How Much Is Each Recruit Really Worth?
Wednesday, May 28th, 2008I was conducting the regular live weekly
power prospecting system basic training call
last night and while I discussing the details
of one of my favorite marketing techniques -
newsletter marketing & one bright student made
a comment that you need to hear.
She said . . .
“After doing newsletter marketing your way I
ended up doing it at a profit for the first
time, but I only made $10″
And she didn’t say it full of excitement, so
I stopped the call right there to explain
something incredibly important to everyone on
the line that I’m going to explain to you
right now.
The internet has many people hypnotized. Many
new marketers think that unless they make a
killing in ever advertising campaign they’re
doing something wrong when, in fact, they
could be creating huge success without even
knowing it.
Here’s what I mean.
In any business the most expensive portion is
the acquisition cost of a new customer. In
network marketing this correlates to the
acquisition cost of a recruit.
Many of the best marketers in the world will
actually go deep in the whole to acquire a
new customer because they know something that
the general public doesn’t.
If they can literally buy a customer and have
systems in place to convert a portion of
those customer into multiple purchase buyers
they will overcome the initial cost of
acquisition and still create great profit
margin.
For instance, a typical situation may be that
the company has a front end product that cost
$97, but on average it cost them $150 to get
each one of those $97 customers, so they are
actually paying $53 per customer on the front
end.
But they know on the backend over the course of
a year each new customer they create is worth
on average $300 so paying $53 to acquire a
customer is actually a smart move over time
because in the end they actually make $150
over time.
The key is having systems in place and
knowing how to do the math properly to know
what’s called the “life time value of a
customer”.
Many more multi million dollar business are
built this way than you know. The money
is not on the front end it’s extracted
over time.
In network marketing you would equate this
situation to the acquisition of a new
recruit.
The money you really earn, in most
situations, is not on the initial fast start
that’s paid out immediately, but in the
duplication of a subset of those you recruit
over the course of time.
Again systems are key to this process.
I say all this to say to you . . .
If you are making a profit on the initial
acquisition of a recruit or customer jump for
joy because if you just keep that system
rolling and a least breaking even you’ve got
a priceless vehicle for wealth that you may
not even be aware of.
It doesn’t matter if that income is $10 or
$100 or $0.01 on the front, if you’re in the
green you keep that sucker running as long as
you can and you will create a thriving
organization.
Where others go wrong both in business and
network marketing is not understand the power
of having a backend duplication or profit
system and simply try to survive on what they
make on the front end.
This is much more risky than losing money on
the front and having a reliable system for
backend conversions, but on the surface it
would appear the opposite.
Remember this.
Work just hard enough to break even on the
front end. Keep the recruits coming, and put
all you got into creating and using
duplicable systems on the back end and it’s
only a matter of time before you’re rolling
in the dough.
To the top,
Daegan
“The King Of Never Calling A Single Lead”
P.S. 429+ personal push button recruits and
an autopilot downline of over 7071+ means two
things what I’m doing works like crazy and
it’s rabidly duplicable. Crush your phone, do
this instead: