small business consultants

Mon, 01 Dec 2008 11:19:28 GMT

For many years it has been claimed that Jay Abraham has been the highest paid marketing consultant in the world (and as he charges $5,000 per hour and a slice of the extra profit created it is is not hard to believe.)

Jay Abraham's "Three Ways To Grow A Business" is famous for its powerful simplicity: 1. You increase the number of customers 2. You increase the average transaction value 3. You increase the number of times the customers buy per year.

Nearly everybody makes the mistake of focusing on number 1, increasing the number of customers and ignores the opportunities available from the other two methods.

Mark Joyner has identified an alternative approach in his book "The Great Formula" 1. Get your message in front of more eyeballs 2. Get more money per eyeball 3. Sell more products to your customers on the back end.

This model is a little more complicated because it brings the marketing issues into the equation together with your conversion rate of turning enquiries into sales.

In an Internet Marketing world we can see that the eyeballs relate to the number of hits a website may get. Many of those people are going to click away, either because the page wasn't what they thought, they have seen a better offer elsewhere, they are not convinced or they are not ready to buy.

But some will buy so the more money per eyeball is a combination of the number of people who buy and the amount of money they spend divided by the number of eyeballs. So you grow by a) persuading more customers to buy b) each customer spending more money

This is effectively a restatement of the first two items in Jay Abraham's 3 Ways To Growth model but it is a different way of looking at it. Website traffic that isn't relevant and not interested in what you are selling is a waste of any time and effort spent in attracting it.

Yes it will increase the number of eyeballs but because the traffic won't convert into sales, the money per eyeball falls. The last point in Mark Joyner's formula is vital - making extra sales to your customers after they have bought once.

Although increasing the back end is a key Jay Abraham concept, his three ways to grow model does not make this factor as explicit. If you create a business which consists of spending money trying to attract potential customers, spending more time and money converting those prospects into customers and only have a one time sale, you have a very tough business.

The key message is that the profit is in the back end - the sales you make to your customers after their first transaction and after you have recouped all the costs involved in your lead conversion and lead generation.

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Author Bio:

Tom Clifton is a business strategist who specialises in turning small/medium businesses around. Catch Tom's words of wisdom on business strategy and all things business at Small Business Profit

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Mon, 01 Dec 2008 11:19:15 GMT

For many years it has been claimed that Jay Abraham has been the highest paid marketing consultant in the world (and as he charges $5,000 per hour and a slice of the extra profit created it is is not hard to believe.) Jay Abraham's "Three Ways To Grow A Business" is famous for its powerful simplicity: 1. You increase the number of customers 2. You increase the average transaction value 3. You increase the number of times the customers buy per year. Nearly everybody makes the mistake of focusing on number 1, increasing the number of customers and ignores the opportunities available from the other two methods. Mark Joyner has identified an alternative approach in his book "The Great Formula" 1. Get your message in front of more eyeballs 2. Get more money per eyeball 3. Sell more products to your customers on the back end. This model is a little more complicated because it brings the marketing issues into the equation together with your conversion rate of turning enquiries into sales. In an Internet Marketing world we can see that the eyeballs relate to the number of hits a website may get. Many of those people are going to click away, either because the page wasn't what they thought, they have seen a better offer elsewhere, they are not convinced or they are not ready to buy. But some will buy so the more money per eyeball is a combination of the number of people who buy and the amount of money they spend divided by the number of eyeballs. So you grow by a) persuading more customers to buy b) each customer spending more money This is effectively a restatement of the first two items in Jay Abraham's 3 Ways To Growth model but it is a different way of looking at it. Website traffic that isn't relevant and not interested in what you are selling is a waste of any time and effort spent in attracting it. Yes it will increase the number of eyeballs but because the traffic won't convert into sales, the money per eyeball falls. The last point in Mark Joyner's formula is vital - making extra sales to your customers after they have bought once. Although increasing the back end is a key Jay Abraham concept, his three ways to grow model does not make this factor as explicit. If you create a business which consists of spending money trying to attract potential customers, spending more time and money converting those prospects into customers and only have a one time sale, you have a very tough business. The key message is that the profit is in the back end - the sales you make to your customers after their first transaction and after you have recouped all the costs involved in your lead conversion and lead generation.

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Author Bio: Tom Clifton Tom Clifton is a business strategist who specialises in turning small/medium businesses around. Read and comment on Tom's thoughts on business strategy and making your business fly in these tough market conditions at http://www.small-business-profit.co.uk

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