Sep
02
We Get Letters: Small Business Marketing for the Future
I warn you, this is going to sound like self-indulgent drivel, but there’s a really, really good lesson at the end. Just sayin’.
Over the last few days, Havi and I have been getting letters from people saying that the price of the VIP package for the course we’re offering is too cheap. People have been pointing out that we’re charging only $80 an hour for personal coaching. Since we normally charge about double that, you’d think that wouldn’t be very VIP, would it? And isn’t a VIP package supposed to be a big fat coup full of exclusivity and scarcity and all that filthy marketing whore stuff?
Good point, and I’ll address it here.
To the outside observer, cutting our rates for this sounds kind of dumb. Where is the exclusivity in a VIP package if we’re slashing our rates? But there’s method in the madness.
This is the first course I’ve ever put on, and it’s the first course Havi’s done with me. Unless one of us sleeps with the other’s husband, it’s pretty likely we’ll do it again. Odds are, we’ll put out a bunch more courses and help a bunch more people and make a bunch more money and gain a bunch of new fans. Wicked, right?
But right now, from a course standpoint, you don’t know me from Barney the Purple Dinosaur. You do not know who I am. You don’t know if I’m going to call in high off my head. You don’t know if I’m going to call in at all. You have no testimonials. You have no social proof. There is absolutely nothing on earth to make you think this is going to rock.
A little aside on Small Business Marketing 101:
Early adopters are the people who are ready to go right now. They’re risk takers, and they usually have money. They were the first people to buy the iPhone.
Sneezers may or may not be early adopters, but they like to tell their friends. In the case of the online world, they often have sizable platforms from which they can spout how awesome something is. They were the people who blogged about the iPhone.
If you’re promoting something new, you want to focus your marketing efforts on the sliver of the universe where those demographics intersect. Get the early adopters who like to tell people what they’re up to and bing, bang, boom, you’re a fucking millionaire.
Back to my story.
Early adopters make me money NOW, and that’s good. Middle to late adopters make me money LATER. That’s also good. So how do we woo both groups?
Encourage early adopters, then tell the middle and late adopters about all the early adopters that already whipped out their Visas.
In this case, here’s the logic: (It would probably behoove you to read this and see how you can apply it to your own business.)
- 1) Create an exclusive package, one that only eight people can get in on.
- 2) People with the desire and financial means to be among that group do the math. They realize we’re offering consulting for eighty bucks an hour.
- 3) Those people get on this like white on rice, knowing there are other smart people doing the math as well, and they’re loathe to lose their spot.
- 4) We come out and say that the most expensive package sold out in 36 hours. (Which I think it did, by the way. Havi’s in charge of the admin stuff, so I can’t say the exact hour or whatever.)
THIS IS THE IMPORTANT PART!!!
Next time we run a course, we can say that the last time we did it, the VIP option sold out in 36 hours. Ideally, we back this up by linking to where we said it the first time.
We then look credible and highly in demand. Next time we run a course, people will be even faster to take slots because they never know when it’ll sell out.
We lose a little cash right now to take advantage of multiple marketing opportunities in the future. Plus we’re still making eighty bucks an hour, which isn’t exactly going to qualify us for food stamps.
Now go away and think about how you can spend or forego money now to make a shitload later.
Holy crap…you used the behoove in a sentence! Genius.
Oh…and the rest was good, too. ;-)
To be totally honest, I often find curse words to be a turn-off. But in your case, your authenticity and honesty shines through. = )
Great post and insightful logic for those who don’t understand the value in having a reputation.
You are bound to be sold out for every event in the future thanks to this smart strategy.
Exclusivity + Bargain + Satisfied customers will always = success
Now for me to finish arranging that for my new online shop.
Based on the logic of their letters, the information you write about here is too good to give away also. We should all be paid members of your website/blog. Each post is worth big bucks.
I’m glad you aren’t listening (yet) even though it might behoove you to.
Although it could be argued that this flower attracts a lot of bees for you to make some honey with.
Another valuable lesson at Itsy school.
Speaking as someone who *did* whip out the Visa…um, you *are* going to call in, right?? ;)
What do you think, Naomi? Does it behoove us to actually call in? Haven’t we done enough already?
Oh, right, the calls are the fun part.
This post has totally inspired me to end all of my posts with “Now go away”. It’s the classiest call to action ever. The anti-call to action. The call to inaction. Take that, marketing whores. Reverse psychology, baby.
I’d say more (and indeed it might behoove me to do so) but now I really need to go away and edit the end of all my posts to reflect my new “Now go away!” strategy.
Aaagh, the wicked marketing plan! ;)
I’m offering opening discount for my service, but didn’t think about limiting the # so small.
Looking forward to getting started, but I hope we never have to use the word behoove in the calls.
What is with you people and “behoove”? It’s a fantastic word. You’re such a bunch of haters.
I promise I’ll call in. All six days, too. That may be the only work I do for the rest of the year, but I will drag myself to do that at least. :P
Naomi, I smiled for almost the entire article. My brain has not ran this fast in YEARS! Thank you for all of your insightful articles, they really are a blast to read and help tremendously.
ps. behoove is fantastic :)
I’m about to launch a workshop and decided to underprice the value of it for the exact same reasons. I don’t have a number at which I’m going to cut off the introductory price, but it will go up at some point (most likely as soon as I have some kickass testimonials).
Thanks for the validation! (I love feeling validated.)
Truer words never spoken. This approach works wonders. Flawless, really. And, it’s not as manipulative as it may sound, as long as you really are delivering a quality product or service. And, obviously, you two are.
That is a great strategy. I loved the post, and my two favorite lines were “Just sayin’” and “you don’t know me from Barney the Purple Dinosaur.” That was hillarious.
As usual, this makes total sense and it is a post to be proud of. Of course you’re in love with it! Rightly so.
And it speaks directly to me. But I erased the rest of my comment, so that’s all I’ll say. It’s an effective post.
OK, maybe I’m just old-fashioned but…when I buy something or sign up for it, it’s because I actually *want* it. Not because a bunch of other people wanted something like it in the past.
Sure, I might buy it quicker if I thought it would sell out. But still…only if I actually wanted it in the first place. So all you’ve gained there is quicker sign-ups. But who cares? Money is money…today, tomorrow, what is the difference?
What so many of us appreciate, Naomi, is that you’re so candid about what you’re doing and why. It’s easy to just ride coat-tails and see it in action.
Of course, actually using the ideas is another matter entirely, but that’s what SMfW is for.