How Some Creative Financing Methods Ultimately Led To Major Power Networks Of All Kinds!
No doubt you’ve probably seen these men and women promotors all over late night cable TV promoting their (primarily) home study courses on “how to” buy (aka) invest in various types of income producing properties using so called non traditional creative financing methods, correct?
And basically they’re promoting (initially) their front end home study course. Which they typically via 30-60 direct response type of ads directly off of their info-mercial.
And the front end sweet spot price is usually $297 dollars. Of course they’ve strategically A/B split tested different priced. As once they invest tens of thousands of or hundreds of thousands of dollars in 30 – 60 minute late night cable TV air time. And the accompanying toll free number costs.
They’ve got a pretty good idea of “what” type of overall response rates they’ll receive over time. And they’re financially in the position to promote until their projected sales revenue. And best believe entrepreneur they don’t expect to get rich quick.
Entrepreneur Do This As Often As You Possibly Can! (If You’re Truly Interested In Consistently Generating More Profits!)
First of all “what” probably isn’t readily obvious. These extremely sophisticated marketers know going into investing in these 30 or 60 minute late night cable TV time slots. It could literally take as long as 18 -24 months before their (direct response) cable TV advertisements break even. (Say what? Nod your heads cadets because it’s true.)
Now of course in some cases they’ve pre paid for the 30 minute time slots and therefore received some type of slight pre-pay incentive discount. This way they can maintain some type of visibility consistency in the minds of their ideal target audience.
Because just like getting married in real life. Their ideal late night cable TV viewer definitely doesn’t decide to invest a bare bones minimum of $297 dollars or X.
The first two or three times they stumble across these buy on the spot advertisements. And the paid by the hour toll free operators may not be that busy working the phones the first few months.
And yet they earn a pay check regardless. For a moment think about the long term marketing mindset and long term financial commitment needed to play the long game here.
The promotors know going in. Or they quickly “discover” their ideal target prospect will need to watch one of their extremely well prepared 30-60 minute info-mercials several times.
Before they finally decide to invest in the promotors primary front end course.
So What Type Of Financial Situation Drives A Late Night Cable TV Viewer To Finally Spend Their Extremely Hard Earned Money?
Think about the current financial situation their ideal prospect is in. Which ultimately motivates them to buy a “how to” course directly from a late night cable TV info-mercial.
Typically 80-97% of these men & women are definitely not happy with their current job or long term financial prospects, correct? Obviously they’re not financially independent.
And they probably work either part, full time. Or they currently work more than one job. But they clearly feel their current and long term prospects for employment will not lead them (anytime soon!) to any type of financial independence or financial security.
So they constantly see this man or woman “who” on the surface anyway appears to have reached some sort of financial independence utilizing the “secrets” (aka) methods they reveal in the how to information product or service they’re currently promoting via these 30-60 minute info-mercials.
These Promotors Are Extremely Marketing And Promoting Savvy! (And They’re Calculated Risk Takers!)
They earn multiple streams of income in various ways. Some methods clearly consistently produce more income than others. But they’re constantly A/B split tested different income producing strategies. And they double down on “what’s” currently working. And eliminate the strategies and tactics which aren’t asap.
Say strictly for hypothetical marketing demonstration purposes only. Obviously not every customer ‘who” invests X amount of dollars in one of these home study courses will be able to benefit from it, right? And a certain percentage of them will ask for a refund within the stated time frame.
Typically some promotors figure on X% of their buyers will ask for a refund. (Within a certain pre-determined time frame.) Just like savvy income producing real estate investors know to pencil in a certain vacancy (aka) turnover rate for the various rental properties they own or manage.
Especially for the properties they invest in which are considered at best marginal areas. So ‘what” some of the extremely savvy promotors started doing was the following. They developed secondary first time customer markets for their used courses (previously owned) which were in basically mint condition.
And they could implement at least one of three proven marketing strategies with.
Once You Or Your Major Competitors Get Started You’ll Start To Develop Some Bankable Forward Momentum!
1.) Proven marketed strategy # one: The returned courses in the best condition will immediately be promoted to the prospects on their snail mail -nationwide- database. Because this was basically the pre internet era.
So they will market test different main power headlines, bullet points and P.S’s on their extremely time sensitive snail mail postcard offers. But offer an extremely time sensitive discount percentage of X. say they only charge $149 for the used course in mint condition.
2.) Proven marketed strategy # two: The returned home study courses which were in less than mint condition. They would sell them as is on a ‘all sales of used courses in less than mint condition” were final. Absolutely no refunds would be granted.
But they often through in a strategic marketing twist or two. (Which you or your major competitors will “discover” very shortly in part two. So pleased stay tuned.
3.) Proven marketed strategy # three: Their third potentially profitable market tested option is the following. They also allow highly select non directly competing JV (Joint Venture revenue partners) sell or give away some of their unsold mint condition home study courses to their audiences. And they JV revenue split is typically 60/40 for the promotors after the actual hard costs are covered.
But they’ll also usually include an extremely time sensitive discounted offer for a three month trial subscription to their monthly newsletter. (Which usually retails for $127 dollars for 13 (one bonus) issue.
For an extremely limited time they can not only save X% off the remaining 9 or X number of issues. After the three o free X month trial subscription ends. But as long they order before the trial newsletter subscription ends. And they buy all nine or X number of remaining months. They also get a mint conditioned home study course as a premium bonus. And they only pay $109 dollars instead of $149 like every one else.
Ladies & gentlemen are you starting to better appreciate “how” some of their (and potentially your!) creative financing methods, strategies or tactics. Can ultimately lead to you or your major competitors consistently gross a whole lot more money? I sincerely hope so.
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