|Ðð©'§ Internet Marketing Information Library|
Milk Your Winners, Drop Your Losers
In my previous article How To Be 100% Sure That Your New Product Is A Winner We have discussed dropping losers.
I hope I have given you the message strongly enough. But the same principle applies to milking winners. When you get a winner in-demand product, it is a license temporarily to print money.
You will have so much of the folding stuff pouring through your letterbox or credit card numbers blocking up your email account... that you will hardly know what to do with it.
HOWEVER: Every product has a strictly limited life-span. It doesn't matter how well the product performed in the early weeks, the response will gradually tail-off over a couple of months - year to a point where the product starts losing money. There are two big factors which cause this:
1. Everyone has seen your marketing material (emails, web-pages, direct mail letters, postcards, newspaper ads etc) a hundred times, and those that are going to buy the product, have, in the main, bought it already.
2. You 'lucked-into' a mood of the moment. For example, everyone's suddenly worried about car security at exactly the moment you advertise your steering-wheel lock. This mood will rapidly pass as the population (driven by the media) move on to the next area of worry or concern. (What a terrible cynic I am.).
I have seen people make lots of money on a product, and then hand up to 50% of it back to the newspapers as they attempt to breathe life into a dying market. I have seen a single advert in The Sun take one thousand orders for a £49.95 product. Then, six weeks later (after the product has been heavily advertised), I have seen the identical advert pull in only eighty or so replies (and of course, lose big money). You must listen when the market says it has had enough of your product. Getting out early is a sure-fire way of keeping most of the money you have made.
It's the same with the stock market. Everyone aims to sell at exactly the peak of the market, and buy at exactly the trough. But, of course in reality, these peaks and troughs are impossible to predict accurately. The stock-market winners sell early, and buy early. The losers sell too late and buy too late - they stay on the roller-coaster too long. They hang on to a rising market out of greed, thinking the market will rise forever.
The same is true of product development and direct marketing. When you get a winner, it is tremendously exciting. But your greed can make you hang onto the product long after it should have been dead and buried.
Want to know a sure-fire indicator of when to pull out?
Quite simply, you should pull out when all the other developers and marketer boys (and gals) start piling in after your initial campaign. This takes tremendous self-discipline, but pays enormous dividends. The strong temptation is to hang on, and hang on. If an advert fails, you attribute it to something funny about that particular issue of the paper, or day of the week. You advertise again and again, spurred on by the glint of gold.
Also, another factor comes into play here (and I'm telling you 100% solid truth); it is the distraction factor. You see, you don't run this huge mail-order organisation, do you? There is no 'packing and shipping' department; that's YOU in the shed/garage, late at night. So when you get a winner, the chances are that you will be overwhelmed trying to keep up with sourcing and shipping the product. This will take 100% of your time. Meanwhile, every newspaper from Golden Labrador Weekly, to Clay Pigeon Shooting Times will be on the phone pestering you for an advert. The danger is that you will just say 'Yes, yes, yes' to all these people, and end up spending tens of thousands of pounds on a dying product.
The solution is to keep your eye firmly on the ball. Retain your policy of only taking adverts in the mainstream press I advised. Don't go too crazy with the adverts, as this will alert all the other mail-order boys, and push the rates up. As soon as the papers see that you have a winner, suddenly the rates go up, and adverts become hard to get away. You must play a double-double bluff game here. Above all, never let on to anyone how well your advert is doing. If asked by someone trying to sell you space, you tell them that the response was lousy, but that you are going to give it one more go. Could they offer a cheaper rate? When you have a mail-order winner, beware the fatal combination of:
1. A falling market - and it's nearly always falling after your first few adverts.
2. A diminishing market share due to everyone else piling-in.
3. Rising advertising rates (sometimes steeply) due to the papers 'locking-on' to the fact that you have a winner.
Most direct marketing successes are quick 'in and out' jobs. You know this is true, because you rarely see exactly the same product advertised week after week, month after month and year after year. You want to be in there, and out within a few weeks. Then you can sit back and smile as everyone else piles-in and tries to emulate your success in a falling market against stiff competition. Sure, you'll lose a few orders, sure, you might have been able to milk it a little bit more before diving out, but at least you creamed off the most profitable share of the market, and kept all of it. This is what it's all about. Don't learn these lessons the hard way.
There is nothing more heartbreaking than making £100,000 clear profit in the first two months of a campaign, and then handing £50,000 of it back to the media over the next six months of hard slog. In other words, you work hard for two months and make £100,000, then you slog for a further SIX months and LOSE £50,000. I have seen this happen time after time after time. To get rich in this business, you must develop a sense of timing. Knowing when to get in, and more importantly, knowing when to get out.
For this reason, I advise against trying to follow the crowd into a product idea. If the papers are full of adverts for steering-wheel locks, the naive player thinks: "Great. This must be the thing to get into." So they rush around like crazy trying to source a product - often at too high a price because they are desperate to get into the market. They then advertise this product in a falling market which is fiercely competitive and at extortionate advertising rates (because the papers have 'locked-on' to the 'success' of this product). The result is that they lose big money.
My favourite strategy for mail-order is as follows:
1. Come up with your own, unique product idea. I don't mean 'invent' a product and have it tooled and manufactured. I mean source a product which YOU believe will sell, and that you can't recall seeing in a newspaper or magazine as a mail-order item.
2. Test the product in a suitable cheap advert. If it flops, drop it.
3. If it looks good, then buy a single insertion in a big-league paper like the Mirror, or the Sun.
4. If this works, then plan a campaign which ramps up quickly over (say) three weeks, holds steady for (about) four weeks, then ramps down over (say) three weeks. Aim to be out of the product in three months maximum.
In this strategy, the 'me too' brigade will only start piling-in as you are ramping down your campaign. This is perfect. If your product is 'paper and ink', then it will take much, much longer for the competition to copy you. It takes quite a while to write a book or a course. Also, the general mail-order chaps aren't very keen on this type of product. They prefer plastic gizmos and 'real' products. A book or a course can have a much longer life - often years if you are subtle about it. Also, if you have a great 'back-end' product and are buying advertising at low, low rates, then you can go on for years and be untouchable. People will try and copy you (periodically, I see 'Midas' type adverts coming and going), but they soon die because they are paying twice the money you are paying, and they are not exploiting the 'back-end' - where most of the money is made.
They retire broke, puzzled and confused. They wonder at how you can possibly keep advertising when they know that the product only takes half of advert cost. You know the secret. You are buying distressed-rate space, and you have a great follow-up product which makes more than the original sale of the book.
Nick James is a UK based direct marketer and product developer. During the last 3 years Nick has sold in excess of £1 Million of products and services. Subscribe to his Free Tip Of The Week email at: http://www.Nick-James.com
Repetition: The Secret to Visibility and Attention!
Have you ever felt disappointment and dismay when trying a new marketing approach because it didn't generate the response you expected? If so, you are certainly not alone. Perhaps in our impatience and high hopes to succeed we've forgotten the old saying, "If at first you don't succeed, try, try again." In fact repetition is the secret to visibility and attention. Whether it's a sales letter, press release or copy in your direct mailings, the strategies you choose often take trial and error efforts to find the one that works best.
How To Create Your Own *24/7 Little Sales Machines* In 5 Simple Steps
Here's an astonishing fact guaranteed to excite you...
How Knowing Your Customer via Direct Marketing Helps Your Online Business to Prosper
What is direct marketing? Put simply, direct marketing is a process of recording information about your customer's response to a planned marketing activity.
Increase Online Sales: 10 Extraordinary Strategies To Generate More Profits
Do you want to generate more profits from your online promotion?
The 3 Big Points to Selling Successfully on the Web
Building a home internet business on the web can seem at times like an impossible goal for most people getting started because they are either not sure of what products they should sell, or how to build their internet business website so its effective enough to get the right targeted traffic to sell their products.
10 Marketing Tips for Entrepreneurs
Nothing happens in business until a sale is made. Marketing is simply about getting new customers and keeping them. If you're not doing something everyday to market and promote your business, your competitors are. Here are ten easy-to-implement tips to effectively market and grow your business:
Dont Tell Me What I Cant Do!
Have you ever watched ABC's hit TV show Lost? My favorite episode was titled "Walkabout". In it, we learn that the mysterious outdoorsman Locke was actually paralyzed from the waist down before getting on the doomed 815 flight which crashed and, somehow, gave him the use of his legs back.
How to Get 100s of People into Your Downline(s) in Just a Few Months
I've been "seriously" working the Web since late 2000. I joined a few affiliate programmes in the early days - more than I could handle back then - and more or less gave up on every single one of them.
Internet Marketing Online: 10 Breakthrough Secrets To Heat Up Your Sales
If you desire to heat up your sales online, then pay attention to these 10 breakthrough internet marketing online, secrets:
Twenty Ways To Profits Online
1. Offer to write exclusive articles (that means you only submit them to one place) for high traffic web sites in exchange for a link back to your site.
Information - The Art Of Selling
Money may well make the world go round, but facts, details and data oil the machine that beats at the heart of it. We supposedly live in the age of information, yet many of us seem unable to use it to its full, and allow ourselves to drift along on a sea of missed opportunities.
How To Make A Lot Of Money On The Internet Doing Nothing
"You can make a lot of money on the Internet doing nothing!" That's the number one Internet marketing myth.
Solution Catalog - Getting More Out Of Your Searches The Fast And Easy Way
Are you Tired of being Burned by your Internet solutions? Take advantage of a solution catalog with a difference, where your needs are thoroughly researched before they are presented, thereby providing you with trusted results.
Niche Marketing - How to Find Your Perfect Niche Market
If you don't find a niche market for the product or service you offer, you will have a difficult time being successful. Most newcomers who wish to do business on the Internet often market to everyone they can find with the expectation that everyone will do business with them. This is the same as throwing mud against the wall and hoping some of it will stick. They have not yet found their niche market.
Stitching Up a Niche
I am a great admirer of businesses that serve and market to one or a small number of niches. It's such a great business model and one of the fastest ways to grow a business. I know one marketer who develops websites exclusively for life coaches, another business that develops marketing programs for the spa and pool industry, and another business that specializes in providing tax services for clergy. And they're all busy!
Weblogs, Podcasting, and RSS Newsfeeds in the Marketing Mix
Weblogs and Podcasting in the Marketing Mix
Web Success Secret - Overdeliver
A few days back I got an email telling me to look at a software which was revolutionary. It enabled anybody to earn lawful income on the internet without hype or without making any false promises, etc, etc...
E-Mail Accounts For Your Home Based Business
As a Work at Home Business you need to have at least 7 E-Mail Accounts.
The Truth Behind Guaranteed Sign Ups
I've got a confession to make... I have been into guaranteed sign ups business for a long time but I realised many people do not know how sign ups really work.
How To Make Money Online
Catch the cash on the net?in more ways than one.
|Home | Site Map|
|Copyright © 2005-2007 - Ðð©'§ pcMedix Computer Group Help Sites. All Rights Reserved.|