This is 5-step business growth formula that every 800 pound gorilla company uses…
1. The Lead Magnet
A lead magnet is a bride you use to get someone to exchange information with you. They need to get value and it needs to be good quality and usable. You want them to go “Wow, I never thought of it that way!”
An example of this would be a carpet cleaning business that gave away a guide on how some carpet cleaners scam you.
Examples of different types of lead magnets you could use are:
- Free information
- Free sample
- Get the Price (car sales example: when someone calls a car dealer for the price, a good one will say, what’s your number, I’ll get back to you)
- One Answer (dating example: how to know when a girl is ready to kiss you)
- Small Service (real estate example: property value appraisal)
2. The Tripwire Sale
The tripwire sale is the most misunderstood piece of the puzzle.
A tripwire sale turns prospects into customers. Doesn’t matter if it is as small as $1. The relationship changes. You are now an adviser and your prospect is a client. Buyers are twenty times more likely to buy something from you immediately, even if the price point is big.
Examples of tripwire sale strategies:
- Columbia House Music (give away 10 records for $1)
- Candle Wicks (sold at cost, $2, where competitors where selling for $20. Everyone started buying from this supplier which then started supplying other products)
- Groupon Deals
- Lawn Service (offer to do lawn first time for $5 and do a great job. Before leaving book in for next week for $10. The following week for $20 and leave flowers and a thank you card)
- Free Trial (free trials don’t work as well because it immediately casts doubt. e.g. if you offer someone a free apple they would be hesitant, but if you offer 4 apples for a $1 while everyone else is offering one for a $1, people will say, “oh yeah, that’s a great deal”)
3. The Core Sale
1. The Big Promise (what your product/service will do for them)
2. Points of Belief (what you want them to believe)
3. Solid Proof (make the points you want them to believe to be undeniable)
4. Irresistible Offer (tell them what they’re going to get and the benefits they’re going to get, and for how much; why they should care)
5. Call to Action (super misunderstood. Don’t ask them, ‘tell’ them to buy. Be firm because you know they need it. People don’t want to have to think, they want to be told what to do. A doctor doesn’t ask your opinion; gives a prescription and tells you to go get the medicine)
Be willing to buy advertising to break even on the first 3 steps because all the money happens in steps 4 and 5. Steps 1 – 3 are the iceberg above the water. Steps 4 – 5 are the iceberg below.
4. Profit Maximizer Sales
Examples of profit maximizer sales are:
- McDonalds Upsells (the core sale, hamburger, only nets them $0.18 profit. They make big profits off the drinks, fries, desserts, etc)
- Cable Bundles (sell cable at cost and then offer telephone and internet at almost 100% profit)
- Amazon Cross Sales (customers that bought this, also bought this… 20-30% of people will buy cross-sell. Another example is tire stores that sell tires at cost and sell the installation services).
5. Customer Return Path
The easiest sales you will make is from your existing customer base. Examples of how you can continue to sell to your existing customers are:
- Constant Contact
- Loyalty Programs
- Line Extensions (selling related products that you don’t necessary sell yourself)
- Continuity Programs
ALL five steps of the puzzle need to be in place for you to have a business that blows its competition out of the water.
At the end of the day, if you have a sales funnel that is making you so much money per lead that it allows you to spend more than anyone else in your market to acquire a customer, you win!
Are you using all of these five steps in your business? Leave a comment below!