Thursday, June 28, 2007

 

Careful: Someone's Watching Your Price


It's all over the Internet. If you're poking around, reading marketing ezines, you can't miss the message: "Raise your prices." "You're probably not charging enough." "Want to get paid more? Just ask."

Sometimes these folks are right.

But when you're advised to charge more, I suggest you ask your mentor wannabe, "Do you know my market? Have you tested my market? Who sells higher-priced products to this market?

Now I want to introduce two cautions. First, I am not referring to one-to-one consulting. You can't leverage your individual consultation time.

And if you can charge eight hundred dollars for a bound notebook of 200 pages and 2 CD's (not even elegantly packaged), go for it. I know someone who does.

But I would add a few cautions.

(1) Internet consumers compare your offering with others.

I belong to Christina Hills's Shopping Cart Queen Club. I can't recommend it highly enough. For only $29 a month (first 6 months free if you buy the cart from her), it's a steal. Christina offers one 60-minute teleclass every month. Members get to submit questions. She answers every one, either in the class or via email to all club members.

You also get access to tools you can download. And every month she uploads a video demo for specific features, such as upselling or tracking.

These ideas may sound simple, but they save me time and earn me money. (If you're interested, you can go here: My link to Christina Hills's page.

Perry Marshall also offers a $29 Renaissance club, with a live call every month. Also a great value: Go here for my link.

So now let's say you want to start your own club. They're intensely popular these days. You'll probably see gurus charging $97 - $997 for monthly dues.

But I'm hearing rumblings of discontent. These clubs are being compared to Christina's club and Perry's club. If I belong to both those clubs for a total of $58, why would I join a club for $97 to get just 2 calls?

So these days you need to offer something pretty solid. A lot of marketers offer forums. A few years ago, forums were hot. These days, I am finding people are forum-ed out. They're not prowling forums searching for resources where they can pay big bucks. They're looking for free advice. I've gotten a few clients from forums. Every single one asked for bargain prices and demanded individual attention in the form of 32 phone calls.

No thanks.

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Brand-New and Getting Started on The Internet


Here's a question that just came through my email recently. I'm getting low on questions, so please send me a message with your Number One challenge related to copywriting and/or website marketing.

Q: I'm just getting started on the Internet. I have a domain name and an idea. What's next?

A: You're very smart to ask this question. Many people would begin by hiring a web designer. Being biased, I used to say, "Start with a strategically oriented copywriter who's been trained to write for the Internet."But now I believe you should begin with a keyword search. You may hire someone to help or attend some teleseminars. Or yoHere's a question that just came through my email recently. I'm getting low on questions, so please send me a message with your Number One challenge related to copywriting and/or website marketing.

Q: I'm just getting started on the Internet. I have a domain name and an idea. What's next?

A: You're very smart to ask this question. Many people would begin by hiring a web designer. Being biased, I used to say, "Start with a strategically oriented copywriter who's been trained to write for the Internet." u may buy manuals and/or borrow library books. But I feel more strongly about this step with every passing day.

I must admit I fell asleep the first time I heard a talk about searching, research and keywords. But it's like sifting through forensic evidence in a murder case. You start to see patterns and clues. Now I'm addicted.

Go to wordtracker.com. Sign up for 1 week (or more, if you think you're going to get hooked...like I did). Begin to explore keywords related to your topic. Your mission is to find keywords with high demand but relatively low supply.

If you opt for the paid version, Wordtracker takes you painlessly from keyword selection to a page where you get to see each keyword's level of supply and demand. Now you know where you stand.

Internet marketers interpret the numbers differently. Some say they want 10,000 or fewer competitors. Others look at Wordtracker's KEI score, which captures the supply-demand ratio in an arcane formula. Still others say, "My marketing and copy skills are so good, I'll dive into the most competitive pond."

Or suppose you find that every meaningful keyword has over 100,000 competitors...maybe even millions. You may still do well, but you face an uphill battle. You may be able to get creative and find a combination of words where you'll face little competition but high demand. Or you may say, I've seen people succeed with these approaches - you just have to know yourself.

Once you've identified keywords, you need to test how they fit your message and your market, most likely with google adwords. You might revise your domain name or set up some redirects. Your copy will incorporate keywords. Each of these steps would be another article.

If you would like a straightforward, detailed explanation of the process, and you're serious about an Internet-based business, I highly recommend investing in Perry Marshall's google adwords manual. You'll not only move faster: you'll have a foolproof way to screen anybody you consider hiring as a guru. If they don't understand this process, they'll lead you down the garden path. Guaranteed.

You can begin with his no-cost 5-day ecourse: Click here.

And then get a shopping cart to test and compare web pages. I recommend trying out this cart before considering alternatives. Click here.

My ebook on choosing a mentor:
Choose a Mentor Without Killing Your Bank Account.

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Tuesday, June 26, 2007

 

The wrong way to reach customers



Recently I purchased a book through a promotion by a famous marketing guru. Call her Ursula. I won't share her name, but she uses the word "wealth" a lot. Some promos were offered, such as teleclasses plus one individual consultation.

I wasn't interested in the promos but the book sounded good. So I ordered, figuring I could return it, sell it or give it away to a nice client.

Even before the book arrived, my phone began ringing. Someone I'll call "Melody" began leaving messages. "I want to book you for your complimentary consultation with one of Ursula's coaches."

Melody must have left half a dozen messages. Once she called as I was heading out the door. She bombarded me with email.

Finally I called. The conversation went like this.

Melody: I want to set up your wealth building session.

Me: Will you be the person conducting the session?

Melody: Oh no I just make appointments.

Me: Who will be conducting the session?

Melody: Let's see...you have been assigned to Lance.

Me: What are his qualifications?

Melody: He will introduce himself on the call.

Me: Does he have a last name?

Melody (reluctantly): Yeah...let's see...Lance Lovesmoney.

Me (googling frantically): I don't see him on the Internet. What will we talk about?

Melody (brightening up): You will tell him your income, assets and other financial information. He will help you choose a program. Ursula has programs to fit every need.

Me: What will be the outcome of this call?

Melody: You'll know more about Ursula's programs. You won't get financial recommendations.

Me: So it's really a sales pitch?

Melody: Yes. It's a sales pitch.

Me: Thanks. I am not interested.

Melody: Wait - why are you not interested?

Me: Let's see. You're asking me to put aside 30-45 minutes for a sales pitch from someone I know nothing about. You're suggesting I disclose personal financial information to a stranger for no reason other than to hear a presentation on something I don't want.

Melody: Oh. Have a nice day. (She did have a California area code.)

Me (to the dog, who's been patiently waiting for me to do something more productive, like take her for a walk): If she's so wealthy, why is she selling so hard?

Ursula needs to read my
downloadable ebook on building client relationships.

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Monday, June 25, 2007

 

NBC's Today Show Unkind to 4-Day Workweek



So you write a best selling book. You get invited on the Today show. And you end up with an experience that's a waste of time. That's what happened to Timothy Ferriss.

If you haven't heard of the 4-Day Workweek by now, you are probably living on another planet. Instead of asking author Tim Ferriss about the book - why did you write it, what are the premises, how are you handling the fame - Matt Lauer invited Donnie Deutsch to debate the premise.

Deutsch immediately took over. He patronized Ferriss with pseudo-compliments ("handsome young man")and dismissed the idea without bothering to understand it. "Americans like to work," he claimed. "Happy people love their work."

Ferriss responded with good grace. He calmly stated one element of his system - an hour of concentrated thought is better than a month of hard work - but he was clearly out-shouted. Most people listen to the Today Show in spurts. They'll get more Deutsch and less Ferriss.

A lesson in how even the best media attention can kill you. I usually like Matt Lauer but he (or his producers)blew this one.

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Getting educated



If you're new to the internet, get ready for sticker shock. Lots of these gurus charge big bucks for information.

Sometimes you get what you pay for. This weekend I took a 2-day seminar for $97 that was an amazing value. Perry Marshall's stuff is good.

More often you pay hundreds of dollars for what amounts to a couple of calls. The problem is, you can't say anything. People tend to know each other. They see each other at seminars. So you get into the phenomenon of the emperor has no clothes.

How do they get away with it? Most clients never get around to doing anything. So they can't complain. The guru says, "Well, you didn't do what I told you!"

So nobody realizes what works and what doesn't. I'm starting to believe it's best to avoid the big-ticket stuff. Buy a few manuals - max $200 each - and do the work.

Friday, June 22, 2007

 

Copy for thank you messages too



Ouch...I just got one of those "out of the office" emails from someone who is (wisely) trying not to spend too much time on email. The message said, "I will get back to you at my earliest convenience."

Rude!

What about "I'll get back to you as soon as I can. If you're a client, please feel free to call. If you're seriously considering hiring me for a project then [followed by action steps]."

I suspect the author of this email didn't bother to send it to yourself or just got busy. We all mess up. But in my opinion, a lot of customers (and potential customers) are getting alienated.

Tuesday, June 19, 2007

 

When Small is Big



Last week we suggested why new businesses might - or
might not -be advised to set fees below market to
attract new clients. See

This week we'll focus on the message we're hearing
more and more: "Want to be more successful? Raise your
prices."

A speaker told me, "My coach said I should double the
amount I usually ask and then add five thousand
dollars more."

Maybe. But some business owners got big by keeping
prices small, not just when they begin, but forever.
If you choose this route:

(1) Skip the explanations to your clients.

One consultant addresses the question right on her
website: "I charge less than many consultants at my
level because I want to reach more people and help
them..."

As Tony Soprano would say, Fugeddaboutit ("Forget
about it," New Jersey style.) My credibility warning
light starts to flash and I hear the fudgebuster alarm
going off loud and clear.

When I see an experienced consultant pricing below
market, I figure, "They don't have the market power to
charge more."

They may be superb consultants. They may even be
skilled marketers. But they've taken themselves out of
the running for reasons that may reflect real business
savvy. For example: They don't want the work, hassle
and attention to detail required to create a four-
figure product- so they have a shelf of small ebooks.
Or they know their particular market won't pay more
than a certain amount for information products, no
matter what - but the market is so huge they can still
do well.

One designer does high-quality work at rock bottom
prices. She can't charge more because her family
pressures often interfere with deadlines. She's very
talented so some clients pay extra to go to the head
of her queue, but if she tripled prices, nobody would
come.

If an experienced coach or consultant charges, low
prices for hourly consulting, I'd move carefully
before hiring him or her. But frankly I'd be even more
careful when hiring a high-priced big name
consultant.

Perry Marshall (the Google Adwords expert) recently
addressed the question: "Why do so many high-priced
pseudo-gurus stay in business?"

His answer: Their clients pay for services but don't
get to the implementation phase, so they don't realize
the guru's system just doesn't work.

(2) Skip explanations to well-intended colleagues.

Once at a conference I fell into conversation with a
total stranger who knew nothing about me or my target
market. She was horrified at my "low" ebook prices. I
started to explain that I knew my market, then
realized I was wasting time.

Now I say, "I've run the numbers and done the price-
testing. This business model is the most profitable
for me, given my products, services and market. I am
always happy to discuss my approach with my *paying*
clients."

(3) Test, track and test some more.

Your well-meaning colleagues and coaches may be
right. Maybe your fees are too low. But you need more
than a 2-minute business review to come to that
conclusion.

Monday, June 18, 2007

 

Client Management: Cutting off the Phone Cord



While sorting through my email, I came across this query from a reader I will call "Meredith."

Q: Cathy, I sent an invoice to a client "John" recently.

John is a two-finger typist. He insists on phoning me every time he has a lot to say, to save the pain of typing a long email. In the email that accompanied the invoice, I pointed out that my time is worth $--- per hour. But since we hadn't discussed the cost of extra phone calls, I would only charge him half my hourly rate, this month only.

I am considering a monthly flat fee for unlimited calls to discuss my services.

A: Did everyone pick up the key word here?

Yes! Meredith said, "My client insists..."

Here are 3 tips for Meredith to deal with this challenge.

(1) Decide if you want to keep this client.

As a service professional, you have choices. You can politely decline to offer services to this client (subject to legal constraints on certain professions -- e.g., medical professionals cannot abandon a patient).

So John really says, "If you want me to be your client, be prepared to take calls from me 24/7." He's not insisting. He's just telling you how he would like to work with you.

You have to decide. Is John a potential referral source, giving you access to a lucrative market? Does he give you a chance to demonstrate your skills and add a magnificent sample to your portfolio?

(2) Clarify your policies before beginning to work with the client.

When you find yourself sorting out misunderstandings, chances are you haven't clarified your expectations up front.

Now's the time to decide how you want to relate to all your clients - not just John. You can always deviate from your contract on the side of generosity. You can say, "You're such a great client I'm going to throw in an extra 20-minute call for you."

Just make sure your client knows you're offering a special one-time deal.

For example, about 2 years ago, one of my favorite clients ("Norman") asked if he could call for a consultation on a weekend. He has spent quite a bit of money with me over a period of years. He's available as a reference for other clients. And as it happened, I was free that weekend...in fact, I was hoping for an excuse to get out of a social invitation!

But I made it clear: I am not offering this service to most clients and might not offer it again to Norman. These days I am usually too busy on the weekends, even for Norman.

(3) Never, ever surprise your customer with new charges.

I am not a lawyer (any lawyers out there?). So I am not giving you legal advice. But in my layperson's opinion and experience, if John takes you to Small Claims court, he will probably get those charges reversed faster than you can say "client attraction."

As a consumer, you are held responsible only for charges you agree to accept. (OK, the phone company and the credit card companies seem to be special cases. In the US they come under special lenient regulations. Don't make me go there.)

So you need to clarify your position the very first time John calls. You have to say, "This is not a good time. Would you like to set up a consultation?" Cut him off if he tries to sneak in a question or two.

If you allow him to talk on and on, he has every reason to believe the call is included in his consultation arrangement. Customers can be surprisingly naive about business practices outside their own fields.

Apart from the legalities, creating unpleasant surprises will harm your relationship with your client. Your job is to manage expectations so clients will be not just satisfied but delighted with the service.

Here's what I would suggest.

Offer all clients a choice of 2 or 3 plans. Plan 1 might be an hourly fee of $125, which includes unlimited email for a certain number of days after each call. Plan 2 would involve an hourly fee of $150 an hour, which includes brief phone consultations (up to 10 minutes, 30 days following the call) between calls, subject to availability. Calls over 10 minutes will be billed for a full hour.

Notice that now there's no way John can say, "I thought calls were included..."
You've spelled out the plans on your website and in your agreement. As you reach the ten-minute mark, you can (and should) remind him: "Our time is up. Would you like to continue? If so - no problem. I will just adjust your invoice for $125?"

The difference between the Plan 1 and Plan 2 will depend on how much you want to discourage phone calls. If you have extra time and you're building a client base, keep the difference small.

I would suggest creating names for Plan 1 and Plan 2 that reflect what you offer. Come up with positive reasons for choosing each plan: "For the busy person who spends lots of time away from a computer, Plan 2 makes the most sense..."

Oh yes - I would give John his money back. All of it. If you don't want to offer a refund, at the very least offer a credit against future services. Explain that you had forgotten to include this point in your service agreement or statement of policies, and then explain your new service plans and structures. You might even offer a little bonus - an extra 15-minute call or an ebook - to compensate John for the inconvenience.

After all, John's here. He's still with you, after you charged him for extra phone time. Think how much you'd have to invest to replace him. In my opinion, he's a treasure!

This article is based on my newest Special Report:
Lifetime Streams of Income With Heart, Soul and Chocolates on the Pillow.
Currently offered at a special price while I tweak copy and create some bonuses.
Clients for Life

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Sunday, June 17, 2007

 

Ouch - we just had a disconnect



Recently I attended a teleclass sponsored by an up and coming marketer we'll call "Marlene." I was pleasantly surprised by the class. So when Marlene sent around an email, inviting us to listen to the replay, I headed over to her website.

Marlene positions herself as smart and successful. She's one of many marketing coaches who talk about the millionaire mindset. She emphasizes the positive.

But there on her website was an invitation. Listen to the files now...or pay $5.95 to download the mp3 version.

"Oh come on," I wanted to say. "You're doing these classes for promotion. Why ask for a small amount and stop visitors from going further?"

Even worse, Marlene explained the small charge with, "This amount will be used to offset the cost of web design, site and other expenses in making these audios available."

Gimme a break. Think like a millionaire, since that's what you promise to teach your clients! Either give away the tapes or sell us on the benefits. "Wouldn't it be nice to own these mp3 files and play them over and over?" You can say things like, "I will be packaging these audios together with an ebook - so get them free (or deeply discounted) while you can?"

Who knows..I bet I'm not the only Grinch out there. Marlene is turning off the very people she'd like to atract as clients.

Monday, June 11, 2007

 

Final Lesson from the Sopranos: Ambiguity


I watched the first six years of Sopranos on DVD.
Then, after a lifetime of vowing I would never subscribe to HBO, I took out a subscription for the last 2 seasons of the Sopranos. That's how much I liked it. (The HBO goes off later this week...after I revisit a couple of episodes).

Typically I would record episodes but I watched the Finale live.

CAUTION: SPOILERS BELOW.

And I loved it. Every piece of action seemed ominous. Was this the moment when Tony would Get It? The restaurant scene was brilliant. Series creator Chase toyed with our expectations. As Tony and his family sat in the restaurant, their conversation was even more mundane and peaceful than usual. No bickering. Tony says, "I've ordered onion rings for the table." How many times have we sat at tables where we (and others) said those exact words?

Against the family's conversation, Chase creates suspense. Strange people walk by. The camera pans to a man who's putting a lot of milk in his coffee, hiding behind a newspaper. Each time someone enters the restaurant, Tony looks up. Meadow has trouble parking her car, delaying her entrance.

It's only afterward that we realize we created the suspense in our own heads. We've been trained to recognize symbols of the genre. We've watched too many Hitchcock movies. We watched Sixth Sense. We're conditioned to expect something to arise from the mundane and scare us to death.

And Chase is no dummy. We were watching in the context of knowing, "This is the very last episode, ever. We won't see Tony on the screen ever again."

Finally, we cut to black and we're left with a sense of, "What next?"

Whatever you say about Chase, you have to recognize a brilliant piece of viral marketing. He created buzz. I got on the phone to call a fellow Soprano-watcher: So what do you think? He hated it.

Great advertising has always been ambiguous. When we put ourselves into a scene, we experience the message more intensely than if we're just bombarded with a lecture. When we interpret a message in our own way, it's our story, not theirs.

The Sopranos Finale. The Macintosh 1984 commercial. Masterpieces.

Sunday, June 10, 2007

 

"Let's just talk over coffee..."


That's what "Helen" emailed me recently. "Let's have coffee and we'll talk about my website."

"Coffee is good," I replied. "I love coffee. With or without coffee, I offer a diagnostic service. See
copy diagnostic service.

Will Helen call back? I don't know. I'd love to work with her but I have other irons in the fire. If I didn't, I'd create them. After all, I can always use the time to develop another information product.

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