Today you’re going to learn how to find a target market of potential clients so you aren’t wasting precious resources on blitz marketing. So, the two questions you have to ask yourself are:
What do people really want to buy from me?
What related products are they already buying?
Once you figure this out you will know who is more predisposed to purchase your services. The basic concept is this:
- You want to find existing businesses who have the client profile that you are looking for to market your products/services to.
- Then strike up a relationship with those business owners to work out an incentive for clients to purchase from both businesses.
- As a result, you have an audience to market to and they generate an added value from their current base.
So, how do you figure this out? There is a great formula from Jay Abraham you can follow with great success.
LV = (P x F) x N – MC
Here’s what it all means:
- LV is the life time value of a client
- P is the average profit margin from each sale
- F is the number of times a client buys each year
- N is the number of years clients stay with you
- MC is the marketing cost per client (total costs/number of clients)
Once you know how much you need to spend to attract a new client, you will know how much of an incentive you can offer to a business to help attract new clients.
So, here’s your step-by-step process:
- Find companies who already have the client base you are looking for.
- Negotiate an incentive for them to share that client base with you.
- Focus your marketing resources to this group of predisposed clients.
If you need help working through this process, ask about our comprehensive system of marketing tools and resources.