The Hidden Things You Need To Know About Scaling Your Business
“How do I get new customers??” That’s what most people new to business focus on. It’s what a lot of business training focuses on, and what a lot of established businesses show to the world.
What most people don’t tell you is that there’s a huge problem with focusing only on new customers: It’s not only expensive, it’s not sustainable. New customers are just the tip of the iceberg. Without a backend to your business, you’ll hit a wall and you won’t be able to get around it.
In this episode, James and Dean dive into what has to happen below the surface of your business in order for you to grow it. Tune in to hear exactly why focusing only on new customers is a business death sentence, and what to put in place so you aren’t dependent only on new customers for every dime you earn. This episode will be especially helpful if you’re interested in affiliate marketing, but it applies to all business models.
You Need The Whole Iceberg
New customers are an important part of business; however, new customers are not enough to grow and sustain a profitable business. They can get you off the ground, but in order for you to stay off the ground AND go even higher, you need the rest of the iceberg. Tune into this episode to hear what to do once you’ve acquired a customer.
Why The Tip Of The Iceberg’s Not Enough
The cost to acquire a customer is going up all the time. James used to pay 30 cents when someone clicked on one of his Facebook ads. Now he pays $3.50. Costs in other marketing mediums are up, too. New customers are the most expensive to acquire. They don’t know you and they don’t yet trust you. When ALL your time and money are devoted to new customers–aka the tip of the iceberg–it’s only a matter of time before you end up spinning your wheels.
The Break Even Point
People new to business are often under the impression that if you’re not profiting from new customers, you’re failing. That’s simply not true. The tip of the iceberg–the front end of your business–is not about profit. It’s about getting customers in the door so you can offer them more solutions. If your front-end is profitable, it means you have room to scale your customer acquisition efforts.
Keep Solving Problems
Profit happens on the backend of your business. That’s why the worst thing you can do is abandon people after they buy from you one time. You’ve spent all this time and money to acquire a customer. Instead of dropping off the face of the earth in pursuit of new customers, create and offer more solutions to your buyers.
When You Run Out Of Offers
If you reach a point where you can’t solve any more problems for your customers–or they just need help with something you don’t know how to do and don’t care to learn–consider affiliate marketing and referral partnerships. Send your customers to people and products you use and believe in. Become your customers’ trusted guide, show you care about their success by doing what it takes to help them (including sending them to other people), and still make money.
Outline of This Episode
- Never focus on just the tip of the iceberg [5:45]
- Who will fold up and who will grow their business [15:05]
- Get to the break even point [21:30]
- He who can pay the most, wins [26:25]
- Money is made beneath the surface [30:05]
- Keep solving your customers’ problems [37:40]
- How to use affiliate marketing on the backend [45:03]
Resources & People Mentioned
- The Iceberg Effect book: http://icebergeffectbook.com/
Music for “Just The Tips” is titled, “Happy Happy Game Show” by Kevin MacLeod (http://incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License
