Tips For Life

Tips For Life – Online Business Edition

Danny Margulies.Courtesy of Danny Margulies by way of Business Insider
Danny Margulies.Courtesy of Danny Margulies by way of Business Insider

I’m starting a new post called tips for life to, sort of, highlight stories that help me get a new understanding on how the world works and give tips and tricks to help manage my life.

These stories could be anything from reaffirming an old saying as true to a story that turns conventional wisdom on its head.

In this episode I highlight the story of Danny Margulies. Mr. Margulies has an online business and was struggling to make it work.

But after following four unconventional steps he turned his bad fortunes into good ones and made $67,000 in five days.

Wanna know his secret? Thanks to Business Insider, here it is:

  1. The reverse discount.   The reverse discount goes against everything conventional businesses do.   For years companies like J.C. Penny and Macy’s (among others) would promo huge holiday sales to drive business.  But Margulies noted, those business have destroyed themselves by training customer to wait until, let’s say, Black Friday to do all their shopping. What invariably happens is businesses need to offer sales more often during the year diluting their brand and business.

The reverse discount provides value to your brand by offering it at a low price when it debuts and telling customers who line up first will get the discount and those  who wait weeks or months later will get the full price.  Software developers have been doing this for years.  It is most commonly used as donation incentives for sites like Gofundme.

Margulies claims this is was got him so much money in such a short period of time.

On Monday, I sent out an email letting my readers know that I’d be raising the price of my course from $297 to $497. They had until Friday to buy it at the original price.

This approach creates the same benefit as a discount — it gives people a reason to buy right away — but with none of the drawbacks.

Far from devaluing and cheapening your product or service, the Reverse Discount makes your offer appear more valuable, since the price is going up instead of down.

The Reverse Discount doesn’t slow down future sales either. If anything, it will speed them up because people know you are apt to raise your price at any time. (Since launching my course in 2014, I’ve raised the price on 3 separate occasions, and my business has continued to grow the entire time.)

And all of your customers will be happy that they got in before the price increase. So everyone wins.

  1. Create urgency to entice people.  With the reverse discount it is important to limit the time the product will remain on sale for the discounted price.

Rather than having no deadline — or having a BS one — you can parlay your Reverse Discount to getting your customers to buy sooner rather than later by creating true urgency.

This was one of the key strategies behind my $67,000 week. I set a deadline for the price increase — then I stuck to it.

When I received emails from latecomers, I didn’t budge, even though I felt bad about it (and could have earned thousands of dollars more in the short term by making exceptions).

  1. Create “case studies” to prove the value of your product. People want proof they are getting a good deal and that your product has value. The best way is using a “case study”.

…your readers don’t care much about you. They’re much more interested in hearing from your previous customers. You’ll get more sales by showcasing their successes than you will with 100 marketing gimmicks.

So I emailed a few of my successful customers and asked them if they’d be willing to let me write about their experiences. Practically all of them said yes.

Then I called to ask them about their results and stories. I took lots of notes. I also asked for a couple of pictures of themselves, as well as screenshots of their results.

Then I wrote a blog post about each person and emailed it to my readers.

 

  1. Combine steps 1-3 and put it in an email and remember – don’t over complicate things. Margulies says he instead of sending out tons and tons of emails over a 30 day period to attract customers, he would send out just six emails in five days.
  • Email #1 explained my offer (i.e. “This is the last week to buy for $297”)

  • Email #2 offered value. I gave away a useful tip from my course.

  • Email #3 showed my readers case studies of successful students.

  • Email #4 contained the answers to the most frequently asked questions people have about buying.

  • Emails #5 and #6 were “final reminders” that amped up the urgency to buy my course before the price increased. But they also contained a lot of motivation and additional tips that would help readers even if they chose not to purchase.

Want to 10x the sales power of your emails? Try these strategies:

 

  • Always deliver value. Period. Someone should be able to read all of your emails and feel like they didn’t waste their time even if they don’t buy from you. Ironically, you’ll get more sales this way. And the easiest way to do this is to…

  • Give away free tips. Don’t worry about giving away too much for free. Think of what happens when you’re in Barnes and Noble reading a book: Do you decide not to buy it because you’ve just read 25 pages for free — or do you buy it that much faster because you love what you’ve read so far?

  • Mix up your content. You should also give value by showing off your case studies, telling motivational stories, and using pictures that keep people interested and engaged. This keeps things light and fresh since you’re not repeating the same boring sales message. Have some fun with it.

 

There you have it!   Four quick tips to get your business on the way to becoming a success.

 

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