How I Started From Scratch A MultiMillion Business For Peanuts Destroyed My Competitors And Ended Up With 50000 Highly Responsive Clients And 10000s Of Email Addresses –

How I Started From Scratch A MultiMillion Business For Peanuts Destroyed My Competitors And Ended Up With 50000 Highly Responsive Clients And 10000s Of Email Addresses –

I’ve had lots of people try to knock me off over the years. They virtually copied what they thought was everything I did, only to quietly fade from the radar screen. Most times instead of getting upset by this blatant theft I just chuckled to myself, saw it as the ultimate compliment and waited and watched while they got a VERY expensive learning experience.

Anyway, if you are a knock off merchant this Rant will help you get it right. If you are a business person with integrity, you’ll wish you’d known this year’s ago and you will finally understand what it takes to create a sustainable, viable, valuable, business model.

Contrary to what you may be thinking, and importantly although I spent a million dollars or so in creating it, IT NEVER ACTUALLY COST ME A MILLION DOLLARS, for a number of VERY important reasons.

Most of you will remember the full page ads I used to take out in major newspapers, which I used as my media for attracting a prospect. Just for starters, here’s HOW I WAS ABLE TO MAKE PRINT MEDIA WORK using what most believe to be enormously expensive full page ads.

1. FOR A START, I NEVER PAID THE “FULL PRICE” THAT THE NEWSPAPERS WANTED TO CHARGE. In fact I paid much much less, because most was bought as what the industry calls “distressed space”. Truth is there is virtually no such thing as “distress space”, although “distress space” does exist, it’s really a term used for “discounting” the recommended fee normally charged without actually it being seen as “discounting”. It’s a little game played between buyer and seller.

2. MY ADS WERE MORE READILY VISUAL IN TERMS OF SIZE AND POSITION TO MY COMPETITORS. Plus I used the advertorial style where it looked like it was written by the newspaper editor themselves. In fact, the last thing I want it to look like is like an ad. Why? Because no-one reads an ad, but they do read editorial. And they trust editorial but they don’t trust ads. So why in heck would you want to run an ad that looks like an ad, smells like an ad, and acts like an ad?

3. I FOLLOWED THE COPYWRITING FORMULAS PASSED DOWN LITERALLY THROUGH THE AGES BY MY PREDECESSORS who had nowhere near the advantages I have that technology has thankfully imposed upon me, like credit cards, 1800 telephone numbers and answering services, the internet, free recorded messages… the list is long.

4. I NEVER TRIED TO SELL ANYTHING. I only ever offered a “FREE Report”. It’s purpose was to educate a prospect first and allow me to diagnose and prescribe solutions to their most pressing problems. Nobody wants to be “sold” anything. You need to be seen as a trusted friend and advisor and that’s what this long copy sales formula does. In fact, it so educates the prospect that they are predisposed to buy.

5. I ALWAYS SOLD HIGH TICKET INFORMATION PRODUCTS. By high ticket I mean $300 to $1000, even more, simply because the higher the dollar value in the information business the more profit you make. Consequently just a few sales, even less will see you break even or be in the black. Imagine what happens when you know what I know and you make many more than just a few sales. What about if you consistently convert 15% – 20% of prospects to buyers, with the sort of numbers I’ve described above. You get rich fast! Your bank account explodes and you wonder where the money has been hiding all these years.

6. ONCE YOU IDENTIFIED YOURSELF AS A PROSPECT, I virtually mailed, emailed or both, until you bought or died, whichever came first. Again, my competitors, en masse, virtually only ever made you ONE, at best TWO, offers to buy. How ridiculous is that? It presumes when their message arrives, you are already ready to buy. Mine assumes you are ready to buy now and in the future and sets about shortening that process and ensuring that you choose to buy from me as opposed to anyone else in my category. Historically I could get a 5% or 6% response upfront, but over a series of mailings I can see that grow to as much as 20% or more.

Let’s do the math on that… let’s say I take a full page ad in a major newspaper on a Sunday. I pay $6000 plus GST and run 4 products on the page, all doing as I’ve described above. Let’s say one of the products sells for $1000. Costs me $100 to make. That’s pretty normal. If I allocate 25% of the $6600 I paid for the page to this product, that’s $1650. Now for an ad like this I’ve had as many as a 1000 people respond in a week. And 1000 more go to a website. So I won’t even consider numbers like that, let’s say just 50 people request my FREE Report on the phones. And 6% buy from the first mail out at $1000. That’s $3000 upfront. Gosh, we are already in a profit, surely that can’t be true. Well… it is. Now let’s say we mail them 5 more times. And every mail out to the 50 people costs me $2 each. 5 x $2 x 50 = $500. But now our total sales are 18% which equals gross sales of $9000. So exactly how much gross profit have I made? $9000 – ($900[cost of goods] – $1650[cost of ad] + $500[cost of follow up mailings]) = $5950. How often would you run an ad that produces those sorts of results? Every flippin’ day I hope.

7. NOT ONLY DOES THIS MODEL MAKE A MASSIVE PROFIT on the front end but it builds you a herd of prospects in tune with your message and predisposed to do business with you in the future. We call it “BACK END” products. In other words, we continue to market other products to buyers and non-buyers, products similar to what they have already bought or enquired about, including other people’s products and seminars, coaching, consulting, newsletters, again the list is long. All adding massively to the bottom line. In fact, my “BACK END” is so big I could afford to go negative when attracting a prospect. Let me say right here, BEING PREPARED TO GO NEGATIVE when building a business is the fastest way to create it.

To be honest, it’s this herd of clients and prospects that more than any other strategy I’ve employed in the past 31 years, has made it possible for me to attain the following list of achievements which might also appeal to you…

To make a VERY large income from serving a surprisingly SMALL number of customers. To create a VERY predictable, dependable income. To get wealthy FAST. To make a business SALEABLE for a large “exit payday”. To multiply my income WITHOUT multiplying my work, hours or headaches.

The title to this Rant could easily have been “How to Build a Mailing List of 50,000 Clients, 10,000’s of Email Addresses, From Scratch for Peanuts, Destroy Your Competitors and Build a Multi Million Dollar Business”

Committed to Multiplying Your Profits and Guilty of Conspiracy to Committing Capitalism

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