How can it make sense to pay $5 to acquire a customer when you only make $1?: 1:20
Before vs. now: 2:06
Meaning of the phrase: 3:16
How does this change my mentality?: 6:35
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In this video, I wanted to discuss what it means to say that
‘whoever can spend the most to acquire a customer wins’
and how it can really change the way you see and perceive your work in online marketing…
I used to think that as a marketer, I am a bridge between customers and the vendors and my only role is to get the prospects to buy.
But this quote, along with some further study and research showed me that this is not the case if you want long-term, sustainable profits.
It took a while to digest this quote when I first heard it from Russell Brunson in the affiliate bootcamp. I am not 100% sure who the original source is.
But when I first heard it, it didn’t make sense to me.
How can ‘spending the most’ on a customer allow me to win? Will then not all my profits be depleted?
Surely my competitors wouldn’t mind me spending $100 on a customer if I only earn $50 from them – I’m losing money this way!
But after some more study and learning, I realized that nowadays with internet marketing, everything is done online and people don’t really trust one-time deals anymore.
There are so many promotions online now selling the same thing that people are extremely skeptical and careful who they buy from.
When the internet was first invented, people could capitalize by having ads up saying ‘you can lose 50 pounds with my product’ or ‘you can earn $1,000,000 a month with my program’. People simply didn’t know any better.
Now that the oceans are infested with marketers just like that, people are very selective with who they give their money to.
Well, this relates to the phrase because now people only give money to marketers they actually trust and can relate to.
Which means only one thing – don’t expect to make thousands of dollars selling your front end products to cold traffic.
You need to get people signed in to your list, and prove to them that you are not a scammer by offering them tons of value.
You will then make money on the BACK-END, NOT the front-end.
So instead of counting how much money it costs you to get a customer to buy your first product, see how much lifetime value each customer could make for you and adjust your traffic costs to that.
This is what the phrase ‘whoever can spend the most on acquiring a customer wins’ means.
Even if your front-end product yields you $1, it costs you $100 to acquire your customer, but you know that you offer a ton of value to each customer after that so that most of them buy your high-ticket items averaging $1,000, then you can spend up to $1,000 on acquiring each customer!!!
The phrase means that whoever can take the best care of their customers wins. Don’t focus on how much you can make from your first sale. Focus on how much value you can give to your customers after they subscribe and then how much these customers can pay you on later on the back-end. Refer to previous video on a detailed explanation on sales funnels.
Trust and engagement with your audience is crucial nowadays.
How does this knowledge change your mentality and online marketing perspective?
Don’t focus on your front-end products.
Focus on building trust, engagement, loyalty, value with your tribe (subscriber list) and have them reward you for it by buying your products on the back-end.
Learn e-mail writing and storytelling skills.
This allows you to spend far more on your customers knowing that these customers will be loyal and will make you far more income later on down the road than just the front-end product can.
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Thanks for watching, and I’ll see you in the next video!