Why You Need to Be Working With Me Ms Business Owner
ByWhy should I be working with you?….
Question I just asked a business owner about work she needed done with her marketing!
Ms Business owner, “If I could show you a way to cut the Fat & Waste from your marketing budget and at the same time Increase your sales by 30%, you would be interested wouldn’t you?”
Ms Business Owner; Show me how you could justify ME giving YOU a $4,997 set-up fee plus $1,497 per month (starting in 30 days) 12 month agreement. Total price is $23,000.
I want YOU to show me what you could do to “Cut the Fat & Waste in my Advertising budget and Increase my sales.
In addition, I want to see ALL the Benefits to your plan even if I just break even with your fees vs my increased profits and the end of 12 months.
This will be the scenario: I get a lot of these.
Service type (repeat biz) business: Dentist, Carpet cleaner, Pest Control, Plumber, HVAC, etc… Mom & Pop type biz
Gross Sales: 1.2 Million in 2008, decreased to 1.1 Million in 2009, down more in 2010, sales have Flat-lined. Incorporated for over 5+ years. Has 4 employees, spouse works part-time helping out.
• Client has a nice website, ranked page 3 Google. Her domain listed Page 3 Google is her entire Internet presence.
• Advertising/Marketing budget per year is roughly 5% of sales $50,000
• Spends 80% of her advertising budget ($40,000 year) on Yellow Pages
• The balance of 20% ($10,000) is spent on Spray & Pray type marketing
• Has a database (Names & Addresses only) of 2,000 past & current customers
• Gross Profit margins are 25%
I implemented the exact case for a client back in Oct 2010. The fee structure was a little different. $20,000 paid over a 6 month period. A Minimum of $997 to $1,497 dependent upon the services the client wanted at that time for continuing consulting. I can tell everyone the client is extremely happy with the results in only 3 months. She has given me (3) referrals since we met..
BTW, the client is one of the above categories.
• Create a Google/Yahoo! Local Map listing (FREE)
• Get your client listed in the Vertical Directories (FREE)
• Set up AWeber, write a few auto-responders (Client pays)
• Now place a Lightbox or email capture on their website (FREE)
• OnPage SEO (Title tag, Meta tag cleanup will suffice, FREE)
• Free Press Releases (scribble something and post it up, FREE)
• Free Blog
• Free Twitter account
• Write some Free Atricles and post to Ezine (FREE)
• Have the client call his Merchant account and Print email capture on every receipt. Customer can get “Preferred Offerings” Great for any Restaurant and Retail stores (FREE)
Do you realize doing the above will SUBSTANTIALLY increase their sales to the tune of at least 10-20% (Minimum) if worked properly?
These are LOCAL co’s, do NOT confuse with National SEO marketing products, info products, etc…
A small company doing $40,000 month/500k year could increase sales in 12 months to $50,000 month/600k doing very simple marketing.
I think that maybe many of you don’t realize the Power of Google Maps, On page SEO, and Aweber.
I could get a setup fee of $997 and $297 month for the above package in my Sleep. I currently get $5,000 to $10,000 setup and $997 monthly for doing the above EXACT steps. Don’t forget I TARGET the right businesses. Yet a small restaurant/retail shop etc… can afford $997/$297 all day.
They can’t afford NOT to. I dare anyone to debate me that a business can’t increase their sales by 10% using an Auto-responder. No website, no on page seo, no google map, etc… Just an auto-responder….
Everything needs to pay for itself. The amount I charge is largely determined by what their transaction size is and how I make the case that they are going to make the money back.
Some examples…
New windows pay for themselves after X months because of the savings in your energy costs.
New pots and pans will pay for themselves because now you can cook at home instead of eating out 3-4 times a week.
Etc.
In our case, like I have (and others) mentioned before, if you charge them $25,000 a year yet you make them $100,000 you are essentially free. It didn’t cost them anything.
There is even the argument that it would cost them money if they DIDN’T hire you.
The old “you can’t afford not to do this”.
So make what you’re selling “free”. Make your fees are self funding. SHOW THEM how in X amount of months they will make X amount of dollars so it’s actually not costing them anything to hire you.
My average client pays me a $10,000 set-up fee and $1,497 per month. Minimum contract is 12 months. Approx $30,000 first year.
I do a lot of “Infrastructure” work first. Most here would probably not like it.
I develop a comprehensive marketing plan. USP, train sales staff, train secretaries to answer incoming calls, write copy for Yellow Pages, direct mail, set up AWeber, autoresponders, build new site/blog or update their current site, Animoto video marketing, Google Local, Vertical Directories, Press Releases, 1 on 1 coaching, group teleseminars, SEO, etc…
My best client pays me over $10,000 per month, set-up fee was $25,000.
My smallest client paid me $3,000 upfront and $497 per month.
They are family owned. Sales range from 1- 7 Million year.
I just signed a 1M in gross sales to a $30,000 year contract.
The 7M company is the one I’m getting over 10k month.
I know going in what I can do for a company. I have a general idea what % I can increase their sales in year one.
I’ll give you an example how screwed up companies are. I signed a 2M per year company for $55,000 year one, $3,497 thereafter per month. The 1st thing I had them do was ANSWER their phones with a REAL person instead of going straight to Voice-mail.
Their sales immediately jumped 1M dollars. That’s right, I knew before we met what their real Achilles heel was.
I can easily take this company to 4 million in sales without doing any real work. I am seriously considering doing away with Fee based services and only pursuing deals where I receive a % of the increase in sales.
I don’t work with Public companies, Franchisees, etc…
All privately held, most are doing 1 to 5M per year in gross sales.
In answer to your question about what happens when they hit #1…. We solidify and maintain the position and target the next key phrase.
I also provide consulting around offline direct response marketing, referral programs, USP development etc- however these will all be treated as a separate project and they are quoted as such.
I OFTEN work with HIGH margin businesses. High margin businesses are ideal for the offline world.
One of my clients is a Cosmetic Surgeon. I advertise for Boob jobs, $4,000 per boob. Doctors cost is $1,000 per boob. We found the LTV (Lifetime Value) of a boob job is $20,000+
After a woman has a boob job, she normally gets a Tummy tuck. After the tummy tuck, she then get’s a face-lift followed by wrinkled neck surgery.
If I get him 1 boob job per month he makes money.
The more boobs he gets the better I look. LOL!
1. Because of my experience. I know in advance what will happen when I make changes. Like when Tigers wife found out he was cheating with hookers. 99% chance she’s gonna dump his a$$ at least temporarily, and he won’t be getting lucky with her.
2. Last 2 years Audited CPA statements that were filed with IRS. I get to see all the books.
I NEVER talk about SEO, NEVER. I tell the client I will create a powerful online presence with Virtual Real Estate that they own.
I give my clients HOPE.
With 99% of all my new clients, I rarely do any so-called Internet stuff for at least 2 months. I spend the Majority of my time fixing in-house problems. I generally increase sales by 20-30% in less than 90 days.
Recently I had a client go from 2M to 3M in one day (on an annualized basis). Yep, one day. That client pays me 55k a year.
Managing Expectations with a Client is very important. I don’t talk about percentages. 100% of ALL my clients within 90 days all say “Wow, I had no idea this system would work so well.”
I literally had a client tell me that yesterday afternoon while I sat in his office. He said “I had no clue you were going to do all this work. You went above and beyond anything I had imagined. If you ever need a reference or a testimonial, please have your prospect call my office.” I thanked him and went about my business. This client cut me a check 60 days ago for $10,000 cash and pays me $1,997 per month. Ya think he’s gonna leave me? Client told me his sales were up 15% in less than 7 weeks. His sales had been crashing for 10 previous months.
The only so-called thing that all business owners would be concerned about in regards to what I did for him with his so called Internet stuff was the following. Created Google Local Business Center, got him listed in Vertical Directories, changed his Title tag, and that’s about it. 2 hours work.
He told me his Internet sales were way up, lol. I was sitting in my chair laughing inside when he made that statement. I did almost nothing. Wait until the Tsunami that’s coming hits. The 15% sales increase came as a result of me convincing him to increase his prices, change the way he handles accounts receivables, and I trained his receptionist and sales staff. That’s it.
I make my own list. I use a combination of the Yellowpages, Google search co’s on page 3+ (the wanabees who have yet to make it), Chamber of Commerce and the BBB (great for getting owners name)
I then mail using the “Dunning Mailer method” Google it.
Letters go out, drive visitors to website, site does all the heavy lifting (video, long sales copy, free report, etc…) site then gives prospect my Phone number. Original letters have no phone numbers, client must go to site.
Client calls me, live person answers, operator tells them I will call back within one business day.
I call client, tell them what I do and who I am (refresh what video said) then I ask a LOT of questions. I tell them they need to Qualify.
If I think the client is good for MY BUSINESS then I send PDF or fax the Questionnaire.
Client completes, faxes back. I Google them, their competition, and whether or not I can help them. 90% I can help. If I like them and they fit my Ideal client then I will work with them.
I am Interviewing THEM, not the other way around.
Why should I be working with you ?…. Question I just asked a business owner about work she needed done with her marketing!
I am the Ringmaster, the Guru. I am the only one who can turn their business around.
Client writes check for $5,000 – $25,000 for Initial setup, and then pays me a continuity fee on average $1,497 to $2,497 per month, 12 month minimum.
Take a business selling $3M annually at a 40% GP margin. If you increase their sales by 33% then you have increased their sales by $1M.
How can you increase their business by 33%?
-increase their number of leads by 10%
-increase their conversion rate by 10%
-increase the lifetime value of each customer by 10%
Through the miracle of compound interest, this is a 33% increase in sales.
Do you think if you grow a business by $1M they would have any trouble
sharing $20K with you? LOL!
If we are really talking about the marketing consulting business, tons of stuff can be done on retainer + commissions so long the business owners can justify their profit margin.
Example:
• USP
• Lead generation systems
• Referral systems
• Risk Reversal
• Upselling systems
• Client retention systems
• JV systems
• Internet Marketing systems
And for Internet Marketing Systems break down:
• All the above 7 systems can be implemented into IM
• PPC
• SEO
• Database marketing
• Online Brand Management
Some of these SME offline business are getting pitched 10,20 or 30 thousand dollars website and 5,10,20 thousand dollars a month maintenance.
We find a client that is spending a lot of money on advertising (i.e. yellow pages, print, TV)
Then we give them a marketing campaign that works and you will be happy to pay us 5 or 10k per month for a 2-20 times investment.
Understand some real marketing and get back to basics.
We are not selling you SEO, we are offering you more customers, higher profits and less costs.
Having the proper mindset is crucial to success in any kind of business.
What sets the Michael Jordan’s and other great ones from the average athlete? You guessed it mindset!
When I am talking with a business owner/decision maker, I am very confident that I can help them.
Prior to arriving, I have done my homework and know that there is no doubt that I can help them improve their bottom line.
Here’s an example:
On December 30 I had a telephone appointment with an attorney who was looking to start an information business based on a skill set that he has.
He wants to sell his business opportunity to those individuals interested in starting a business from home.
So, I started by telling him that I can help him…however, I don’t work with every business owner and at the end of our talk together, I will let him know if I would work with him.
Then I proceeded to tell him the one hour of my time that I will use to go over the Interview Form.
Would normally cost him $1,500, which is my true hourly consultant billing rate. (I am just setting the tone for the close that will happen at the end)
After going through the interview questions, I determined that I could help him build his information business through setting up a marketing funnel, developing a backend product, developing a lead-gen product. (One of the methods that he wants to sell his products is with seminars. One of his problems is that his price point is very low for a 1-day all content seminar…$295 and he does not have a backend product to sell the attendees in order to increase his profit margins.)
And the final thing that I mentioned to him before telling him the price and closing him was…what will he do if I don’t work with him. (Think about it…if I was selling SEO services or website design services, then he would say, I can go get someone else to do it)
In this case, he said out loud that I was amazing and that he could not build his business without me.
This contract will end up being a $50,000-$100,000 contract. (Not bad for an hour conversation)
The major point is that it all started with my mindset or positioning which brought value to the table.
Consulting companies have been doing this – providing marketing services to companies for phenomenal results – both for the consulting company in sales growth and business valuation for the partners – and for the client – the company actually sees an ROI…one ‘small’ consulting company I worked with in the 90s went from 4 ‘founders or partners’ and sold out for tens of millions to deloitte and touche just a few years later…
This is a hot industry to be in! (now you all know I’m biased since I’m in it yet heck – it is so low risk, low start up capital for you)
…the basis for many a closed multi-million dollar engagement with a Fortune 500 (and they did get bigger ROI from it)
…is the same for selling to a mom and pop or Small business owner -
What’s in it for them – how much do they need to invest and when will they see a return.
One client of mine who paid $5k upfront, $2k per month – over the last 12 months have seen a measurable over $600,000 return on that investment (Darn – should have negotiated a 25% override on increase in sales on that one!)
Mindset – can you charge four, five figures – YOU BET!
Another client of mine, a large bank, got quotes for banner advertising and graphics from their LA ad agency – $50,000 – my quote – $10,000 and I still profit wildly!
Ad agency’s are charging those prices – no kidding! And my target customers out there need me!
One student of mine recently had a doctor he contacted tell him what he just paid for his website that got him NO results – $100,000 – yes you read right!
Think about what their customer life time value is – and price your services accordingly for what you I do – I do far more than just SEO services etc.
You can project your business plan on numbers like that as it take a few months to train up your staff or ‘find the right ones’ – so you can concentrate on
1. client relations
2. selling (being the ‘rainmaker’ or hiring rainmakers)
3. quality assurance
4. Strategic planning
James Tyler
Managing Editor
Online Publishing Group.com
Publishing & Media Professionals
1-800-341-3593
http://Online-Publishing-Group.com/
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