The Secret To Long Term Internet Marketing Success
By: John Elder posted in Internet Marketing
Hello good people!
Today I want to talk to you about a blueprint that basically guarantees your long term success in business (be it an Internet Marketing business or any business).
This is a little tip that’s easy to implement. I do this myself and I can honestly say that it’s one of the greatest investments I’ve ever made in my business.
It certainly pays back the highest “ROI” or Return on Investment.
Ready…ok, here it is. I call it THE BOB PRINCIPLE!
Whenever someone buys something from me, I immediately deduct the hard costs involved. For instance, let’s say I’m selling a seminar on DVD for $50. Let’s say it costs $3.50 to produce that DVD and ship it to the customer….we’ll call the customer Bob.
So I deduct $3.50 from $50 for a total net profit of $46.50.
Now here’s the secret. Next I deduct anywhere from 10% to 20% and put that money in a special file…a special “Bob” file. In this case, I would probably deduct 20% of $46.50, or about $9 bucks.
So now my “Bob” file has $9 bucks in it.
The DVD costs $50 minus $3.50 to produce and ship it, minus $9 for my “Bob” file, for a grand total of $37.50, which I bank as my profit.
Ok, so what?
Well, I take that “Bob” file and I invest it back into Bob.
I don’t care what you’re selling, the simple truth of the matter is that you’ll make most of your money on the “back end”. That means you’ll make most of your money selling more and more stuff to “Bob” over the years.
Initially “Bob” might buy just one DVD for $50. If you never talk to “Bob” again, that’s where the relationship ends. But keep talking to “Bob”, keep sending him sales letters etc and over the years “Bob” might buy a book from you, some software, another DVD, maybe a ticket to your next seminar, etc etc etc.
Keep contacting “Bob” over the years and he might spend $300, $500, $2,000 dollars over the course of ten years.
That’s called the “back end”, and that’s where the real money is…I don’t care what kind of business you’re in.
And that’s where the “Bob File” comes into place. I use that original $9 bucks from Bob’s first purchase to pay for printing and postage for a series of sales letters and freebies that I’ll send out every 3-4 weeks over the course of the next year or so.
Then, every time “Bob” buys something else from me, I do the same thing and replenish the “Bob File”.
The possible variations on this are endless. Let’s say the sales letters aren’t working. I might send “Bob” a copy of another DVD seminar for free. Remember, it only cost me $3.50 to produce and ship my original DVD to “bob”…what do you suppose “Bob” would think if 6 months later I sent him another Seminar on DVD with a retail price of “$169” for free just because I valued “Bob” as a customer?
Deduct that new $3.50 from my $9 “bob file” and the game rolls on. Do you see how much fun this can be? Do you see how hugely beneficial this can be to your business?
Think of it as an investment. Let’s say that $9 gets Bob to purchase something else from me 6 months later that costs $99.
Do you know anything else in the world that you can invest $9 in and get $99 back out? (and let’s not forget, “Bob” gave us the $9 to begin with!)
The Bob Principle…it may be the most powerful marketing tactic in the world. Yep.
That’s all for today. See you next time!
Have you signed up for Elder Academy yet?
-John Elder
The Marketing Fool!
