Are You Making This Critical Marketing Mistake?
The big mistake, the major mistake, that a lot of entrepreneurs make is they don’t approach the front end and the back end differently.
Meaning that to the typical, to the average entrepreneur, they look at marketing to generate customers and marketing to existing customers as the same.
In their mind, they don’t differentiate between the two.
They design marketing campaigns, they design offers, they design ads, maybe Facebook ads, offline ads, whatever it may be, the same, regardless of whether they’re talking to a prospect or an existing customer.
And in their mind, what they’re looking to do is they’re looking to generate a certain amount of profit on every sale.
They’re looking to generate a certain amount of profit from the very first sale, with a brand new customer.
They’re looking to generate the same amount of profit whether it’s the fifth transaction, the eighth transaction, or the tenth transaction.
That’s what the average does.
But the pro entrepreneur, the pro marketer, sees it differently, understands that it’s different.
The ‘Pro’ Marketer Understands ‘Maximum Customer Acquisition’
The pro marketer looks at the front end and says, it’s all about customer acquisition.
Therefore, I don’t need to generate a profit on the front.
My aim isn’t to generate a profit on the front.
My aim is to simply acquire the maximum number of new customers that I possibly can.
Why does the pro do that?
Why is the pro not looking to generate profit or not interested in profit on the front end?
Why?
Because of this one thing.
And listen to me carefully here.
The money in your business is made on the back end.
The profit, your income, the bankable money, is made on the back end, on the second transaction, the third transaction, the fourth transaction, the fifth transaction.
Turning A Prospect Into A Customer Is NOT About Profit Generation
And if you’re looking to generate profit, if you have to have marketing on the front end that generates a profit, you are putting yourself in a position where you have to, you can’t invest nearly the same amount of money into acquiring customers that the pro marketer can.
The pro marketer can invest more, can spend more, to get a single customer.
Let’s get a little funky and get technical for one second.
Let’s say you sell a $100 product.
A $100 product, right?
So now let’s say you want to generate a profit on the front.
Maybe you want to generate a 50% profit margin.
Well that means that if you’re selling a $100 product, that you can only afford to invest $50 to get a single new customer, right?
Because you want your 50% margin, your $50 of profit.
And so, if you sell a product for 100 bucks, it means you can only afford to spend 50 bucks to get a customer so that you’ve got your $50 margin.
Now let’s say that you are competing against a pro entrepreneur, a pro marketer, who understands the difference between front end and back end, who understands the objective of each.
And that marketer says “Hey, I’m willing to not generate any profit on that first sale, meaning that that pro marketer, also selling that same $100 product, can now invest $100 to get a single new customer.”
The pro marketer can invest $100 to get a single customer.
The average entrepreneur in this example can only invest 50 to get that same single customer.
$100 verses $50.
Who has the advantage?
Who is going to win the game?
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