I am going to discuss finding an alternative to the cold internet attraction/buy now street sign way of finding a target market of potential customers. It’s difficult to find the less than 1% that will buy from you now.
However, if you know your target market and what else they like to buy then you may have a new source of finding interested customers easily.
So, the two key fundamental questions to ask yourself about your targeted “Who” for your product:
- Why do my “Who” want to buy from me?
- What are the “Who” buying that are related to my product?
Once you figure this out you will know “Who” is more likely to purchase your products.
Now you find another other business with different products/services that targets your “Who’ and approach them for a joint venture with an incentive and great arrangement to encourage both of your customer bases to shop at both of your businesses.
The basic joint venture fundamental is this:
Find existing businesses that have the match of your “Who” also known as the customer profile that you are looking for to market your product.
Then approach the business owner with a joint venture idea that is beneficial to both of you. The offer should be an incentive that the customer can benefit from by buying both of your products or services.
The result is you get the opportunity to be endorsed/exposed to a new customer base to market to and the JV partner generates an added value from their current base.
Ok so how do you do this? Like the old days of school there is a formula which Jay Abraham has followed with a lot of 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.
So, here’s the process to joint venture success:
- Find companies who already have the customer base you are looking for.
- Negotiate a Joint Venture for them to share that customer base with you.
- Focus your marketing resources to this group of new customers.
- Finally…deliver the product and an experience that both the new customers love and the JV partner sees as valuable added value because he/she will want to do more joint business with you.
You in return get new customers at a reduced cost versus trying to find new customers the cold internet attraction/buy now street sign way.