Prospecting With Short Term Psyche
Continual focus on the 7 Ps in our small internet business is very important.
Getting the Passion, Problem, Profitably priced product, Person, Pathways to prospects, Promise, Presentation are all important. Finding Pathways to prospects is often one of the most misunderstood of the seven Ps.
This step could actually be called “Profitable” Pathways to Prospects.
An important decision in a web businesses business plan should be whether the prospecting process is profitable or not. Many websites lose money in the process of acquiring the names on their list.
Take an example. Let’s say that a web business sells clothes washing soap and uses Pay Per Click with Google to acquire names. Assume they bid for the phrase “soap.” and because there are many companies bidding for this phrase the company has to pay $5 per click.
Assume that 20% of those who click… buy soap. This means getting a customer by PPC costs $25 for each sale.
If the sale of the soap earns only $10 as an example… the company losses $15 per sale.
This is not a good formula for success!
However many companies have a marketing system to sell other products to their new customers and they analyze long term sales results to make decisions on how much to pay for a new customer.
In this example assume that the soap company also sells washing machines and soap refills.
Their analysis shows that out of every 10 new customers, one buys a washing machine that creates $200 earnings. Four also buy three soap refills a year (with $10 earnings). This means that if 100 people click on the site, the cost is $500 ($5 per click). 20 buy soap that earns $200. Two later later buy washing machines ($400 earnings) and the 4 buy three soap refills (earning $120).
Now the company has earned $640 in the first year on the original $500 spent to obtain the customer… plus they have the potential for more sales to these new customers in the next year.
This is one way to build a web business.
However… a better goal is to earn more then the cost of getting the customer on the first sale. The immediate income on new customers is more than the cost of obtaining the customers.
For example our EcuadorLiving site earns more in its initial subscription sales than the cost of operating the prospecting system at that site.
There are three reasons for this:
Prospecting Profit Reason #1: Our focus is tight and unique. This means there is not a lot of competition bidding up the price of our phrases. This keeps our pay per click costs down.
Prospecting Profit Reason #2: Our focus is tight and unique. Our Passion, Person, Prospecting Path, Promise and Presentation all are authentic, honest and hold together. We really are enthusiastic about and experienced in Ecuador. We use phrases that only attract potential readers who really are interested in Ecuador. Our products accurately deliver what we promise. This integrity of the 7 Ps pays off. This integration reduces the number of disinterested people who click. Our passion and experience show up in our presentation so we get a high conversion rate. Fewer people click but more people buy!
Prospecting Profit Reason #3: We combine PPC and SEO and always look for short term national psyches to appear.
Search engine optimization provides free prospecting especially when it is related to content you are being paid to provide.
Lesson 15 looked at Capturing the National Psyche and how this helps the process of finding problems that potential clients feel.
However there is a way to tap into very specific, very short term, problems that are likely to be in the psyche of those who may have an interest in the focus of our business as well. At the time I prepared this lesson, I just tapped into a short term national psyche we can use as an example.
This turned a potential negative into a positive and increased the power of my free SEO.
Our www.Ecuadorliving.com site helps people who want to come to, learn about and live in Ecuador. Ecuador had an electricty shortage. This was a negative as the blackouts might persuade some people not to come to Ecuador.
However this problem increased our readership instead because we used the problem to tap into a short term psyche that many people who were interested in Ecuador had.
The way I tapped into this was to write several articles about Ecuador’s electricity shortage.
The articles I wrote were:
November 7 – Ecuador Electricity Shortage at http://www.ecuadorliving.com/2009/11/07/ecuador-electricity-shortage.html
November 9 Ecuador Electrity Blackouts at http://www.ecuadorliving.com/2009/11/09/ecuador-electricty-blackouts.html
This resulted in a good (#2) Google ranking for the phrase Ecuador Electricity shortage,
Ecuador Electricity Outage (#1)
and #10 for the phrase Ecuador Electricity Blackouts.
Ecuador’s electricity shortage was important news for those interested in Ecuador. My guess was that many people interested in Ecuador would be Googling the phrases above. When they did… there was a good chance that they would be introdcued to our site.
So Ecuador Living lost a few readers who were afraid to visit Ecuador because of an electrity shortage. At the same time we added more readers through connencted-to-the-current-times SEO, who will vsit Ecuador in spite of the shortage or at a later time. These made up for and perhaps surpassed the loss.
Pay Per Click can provide an evergrowing client base for your web based business… but one must always ask…”at what cost.” SEO can incease that client base… the more SEO additions the better… especially when they come from a well tuned phrase that taps a short term national psyche.