If you’ve been around the marketing game for any significant length of time, no doubt you’ve either heard somebody ask that question, you’ve been asked that question or you’ve seen somebody talk about their sales conversion rate, right?
Sales conversion rate is what percentage of visitors to your marketing campaign actually purchase the product.
If you had 100 visitors and one person bought, that’s a 1% sales conversion rate and from the beginning of time, marketing time, everybody has been taught to focus on improving sales conversion rate but here’s the reality.
If you’re operating your business where you are trying to generate profit on the front end, meaning you’re not looking at…
You’re not seeing a difference between front end and back end, you’re treating them both the same –
You’re thinking very transactionally…
You’re just trying to generate a profit on every single sale including the front.
The danger to you in operating that way is first and foremost that, what you are able to invest to generate new customers is much lower than the pro-entrepreneur, than the pro-marketer.
Meaning, if a customer’s worth $100 to you and you want a 50% margin, you’re only able to invest $50, right?
You’re only able to invest that 50%.
But a pro-marketer is willing to invest $60, $70, $80, even all the way up to $100.
Even if that pro-marketer invests the full $100 in this example, they’re still acquiring a customer for free.
See, if you’re trying to generate a profit on the front end, you are vulnerable.
You’re vulnerable because…
You are trying to go up against competitors that are able to spend significantly more than you and all else being equal, all else being equal, he or she who is willing and able to spend the most to acquire a new customer will win the game.
Imagine if you’re only willing to spend $50 to acquire a customer and somebody else is willing to spend $100.
Imagine the difficulty that you’re going to have trying to compete against them, trying to win that game.
For the person that’s able to and willing to invest $100 to get a customer, they can use more traffic channels than you can, they can do things and deploy certain types of marketing that you can’t because it’s too expensive for you based on your desire to generate a profit on the front end.
As well, you have to recognize that the cost of driving traffic, media buying costs, are only going to continue to increase.
They’re already increasing and if you are kind of, if you are stifling your ability to invest the maximum amount to acquire customers, you’re going to reach a point where you’re not going to be able to afford the media buying costs anymore.
See the game really is this –
You Want To Be Able To Spend Or Invest The Most You Can To Acquire Customers
The game is not for you to try to figure out how can you spend the least.
The game is to try to figure out how can you try to spend the most.
Like I said, even if you generate zero profit, you sell a $100 product and it costs you $100 to acquire a customer, you’ve just acquired the single most valuable asset in your business for free.
Your bank account is no less than it was two days ago, right?
Your bank account is the same only now you’ve got a new customer.
A new customer that you’re going to put into your back end which is where you’re going to see the second sale, the third sale, the fourth sale, the fifth sale which is where all the money is.
The profit is in your business.
That’s why you don’t want to operate the way the typical entrepreneur does where you’re trying to generate a profit on the front.
You want to make sure that your business model is nailed, that your marketing model is nailed so that you too can acquire the maximum amount of new customers so that your business can grow fast and big.
So if you found this post valuable, I’ve got a book that you’re absolutely going to love.
It’s called Unconverted.
Here’s some of what you’ll discover inside:
The secret driver behind Rich Schefren’s 29 page report that generated over $3 million in sales – in only 7 days
How to create buying demand for your product out of thin air
How to get your prospects emotionally excited about the pay-off and benefits they can experience from your product
How to create demand for your product or service where it didn’t exist before without making the “average marketer’s mistake”
How to establish the beliefs your prospects need to have in order to buy from you
The #1 deal-breaker in your marketing campaign, no matter how good your headline or ad copy is
It changed my whole marketing journey and my whole experience with marketing when years ago, Mark Ford said to me that Agora was able to grow so big and so fast because they recognized that they were in –