A Necessary Business Strategy?

The Success Margin

Thursday, July 6, 2006

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How valuable would it be for you to have a
marketing strategy that will absolutely assure
your success?

I discovered the most incredibly effective
business strategy in existence at age 17. This
simple concept alone has enabled me to earn
untold millions for my clients and myself.

In fact, the strategy is so powerful and
important, using it is really not a choice. It's
a must. Unless you start to use it in your
business immediately, you probably won't
survive for more than 18 months!

That's not a misprint!

I submit you absolutely must discover this
concept for you to ever have a viable business
strategy that will survive the ultimate test--the
test of time.

Many "wannabe" entrepreneurs who come to me
for marketing help do not start out with a viable
business strategy. In fact, business owners with
a viable strategy are rare.

** A brief story **

I loved my late Uncle Frank. He was not just my
favorite relative. He was my first entrepreneur
business hero. He was a renowned restaurateur,
having created four famous and successful
gourmet restaurants which are still thriving.

Uncle Frank happened to give me a Gillette razor
for my 17th birthday. He mentioned that the
Gillette Corporation was perhaps the greatest and
most profitable company ever organized. He
admired Gillette so much he invested a large
amount in company stock. And he made a great
deal of money on the shares. (Uncle Frank
discovered Gillette even before Warren Buffet,
who is today one of its biggest shareholders.)

Intrigued, I asked the obvious question. "What's
so special about the Gillette Corporation?"

Uncle Frank said, "When you buy their razor,
you'll undoubtedly love it. But to continue to
enjoy it, you must buy their blades (no others fit)
forever!"

His answer surprised me. Since I aspired to be an
entrepreneur, it made sense to me to study
Gillette and see what I could learn.

I eventually learned a marketing principle I've
used since I started in business at age 21.

It helped me form the foundation of my
successful entrepreneurial career with 23
companies of my own and countless readers,
clients and seminar attendees.

For starters I bought a few shares of the Gillette
stock with my then meager savings. I also
purchased several models of its razors.

By age 21 I was ready to start my first business--
a candy and ice cream factory and retail shop
called Peterson's House of Fudge. I had realized
that to succeed I needed to build in what I now
call the "Gillette Factor" (GF).

I had to include the GF in my business strategy or
I became convinced I could never, ever be able to
survive and prosper.

Here is what I did.

First, I chose candy and ice cream, consumable
products, which by their nature included the GF.

Of course, if you liked my homemade unique
confections, including 77 flavors of fudge, the
only way to get more was to buy more.

Plus, I created a powerful, hard-hitting, copy-
heavy catalogue which was included in every
package of product sold. This also enhanced
the GF.

In all my subsequent businesses, as well as those
of clients, I built in the GF. Here are some of
them:

-- The Company Corporation (TCC), which I
started in 1973, is now the largest incorporation
service company in the world. Over 85% of the
clients renew the annual service each year. The
best promotion for this business resulted from
wide distribution of my book, "How to Form
Your Own Corporation Without a Lawyer For
Under $75," which has sold over 2 million
copies. A large percentage of my worldwide
readers use TCC as their registered agent. (The
GF is often referred to as the "back end" of a
business.)

-- Enterprise Publishing Company, which I
started in 1972, became the US's most successful
publisher of newsletters and books for
entrepreneurs. The GF was the cross promotion
within the products themselves. Newsletters sold
books and books sold newsletters. This was in
addition to favorable reviews and articles about
my products which are no-cost business builders.

-- Nicholas Direct, Inc. This is my latest
company. NDI markets online and offline
dealing in book and home-study courses and
seminars. The GF factor results in clients with
long-term contracts, fees and royalties.

** Constantly improve your product **

Gillette is constantly improving their products.

Yesterday, while thinking about today's message,
I went to my local pharmacy to buy the latest
Gillette razor.

As usual, I was not disappointed. I discovered
what's called the Gillette M3 Power System. It's
a safety razor with added battery power.

It's a terrific product, better than any other
predecessor.

You, too, must be constantly updating and
improving your product at least once a year.

** Action tips in creating your GF **

1. Create a viable business model with a built-in
GF aimed at encouraging repeat business instead
of a single sale only.

2. Give your customers strong reasons to
continue doing business with you on an ongoing
basis. These can include but are not limited to an
annual fee or subscription or consumable product
or annual edition, e.g. 2006 edition; 2007 edition.

3. Dramatically improve your product at least
once a year.

4. Buy the new Gillette M3 Power System,
which will remind you of the GF strategy.

5. Work on continuously improving your GF
strategy.

6. Buy some shares in the Gillette Corporation as
a long-term investment and to be on their
shareholder mailing list.

The vast majority of the world's businesses
depend on front-end sales only. It's no wonder
the failure rate is so high.

Bottom line. I have never seen any business
survive on front-end sales only. You cannot
afford to go through the entire sales process
from scratch with existing customers every
time you offer a new product. Or to resell
your original product. It's just too expensive.
My advice is: Don't even try it.

Because it costs little or nothing, you must
build the GF factor into your business. Repeat
business is the only way you can have a viable
business that will survive and prosper for
the long term, even forever.

I'd be happy to hear about how you developed
your own successful GF and to feature you on
future pages of this newsletter.

This message, as always, is dedicated to your
Success Margin.

Your correspondent,

Ted Nicholas

© Copyright 2006 Ted Nicholas