Tuesday, November 16, 2010

If You're Not Doing This, You're A Moron

Quick Note

It has been a long damn time since I posted here. And honestly, it's my fault. I just got so bogged down and busy... I never made the time.

But, I finally decided to start cutting blocks out of my schedule again to post here.

Rejoice. The Young Buck Marketer is back with a vengeance, baby.


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G'day friend,

Got some real good stuff for you. And for many, it might seem like pretty much commonsense.

Oh well.

Anyway, here's our subject... a thing very close to my heart...

Developing Your Own Cash-Generating, Predictable Continuity Program

In my humble opinion, you should not be operating a business unless you can find a form of continuity to implement.

Let's clarify a few things. Like, what is a continuity program, for those of you especially new to marketing.

A continuity program is a continuous, systematic means of cashflow, in which X number of clients automatically pay you X number of dollars per month for a product or service.

That's it.

But let me show you what a continuity program can look like in action.

Let's say you have a used bookstore. This seems like a toughy, since used bookstores are selling books cheap anyway.

What could they do?

Well, it's much easier than you think. Imagine having a bookstore, Resold Classics, or something simple like "John's Used Books."

I wouldn't want a very expensive continuity program, since you have fundamentally two types of buyers in used book stores:

A) The bargain shopper, hoping to find an expensive book for pennies

B) The classic hunter, looking for a hard-to-find book that has been out of print for years

Eitherway, these people love books. They want to read them, collect them, whatever (as a side note, lots of people just "collect" books for shelf-space - important point to remember).

Also, most used book stores need to clear shelf space. They usually have more books than they know what to do with sitting in a warehouse or something. The more books they clear out at even a dime over cost, the better.

Let me ask you this: $10 doesn't sound like much. But what does $10 look like multiplied a hundred times?

$10 x 100 = $1,000 x 12 = $12,000/yr.

Not bad. I would say, that's actually pretty nice to have coming in every month, every year, without even waiting for the customer to come in.

That's the joy of continuity - you make money in your sleep. You're not selling, you don't worry about them coming in. You wake up and BAM - your bank account is $1,000 fatter.

But that's nothing compared to what we're going to do next.

What if instead of 100 people... you had 1,000 people?

$10 x 1,000 = $10,000 x 12 = $120,000/yr.

Holy shit. Can't complain about that, can we?

Now, there are definitely bigger numbers to lay with. But let's keep it at a more reasonable five hundred members. That's $5,000 a month. Nothing to complain about.

OK, so I hope you've now seen the potential in having a continuity program. But it is my obligation to explain to you how to build one.

A continuity program usually goes like this (as Dan Kennedy says): "We whack your card for $X a month, every month, until you squeal stop."

Dan was being funny with that comment, but that's fundamentally the truth. In his case, they send a newsletter, some CDS, special offers, special website access, etc.

I highly recommend this model.

Here's what we do with John's Used Book Store:

John's continuity program consists of...

- a "First Notice" email alert. Whenever they get new books into inventory, John tells you before they even get put on the shelf. This way, you can get first dibs on buying.

- a 22% discount on all book purchases

- one free book per month of equal or lesser value to the membership fee

- a 4-page monthly newsletter, perhaps just a transcript of an interview John did with a local author or something of interest. This could even just be a book review, or several reviews of books in different genres (recommend unless you are just a "sci-fi" book store or "Westerns" book store).

- free shipping on any book order from the online store

Do you see where you deliver the value? Do you see how you appeal to what your client would already want?

A free book?

Free shipping?

A book review/newsletter?

A discount?

These are things they want!

And that's what your continuity program must do... It has to appeal to things you client or customer wants.

Heck, you can get really advanced with this and have multiple-levels of membership. Perhaps the "Casual Reader" for $10 a month, the "Hungry Reader" for $15 a month, and the "Book Lover" for $20. Each level, of course, comes with a different perk. And each one is good.

Also, if you do take the route of having multiple-levels, I would keep one to two consistent benefits. Maybe the free book, shipping, discount, something. But it has to be a good benefit in and of itself. Each level above is better with more benefits, but the first level should NEVER be bad. It should be a damn good deal in itself.

This is the power of a successful continuity program.

I feel like I beat this horse to death. I am ALWAYS telling businesses they MUST have a continuity program of some sort. It creates predictable, stable, monthly income.

And now, you have no excuse. I just took a rather boring, simple businesses and showed you how to build a powerful cash generating program.

Model it. Study it. Look at other guys who do it, like Craig Garber, Dan Kennedy, Yanik Silver, Rod Moore, so on and so forth.

So sit down with a pen and paper and think about how you can apply this.

It might be some of the most profitable thinking you do.

Cheers,

Angel Suarez,

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