Stop Wasting Your Resources!

Your marketing resources are finite. You can’t afford to waste your resources. Therefore, you need to be laser-focused in your marketing.

The two questions you have to ask yourself are:

  • What do people really want to buy from me?
  • What related products are they already buying?

Here’s how to find a target market of potential customers so you don’t waste precious resources on blitz marketing.

1. Find companies who already have the customer base you want.

The fastest way to develop a customer base is to find existing businesses who have the customer profile that you want to market your products or services to. Armed with that information, you will know who is more predisposed to purchase your products/services.

2. Negotiate an incentive so they’ll share that customer base with you.

Once you find other businesses with the same customer base who you can customer-share with, strike up a relationship with those business owners to work out an incentive for customers to purchase from both of your businesses.

3. Focus your marketing on this group of predisposed customers.

You develop a win-win relationship this way: you have an audience to market to, and they generate an added value from their current customer base.

But how do you figure out what kind of financial incentive you can afford? Here’s a formula from Jay Abraham you can follow with great success.

LV = (P x F x N) – MC

Here’s what it all means:

  • LV is the life time value of a customer
  • P is the average profit margin from each sale
  • F is the number of times a customer buys each year
  • N is the number of years customers stay with you
  • MC is the marketing cost per customer (total costs/number of customers)

Once you know how much you need to spend to attract a new customer, you will know how much of an incentive you can offer to a business to help attract new customers.

Key Takeaway

Here’s the step-by-step process. First, find companies who already have the customer base you are looking for. Next, negotiate an incentive for them to share that customer base with you. Finally, focus your marketing resources to this group of predisposed customers.

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