Andrew Reynolds live on stage talking about building a Cash on Demand database.
“Right. Number one thing to do: you need to build a database. You’ve seen this in Cash on Demand but I need to hammer this home. Those are six words, if you miss this slide, if you don’t get it into, you know, into your sort of business model then you’re going to fail. You need to build a database.
Everybody’s familiar with it but just to refresh our memories. Can I just go to this thing for a second?
Just draw for a second a funnel. You’ll be familiar with this because we’ve talked about in Cash on Demand but I need to just get this sort of engrained really. The funnel model is what we are talking about here today okay? Into the top of this marketing funnel we’re going to put loads and loads and loads of people. We’re gong to put them in there by offering a low-cost product, say, I don’t know, a £67 product for example. That is just to build the database. We are going to build a database by putting people into the top of the funnel for a low-cost product. That is the equivalent of getting people behind the start line so that you can fire off the pistol, okay? No point putting a start line up and not having a load of people to actually take part in the race, okay? So you’ve got to get yourselves some people to take part in the race first. Having got people in to the front end using a low-cost product, and we’re going to talk about this in a second, you then offer your first back end product.
Now I have a back end product currently selling for £697+ VAT. So £700 up to… and as you work down the funnel, I mean as you work down this funnel here you don’t have to have very expensive products. You can come in here not with a £67 product, no point in doing that, you can come in here with a – I mean I’ve got a product here sells for £397. I’ve got another product we’re working on, £15,000. Once you have that starting line at the top you can fire the pistol off two or three times a year and you can bring in customers for these varying amounts. Not necessarily the same customer, but to do any of that you have to have that database. Does that make sense?
And again we were talking about niche markets and the fact you can apply this to any niche market. You can have a funnel – I mean I have a number of funnels running in my little Cash on Demand business. Okay? It’s not just one funnel, it’s not just for example the Cash on Demand system. I have other different funnels for different niche markets. Okay? So don’t think you know, oh I’ve got to decide what my funnel is going to be. Go out there, do this thing, practice on one market, in five years time you’ll probably be totally away from it, you’ll probably be doing something totally different. Because you’ll get into another niche market, that’ll probably take off and that’ll become the centre of your Cash On Demand business.