A few years ago at the Titans of Direct Response event, Greg Renker (the guy behind the acne glop, Proactive) said something that changed my view of acquiring customers forever.
Here’s the story…
Greg was talking about the 900 things that go into their infomercials.
And how even the good ones only work about 10% of the time…
But about halfway through his talk, he made an off-hand comment about how it takes Guthy Renker around 18 months to breakeven off an infomericial.
Meaning that if they pony up a million dollars today to buy airtime in TV, they don’t get that million dollars back for another 18 months.
I remember thinking that was insane.
And I thought “these guys are idiots” for waiting that long to break even.
But then Greg explained why they did it…
“To get people to take the offer upfront it has to be a low introductory price of $19.99 or something similar. That’s the only way these offers work. And for those numbers to back out for us, it usually takes about 18 months”
This was one of those “light bulb” moments for me.
It completely changed how I looked at customer acquisition.
And it reinforced a principle that I now teach today…
And that principle is…
Whoever can pay the most for a customer will win.
If your competitor can only pay $100 to acquire a customer…
And you can pay $150, you will win.
Cause you can buy more traffic…
And grow quicker…
Super successful companies like Golden Hippo, Agora Financial and Natural Health Sherpa all do this.
So that should be a hint…
If three of the most successful businesses in our space are doing this, shouldn’t you be doing it as well?
Yep.
It’s all about customer acquisition.
And specifically being able to spend more to acquire a customer.
This is something we’ll be putting a lot of focus on at our upcoming February mastermind in Las Vegas.
Showing you exactly how to get your day 1 AOV up so that you can acquire more customers than your competitors.
Specifically we’ll dig into the latest hacks for upsells, bump sells, mobile traffic, email autoresponders and more.
That will all go down at our Vegas mastermind in February.
We’ll officially release the details of the event sometime after Christmas.
But if you’re interested, just know that it will be Feb 26-28th in Las Vegas.
So mark that on your calendar…
That’s all I got for today…
Take care,
– Justin
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