Yesterday I had a strange email conversation with one of the most successful members of the Mastermind group that I run with Bedros Keuilian.
It all started with an announcement from our coaching client that a new advertisement had brought him almost 750 new leads.
To give you a bit of background, our Mastermind Member is in a niche that allows him to sell high priced coaching programs, so every lead is potentially worth an average of $850 dollars.
And to make the news even better, he was able to buy those 750 leads for just $8 a piece.
If you do the math, that’s a potential 100-to-1 Return on Investment. That’s incredible.
But here’s where things went wrong.
At this point, he was ready to move on to something new.
BUT WAIT, there’s more (as the old infomercial saying goes)…
And by that I mean, there must be more leads in that list. He needs to run the promotion again to the same list.
Background: He bought an email ad that went out to an industry list. So what he needs to do is buy the same email ad and change the email subject line, and perhaps adjust the email copy as well (perhaps making this second mailing about a different benefit that the audience wants).
By doing this, he should be able to get at least 200 more leads, and while these leads might cost him $25 for each one, it’s still a greater than 30-to-1 ROI ($850 value per lead /$25 cost per lead).
And once he’s done that, he should change the subject line again – or perhaps even the offer – and buy the same email ad.
If his customer value from this method of lead generation remains at $850, then he can (theoretically) continue advertising with this method until he is paying $800 per lead – and he would still be making $50 profit over the lifespan of the customer.
It blows my mind that he was ready to give up on this lead generation source after just one mailing. Think of all the money he would have been leaving on the table. It’s borderline insane.
This is similar to the advanced “mailing unopens” strategy that I have discussed here in the past. Sometimes just changing the subject line will “click” with a reader and get them to open an email that they previously ignored.
In the case of our Mastermind Member, he’s leaving BAGS of money on the table by not going back to that lead generation well over and over again.
This is a classic case of picking Low-Hanging Fruit in his business…
however, it’s also a classic case of almost ignoring the low-hanging fruit and choosing instead to get the rickety old ladder and lean it precariously up against the tree so that he can risk everything by trying to pick the harder to reach fruit at the top.
Don’t make the same mistake in your business, no matter how “sexy” some other way of making money sounds to you.
For example, if you run a real world business that has customers, don’t invest money in a radio commercial going after new clients until you’ve set up systems that regularly communicate with your current customers to offer them more value and make more money from them. Current customers are low-hanging fruit. Serve them first and build your profits the easy way. Maximize the potential here first.
As Dave Kekich says in Credo #18, “Find what works and then do more of it. Focus on first doing the right things, and then on doing things right by mastering the details. A few basic moves produce most results and income.”
The answer to getting money fast is often staring us in the face. Don’t ignore it. Maximize it instead.
When you find what’s working, do more of it.
That’s the Easy Money System.
Plain and simple.
By the way, Bedros and I are doing a one-day small-group Mastermind in Nashville (yep, Nashville) on Friday, Nov. 9th.
If you want to join us (and there are just two spots left), email Big B’s super-assistant Frankie at: Frankie@Keuilian.com.
The investment is $1997, so this is only for folks that are serious about creating the life of their dreams and having the freedom that comes with being their own boss and running an info product business (like one of our biggest past success stories, Mike Whitfield – he attended one of our events in August 2011, and now makes over $12K per month).
Now get out and get picking the low hanging fruit,
“Plan you work and work your plan.” – Nido Qubein