As you already discovered in part one of this series about why the customer lifetime value formula is so darn important.
Your businesses long term profitability depends on how well you fully understand and how well implement marketing strategies that embrace this incredibly powerful marketing concept.
How Understanding The Customer Lifetime Value Formula Puts You Ahead Of The Curve!
As you recall in part one, there is an (unknown) for obvious privacy reasons, a very successful online female rock star entrepreneur that simply cleans up, by over serving the highly lucrative female fertilization niche.
And as previously mentioned, she has a ton of ‘how to’ information products and services, that she uses to effectively cover all the major price points within her niche.
Her prices for various low front end, (initial) first product purchases, might include a $17 dollar ebook or a $27 dollar audio product.
And her more upscale products or services might include an inter mediate priced home study DVD course that normally retails for $497 dollars, up to and including an offline get away week long retreat event, that normally retails for $5k per person or $7,000 dollars per couple.
That (of course) represents a nice 30% savings! But here is what you need to focus on from the marketing stand point.
As Your Professional Network Grows So Too Will Your Overall Reach And Income!
Let’s look at this from both the affiliate marketers stand point and the ‘how to’ information marketers point of view as well.
Suppose the information marketer would like to eliminate up to 75% of her traditional up front out of pocket advertising marketing expenses.
Here is one incredibly simple proven way she and her team could go about doing so.
What if they offer an incredible 100% front end commission to any person that purchases their $497 dollar inter mediate home study course.
Meaning- anybody that purchases any product or service above the $497 dollar level. They automatically qualify to receive (get this) a lifetime affiliate commission percentage of 100% on every $497 dollar intermediate home study course they sell through their personal affiliate link.
So How Many Untapped Profit Centers Have You Discovered In Your Business And Or Service!
So in other words, once they become a satisfied customer, any future customers they refer, that purchases the $497 dollar intermediate home study course through their link, they get to keep the entire $497 dollars!
How’s that for incentive? But why would the savvy ‘how to’ information marketer be so generous, you ask?
Stop and think about it for a minute; first off, if someone invests in a $497 dollar ‘how to’ course.
Get The Ball Rolling By Offering Some extremely Low Front End Products Or Services!
What are the odds that they’ll purchase more expensive products and services? Pretty darn good.Right?
So the savvy ‘how to’ information marketer can actually accomplish two things, with one extremely powerful proven marketing ploy.
1.) First, they call buy incredible long term brand loyalty by allowing their best customers and clients to sell one of their best market tested products or services and pocket 100% of the sales commission, minus any and all costs they incur to produce it.
2.) Next, they can inexpensively pin point who their future most likely repeat customers are, who will more than likely purchase one or more of their three remaining upscale products or services.
Once You Know What Your Long Range Total Lifetime Customer Value Is…. (You Can And Should Turn Your Best Customers And Clients Into Commission Only Sales Reps For Your Most Expensive Products And Services!)
As you recall from part one of this post, they had three other remaining upscale products. That being, a $1,000 dollar ‘how to’ product or service, and a $5k product or service.
And finally; they also had a $10k product or service. And their commission only customer/client affiliates, will also receive a lifetime revenue share percentage of 25% on every sale of the remaining three products or services.
Which means, they’ll earn an additional 25% lifetime commission on every $5k sale they make. ($5,000 x a .25% commission =$1,250 big ones!)
Now looking at this from purely a 100% commission only affiliate information marketers point of view. Suppose you know “highly targeted traffic generation” like MJ or Lebron knows round ball.
And you can generate tons of highly targeted traffic to any niche lead capture page.
In which case your name would probably be Greg Davis of super affiliate rock star fame! Not to worry, that’s not an affiliate link!
It’s just this guy totally knows his stuff, when it comes to generating highly targeted traffic! That’s how he consistently earns in the neighborhood of $50k per day! Sometimes more!
Would Or Does It Bother To Be Or Become An Affiliate For Relevant High Ticket Items!
Anyway, if Greg & his ‘rock star’ traffic generating team were to offer his services to this highly successful “how to’ information marketing Queen.
Remember she could have this specific traffic go to one of her best market tested sales pages, that she built (or has) built using good old WordPress.
Especially if she knows (through ) testing of course, that her current sales page converts at a whopping 4%. Meaning – for every 100 unique visitors that land on her actual sales page, (not her) lead capture page.
At least four of them will drop $10k or X! In any event since she only wants to actively market her high back end products or services.
If Greg agrees to drive highly targeted traffic to her actual sales page and (further more) he agrees to do so on a 100% commission only cost per action (CPA) basis.
Since she knows every sale is worth a gross profit of $10k to attend one of her highly popular offline week long retreat events.
You Develop Your On Or Offline Lead Generation Skills And You’re Off To The Races!
She may be more than willing to pay Greg’s firm a whopping $300 dollars per lead!
Because remember in your typical CPA profit share arrangement, the 100% commission only affiliate marketer, would be paid simply for getting the visitor to merely opt in, that’s it!
They do not have to try and sell the actual product or service. Greg’s teams job is to merely sell the opt in, that is to get the visitor to simply fill in their name and primary email address and that’s it!
And her sales letter’s back end email follow sales process, has to do the rest.
And rather than throw her own money at it, she’ll gladly pay a proven expert like Greg’s firm to be her guaranteed front end lead generator.
You Don’t Have To Posses All The Assets Or Resources You Will Ultimately Need In Order To Become Successful!
Because remember, her opt in leads first purchase may be another product or service, then eventually, they’ll purchase the $10 product or service etc.
Of course, you don’t have to be a CPA lead generation expert like Greg in order to figure out, how to make quick money from home, using the internet.
But it sure helps, if your a CPA lead generation expert. Hopefully, you can now see how and why understanding the total customer lifetime value formula, is so darn important to the long term success of your business!
P.S. Now as is customary during this part of our show. Please share your extremely valuable comments (in the comments section below)
that you can apply to your business, product or service in the next 30 days or less!
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who also target small business owners, service providers or aspiring startups entrepreneurs etc.
And they’re pro-actively looking for potential guest speakers. Please don’t hesitate to-either- pass their name and contact information directly
to me or vice versa! Thanks!
(Click the link just below, and watch the first video at the top of the page, if you’d like to see the entire 33 minute replay, of a guest podcast on
marketing your small business or service. I Recently appeared on.)
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