How You Can Get Hundreds or Thousands Of New Customers With A No Risk Partnership System
Why do you want to go to all the expense and hassle of finding new customers? There’s a much faster, easier and more cost effective way. There are lots of companies that have already done the hard work for you. They have spent the marketing money, they have sold to the customer and they have established a bond. You need to learn how to feed off these hosts.
This does not mean that you have to go about your feeding in a shady way. Far from it. You want a relationship with your host where he endorses your product or service. Where he does the selling for you. To his expensively acquired customers.
When you order a book from Amazon, what do you notice when the package arrives? You will probably see to companies feeding off the host. Both Vistaprint and Laithwaites, (a wine company) are using Amazon to sell their products. Both of these companies offer their best deals.
This helps Amazon, because as an Amazon customer you are getting something of value. And it helps Vistaprint and d Laithwaites because they are not paying for marketing costs other than printing a cheap flyer.
What any company needs to do that wants to take advantage of this type of host marketing is ask this question.
Who already has customers or relationships with people that are like my best customers?
Once you have identified them contact those non-competing businesses and supply them with the information about your product, its quality and suitability and the testimonials.
Make sure that there is a logical link between their customers and what you are selling. For example, if you are an estate agent you may want to do mailings to solicitor clients that have recently come into property through inheritance.
What you need to do is get an endorsement from your host. Then you negotiate a fee which could be in kind services, donations to their charity or a straight percentage of sales.
How do you get other companies to accept your offer? Firstly, always make sure you can deal with the CEO or business owner of the host. This is because they are profit oriented. Therefore they are more likely to respond to your suggestion that
“You could make thousands of pounds from a deal, without any work”. Make sure you point out the following:
* Your product is non-competitive
* It’s going to be sold to a list they have already used, so it’s new money to them
* They don’t have to spend a penny or do any work
* You’ll guarantee any items sold
* You’ll provide all printed material and pay for the postage and marketing costs, (unless they want a bigger piece of the action and pay for it)
* They can have all sales verified and even sent via their offices for verification
If all this sounds too simple to be true, well there are a few things that usually crop up
Most often it is the fact that host won’t understand what it is you are offering and you’ll have to do a lot of explaining – you’ll have to explain the potential profits to his company. You’ll probably have to offer a very good deal because this makes the host look good.
There is no rule for who gets what in the host marketing pay off. Often the beneficiary company has to pay marketing costs, which can be very small and pays a commission to the host. It can be 20% or 100% it really depends on customer lifetime value of what is being sold It’s all down to negotiation and making a deal work for both parties.
And if you want to be a host you just reverse this process. Find companies who want to sell products to your customers and negotiate the deal.
What happens if the host has an ongoing relationship with their customers? Well here you have to be really careful to demonstrate that you will not be taking any revenue away. And make sure you come up with a good deal and explain the options. Maybe a fixed fee or a continuity commission over a long period of time or money per lead.
Show your host what he might make by working with you. For example, you can mention what you think a deal might be worth if things work out as you expect.
Hey Mr Host, I expect that I may be giving you a cheque for £27,000 in six months time how does that sound. What would you be able to do with that money every six months? After all the host is going to be constantly bringing in new clients that you can market too as well.
You can also explain what they might get with this money, expansion, equipment, and staff
You can also show how doing a deal like this will enable them to see just what leverage they really have with their clients.
Remember the host has spent years of time and money building up his client list. Don’t be cheap with the commission. The host benefits by making money he would not have had, he recoups some of his costs, and it also makes him realize there is more worth to this clients thus enabling him to spend more on advertising and marketing.
Can you find another product to sell to your clients to make more money?
Can you find another company with clients that want to buy your product?
It’s even possible to do deals where you don’t have anything to sell. You go to company a and get 25% commission on sales that you place with host company b, who also give you 25% – hey you’re in business!
So what is going to get in the way? Well hosts might think they will lose money. That’s natural – so why not offer to do a test to see how things go on a small sample. Also if the host is worried about losing control, then you just do everything you can for them to remain in control. You repackage the product, route sales through the host, give guarantees, and do it at a price that is right.
As the beneficiary Make sure that you get an exclusive on doing this business though. The test could reveal remarkable profits to be made. You don’t want to lose the opportunity that you have just taught someone how to exploit. As the host you don’t want a long term deal and exclusivity of course
Be honest and be conservative. Most people are afraid to do a deal where they give a lot of commission away so be aware of this. But you need testimonials that your deals work. So don’t be too picky when doing a deal.
This type of host/beneficiary relationship can also work with leads. How many companies stop marketing after the third contact? Most. But on average it takes 7 contacts for someone to buy. So if you can buy leads that have only be contacted 3 or fewer times for a fraction of the cost it would take for you to generate them, and then do it.
Take a look at any supermarket. You’ll l find shoe shops, learning centers. Pharmacies, key cutters, a whole range of stores that are feeding off the supermarkets clients. What are the services and products that complement precede and follow your product or services? Make a list of all the companies. Contact them and propose a host beneficiary relationship
Don’t try and does it in one go. A letter should precede the call. Set up a systematic sequence of letter, call, fax, visit, etc. Every contact should offer value and eventually the relationship will be such that it will boost your business.