Marketing tactics: the mindset of a billionaire marketer.

  

Date Posted: 12/19/2012 12:20:27 AM

Posted By: fly1234  Membership Level: Bronze  Total Points: 15

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Some people were lucky, let's say from birth, they were born with luck. They enjoy the finer things life has to offer. They drive whatever exotic vehicles they want and couldn't care less that fuel is approaching Ksh 425 per litre. They travel on flashy private jets to business conferences and long Caribbean vacations. They wear sleek, cashmere, linen and organic-cotton clothes while dining on exotic food prepared by world-class chefs.

It's amazing, not all of these folks are celebrities, captains of industry or public officials. They live in harmony with their families and do what they want, whatever time they want. If I dare to list some names, you wouldn't recognize a single one. Yet, they live a dream lifestyle that is out of most people's wildest dreams, not even our extravagant MPs can match their lifestyle..

Question is, how do they do it? The answer is-They have built multiple businesses using a certain marketing mindset i'll be discussing with you in this article. You'll have a new view on marketing that will drastically increase the profitability of your pest control business and any other business venture you might want to embark on some times in the future.

The Gift That "Keeps on Giving"

As a "pest control operator", you have a rare gift that most industries don't get to enjoy without significant effort, planning and execution: You have the opportunity to earn repeated sales automatically when a new customer signs up for your services.

Most companies work diligently to create advertising that creates one sale. After that sale, they hope the customer's experience was good enough to prompt a second sale sometime in the future.

But that's not true for you and your billionaire business. If you perform an initial service treatment and sign up that customer onto a regular treatment program, then you

immediately get the revenue from that initial sale. And then, one to four weeks later (depending if you've sold a weekly or monthly program), you get another chunk of revenue from that customer. This happens again and again until they cancel. Obviously, some people will only opt for a few additional treatments - or revert to "as-needed" service, but others will opt to stay on a regular, ongoing treatment schedule for months, paying you like clockwork months after months and year after year.

It's any marketer's dream to acquire a customer and automatically earn sales from them months or years on end. Most marketers take this valuable gift for granted. Imagine if you had to re-sell each client every month. It wouldn't be much profitable.

Once you understand this mystery, you can easily begin to focus your energy toward your most important goal, which is acquiring and keeping customers.

Acquiring Customers

Some savvy marketers know that it's perfectly fine to lose money on the first sale. And if the economics work out, it's okay to lose money on the first few sales. In other words, if your average customer brings an average of Ksh 42,500/year, it's worth it to pay Ksh 17,000 or even more to acquire and keep that client through a marketing channel.

Smart marketers will gladly pay Ksh 17,000 for a new customer rather than maintain unused equipment, lorries, excess staff and other fixed costs. They don't look at a customer as being worth only Ksh 85,000 for the initial treatment, because the total value of the customer is Ksh 42,000 per year - and perhaps Ksh 212,500 over the next few years.

Moreover, they understand the importance of investing on the value of their business as a saleable asset by an upward of Ksh 80,750 each time a new client is brought under contract, even if they pay Ksh 17,000 for a new customer! In other words, every ten new customers generated can increase the saleable asset value of the business by as much Ksh 80,500.

You might think this is unrealistic. If you think so, have a word with a good broker about this as they deal with these figures every other day.

Yet, the fact is: Most business owners have a flaw in their thinking when it comes to marketing. They believe they must recover their marketing investment after the initial treatment is paid by the first few customers generated. In reality, as long as cash flow allows, you can wait for several months to begin profiting from your marketing investment.

Essentially, you need to consider operating expenses before determining your net operating income. But, even after putting into account those costs, you'll be better off thinking in terms of acquiring customers, cost-per-acquisition (CPA), and lifetime customer value.

However, cash flow is an uphill issue with this type of thinking. And if you're in start-up, growth, or expansion mode, dealing with this can be a daunting task, but it's certainly the smartest way to think about increasing the value of your business as an asset, which is why proper financing is vital because you need the cash to sustain aggressive marketing behavior like this.

The Bottom Line

Bottom line! Marketing is an extremely lucrative investment exercises. The wealthiest people in the world realize marketing and innovation are usually the only two important things that generate you money.

If you lack the money to invest like you should in marketing, you can even take a loan-although not wise; it will be well with you.

After all, this billion-shilling marketing lesson from marketing gurus has been working since the beginning of free enterprise and will continue several years to come.

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