When you’re a marketer, there’s lots of things you should know.
Here’s one of ’em…
I heard this one from a top producer a long time ago and I don’t recall who said it.
It goes like this…
“Amateurs focus on the front end. Pros focus on the back end.”
Translation: If you want to become a pro (meaning marketing for money full-time), you should be more concerned with the lifetime value of a client rather than the money you’ll make from the first sale to a customer.
The key to a successful business is repeat sales to long-term clients.
It doesn’t even matter how much money you bring in on the front end.
I remember I went to a huge year-long marketing conference back in ’08.
The event wasn’t a year long, there were quarterly events that were 3 days long.
The guy that put it on had been making millions of dollars every year in the dating niche.
He was paying out 200% commissions to affiliates on his front-end product.
At first glance, that not only seems ridiculous, but sounds like pure marketing BS hype.
But it is, in fact, absolutely true.
Now you may be asking yourself “Self, why in heck would anyone agree to pay out twice as much as
they’re taking in?”
Well, it’s because the guy in question was making so much money on the back end that he could easily afford to pay out double commissions on the front-end.
He knew exactly what the long-term value of his customers was.
When you know that, you know exactly how much you can spend to acquire a new customer.
And that’s when your business becomes pure science and numbers. X number of customers = Y amount of money over Z period of time.
That right there is a million dollar equation.
But most marketers never get to that point.
They’re still worshiping at the altar of Guru-ism.
Following silly plans with no numbers and hoping that someday someone will like them enough to give them money because they feel like they know and can trust them.
Learn your numbers.
By tracking everything.
There’s a cool tracking system built right into your marketing tool suite.
It’s easy to set up your account.