Chandigarh, India (PressExposure) July 19, 2008 -- Without question, the most overlooked, under-valued and under-utilized asset in practically every business is its customer base.
The fact of the matter is that most businesses only look at each customer they acquire as being worth a single purchase. They simply fail to realize that the easiest money they'll ever make is selling additional products, upgrades and services to their existing customers.
Customers that already trust them, like them and will gladly buy from them again without the need for expensive incentives, bonuses, marketing/selling skill or otherwise effort of any kind.
Folks, almost ALL of your expense in business is acquiring new customers. So why in the world would you only sell to them one time!?
This is called the backend profit model - which is the simple strategy of upselling, cross-selling and recommending complimentary products to already existing customers. Did you know that many successful businesses will literally sell their first "entry product" at a LOSS - just so they can sell them again and again?
They take the loss (and the risk) for a reason. It works. In fact, this one easy "change" to your strategy will enable you to literally multiply your revenues without spending more money or "working harder". This is the difference between a business that's a glorified "job" and a wildly successful business that you can sell for a fortune...
Can you see the logic behind this?
Now, you might have an objection...
"Isn't it expensive and time-consuming to develop new products all the time?"
Yes, it is.
And this is where strategic alliances come to the rescue. You could easily build your own highly-profitable backend profit system in a matter of DAYS just by endorsing someone else's products and splitting the profits with them.
In fact, you could even fund the development of your own backend products just by endorsing someone else's in the meantime...
What if your average value per customer increased by 400% just by making this one change? Can you see how much easier this is in comparison to finding and acquiring 400% more customers?
This means your income would increase exponentially as well.
This isn't some "pie in the sky" theory. This is pure common sense. If you sell more, you will earn more, period.
Do I have your attention now?
Now, the other issue might have with endorsing someone else's products is that it might appear to be "tacky". Believe it or not, if the product is a quality and complimentary fit - and if it's truly going to benefit your clients - then you will actually build more rapport with your customer base.
They will see you as a business that looks out for their best interests. And yes, they will realize that you're profiting from this, but it won't matter if they can see the logical "fit" (and intention) behind it.
Don't be afraid to do this. Think about how many "Fortune 500" companies you see doing this all the time.
Heck, this morning I bought a box of cereal because it had a free movie-theatre ticket inside the box. Am I "skeptical" of my favorite cereal company now?
You can do the same thing, and multiply your revenues for very little effort while actually increasing your customer retention rate.
I'm sure by now you can see the tremendous benefits of using Joint Venture arrangements to make more money for practically no extra effort.
Now, let me end off with a statement that's likely going to keep you up all night...
What if you got just 10 partners to endorse YOUR product to their customers as well? Not only would you be making an easy fortune from your existing customers - you'd also be getting new customers without the hassle (or risk) of advertising - and they'd simply get plugged into your profit funnel.
The fact of the matter is that joint ventures are simply the most powerful way to make money in business - both on the backend (maximizing profits from existing customers) AND on the "front-end" (acquiring as many customers as you can handle at no up-front cost to you).
And this single strategy has the power to easily transform your business from a "bill-payer" into a multi-million dollar enterprise.