If you’re a Cash On Demand subscriber already and you’ve got past, I think module three, you’ll know this already. The most important thing you can do when starting your Cash On Demand business:
You need to build a database.
In the Cash ON Demand course I show a model involving a funnel. You need to put people in the top of that funnel; you need to build a database of customers. And bear in mind that when I started my business I was in exactly the same position as you:
I had no customers, I had no database.
Okay. Monday morning you are starting in this business and you are trying to create a database. There are three ways in Cash On Demand that we teach you to build databases; free publicity, small ads, and small classified ads, online and offline; and direct response marketing, that’s it.
Now I don’t propose to go through the two hours worth of DVD that we supply with the Cash on demand Course on how to use classified ads. I don’t think that would be a good use of our time right now. You’ll have those sections in the Cash On Demand modules, (if you are not a subscriber – click here)
In Cash On Demand modules four and five you’ll be taught in detail how to use classified ads.
Ok – lets get down to the fundamentals of the business – the mechanics of you like:
The mechanics of the business….. if you don’t have this already through Cash On Demand just jot these down. The mechanics of the business are that you find a hungry market of individuals with, and underline this bit, with relatively high disposable income.
Relatively high disposable income.
I get so many offers of joint ventures, and I say, “Who’s this going to sell to? Oh it’s going to sell to people with no money”. That’s a bloody good product isn’t it? I want people with relatively high disposable income. If I go out to them and I ask them for £5,000, I don’t want them having to re-mortgage the house to pay for it.
I’m trying to sell to individuals with credit cards that you know won’t be embarrassed if they have to spend a wee bit of money. Why do we do that? Well it’s just easier to be frank. Why would you want to take time trying to sell to people with no money?
The first thing we do — in the funnel model I teach on Cash On Demand — the first thing we do is we offer a low cost product to develop customer confidence both in you and your company. Because let’s say tomorrow morning you go out and start marketing a little product that you’ve obtained a license to – you call yourself Joe Bloggs Trading for example. You send out a direct mail piece maybe. Nobody knows who Joe Bloggs Trading is; they don’t know whether you’re some sort of scam artist that’s going to run off with their £50. You have to develop the trust and confidence of the potential new customer.
The way you do that at this particular stage… jot this down… you must give a minimum 30 day money back guarantee at this stage.
Because the offer here is, I’ve got the greatest thing since sliced bread. It’s only £50….. have a look at it and if you don’t like it send it back and I’ll give you all your money back.
So the guy’s thinking, “Well if he’s on the level I’m going to get my money back anyway. I’ll take a look but I’ll obviously get my money back. And if he’s not on the level I’m only £50 out.” It’s a reasonable sort of bet.
And do that, I mean if somebody sends stuff back, give them their money back, for goodness sake. Don’t mess about with refunds, it really isn’t worth it. If you know that the guy’s had it longer than the 30 days and he sends it back on the 32nd day still give him his money back.
Having got those people into your funnel you then offer a back end, high margin product. This is where the money is ….. the money is not in the front end.
Offer a back end high margin product; I’m talking about a product where it’s going to cost you £50 and you’re selling it for maybe £697 plus VAT. Incidentally on back end products why do we say £697 plus VAT? We tested it.
If you know if the great marketer Ted Nicholas – Ted taught me a lesson. Ted told me about testing. We put a product out at £697 and we paid the VAT people their 17.5% on that £697. Then we put it out £697 plus VAT so we’ve got that extra 17.5% coming in from the customer. So we make more on the bottom line. It didn’t affect sales at all. So for a little plus sign and three letters, we got an extra whatever that is, £150 or whatever. So it’s worth testing that stuff.
As an aside, don’t ever mention the VAT on front end products, it just confuses the customer. If you say, “I’ve got this thing for £50 plus VAT plus postage and packing” it just gets very confusing.
The offer on the front end is going to be, for example £67 plus £2.95 postage and packing.
Once you’ve established a funnel and started selling back end products – on the basis that it was profitable the first time round – you just continue to offer high ticket price products to your growing database of loyal customers. Because let’s imagine, they’ve come into the top of your funnel at £67. You’ve treated them right. Because actually these days it’s a bit of a surprise isn’t it? You order something on the internet, and it turned up. Two days later it’s actually come through my door and it’s actually quite good stuff, and the guys put in all the bonuses that he said he would. It’s not for me, so I sent it back. Wow, he’s sent me my money back…… If you treat the customer well at point number one and point number two and every time you deal with that customer, they will become loyal hungry customers of yours.
Building a database of loyal customers is probably one of the most important lesson I teach all of my Cash On Demand students.