Work At Home Start Up Guide: How to Increase Home Business Profits

written by Gley Yahya

In the last POST I shared with you the idea that:

"The only way to tell if someone wants what you're selling is to get it in front of as many people as you can WHO ARE LIKELY prospects, for as little money as possible, and see if they buy it...

If they DON'T... then move on and sell something else.

If they DO buy it... then the next POST will help you to increase home business profits."

OK... get ready and listen carefully...

The maximum benefit to your home based business is your Customer, specially, your Customer Lifetime Value.

In my many years in Sales and Marketing, I've met many home based business owners who don't have much clue as to what Customer Lifetime Value is, much less its weight and the impact it has on their outcome. To most of them, what matters most is to boost revenue by continuously getting new one-shot customers.

This is one of the fatal mistakes that many business owners make; it's a sad scenario, but it's also the reality. Let me tell you something: it'll cost you 5 times more to get a new customer than it is to bring one of your past customers back to you.

The real home based business profits will be made by:

Getting more prospects to inquire about your products and services…
Selling multiple products to the same buyers over a long period of time,
Getting them to buy higher-priced products (such as coaching, seminars, etc)

In order to do that you need to give prospects and customers an awesome experience when they do buy something from you.

If you sold them a book on "how to make money online" you better give them something they haven't read about before from 100 other people selling books on "how to make money online"! and include some unique bonuses -not the same bonuses everyone else is using.

Yes, those “resale right” give-away ebooks could be killing your sales if you use them as bonuses because everyone already has them.

When you do give your customers more than they expect you'll dramatically increase their lifetime value as a customer and that's where the real money is.

What do I mean by “lifetime value of a customer”?

For example, someone on your list will buy one of your lower priced products for $29, then, if they like that and you truly delivered more value than they thought they would get, they may consider your $400 product, and then if they like that they will attend your seminar or join your coaching program for $2,500+ etc, etc...

They may also buy other low-priced products from you over their lifetime which also increases their value to you.

Now, you may have heard this already- that the real money is in “repeat” business - well here's a secret about getting “'repeat” business... the one I said will help you "make the maximum amount of money possible":

Follow-up. Follow-up. Follow-up. Follow-up. Follow-up.

A real secret huh?

Most businesses work very hard to get a customer for the first time, but they have NO system in place to follow-up with them.

Why would you want to follow-up with them?

To sell them more stuff, of course ;-)

That's why I love the Internet.

It's EASY to follow-up with your prospects and customers.

All you need is an “autoresponder” account.

But most businesses, especially those “brick and mortar” stores, shops and services have NO systems in place for following-up.

And, they are losing tons and tons of money.

If you're doing any kind of business (on or off the Internet) you need a follow-up system.

If your business is not on the Internet or you're not using the efficiency of the Internet to follow-up automatically with your prospects and customers then you're missing out on a lot of profit and extra business.

It's not about websites... websites make you no money at all. They are an expense, unless you use them to capture leads, automate your follow-up and close sales.

Even if you have a bricks and mortar business like a gift shop or retail clothing store, you need to keep in constant contact with your customers. If you're not using an email autoresponder or a “system” to follow-up with your customers and prospects like eweber.com which sends out marketing messages for you, automatically - I guarantee 100% you are losing money to a competitor.

The proper understanding of Customer Lifetime Value because is key to the success of your home based business. It'll allow you to obtain more customers than your competition through better and more attractive offers. It'll dramatically Increase Home Business Profits through more repeat sales and shoot your profits through the roof. This the best customer solution profit tactics that will build your business !

In my next post I'm going to tell you something I've never told anyone before...

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