A Necessary Business Strategy?
The Success Margin
Thursday, July 6, 2006
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 razorfor 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 Gillettestock 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 **
- Create a viable business model with a built-in GF aimed at encouraging repeat business instead of a single sale only.
- 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.
- Dramatically improve your product at least once a year.
- Buy the new Gillette M3 Power System, which will remind you of the GF strategy.
- Work on continuously improving your GF strategy.
- 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.