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Through perfecting and mastering this single strategy you are almost guaranteeing yourself a great result every time you utilise it!

Is this strategy a secret? No! It is a strategy used every day by some of the most brilliant marketers on the planet, and it is one that is going to provide you with the most powerful weapon in generating leads for your business.

Loss-Leader Strategy

Right now I hear you thinking “what is that?” Well the loss leader strategy is one of the most powerful tools for generating new customers. You see the reason is, if a person has never dealt with your business before, then how do they know how good you are? How do they know what it is like to do business with you? How do they know if they are going to get value for money? And how do they know that your business delivers on its marketing promise?

The truth is they don’t! When someone does this they are taking a risk. Naturally most people are averse to risk, and most business owners who do not understand this concept end up becoming a statistic. We all know that 80% of businesses go under in the first five years! What people fail to appreciate is that families are destroyed, years of hard work is lost, and behind these businesses dreams are shattered. Each of these people are mothers, fathers, sons, daughters and grand parents.

We are in the business of inspiring business owners, and providing them with the right information and technology to help them achieve business success. This is the philosophy at the core of our business!

The loss leader strategy is one that allows your client to do business with you, at absolutely no-risk what so ever.

It allows them to come and experience your services or product, without the fear associated with making a bad decision. This is the strategy that successful businesses are using every day.

When business owners first read this, they have an immediate fear through lack of education. This fear is “what if people come to my business, take advantage of this special ‘loss leader’ offer and never come back?” This will definitely happen and the reason why it still works is because the customers that come back, are worth far more then the ones that don’t.

The reason I say this is because as a business owner you need to understand the ‘life-time value’ of your client. Lets say you are own a restaurant, and you make an offer saying “Buy one meal and get one FREE”.

By making the special offer you are getting people to come and experience your business at half the price they normally would. What then happens is when they actually come into your restaurant because they have saved on their meal, they will tend to spend more on drinks, coffees and desserts. The key to this strategy for the restaurant is making this offer available only on the nights that the restaurant is normally not busy.

You see after the person has experienced doing business with you, if that experience was positive then they will want to come back to your business again. Next time they might bring another voucher, or they will buy something that is not included on the voucher. Ether way you have secured a loyal client and in some you have made money in the process. Let me give you another example…

A good example of the loss leader strategy is a little company called Virgin Blue. When they first launched onto the scene in 2000, they offered ridiculously cheap flights to major capital cities. In doing these flights at such cheap prices, they knew the profit at the beginning would not be as much as their competitors, but they knew they would be able to generate a massive client base of people who would now fly more often because it is affordable.

Virgin Blue is very clever in their marketing, because flights that are not as full, you will discover are the cheapest to purchase. Even flights that are busy are most of the time still cheaper then similar flights on other planes. Virgin Blue understand the life-time value of a client, so now they have people who will only fly Virgin due to their experience with the airline. What Virgin Blue did so well was “remove the barrier to entry,” and this is what we are going to teach you to do with your business. What they did that was really clever, was after getting the client to fly with their airline, they ensured that the flights were fun and memorable. By doing this they go along way to making sure the client comes back!

(On a little side note if you look at Virgin Blue, Virgin Mobiles and Virgin Money this strategy is continuously adopted)

Another company that has done this brilliantly is a company called Flight Centre. Flight Centre has the slogan ‘lowest priced airfares guaranteed’. The company is built around this slogan, as they will forgo commissions and profit (sometimes) to ensure they deliver on their promise. The reason they do this is because they know that the client will come back to them and use their services again and again and again. They also know that the future services will be profitable experiences, because once they experienced their service, they would want to come back.

As you can see this strategy has been responsible for turning many good companies into great companies! It is a strategy that is so simple but so effective. You have probably experienced these types of offers, but you did not see it with the marketing eyes.

You may have experienced it at a club that has $2 drink nights on a Wednesday or Thursday night, or when a club has happy hour on a Friday night. The reason they do it is to get you coming back time and time again. Because when you get there, they know you may buy meals, chips, shout your friends, keep drinking after the happy hour finishes, or better yet, come on the Saturday night when it is full priced.

Marketing is an art, and the use of this strategy for growing your business can help you to create that business masterpiece.

The 5 Simple Keys To Ensuring This Strategy is Maximised

• Provide a loss leading service or product that your target market desires
• Provide a time or quantity limit on how long the special offer is available
• Use the loss-leader strategy as a powerful call to action
• Provide a massive bonus that your clients will receive just for utilising any part of your businesses services!

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