Marketing Secret #90

How Much Should It Cost TO Get A Client??


The following rule should be understood right away:

Your advertising (prospecting) generated client should end up providing a small profit. Your big profits will come from referrals…and the additional sales made to existing clients!

No matter what your average revenue per client is, you should not have to exceed that figure to get them!

Some of you are gagging right now when you hear that it might cost that much to get a new client!

Before you do, I want you to think about this logically:

If you get a new client and the profit is $400 on average, you should be willing to spend $400 to get every new paying person!

What? Am I crazy?

Why would anyone spend their revenue, just to get a new client?

How do you make money when you spend all of it on getting new people?

Let’s answer this by discussing:

The lifetime value of a client!

This is a concept that very few business people ever get! But, the ones that do, make all the money! Let me explain. 

At some point you or someone you know has belonged to a membership club. In the old days there was something called a CD Club. 

Anyway, they gave you 10 CD’s for $1. Then you have to buy four more in the next two years.

Let me ask you a question.

Do you really think that they made any money selling you 10 CD’s for a dollar?

Of course not.

What business are they in? How do they make their money?

Well, they are in the “Lifetime Value Of A Customer” business!

They knew they could afford to spend whatever they have to spend to get you to join. I’m sure they have $50 to get you, from a range of marketing strategies and the ridiculous price of the first batch of CD’s.

So, they must make this up by an average of more revenue than that, from each customer over time!

Not tomorrow.
Not today.
But over the next couple of years, they will make money on you!

They couldn’t stay in business if they didn’t.

So, what does this have to do with you?


No matter what marketing and advertising efforts you decide to do, you have to figure out the lifetime value of your client, and then understand what you can afford to spend to get the next client. 

If you're too broke to afford the entire investment to gain a new client, then consider a lot more low cost or free methods and reinvest your profits in sales conversion to quickly explode your business! (Things like Secret #43, #47 and #54!)

Or, make sure you operate in the short run, with low overhead, until you get enough cash flow to expand your new acquisition by spending more of your initial revenue made from new people.

I’m serious when I tell you that hardly anyone knows what I’m talking about.

Most business owners and sales people are so busy trying to keep the home fires burning, that they ignore this crucial concept.

See, if you understand this, and the next secret (Back End Sales) you’ll be in a position to grow exponentially, instead of arithmetically.

Why? Because if you become bold enough to invest more money than your competitors to get new clients, and will OWN YOUR CATEGORY!

If you do more promotion, be more strategic in your thinking and approach, how could you not end up on the top of your industry?

You know how to get responses.

You know how to get sales without begging, pleading or praying!

And, now you know the real secret of long term success.

If you need to discuss your business marketing, book a 30-minute no-obligation call with one of our team members.

Chat with the Team Today! Chat with the Team Today!

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