You must maximize the advantages of strategic alliances.
Does the phrase ” advantages of strategic alliances” ring a bell?
And how many times have you heard the saying there is no “Free Lunch?”
Well, when it comes to the highly competitive restaurant business that may be true.
But, as it pertains to strategically marketing your business or services, that’s a completely different matter as you are about to discover.
So please stay tuned and definitely buckle up.
The Advantages Of Strategic Alliances Are Many!
As you are about to see. And as always this rather graphic example is merely for (long term) marketing illustrative purposes only.Okay?
However, you’d be well advised for the sake of your bank account, to (kindly) see past the specific examples and instead concentrate on the overall big picture.
Because that is where the real (significant) long term profits are.For you and or your main competitors.
As you read this and other posts, if all you can see are the specific examples and not the overall general concepts that are being conveyed. You are missing the boat and your bank account will suffer.
For example; if you take the following three mathematical equations, (8+2) (9+1) and (7+3), they all equal the number ten correct? However, could you not get to the number ten, simply by dividing 20 by 2?
Or get there by subtracting 30 from 40? That’s what’s meant by being able to see the overall general concept and not just the specific examples.
Your Small Business Is Loaded With Untapped Potential Long Term Strategic Alliances…
The (true) entrepreneurs among us, can see the concepts and the other 98% just read the examples.
It’s left up to you to decide who you are! With that said; first (for this specific) example only. Let’s lay out the basic overall marketing concept.
And it’s simply this. An entrepreneur is going to ultimately profit by using a powerful (and old as dirt) mega proven, two step marketing strategy, to go to the bank big time!
As you will see shortly. But (as with most things in life) it’s not going to happen over night.
(They will use power list building 101 and inexpensive email marketing, (initially) and a series of free lead generating concepts in order to create some serious long term back end profits.)
This particular strategy is a long term multi step process. But watch how powerful and extremely profitable it ultimately turns out to be. Even though it originally started out with the marketing magnet power word free!
List Building 101 Must Have A Place In Your Overall Long Term Marketing Strategy….
So without further ado. Here you go.
The three major (true to life) participants (entrepreneurs) are going to be a former 90’s Pop group. (And a guy group) that’s currently touring the country and playing the (oldies but goodies) freebie tour circuit.
And the other two major participants are a marketing savvy concert promoter and (either) a local or national beverage vendor.
(And if need be a little help from some of the big time corporate sponsors like Best Buy, Target or Apple Bees restaurants etc.)
Basically there are many cities throughout the US that pay formerly top entertainment acts (of all kinds), to come to their city and perform typically for one day/night only.
The city typically puts on a summer entertainment venue and the public attends for free.
(But the beverages) of all sorts usually cost money. Anyway, the combination of local and Internationally known free entertainment, and the bubbly typically attracts large crowds, depending of course on who the entertainment is.
And the selling of the booze and other beverages to rather large crowds normally allows the city to compensate the entertainment acts, ( pay for maintenance and security) and make a few bucks in the process as well.
How To Turn one Time Events Into long Term Cash Cows!
So (recently) one such formerly popular 90’s pop- guy group act visited this particular area and drew a rather large crowd of 17,000 (more or less) of the faithful.
They performed all their old classic hits, and the vendors sold lots of beverages and the people sang and danced until it was over! The end!
Not so fast! Let’s back track and recreate this exact same scenario, only let’s add a few minor marketing adjustments to the mix and see how the final numbers add up. What da ya say?
You Need A Proven Inexpensive Way To Systematically Follow Up With Your Best Prospects…
First off, let’s say as soon as the people start showing up, ( the 90’s pop act’s) savvy marketing team already has in place large signs spread throughout the entire area; directing the faithful to go to their newly created special lead capture page website in order to enter, what else? Their Free Drawing of course!
(And a few times they announce it before the concert starts.)
(Here is a sample of a proven lead generating capture page; so you get an idea of how back end marketing actually works.)
And just so they can really get an instant flood of traffic, they will be offering the following 25 grand prizes per performance.
Just In Case Anyone Is Still Wondering How Does Social Media Influence People!
All this type of proven, positive word of mouth marketing activity, should definitely cause a ton of social media marketing buzz, right?
The first, the Grand Prize Winner, (which will be announced later) will win $7K in cash! That should be enough of an inducement to get the faithful to enter, don’t you agree?
Next, the remaining 24 secondary grand prizes will be a combination of things like, five $500.00 dollar gas cards and the remaining twenty people will win exclusive advanced copies of their new upcoming CD! Before it hits the retailers stores and the rest of the general public!
And all 25 Grand Prize winners will receive $150.00 dollars in gift certificates, worth $50.00 dollars each.
(From the various big time corporate sponsors like those previously mentioned.
Who should readily see the long term profit potential in three way cost splitting some of these front end expenses, in order to do a very lucrative long term back end joint venture arrangement down the road.)
Texas Two Step Marketing Is A Proven Long Term Money Maker….
First off; notice what just happened here. The 90’s Pop group is no longer merely doing ‘one time only’ event marketing, instead they are now conducting (long term) money making back end campaign marketing. Huh?
Meaning- whenever they or 99% of the other one night stand performers come into town.
They simply perform and (gain a little) short lived local publicity. Get paid and move on!Right?
And leave all the additional future untapped back end passive income on the table! Wrong!
Once You Create A List Of Active Subscribers…You Can Inexpensively Contact Them For A Fraction Of The Traditional Costs!
Not anymore! Watch how the long term back end marketing 101 follow up marketing campaign approach works. Let’s say the 90’s Pop group has agreed to tour the entire state, (or country) for the entire summer and early fall.
( FYI: The term back end just refers to every additional sale, after your initial first sale. Your first or initial sale is often referred to as your front end sale.)
And on average so you can really zero in on how profitable this particular long term marketing strategy might be.And or become.
They average about 15,000 of the faithful at each free lead magnet, (front end), long term list building performance.
And let’s say when it’s all said and done, they perform a grand total of 15 times, in a little over five and a half months.
Now lets take a look at the math. 15,000 people (give or take) per performance times 15 shows equals a grand total of 225,000 die hard (or at least) mildly devoted fans! ( 15,000 x 15 = 225,0000)
Not bad! And let’s say that on average, about 40% of them register at each event to enter the free drawing.
Which means 90,000 targeted opt ins! Kaching!
But that’s getting just a little bit ahead of the story!
Anyway 40% of 225,000 equals 90 thousand potential long term customers. Right? ( 225,000 x .40% =90,000 opt ins! Yes!) End Of Part One.
The advantages of strategic alliances are many.
It’s Far Cheaper To Send An Inexpensive Email Than It Is To Pay For Postage Printing And Type Setting Each Time!
Now here is where the real magic starts. As the general concert season starts to end.
The Pop group starts sending a series of professionally crafted emails to their list alerting them about their big pre CD release mini concert tour!
And also letting them know who the 25 Grand Prize winners are for each of the past 15 free live performances.
And depending on how large the state is, letting them know where each of say four exclusive paid live concert performances will be held in various central locations throughout the entire state.
But here are four extremely powerful and mega proven money making marketing twists!
By Strategically Tapping Into Your Back End You Can Systematically Tap Into Some Huge Previously Untapped Profits..
1.) Keep in mine, since the Pop act is no longer in their hey day, they will offer two separate ticket prices to attract the faithful.
Price number one is for those who still like the group, but aren’t about to pay current retail prices, plus travel expenses to see them.
In that case, they’ll still gladly fork over $9.50 per ticket if purchased by credit card on the groups website at the time they receive the email.
In order to enjoy the group and possibly two other lesser known Pop acts in a three hour oldies concert extravaganza!
And price number two is $50.00 dollars for two people, but here’s the marketing twist! For every two-some that pays the $50.00 dollars upfront, both people automatically get entered into a free drawing for a chance to win a brand spanking new Cadillac Escalade! ( And a thousand dollars in cash for a nice shopping spree!) Say what?
(And they must be over 18 years of age in order to be eligible for the SUV drawing!)
And each Grand Prize winner will be announced during the intermission of each show!!
( And of course brought back stage to get autographed pictures and to receive their keys after the show! And yes the video footage will be added to the groups website for maximum impact!)
2.) Plus, only 400 people that purchase the $50.00 dollar upgrade ticket package; will be allowed to attend an exclusive special “Backstage Pass” after party event “OTO” (one time only) offer that they can take advantage for only $25.00 dollars more.
And this exclusive event will be held that coming Saturday, all the details will be available via a special link upon purchase!
3.) During the exclusive private after party event (which of course) portions of the event will be both uploaded to youtube and nine of the other top ten video sharing sites, but will also be included on their blog and or website for maximum impact.
Another (15%) 60 people only of the 400 people in attendance or whatever the actual number turns out to be. (400 x .15% =60 people.)
Will be allowed for a mere $20.00 dollars more, to have both their picture taken with the group and receive an autographed copy, plus be put on an exclusive waiting list to receive the groups new CD once it’ goes on sale.
At no additional charge! ( You can just bet both Twitter and Facebook will be real busy during this whole deal!)
4.) No matter what the actual price of the CD when it’s finally released,the other 340 exclusive after party guests will receive a whopping 50% off the retail price!
They’ll get a special link sent to them via email, where they can order it. ( And of course it will have a forward to friend email script included.)
Now let’s have a look at the these purely hypothetical numbers. Since there is simply no way to know what the actual numbers would be.
If Your Business Product Or Service Is Not Actively Using Back End Marketing….. You Are Leaving A Proverbial Ton Of Long Term Profits On The Table…
Okay, first off. Let’s say that on average for these four special paid pre new CD release concerts, that will be spread out throughout different parts of the state, in order to try and accommodate everyone.
On average about 15% of their 90,000 opt in list, actually still like the act enough to pay to see them perform live. So that means a total of 13,500 people. ( 90,000 x .15% response/conversion rate =13,500 of the faithful, which is not bad at all.)
But here is the how the numbers actually (hypothetically ) speaking of course, breaks down. Eighty percent decide to only spend the $9.50 per ticket. So that grosses a mere $102,600! (13,500 x .80% = 10,800 people at $9.50 each, equals $102,600 big ones!
Hey this group just wants to hang out and take pictures on their cell phone and text message and tweet friends during the concert! And to be able to do that for just $9.50, (plus modest travel expenses) they’re totally up for it!
And the remaining 2,700 people (13,500 – 10,800 = 2,700) (the hard core fans) who are feeling lucky opt for the chance to win that $60,000 dollar Escalade!
Plus, the $1,000.00 dollars in spending cash! So they go for the $50.00 dollars for two upsell special. Which grosses another $135,000! ( 2,700 people at $50.00 dollars for two equals another $135k!)
So (far) your revised front end, just grossed a grand total of $237,000! Yep! ( $135K + $102,600= $237,00.)
Now let’s have a look at your passive back end income (then you will deduct) your various front end expenses (which of course) can only be speculated on in this purely hypothetical example.
As you recall; 400 people of the 2,700 were also offered the opportunity (for a mere) $25.00 more to attend an exclusive early evening Saturday “Back Stage Pass” event and at a rather upscale hotel, that would include food and beverages (no high alcohol content) beverages will be served.
So that’s another $1ok on top of the $237,000! Yea baby!
(400 x $25.00 per person = another $10 grand!) Power marketing really is the bomb! Don’t you agree?
Plus, 60 more of the 400 decided that it would be well worth it to pay another $20.00 dollars, to get their picture snapped with the group and the other acts!
So that works out to another $1,200.00 big ones! ( 60 people x $20.00 dollars apiece equals $1,200 more dollars into the so called has been group’s ever bulging bank account .
Not too shabby! Don’t you agree? Because remember, who knows what the actual numbers would be! But another $1,200 dollars on top of the $237K!
So they have grossed roughly $238,200K! ( $237,000 + $1,200 = $238,200) Plus, the other $10k now equals a new grade total of $248,200! ( Must be nice to be a so called washed up Pop act!)
And finally…. Your almost home, so hold on!
Remember after all is said and done, 340 of the original 400 attendees to the exclusive private party, will receive advanced email notice of the the groups new CD and they’ll be able to purchase it for an incredible 50% off the normal retail price.
So if it normally retails for $17.95, their price is just $8.97! Now since their list opt list is a mere 90,000 strong.
Let’s say that only 50% of the list for whatever reasons, decides to jump on the exclusive pre public release of their brand new CD!
If It Makes Sense You Can Actually More On The Front End Once You know What Your Back End Is Worth!
But first let’s deduct those upfront costs.
1.) To rent the stadium for each paid one night live performance, plus contract the vendors and the security and maintenance, and limos and one day hotel expenses and pay for other acts as well, should cost no more than $50K (or less) per show.
Plus remember they will have absolutely no outrageously expensive (cash draining) traditional advertising costs, like newspaper, radio or TV ads etc!
It’s all done via inexpensive email! (Who said is email is just for socializing!)
2.) They have to provide the $7 grand in cash,plus the one thousand dollars in cash for the shopping spree, and let’s not forget the $60K Escalade!
Which any dealer with half a brain should be more than willing to supply to them at cost or free for a chance to follow up with all of those leads that are at least 18 and over!
So let’s say it actually cost the groups marketing team another $30K for the SUV.
3.) They have to pay for a rather large VIP banquet room, plus pay hotel expenses for themselves and the other acts for the day and supply nice nice food and beverages for the event , (plus security) and leave a rather large tip of say $5K (to be evenly divided amongst all the hotel workers who directly participate) in that evenings event. So that may run another $30K to really make it memorable!
But judging from all the additional long term (back end) profits, even after they deduct these and a few other semi minor expenses (like first class limo expenses) to and from all these events and first class air fare for both themselves and their accompanying acts.
They’ll probably be some left over, don’t you agree? Yep!
This Final Piece Of The Long Term Marketing Pie Is Strictly For The Top Two Percent Of The Eyeballs Reading This….
You do the math (if you dare!)
If 50% or 45,000 people out of 90,000 opt ins, (give or take) receive this special email alerting them that in just three short weeks, the groups brand new CD will hit the retail stores, but between now and some specific date, because they are a value customer!
They have the opportunity (for an extremely) limited time to purchase it for just $8.97! And save a whopping 50% off its suggested retail price! Can you say kaching!
Because that works out to an additional passive back end gross profit of $403,650!! And the best part is, it all started from strategically using the word free!
( Because remember in the real world no matter who you are and what you are marketing, you will have a few unsubscribe-rs (for various) reasons along the way.) So the ultimate size of your list will vary over time! Anyway..
First, they strategically (and consistently) built a highly targeted opt in list.
Next they successfully over time, made various offers to their list and then finally they extracted some serious passive, back end profits over time by offering various upsells on ticket prices and photo opts and exclusive backstage party pass offers etc.
Ladies and Gentlemen, please take off your financial blinders and smell the big time opportunity already!
This simple, extremely watered down example, (which was) purposely watered down so as not to be accused of hype.
This is actually the type of proven long term marketing business model, that every serious on & offline business owner of all sizes, currently uses 24/7! And it doesn’t matter what their actual business, product or service is!
Nor does it mater what your particular niche is.
You can either make money or excuses, but not both! With that said. But in any event, that’s just a small sample of the many potential money making advantages of strategic alliances.
Your Must Complete Homework Assignment: Is two Simple Things.
1.) Share this post with at least three small business owners that are open minded (in other words ) please tweet this!
2.) Re-read this post at least twice more and then return to this blog and list at least (share) two simple ways that you’ve uncovered to strategically start using long term back end marketing in your business!
So that the precious two percent that actually puts these battle field strategies to work can get after it!
Be sure you grab your explosive free 22 step small business marketing idea kit series. Because it will help you master your effective communication in marketing skills.
It’s a $97 dollar value and it’s free! Nuff said! Get to it!
