
All for leveraging an asset that almost every business owner completely overlooks.
Are you starting to see the opportunity here?
You could do this over and over again for years — with dozens of different businesses — generating profits from customers even if they NEVER buy from YOU again.
Windows, landscaping, roofing, kitchens and baths, etc.
There’s far too many to list. You’re limited only by your own imagination and your ability to communicate the value to your potential partners.
How To Get Started
Identify your typical customer.
Look for products and services they buy immediately before and immediately after they buy from you. Also, look at demographic and psychographic similarities.
Identify the BEST business in each category.
Contact your prospective partners. Most won’t understand the value you’re offering. You’ll most likely have to educate them on things like the residual value of a customer.
Design an irresistible offer.
Create you marketing piece. The better your sales copy the better your response will be. Don’t skimp here.
Segment your list to generate the maximum response.
Set up tracking mechanisms to track the sales from your promotion.
Mail your offer.
Stay in close contact with your joint venture partner throughout the entire process.
Or, you could simply CONNECT WITH US and not only will we turnkey generate your joint ventures for you so you can focus on running your business -- we’ll do it on a purely performance basis.