This is Risky…

Sometimes a loss leader can be risky - but is it worth it?

A Loss Leader is one of the more powerful brand building strategies that any business can employ.

And statistics, for what they’re worth, usually bear out that you’ll always earn more money per customer AND create a larger customer base if you’re prepared to sell a product for no profit, or even a LOSS in order to create a relationship with a customer.

But it’s Risky.

It’s Risky for a few reasons:

1 – To sell at no profit or a loss means that you’re sometimes selling low-value stuff.

Right? You’ve seen the Big Box Retailers offer crazy deals on low-end electronics in order to get people in the door. The problem is, the offer is usually “LOW END”. And the customer experience that follows doesn’t, shall we say, build the most loyalty.

2 – Also, it means that you MUST have a system to follow up with those new customers – meaning, you need to be ready to walk them up the “Ladder of Intimacy” to create future sales.

“Ladder of Intimacy?” Picture one of those A-Frame Ladders. You’re on one side and your customer is on the other.

At first, you’re far apart and low on the ladder – meaning, you’ve offered SOME value, and you’ve only asked for a LITTLE bit of a financial commitment for it.

The trick is getting them to climb that ladder. Each rung is a more expensive offer, but it also brings YOU closer to that customer because you’re providing MORE value as you climb together.

Sexy, eh?

The problem there is, the first thing you’re offering (because you need to keep it inexpensive for cash-flow reasons) is also probably of lower value to the customer.

There’s the rub.

What if you could invert the ladder? What if you could deliver AMAZING value for a low price, and begin your relationship with your customer in a place where they are already confident that doing business with you will result in great things for them?

So, if you’ve ever asked why StomperNet makes free videos to promote its new products, the answer comes from customer comments like this:

“If this is what you are GIVING away, I can’t imagine how good the stuff is that I get when I buy”.

WIN. Profound WIN.

And it works, every time.

This Video is a text book example of how to structure an Inverted Ladder.

In one of my last newsletters, I de-constructed and reverse engineered Frank Kern’s Mass Control Video – it was very well received for one very important reason:

“SHOWING” details, not “Telling” Details.

It’s one thing to TELL YOU how to do something, it’s another thing to SHOW YOU what it looks like, then talk about it why it works after.

This is the definition of Kinesthetic Learning. See it, Understand it, Do it. And it’s why Medical Schools employ that kind of education – because it’s CRITICAL when you’re saving lives.

So, check out the video, and come back here to StomperBlog.com and tell me what kind of VALUE Propositions most appealed to you.

Thanks!

Andy Jenkins

P.S. Here’s the Video Link again.

P.P.S. Next week, it’s all about SEO here at StomperNet….

Advanced SEO, that is.

Stay tuned for a Video from SEO Expert Leslie Rohde. He’s gonna tell you why LSI is lame.

Yes. Lame.

(I love causing trouble).