HOW EXPERTS GROW THEIR BUSINESS Stop wasting marketing budget & buy customers

HOW EXPERTS GROW THEIR
BUSINESS Stop wasting
marketing budget & buy
customers

The moment you understand what you can afford to spend
to BUY a new customer, based on what that customer will
be worth to your business, in terms of profits in transaction
one, in year one, and in subsequent years, you will stop
wasting money on advertising and start only investing in
sales generated customer acquisition. Your waste factor
will drop about 90%!

www.linkedin.com/in/travisokeefe

Learn how
much your
customers
are worth to
you!

Figure out what a customer is worth to you over a
purchasing lifetime – the total, aggregate profit that
each customer can generate for you, minus all
advertising, marketing and service expenses!

If you are a bean counter, the exercise is technically

known as reckoning an individual customer’s
“marginal net worth”


If you haven’t
calculated your
marginal net
worth yet, here
are the steps to
follow:


• Step 1: Calculate your • Step 4: Compute the cost of
average sale and your a prospect the same way.
average profit per sale. • Step 5: Compute how many
• Step 2: Compute how much sales you get for so many
additional profit a customer prospects (that’s the percentage
is worth to you by determining of prospects who become
how many times he or she customers).
comes back. Be conservative. • Step 6: Compute the
• Step 3: Compute precisely marginal net worth of a
what a customer costs by customer by subtracting the
dividing your marketing budget cost to produce (or convert) a
by the number of customers it customer from the profit you
produces. expect to earn from a
customer over the lifetime of
patronage.


EXAMPLE


Average new customer
Average Repurchases Average Average Every new
profit on that year reorder patronage customer is
the first amount life worth
sale (Gross
Profit)
$75 + (3 X $150) X 2 years = $975


HOW TO As long as you can buy a
GROW A customer for less than
$975, you can buy
BUSINESS customers all day long.
1) Acquire more
customers


The most lucrative
short-term way to get
HOW TO more starter
GROW A customers.
BUSINESS
1) Acquire more Spend more buying new
customers customers.


Increase the incentives
for new customer
acquisition

HOW TO
Think strategically
GROW A Give the revenue from the
BUSINESS first sale to the sales
person
1) Acquire more
customers make your profits over the
lifetime of the customer


Partner with
companies whom have
your target market and
reward them for co-
promoting your
HOW TO product
GROW A
BUSINESS Think strategically
1) Acquire more Give the revenue from the
customers first sale to the partner

make your profits over the
lifetime of the customer


Pay for referrals

HOW TO Think strategically
Give the revenue from the
GROW A first sale to the referrer
BUSINESS
make your profits over the
1) Acquire more lifetime of the customer
customers


Go to all your
struggling competitors
and offer to buy their
customers
HOW TO
Think strategically
GROW A Give the revenue from the
BUSINESS first sale to the competitor
1) Acquire more make your profits over the
customers lifetime of the customer


Before acquiring
more customers
ensure you have
systems to keep
those customers

TRAVIS OKEEFE
Here: travis@imtv.co.nz
Everywhere: www.linkedin.com/in/travisokeefe

HOW EXPERTS GROW THEIR BUSINESS Stop wasting marketing budget & buy customers

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