How to make $24,000 in 4 weeks with a $10 product, with $250 investment? Attention local businesses!
There are some instant marketing techniques that land you a few new customers very quickly. Well, not just a few. Done right, they can bring in a lot of new customers in just a short period of time. Cross marketing is one of them.
Let me demonstrate how this works with an example:
Anne was having a tough time of it.
As the owner of a small neighborhood gym, she feared the worst when a new LA Fitness mega gym opened its doors nearby. Some of her existing customers left to try out the new place, and she couldn’t sell a single membership to replace them or grow her business.
Anne’s gym was great – new equipment, experienced trainers, and a great atmosphere with convenient hours, but she simply couldn’t compete with such a big chain. Rent, salaries, and other necessities weren’t cheap, and she didn’t have the money to launch an expensive and aggressive marketing campaign.
Her friends advised her to close the gym and get into another business, because she simply couldn’t compete with the marketing power of a big chain.
Or could she?
Anne wasn’t ready to give up her dreams. She needed to find an inexpensive marketing solution that could achieve big results in a short amount of time.
She chose something very simple and incredibly powerful: she asked other people’s clients!
Within a month, her gym was at full capacity, all of her possibly memberships were sold out, and she had a 2-month waiting list of interested clients anxious to sign up.
Would you like to hear how she did it? Of course you do!
Who are your potential partners?
Anne was looking for local companies who have the same client base as her own targeted customers, but that weren’t competitors. She found the following:
Bars, restaurants, breakfast places, coffee shops, spas, hairdressers, and tanning salons.
She wrote down the addresses of possible cross marketing partners in her service area, and drove to them to talk to the business owners. She wanted to ask their help, but…
Nobody likes to give away their own customers, so Anne had to come up with a strategy that would make them want to help her instead of simply sending her away. The strategy had to be a win-win for both parties; otherwise it wouldn’t work. Here was her offer:
If the manager or owner of the business would allow her to place flyers in their business location(s), she would, in return, give them a coupon allowing them to participate in a 12-week training program – for free. The business owners could even give it to an employee, friend, family member, or even a preferred customer, if they didn’t want to use it themselves.
In addition, Anne agreed to advertise the partner businesses in her gym with flyers or brochures.
After speaking with all of the potential partners in her service area, she had agreements with 3 restaurants, 2 coffee shops, a tanning salon, and 2 hair stylist shops, all willing to display her flyers in their businesses in exchange for her doing the same in her gym.
Total cash investment so far for Anne: $0…
She came up with the idea, and she went out and found the partners. So now what? What should she put on the flyers? What special offer would bring new customers in that would let her compete with the big chain gym?
Here’s what Anne came up with:
She offered a special 12-week group workout program where participants would lose at least 5 lbs. of body fat, guaranteed. If they didn’t achieve this goal, they would get their money back. If they made all the sessions and followed the directions of their trainer, and didn’t hit this goal, they would get their money back in full. They couldn’t go wrong! She also included the price of the 12-week program, and included one other little bonus:
Customers of the business she had partnered with could get their first two weeks of the program for free, but only if they called the included number right away, or brought the flyer into the gym by the cut-off date.
That’s it. That was the information on the flyer.
She went to a local print shop, printed 10,000 flyers at a total cost of $250, and distributed 250 per week to each of her partner businesses. She asked her partners to provide a flyer to each customer when they left their business.
That’s all she had to do.
Cashing in on an idea
So what kind of results did Anne achieve? In her first week, she received 36 calls, 49 in the second, 38 calls in the third week, and 57 on the fourth, for a total of 180 people, so a response rate of nearly 2%.
Of these 180 respondents, 120 signed up and took advantage of the “2 weeks free” promotion. 86 continued on after the free 2 weeks were up, and not a single one asked for their money back. In fact, 38 of the 86 participants signed up for an additional membership package after the 12-week program ended so that they continue their workout routines.
So what’s the dollar value? If Anne sold one workout session for $10, with 3 sessions per week over 10 weeks (let’s not forget that excellent bonus of 2 free weeks!) that quickly adds up to more than $25,000+ (3 x 10 x 86 x $10 = $25,800) within 4 weeks! And all that with a $250 investment and some time building partnerships with a few other business.
This was just applying the cross-marketing tool. There are hundreds of other marketing tools you can use to boost sales, improve profit margin, and maximize customer retention. Watch upcoming articles for more great tools and techniques!