Information Marketing Secrets

Information marketing is simple and easy.  Even then, only a few people who set out to become an infopreneur end up being successful.  There are many reasons for this outcome.  Some of them are obvious.  They give up too early.  They are not willing to work hard.  They focus on shortcuts instead of learning the correct approach.

Even if you put your head down to focus on achieving success as an infopreneur, you may not succeed without some advanced information marketing secrets.  In this report you’ll learn four of the most profitable secrets that hundreds of information marketers have applied to create a great impact.  Use them wisely and well to achieve information marketing success.

1. Focus on lifetime value

This may not seem like a very advanced secret, but it is incredibly powerful.  Your information marketing can scale unimagined heights if you correctly implement this simple concept in your business.

Lifetime value is a measure of the overall value of your customers over the duration of their association with your business.  This means that if a customer buys a $20 book three times in a year, and continues to do this for 5 years, that customer’s lifetime value is $300.

There is an interesting dimension to lifetime value that is created by the bond of loyalty.  A happy customer often comes back to buy more from a business.  Think about how often you return to your favorite restaurant or bookstore or gas station.  If you sell a $19 ebook to people, and 10% of your buyers become repeat customers, then you are tapping into this powerful profit boosting phenomenon.

While it costs the same to attract a new buyer to your information business, the 10% of loyal repeat customers will generate much more profit for your business over the lifetime of their association with you.  A happy buyer may sign up for a coaching program which charges $150 every month.  If they stay in the program for a year, the lifetime value of this customer shoots up from $300 to $1,800 from that single additional purchase.

Lifetime value matters because you can make other decisions about marketing budgets and advertising efforts based on it.  It is easy to invest $50 into acquiring new customers if you know that each one will be worth $100 or more to your business over time.  This knowledge gives you leverage in marketing your information business more aggressively without taking any additional risk.

Information Marketing Secrets

2. Remember back-end profit

Another advanced information marketing secret is understanding that the real profits from selling information products come from follow up selling.  These are popularly called ‘back-end sales’ because they happen on the back of the initial purchase.

The first time a new buyer purchases an item from you, the profits are small.  This is because you must invest some money into advertising or marketing to attract these buyers to your business.  Once they are in a buying relationship with your business, you are able to offer them additional products and services for sale without spending much.

If your $19 ebook is what introduces a new customer to your business, your profit from that sale may range between $5 and $10.  With a back-end sale of your $150 per month coaching program, you boost the profitability of that customer massively.  Convincing a happy buyer to spend more money with your business is easier than getting a stranger to take a chance with you.  That is why every smart information marketer has a range of products and services to offer their new customers.

3. Know your cost of customer acquisition

Do you know how much it costs your business to attract a new buyer?  You must calculate this figure because it has a significant impact on your marketing strategy.  Taken along with lifetime value, this number can transform your information marketing success.

If you know how much a new customer will be worth over the duration of your association, then you can set yourself a generous limit to invest into acquiring a new buyer.  Let’s assume that your average customer lifetime value is $50.  You can then safely invest $25 into gaining a new buyer, secure in the knowledge that you will not lose money.

This also means that you do not have to set a marketing budget.  When every dollar that you invest into gaining customers earns you two dollars in return, you have an unlimited marketing budget.  Can you imagine how this can transform your competitiveness?  No other business will be able to out-spend you.

4. Create a real business

This should be obvious, but is often overlooked by information marketers.  Many infopreneurs build a money-maker instead of a business.  They create a single ebook and spend time and money selling it.  Their profits are smaller, and there can be no break in their marketing efforts.  If they stop advertising, sales dry up and profits plummet.

Sustainable businesses are structured differently.  You build them on a series of processes that integrate into a system.  You will have processes that attract new buyers, others that fulfill their purchase, and a further set of processes that handle customer care after the sale.  Each of these is managed, modified and improved over time.

With a portfolio of related information products, a follow-up selling process ensures that each buyer is offered other relevant items.  This boosts profits through back-end sales.  Everything runs smoothly and can be automated using technology.  This frees up business owners from tedious tasks, and allows them to relax and enjoy their success.

If you implement these four advanced information marketing secrets in your business, you can enjoy greater profitability with less effort and stress.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s