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Exponential Business GrowthExponential Business GrowthInstructor: Jim Macdonald

Direct Connect Business SolutionsJX2 Technologies

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Introduction Introduction

The key is in your Marketing Effort– Initial Sales– Fostering Customer Relationships– Residual Sales

Learn how to grow your business. Period.– It requires planning– It requires diligence and work– It requires follow-up

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Types of BusinessesTypes of Businesses

Offer great service and know it, but don’t know how to tell it.Offer great service and don’t know it or tell it.Don’t offer great service… Won’t be around after initial offering.Offer great service, know it , and tell it… VERY RARE!

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Ways to Grow Your BusinessWays to Grow Your Business

How Many Are There?– Hundreds?– Thousands?There Are Only THREE ways!

1. Increase number of clients2. Increase average sale per client3. Increase number of times client

returns to buy again

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Questions…Questions…Where is the origin of my business, or where COULD my business come from?Who stands to benefit more than you by your being more successful? Customer, supplier…Who’s in a position that already has my customers and has spent money and action in their goodwill and would be in a position to recommend, endorse or make them available to me with a positive pre-disposition? What ways can they benefit from relationships I have with my customers?What ways can I better reduce the risk of the transaction for my customer – thereby lowering the resistance barrier to take advantage of my product/service for the first time?

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What is Marketing?What is Marketing?

1. Continually educating clients (or prospects) throughout their relationship with your company on the advantages and benefits your company, and no one else, brings them.

2. Creating a process for increasing a client’s demand or desire for your product or service.

3. Developing a strategy that convinces clients to complete an action.

4. Giving clients a reason to appreciate you and discriminate on your behalf.

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Basic Marketing Concepts:Basic Marketing Concepts:1. People want you to lead them. They silently want to

know more about your business' product or service.2. You must tell people what specific action to take.3. Analyzing your marketing results is the ultimate

financial leverage.4. Advertising is nothing more than salesmanship in a

particular medium.5. You must educate people so they appreciate what

you've done for them - or will do for them.6. Bonuses and special offers can make a significant

contribution to your overall sales proposition.

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Marketing Mistakes:Marketing Mistakes:1. Not testing, or not allowing the dynamics of testing to work.2. Lacking a good Unique Selling Proposition (USP) as an

integral part of all of your company’s marketing and your persona.

3. Not having a "back-end" for residual sales.4. Failing to determine and address your customers' and

prospects' needs5. Not recognizing, that you have to both sell and educate your

way out of a problem. Don’t just cut the price6. Failing to make doing business with your company easy,

appealing, desirable and even fun7. Failing to tell customers "why."8. Not sticking with effective marketing campaigns to realize

the full cumulative effect.9. Not focusing on the intended customer in your company’s

advertising.10. Running institutional advertising instead of direct response

advertising.

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Marketing BasicsMarketing Basics(Who, What, When, Where, Why, and How)(Who, What, When, Where, Why, and How)1.1. WhoWho will buy your product?

(Your target market segment)2.2. WhatWhat are you selling?

(The product and the benefits)3.3. WhenWhen do you want to achieve goals?

(Time frame-adjustable)4.4. WhereWhere will you sell?

(Best means to reach the target)5.5. WhyWhy would someone want to buy it?

(Are you better, cheaper, etc)6.6. HowHow will you reach the right people with the product?

(Strategy)

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The USPThe USP(Unique Selling Proposition)(Unique Selling Proposition)

1. First identify the advantage or result the client wants.

2. Write down on a piece of paper the following…““Most businesses in my industry do Most businesses in my industry do __________.__________.But what we do is________.But what we do is________.””

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Ways to Grow Your BusinessWays to Grow Your Business

How Many Are There?– Hundreds?– Thousands?There Are Only THREE ways!

1. Increase number of clients2. Increase average sale per client3. Increase number of times client

returns to buy again

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Multiple Income SourcesMultiple Income Sources

The Upside-Down PyramidBuilding a Solid Structure

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Business Growth ExerciseBusiness Growth Exercise

Calculate number of clients: 1,000How much do they spend on each transaction? $100How many transactions per year? 2Total Income: $200,000.00

ADD 10% to each segment =$390,625.00$266,200.00

ADD 25% to each segment =

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Marginal Net Worth of A ClientMarginal Net Worth of A ClientTo calculate the lifetime value of your customers, do the following:1) Compute precisely what a customer costs you to obtain, by dividing your

current marketing budget by the number of customers it is now producing.2) Then compute the cost of a prospect the same way.3) Then compute how many sales you get for so many prospects (the percentage

of prospects who become your customers) and the cost of converting those prospects into customers.

4) Next, average the cost to generate an outright sale, and the cost to generate, then covert, a prospect. This is your average cost for producing a customer immediately.

5) Then subtract the amount determined above from your customer's average initial purchase. This will give you your profit on their first purchase.

6) Then compute your average repeat sale and your average profit on that sale.7) Then compute how much additional profit a customer could be worth to you

over their lifetime of patronage by determining how many times most customers come back, and multiply that by the average profit per repeat sale. Be conservative.

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Looking At The Looking At The ““Back EndBack End””

You are in this for the LONG RUNResellingUp-SellingCross-Selling

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Risk ReversalRisk Reversal

Move It To The Top!Take Away The Risk

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Adopt & AdaptAdopt & Adapt

Keep Your Eyes Peeled!Creative Emulation

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Talk to Clients Talk to Clients –– Teach and LearnTeach and Learn

From WebsterFrom Webster’’s Dictionary:s Dictionary:Customer Customer ––One who purchases a commodity or serviceClient Client ––One who is under the protection of another

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One to OneOne to One MarketingMarketing

Requirements for creating a Learning Relationship:1. Customization: The enterprise must be able to

customize its product or service.2. Design interface: The customer must be able to

specify his needs both effectively and cost-efficiently (as with a PC interface)

3. Memory: The firm must maintain a memory of these specifications.

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Preemptive AdvantagePreemptive Advantage

Put Your Clients “In The Know”

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Residual ValueResidual Value

Up SellingAdd OnsStep Selling

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Ask Yourself This…Ask Yourself This…1. Where is the origin or my business, or where COULD my

business come from?2. Who stands to benefit more than you by your being more

successful? Customer, supplier…3. Who’s in a position that already has my customers and has

spent enormous amounts of money and action in their goodwill and would be in a position to recommend, endorse or make them available to me with a positive pre-disposition? What ways can they benefit from relationships I have with my customers?

4. What ways can I better reduce the risk of the transaction for my customer – thereby lowering the resistance barrier to take advantage of my product/service for the first time?

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Competition and S.W.O.T.Competition and S.W.O.T.

Competitive AnalysisSelf AnalysisStrengthsWeaknessesOpportunitiesThreats

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Positioning StatementPositioning StatementWho: Who are you?What: What business are you in?For Whom: What people do you serve?What Need: What are the special needs of the people you serve?Against whom: With whom are you competing?What’s different: What makes you different from those competitors?So: What’s the benefit? What unique benefit does a client derive from your service?

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Selling A ServiceSelling A Service

Don’t overestimate yourselfThink about the “butterfly effect”Ask customer how you can improveThere is no Marketing Department!– Improve points of customer contact

Your prospects could be competitorsService is “Chemistry”, “Feelings”Stand for ONE thing

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Selling A Service (continued)Selling A Service (continued)

PRICING – How do you know?BRANDINGCOMMUNICATIONSPRESSSell Hope!Say Thank You!Stay Present!

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Formalized Referral SystemFormalized Referral System

IncentivesRemember the “Net Worth”

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Teaming Up…Teaming Up…

PartnershipsJoint VenturesEndorsements

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BrandingBranding

What is a Brand?What is a Brand?Brand nameBrand markBrand loyaltyBrand recognition

Brand acceptanceBrand preferenceBrand insistenceBrand rejectionBrand equity

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Being FirstBeing First1. You can be the first to offer a product or service in your

community. 2. You can be the first to tailor a general-use item for a

specific audience. 3. You can be the first to market a product at a new price

point. 4. You can be the first to offer an alternative to an existing

product or service. 5. You can be the first to tap into a soon-to-be major

market that larger companies have overlooked.

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Being First: An Exercise…Being First: An Exercise…

Take a general description of what you do, such as sell insurance, consult, or give seminars.Add a qualifier that exactly describes your major product, service, or competitive advantage…You've instantly repositioned yourself in a new category.

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Press ReleasesPress Releases

“Sell the Sizzle”Headlines and DeadlinesFollow Ups

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A.I.D.A. Commands a ResponseA.I.D.A. Commands a Response

The “AIDA” principle of advertisingAttentionInterestDesireAction

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Ad Writing Ad Writing –– Direct ResponseDirect Response

Say something that gets your reader's attention.Tell the reader why he/she should be interested.Tell the reader why he/she should believe that what you're saying is true,Prove it's true.Itemize and describe all the benefits of your product or service.Tell the reader how to order.Tell the reader to order now.

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TestingTesting

Test EverythingSpend Your Money Wisely

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Winning A Sales PitchWinning A Sales Pitch

Say or do something that gets the prospects attentionTell them why they should be interested in what you have to sayTell them why they should believe what you say is trueProve it’s trueList the benefits of your product or serviceTell them how to orderAsk for their order

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Contact StrategyContact Strategy

Have One…Work Your ListsFollow Up

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Getting Old Clients BackGetting Old Clients Back

Out of sight, out of mind…Stay present!

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Advertising (General Concepts)Advertising (General Concepts)Personal NetworkingTVRadioNewspaper – MagazinesLow-cost ads for Charitable OrganizationsPress ReleasesMailings/Direct MailInternet

– Web site, e-mail, newsgroups, spiral & viral marketingNewslettersFAX BlastsInserts - Card decks, etc.Point of purchase displaysPrint – Brochures, Business Cards, etc.On-holdCustomer TestimonialsSponsorships

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Web StuffWeb StuffWeb SiteE-mailNewsgroupsSpiral Marketing…Viral Marketing…

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BarteringBartering

Straight BarteringTriangulation Bartering

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Putting It All TogetherPutting It All Together

Integration – The Key To SuccessTiming Is Everything

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Writing Marketing PlanWriting Marketing Plan1. Write four or five paragraphs that summarize your

business, including its philosophy, strengths and weaknesses.

2. Outline each of your goals, and be specific. Be optimistic, but stay grounded. Prioritize goals if there are many.

3. Define your niche markets as clearly and specifically as possible. Rank them in priority order.

4. Research your target to determine the best way to reach them. Write a detailed profile of your audience segments. Include all the demographic and psychographic information you've gathered.

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Writing Marketing Plan Writing Marketing Plan (continued)(continued)

5. For each goal you've outlined, create a strategy, complete with your key messages and steps that will help you accomplish the goal.

6. Write out each strategy, and beneath it, list key messages and tactics.

7. Allot a segment of time and a deadline to each.8. What you now hold in your hands is probably

the most effective "to do" list you'll ever write.

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Exercise #1 To Help Your BusinessExercise #1 To Help Your Business

Write down everything you do for two days. How much time was spent working to achieve your goal? How much was wasted?

(on to the last exercise…)(on to the last exercise…)

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Exercise #2 To Help Your BusinessExercise #2 To Help Your Business

1. Write down the names of your 10 best customers2. Contact them by phone3. Then send a follow-up letter4. 1-2 weeks later send them a note offering…

A one-time preferential priceTo buy in advance of the crowdTo buy a limited supply itemTo buy in advance of a price increaseA combination of the above

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Great Books!Great Books!““Selling the InvisibleSelling the Invisible””by Harry Beckwith

““What Clients LoveWhat Clients Love””by Harry Beckwith

““The End of Marketing as We Know ItThe End of Marketing as We Know It””by Sergio Zyman

““Power PromotingPower Promoting”” by Jeffrey Sussman““How To Market A Product For Under $500.00How To Market A Product For Under $500.00””by Jeffrey Dobkin

““Who Moved My Cheese?Who Moved My Cheese?”” by Spencer Johnson““Guerilla MarketingGuerilla Marketing””Series of books by Jay Levinson and Company

““Getting Everything You Can Out Of All YouGetting Everything You Can Out Of All You’’ve Gotve Got””by Jay Abraham

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Great Web Sites!Great Web Sites!www.demographics.comwww.demographics.com - American Demographics Magazinewww.SBA.govwww.SBA.gov - Small Business Administrationwww.wilsonweb.comwww.wilsonweb.com - Dr. Ralph Wilson’s Web Marketing Sitewww.gmarketing.comwww.gmarketing.com - Guerilla Marketing Web Sitewww.cyberatlas.comwww.cyberatlas.com - Interesting Marketing Advicewww.marketingtips.comwww.marketingtips.com - from Corey Rudl, a controversial, yet

successful direct marketerwww.intuit.comwww.intuit.com - The makers of QuickBooks offer business advicewww.netbusiness.netscape.comwww.netbusiness.netscape.com - Netscape’s tips for businesseswww.abraham.comwww.abraham.com - Jay Abraham web sitewww.dobkin.comwww.dobkin.com - Jeffrey Dobkin web site

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Thank You And Good Luck!!Thank You And Good Luck!!Use Your Head…Follow Your Heart…You Won’t Need Luck At All!