These are exciting times! I have some amazing things coming up that you’ll want to tap into. I have two absolutely fabulous best selling authors coming on my radio show. I’ve got Randy Gage, Prosperity Expert as well as Charmaine Hammond, Author of On Toby’s Terms. (You’ll hear more about how her book is in development to become a major motion picture, too!) Stay tuned for details.
Remember – time is running out to register for my Entrepreneurial Edge System 3-Day Intensive! It’s where I take small business owners through a systems approach to profitability. Are you joining us this year?
Because of the number of questions about my Entrepreneurial Edge System 3-Day on May 12-14, 2011, I’ll be holding a special Q&A call this Friday at 12 p.m. Eastern Time. So, if you want to learn what it’s all about, register for the call. I want to make sure to address your questions about the event. (I appreciate that you let me know what was on your mind).
To view the questions, submit your question, and register for the call, click here.
On a related note, if you caught my brand new, free 5-part training video series called Get More Clients Now at http://www.getmoreclientsnowvideos.com then you know the kinds of results that are created when you take a systems approach (especially for today’s marketplace). I’ve already received emails from many of you who are implementing the tactics I shared in the videos. Thanks for the emails and blog comments!
In case you didn’t see the videos yet, check them out now. It has made a huge difference in what I’ve been able to accomplish in my own business and in the lives of my students who applied this same approach to their small business (regardless of how long they’ve been in business).
Create a great life,
And now for this week’s high content article…
Small Businesses Can Learn A Lot From Netflix
Let’s face it. The marketplace has changed considerably. We have an educated consumer who has information at their fingertips. They are comfortable with self-service and have a variety of choices. They seek out and get their information through social media, text, and are accustomed to instant access.
Netflix was wise to keep an eye on the marketplace. In 1997, Netflix launched a traditional pay-per-rental model, but just one year later adopted a flat-fee unlimited rental model without due dates or shipping or handling fees. They later dropped their pay-per-rental model and, by 2003, when many corporations were still in downsizing mode, Netflix posted profits. They noticed several things happening. DVD purchases were on the rise. Integration of the internet and e-commerce solutions provided opportunities that many bricks and mortar competitors could not compete with. Affiliate programs were also on the rise which would help them build online sales.
Although Netflix is now a multi-million dollar business, technology makes it possible for even a small business owner to deploy similar strategies to bring in consistent cash flow. Consider these same strategies for your small business that helped Netflix become a multi-million dollar corporation:
1. Know your Ideal Customer Behaviors. When you have a deep understanding of your ideal customer, you’ll be able to deliver services your customer wants, like Netflix did when they realized their customer’s buying habits changed. With gas prices soaring and food prices rising, buyers decided to stay closer to home for their entertainment. The customer also wanted convenience. They were too busy to pick up and drop off movies. Netflix decided to bring the movies to them.
2. Think Continuity. Netflix changed their model from traditional pay-per-rental to a monthly subscription. When people are already watching their pennies, a flat-fee helps the customer keep an eye on their budget.
Many coaches, speakers, and consultants set up a high-priced, one-program model (their Yes or No-and-Go Model.) The problem with this model is that when you meet with a prospect you’re setting up only two choices: They work with you or they don’t and they go away. This is the reason why many coaches, consultants and other small business owners who rely on a consistent supply of new clients struggle at an alarming rate in today’s marketplace. Offering just a high-priced consultancy model has no continuity and could be the very reason you find yourself chasing the next prospect and experience stop-and-go cash flow. Adding continuity programs and subscription-based solutions to your business model gives your customers another way they can work with you and helps you to bring in recurring cash flow.
3. Add an Affiliate Program. Netflix helped build their online sales not only by partnering with other companies, but also by offering an Affiliate Program. An Affiliate Program is a marketing strategy where a business rewards your Affiliate for each customer brought about by the Affiliate’s marketing efforts. The reward is usually a percentage of the actual cost of the program or service or a flat fee. It’s a great way to reward your referral partners or sources. Plug-and-go Affiliate programs help small business owners grow their business quickly and begin rewarding their referral partners.
It’s an opportunity-filled marketplace with plenty of resources for small business owners to grow their business. However, before you start to execute in bits and pieces, take a look at your entire business to see how these tactics fit into your overall business strategy.
To learn more about the strategies discussed in this article and to discover how they fit into your business model, join us for a free informational call tomorrow. Click here to register.