How to Make a Fortune from Unique ‘Resistance-free’ Advertising
One of the most powerful offers you can use in your advertising is the word Free.
But, you may well ask how can I make a profit giving my products and services away without charging for them?
Which is the exact reason why you need to understand the ‘LVC Formula’ which stands for the Lifetime Value of a Client!
Here’s how it works. Let’s imagine for a moment you own a beauty salon. Now if you get a new customer, they may pay you $80 for their first treatment.
But how much is this $80 client really worth?
After all, most clients will continue to buy off you for many years to come.
For instance, let’s imagine your average client returns for a beauty treatment 8 times a year and remains a client for 2 years.
$80 (price of consultation) x 8 (purchases a year) x 2 (number of years)
Now if you have a calculator handy, you’ll work out the value of this client as $1280.00.
And if your profit margin is 40% this calculates to a $512 profit per client.
Let’s imagine we sent a letter to all the nearby businesses offering women a free manicure valued at $30.00 (I’m not a beauty therapist, so please forgive me if all these figures are way out).
And if the manicure costs you $7 in products and 30 minutes of your time (which if you’re not busy you’d just be sitting on your butt anyway!)
So effectively the $7 investment could have just made you $512 in profit.
And how easy is it to give away a free manicure?
Or for other industries
Tags: advertising, copywriting, lead generation, marketing, public relations, sales