Sunday, March 30, 2014

162- The Safe Way to Take Bigger Risks Without Losing Money

The Safe Way to Take Bigger Risks Without Losing Money

The Safe Way to Take Bigger Risks Without Losing Money

We've all heard the phrase, "The greater the risk, the greater the reward." The opposite of that also holds true: small risks bring small rewards. Well, what if you could take no risk at all and still get big rewards? I'll show you how to do that in this article. It's a 100% safe method that won't lose you a dime.

That said, it's a truism that you have to spend money to make money. But remember: what something costs doesn't matter. What matters is how much profit you can make with it. Usually, the flaw in the "risk more and make more" method is that you end up taking uncalculated or poorly calculated risks that turn into failures that end up costing you a bundle. Are there times where you lose money? Yes, that happens to us all; but if you're taking the right kinds of smart, calculated risks, then you can spend, and subsequently make, more money.

Taking baby steps or being timid with your marketing efforts won't give you the kind of results you're looking for. The best way to invest your marketing money is to make irresistible offers to existing customers. You already know they're interested in the kind of items you offer, and have liked your previous offers. Testing with them first lets you determine if the general market will be responsive to the offer. If you get a poor or lukewarm response from your best customers, then drop the idea and move on -- because people who don't know you already won't buy it. If your best customers really like it, then you can roll it out big to new prospects.

I recommend two-step marketing for this. First, ask people to raise their hands and request information from you. Then follow up intensely, doing all kinds of things to remind them they need to do business with you. This is where many businesses fail: they shortcut it and spend little or no money on the follow-up. If you'll do the opposite, you'll start out at the head of the pack and stay there. This is the safest way I know of to take the big risks required to grow your business.

If you always market to your house list first, you'll hardly ever miss. From there, it's just a matter of maximizing your return on investment (ROI) for your advertising dollars. How much can you spend, and how much can you make? Always monitor the numbers, making sure they continue to hold out.

If your best customers don't respond positively to an offer, then it's either the wrong offer for your market, or your approach is wrong. Now, you have to realize that even when you get a very nice response from your best customers, when you make the offer to new prospects there will be a falloff in response. That's why if your best customer response is lukewarm, you shouldn't even bother making the offer to a "cold" list. You need a strong, enthusiastic response from your best customers to overcome the dilution you'll experience with a cold list.

Your best people will respond to almost anything you do, so move forward only with the most popular offers. Your goal is to attract more people who are just like they are. It's all about ROI -- money spent versus dollars made. P.T. Barnum, the great marketer, once said, "Most people are trying to catch a whale by using a minnow as bait." They're hoping for results all out of proportion to their efforts. But to really make money, you have to be willing to spend some money.

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