How The Ultimate Insiders Strategically Go About Attracting New Customers!

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| Mark Newsome | Featured Posts
Attracting new customers
How The Ultimate Insiders Strategically Go About Attracting New Customers!

  (Even During A Nagging Recession!)

Have you also noticed especially during a nagging local or national recession. How a staggering 95% of most profit seeking entrepreneurs.

Place all of their emphasis on only attempting to generate a profit on the initial front end of their sales funnel. Huh? Meaning they invest a ton of money and other extremely valuable resources. Provided they can do so. On systematically attracting new customers on the initial front end of their sales funnel.

And often times. They can position themselves to make even more money often for a fraction of what it would typically cost. Simply by shifting their long term marketing focus on the back end of their sales funnel. Or one or several of their top JV (Joint Venture) partners sales funnels. Have a closer look at an instance or two.

Of Course You’re Steadily Wondering What Are Some Good Marketing Ideas? (Right?)

Great question. First of all are you currently familiar with the marketing term “back end?” Basically when you or your major competitors focus on every sale or some form of income or compensation. Which is generated after the initial first sale. All those sales or additional income generated.

It’s often referred to as the back end of a company or services sales funnel. And some businesses or services literally make 60-80% of their long term gross income from the back end.

Case in point. Take a closer look at the major premium movie channels like HBO (Home Box Office) or Showtime. Often they will pay a superstar entertainer like Lady Gaga or Justin Timberlake or Garth Brooks etc.

These mega stars can and are often paid anywhere from five to ten million dollars for a single concert appearance. Say what? Who can blame the entertainers for accepting such an extremely lucrative pay day, right? Would you say no? Me either.

But let’s have a closer look at the situation. And see “if” or “why” the front end math really makes economic sense for all involved.

So Why Or How Does The Math Really Add Up?

The average venue for a live concert is typically 20,000 seats. Obviously some stadiums hold up to 80,000 fanatical fans. But these stadiums are the exceptions

not the rule.

So let’s say Justin Timberlake plays a concert with a 20,000 seat arena. If you divide $10,000,000-(ten million) by the average 20,000 seat stadium. This would mean the average ticket price would have to start at $500 dollars each. Say what?

And obviously this is not the case, right? Tickets may actually sell for as little as $12.50 dollars for really cheap seats. The ones located far away from the stage.

So the question begs asking. If even a superstar like Justin Timberlake or Garth Brooks can barely gross between $500,000 – $700,000 dollars per  live show. (As if this isn’t big money.)

Provided the average arena size is somewhere between 5,000 -20,000 seats. Why in the world would mega successful corporations like Showtime or HBO pay a clearly bloated price of anywhere between $2-$10 million dollars to these stars for a single show?

Obviously they can’t earn that much in a single night, whenever they play the average size arena. Right? So let’s take a closer look at the marketing madness behind both Showtime or HBO’s generosity.

This Is How And Why The Right Lead Magnets Make All Of The Difference!

So you can well imagine whenever HBO or Showtime announces via a ton of advertisements. The exclusive right for one night only. Garth Brooks fans can tune in via Showtime or HBO and watch them perform live via some 50,000 -80,000 seat arena. Say what? And watch them delight their fans worldwide.

Believe it or not. On average a staggering 3-7 million previously non subscribers of either premium (paid) services. Rush to order it in order to catch this one night event.

And typically the one time cost for this type of PPV (Pay Per View) event is usually anywhere from $39-$69 dollars. And anywhere from $2- $10 million immediately goes to the superstar entertainer.

And another X number of hundreds of thousands of dollars go to the constant 30-60 second ad spots announcing the event. And whatever’s left goes to the premium channel. However, contrary to what many believe. This is not the end of the marketing story. It’s actually only the beginning. Say what?

This Is How You Or Your Major Competitors Consistently Benefit From The Back End Of Their Sales Funnels!

Because as soon as this star studded event comes and goes. Guess what? A certain percentage of these new subscribers, remain active subscribers on average from three to 48 months. (Some longer some shorter.)

But whatever amount of time these new subscribers stick around. The average cost for these premium services is typically $14.00 per month. So if (roughly) 4.5 million new subscribers or more pay either HBO or Showtime $11.99 – $14.99 per month for a maximum of 48 months.

(You can do the math.) The point is. This is where these extremely marketing savvy premium channels make the bulk of their money.

Whenever they pay these superstar entertainers big pay days for a single show. These superstar entertainers are in effect proven lead magnets. But let’s take an even closer look. And see how these premium channels can work with up and coming celebrity entertainers.

Who are on the verge of becoming superstars. But their careers haven’t quite exploded yet. And as a direct result. They can definitely afford to be a little more creative and flexible.

Meaning: HBO or Showtime could approach them (or their agents!) with the following type of back end loaded marketing proposition. Say it’s HBO. They’ll gladly pay the budding superstar hip hop or up and coming R & B (Rhythm & Blues) star the following way.

Lots Of Times Successful Marketing Strategies Or Tactics Can Be Situational In Nature!

Since the upcoming star or group hasn’t quite reached superstar status just yet. But clearly from their current record sales and concert attendance numbers. It’s merely a matter of time. (All things remaining equal.)

HBO will gladly pay them anywhere from $750,000 to $1.5 million dollars for a single show. Clearly these numbers are less than the major superstar acts would receive upfront. Correct?

However, the HBO or Showtime execs point out to both the agents and the up and coming performers. They’ll gladly pay them 25 or X% of the long term gross back end of their sales funnel. Huh?

Meaning: Based on how many new subscribers sign up. As a a direct result of these up and coming acts appearing on their channels for a single concert event.

And depending on how many of them upgrade to the monthly service and what they pay per month and the number of months they keep the service etc. HBO or Showtime will gladly share 25 or X% of that revenue with the up and coming artists. Either way, they’re still earning a ton more for a single concert than they would ever normally do.

Without such a marketing arrangement in place. Correct? Absolutely. So can you now better appreciate how the ultimate insiders strategically go about attracting new customers? Even during a nagging local or national recession. Say yes.

If You Look Closely Enough Your Marketing Eyes Can Usually Spot The Previously Untapped Marketing Opportunities! (Don’t You Agree?)

P.S. Now as is customary during this part of our show. Please share your extremely valuable comments (in the comments section below)
that you can apply to your business, product or service in the next 30 days or less!

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