The Network Marketing Business Model

The network marketing business model is founded on the principle that people will work harder to achieve financial success for themselves when they are compensated for their results.

Direct selling companies use independent direct selling distributors to share the product and business opportunity with consumers, and are able to claim massive market share in their given industry through the credibility and efforts of their distributors.

As a distributor, you will be able to use the network marketing business model to recruit other distributors into your downline organization. As your organization grows in size and sales volume, you will receive residual income plus various bonuses from the company.

The secret to success in this industry is duplication. That is, once you join and learn about the product and opportunity, it is vital that you find similarly motivated people who you can train and help build their organization.

The downside to becoming involved in a multilevel opportunity is the high turnover rate among distributors. While there is a perception that this business can result in instant wealth for the distributor, the truth is, the network marketing business model takes hard work, and sustained effort. In my opinion, the high turnover rate in this industry may be directly attributable to that false impression.

If you are looking to get rich by next Thursday, this home based business model may not be for you. However, if you are willing to commit yourself to working the business, and are willing to become trained in marketing your business, you can make money and succeed.

The ultimate dream in any home-based business is to create what is known as a self-sustaining business. This happens when your organization grows large enough where growth from your downline members exceeds the attrition rate of people who are leaving the business. When you reach that point, you have the potential of a lifelong residual income in the network marketing business model.

Bonus Tip – Never let a challenge keep you from your future. Take action today to make something great happen.

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Conventional Article Writing Versus Article Marketing

Of course everyone can write article on the internet. And almost everyone who loves to make blog, join social networking site and some other personal website development has written an article for internet publishing. However, the conventional article, as we may call it like that, is very different compared to what so called Article Marketing. Conventional article writing is just simply a writing activity. The purpose of it is usually just to get a personal satisfaction in writing whether to share ideas, feeling, and opinion or just have fun with friends. It almost has no direct economical or business purpose.

Article Writing for marketing is highly different to the conventional writing. It has a specific purpose which is to increase the popularity of your website. Popular means not only that is it known by peers, but it means to all readers all over the world accessing internet. It has such a vast target because it has an economical purpose which is for marketing a product. It is a very creative way of marketing because it combines the motives of using personal activity like writing article with using some tricks on how it can be valuable for promotion. Article Writer for promotion purpose understands really well that their writing will be put on some kind of bank that can be accessed by readers who look for an article on relevant topic.

There are some notable characteristics of the promotional writing. It is usually short, informative, using marketing style and of course using a link. It is because before the writer makes an Article Submission they have considered driving the reader to visit their website. Link is very valuable because it will give a direct link to your site. There are usually used some anchor texts that are linked directly to several pages of your site.

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How To Direct Free Traffic To Free CPA Offers

It really does not matter what kind of marketing you implement online to achieve revenue, there are two things you really need to master above all others. How to research your keywords and how you can generate free traffic to your offers, website or whatever else you may be promoting.

When it comes to promoting free CPA offers, taking into consideration that you have done your keyword research properly before hand, there are many methods you can use to drive free traffic to your offers such as articles, video, press releases, web 2.0 marketing etc. The list just goes on and on.

Because most people concentrate on what they have to do online to get their marketing efforts up and running, they are totally oblivious to the fact that there is still another very profitable free traffic volume they can use and it is really huge. I am referring to offline traffic. There are marketers online that have been utilising this method of traffic generation for years. However, they have purposely kept it underground.

What people tend to forget in the virtual world that they are constantly moving in, is that there is still a massive market in the real world. Real people that they can mobilise and send directly to their online business. To do this is really not difficult but the question is, how can you take the mass of people out there in the offline world and send them directly to your online free CPA offers?

There are just as many ways to do this as there is online although generating offline traffic is much easier than you could imagine. After implementing these marketing methods you are guaranteed a flow of traffic that only stops then, when you stop fuelling the generator. All this happens without all the time intensive and expensive methods we are all familiar with online. There is no search engine optimisation needed, no pay per click or pay per view, banners ads or media buys. You really do not even need a website to generate serious income with offline free traffic generation.

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Traditional Offline Marketing

Don’t think of these methods as too simple or mundane. They are very effective when done right and combined with other techniques in this report.

Classified Ads – This is something everyone should be testing in some form or another. It’s great for lead generations. You should still have a strong benefit-driven headline and a clear call to action. Free reports work very well with classifieds. My local paper, the Hartford Courant even has an ongoing deal of 3 lines for 3 days – for free! Even adding more lines only ends up costing a few bucks. With a price like that, there’s no reason anyone with a website should not be testing ways to draw traffic to the site with classifieds.

Direct Mail – Nothing beats direct response when it comes to results-driven proven advertising. And messages sent directly to your highly targeted market via direct mail can deliver a terrific return on investment (ROI) when tested properly. There’s a wealth of information on direct marketing by Michel Fortin, David Garfinkel, Gary Halbert, Dan Kennedy, and many more experts. Here are some sites where you can learn more:

Postcards – Yes, postcards are a form of direct mail, but it warrants its own category. Postcards are cheaper to produce and mail than full-blown direct mail packages or sales letters, and they are great for generating leads. Like classified ads, a free report or free gift often works well here. Postcards are also a great way to stay in touch with your customers and prospects, and they also work well as part of a sequence of mailings.

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Direct Mail and Target Marketing

Direct mail campaigns are targeted at one of either two audiences. They are (1) existing clients or donors and (2) prospects. Obviously, when communicating to those that have already bought from you or have previously supported your cause, the list is not an issue — you already have it and the message you communicate will fall on the ears of the already converted, at least once before. However, when you are extending an offer to, or soliciting support from an audience that has not shown, by virtue of a sale or contribution, some previous interest in your offering or plea, it is imperative that you direct your mailing to those and only those that are likely to be interested in your product or cause.

Choosing a responsive list is much easier to do in recent years than it once was. This is primarily because of the fact that so much more data is available to private companies about each and every one of us. You have certainly heard that almost anything we provide to companies that sell products to us becomes available to other companies — for a price, of course. For example, every magazine you subscribe to sells your name to a variety of other companies because by showing your interest in a particular subject, your name is valuable to another organization with a similar or related product offering. The same is true of fundraisers. If you contribute to the Humane Society, you are likely to be responsive to an organization like The Society For The Prevention Of Cruelty To Animals. If you contribute to The National Foundation For Cancer Research, you are likely to receive a solicitation from American Cancer Institute. This practice is so prevalent that companies and fundraising organizations even trade names as a regular part of their marketing database building process. Unless you check a box telling them not to, every entity you do business with or contribute to will sell or trade your information — all of it. This is why your mail box is usually quite full at certain times of the year — like just before Christmas.

Additionally, there is a tremendous amount of information about you available to almost anyone from credit bureaus and institutions that maintain public records. Tomorrow, for example, I could get a list from a credit bureau and determine how many individuals in a specific zip code own households valued at more than $500,000, with a mortgage of less than $300,000 and have a debt of more than $100,000. This is pretty valuable information to a company selling home equity loans.

The important message here is that, if you know where to go, the same information is available to you. What with your ability to do a simple search, you have the ability to market almost anything to a highly receptive audience without wasting valuable advertising dollars on people who are not likely to be responsive. So, what do you search for? List companies. They do all of the work for you by providing websites that provide you with the ability to use criteria boxes to define your target audience. These list companies will then sell you what you are looking for as relates to direct mail solicitations, as well as email campaigns. As an exercise, assume you want to send out a direct mailing (like a simple postcard) to people likely to be interested in your website. Search for a company called NextMark. You will quickly see that this company and other similar companies can be of immense value to you. This is also true for email lists.

Finally, remember that, like anything else in life, you get what you pay for. If it is free, it is probably going to be worthless. And, the more you pay, the better quality list you are going to get. It amazes me how many fall for the $30 (or less) for 100,000 name opt in email list offers. It simply is not that easy and inexpensive to get to the audience you need to reach. You are much more likely to achieve your marketing objectives if you solicit less numbers of more qualified prospects if that is what your budget demands.

To your success!

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The Danger of Relying on Email Marketing – By a Guy Who Loves Email Marketing

Yes, I think email marketing is the best and most efficient form of selling.

But do I ONLY use email to sell my stuff?

No.

How come?

Because I’d be leaving money on the table.

As I say, in my humble (yet completely correct) opinion, email is the number one way of selling. I mean, it’s the only way where you can “speak” to potentially thousands of prospects at any one time (depending on the size of your list).

Yet how long would it take to call that many people? Jeez, I don’t want to even think about it.

But please, don’t let ANYONE tell you it’s the only way of selling. Because it’s not.

For example, if you’re selling a high-end product or service (especially a service) then you’ll almost certainly need to get on the phone at some point.

Another example?

Okay then.

Direct mail is a great way of making sales.

Yes, it costs more money to run than email. But as long as you’re doing it right, you could potentially make massive returns.

Anyway, like I say, email is by far my favourite way of selling. I imagine it’ll be yours as well. You’d be silly not to do it.

But just keep in mind that you might want to incorporate other forms of selling into your sales process as well.

But let me reiterate: Email is hands-down the best way of making front-end sales. Undoubtedly so.

In terms of your back-end sales though, a combination of email, direct mail, face-to-face selling, and making phone calls tends to work best.

So just in case you don’t know, let me tell you the difference between front-end and back-end sales:

Front-end sales are where you sell your first product or service to a new customer.

Back-end sales are where you then sell further products and services to them.

And because they’ve already bought from you once, there’s a good chance they’ll buy from you again. (As long as they’re pleased with the first thing they bought.) So clearly, there is a LOT of money to be made at the back-end. Here’s the best way of making it:

So let’s say you’ve got a new customer using nothing but email.

Good stuff.

But if you want that same person to buy a real high-end product or service, you’re probably going to have to talk face-to-face with them at some point (or at least on the phone).

Why?

Just because it will help build more rapport.

Which is very important if you want to close big ticket sales.

You could also send a direct mail piece. You see, direct mail is a bit more personal than email. So, again, it’s a good way of building rapport.

So to make plenty of back-end sales, make sure you don’t just rely on email.

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Life Cycle Marketing Philosophy and Strategy

Why Use Life-Cycle Marketing?

For many companies, the current recession has made one fact abundantly clear: Doing business the same old way simply will not work. Old methods of sales and marketing are too inefficient, too costly, and they may be a risk to the business itself. Postponing a change in marketing strategy one more year is no longer an option. Web, Direct Mail, Email, Social Media, traditional, and digital advertising must all be in a business’ marketing strategy. Simply stated: Life-Cycle Marketing ensures businesses get the right message, to the right person, using the right media, at exactly the right time.

Consider The Following:

“Purchasing decisions include many factors that most consumers are not even aware of. Five steps are involved in nearly every purchase made: need recognition, information search, evaluation of alternatives, purchase decision, and finally post purchase behavior. Even the simplest purchases can include any or all of these steps.” (Brown, 2005)

“Purchases are further influenced by such things as personal, psychological, and social issues. A good market researcher will study the thought process undergone by consumers, compare it with their demographic data, and use the resulting information to market their products.” (Armstrong et al, 2005)

Marketing Factors: Consumer Buying Behavior
February 01, 2006 by S. L. O’Brien

Life-Cycle marketers use analytics to predict when customers are most likely to buy. They then reach out with incentives aimed at encouraging the consumer to buy from them. Timing and message are keys. Instead of wasting marketing dollars trying to reach a large audience, many of which have no interest at all in the offer, the Life-Cycle marketer targets an audience where he or she is most likely to succeed.

The benefits of a Life-Cycle Marketing Strategy extend beyond higher conversion rates. The collection of useful, measurable data will allow a business to develop trends, segments, and behavioral patterns that can be used for more precise targeting. Thus, marketing efforts will become more specific to the consumers’ needs. Their level of trust and appreciation will increase, improving loyalty and soon advocacy.

What is Life-Cycle Marketing?

Life-Cycle Marketing transcends traditional thinking about customers and prospects. Instead of focusing on individual campaigns aimed at the masses, Life-Cycle Marketing instead considers the individual prospect/customer, keeping in mind where they are in relationship to the sale, and communicating with them accordingly. To be effective, A Life-Cycle Marketing Strategy must capture views of the customer as he or she moves through the life-cycle stages: Reach, Acquire, Convert, Retain, and Advocate.

1. The Reach Phase is the starting point. Reach refers to the potential target audience. It can relate to current customers and prospective customers alike. Reach is what advertisers and marketers do to gain their attention. It is getting in front of leads, turning them into prospects. Reach can be exciting. It is the glitz, the ad, the website, the wow, the bang. Reach works best when customers understand a business’ brand, service, or product.

Reach will target the audience at a point when they are most likely to be affected by the message. Advertising, direct mail, variable data direct mail, social media, email or other methods may work well. Unlike many campaigns, all the methods employed during this phase will be coded and measured. The ultimate goal of reach is to acquire prospects, but just in case that does not happen, Reach will gather valuable information to be used in future campaigns.

2. The goal of the Acquire Phase is customer participation. Did the prospect interact with the company? Did they walk in the store, call, email, visit a website? Acquiring a prospect happens the moment a lead shows interest. We know how they responded (e.g. signing up for a newsletter, filling out a credit application, taking a survey, requesting a coupon, downloading a demo or any other action). We have a bona-fide prospect, but actually making the sale could still be in question.

Acquire will define the methods and processes required to handle this phase of the customer life-cycle. Responses will be personalized (age, gender, point of interest, and others), using information gained from the prospect. As in the Reach phase, all Acquire outreach will be coded and tracked so trending data can be collected.

3. The Convert Phase is the point at which the sale is made, and the prospect has been converted into a customer. It may take several actions on both sides of the process before the prospect actually converts.

Convert is the phase where customer segmentation begins. What did they buy? Where do they live? What additional products or services did similar buyers purchase? Age, gender, buying power, the need for additional services, and other factors determine your next move as a marketer. The closer a company can get to its customers at this point, the greater the opportunity to sell them again.

After all, it is more efficient to keep existing customers than to constantly be looking for new ones.

4. The Retain Phase is the process of nurturing the relationship and encouraging repeat sales. It is far easier, and less costly, to sell additional products and services to an existing customer than it is to find new leads.

Current customers have already made the decision to buy. They already have a relationship with a company. They have decided to trust a sales team, product or process. The importance of maintaining, if not enhancing, this trust cannot be overstated.

Retain is where the Life-Cycle Marketing strategy truly enhances business. Knowing that the customer will stray if we neglect him or her, it is imperative we maintain contact. Working closely with management applications to create trending models and tracking mechanisms will help a company retain customers.

5. The Advocacy Phase is the completion of the cycle, returning business to a better beginning. These leads have the word of a friend, a loyal customer, fresh in their minds.

Customers with the greatest life-time value are the ones who advocate on a company’s behalf. They tell their family and friends. They suggest products on social websites. They run fan clubs. They tattoo a company logo on their bodies. Just ask Harley-Davidson how that is working out for them.

Advocating is simply the best marketing tool possible. Advocates will get the attention they need, and if necessary, the tools to do what they do best… sell a company to their network.

How does a company use Life-Cycle Marketing?

Once a company has decided to pursue a Life-Cycle Marketing Strategy it must have clear understanding of each phase of the process. Each phase of the strategy builds upon the previous phase, creating an ongoing cycle with predicted expectations and measurable results.

• To begin successfully putting a Life-Cycle Marketing Strategy into action, marketers must have a clear understanding of their current business status and their long term goals.

• They need to capture the right data to identify both their profitable and unprofitable customers, understanding their behavior to given offers, incentives and messaging. With that information, they must structure a plan to contact customers at the optimal point when they are ready to act.

• Marketers must have in place an active tool that allows them to check results against objectives and to act accordingly.

• Test, tweak, measure, act. Then, test, tweak, measure, act. It is a never-ending process, but is that not true of all marketing? The difference is decisions made in a Life-Cycle Marketing program are based on facts, not hunches and wishful thinking.

To realize the maximum benefit fully from a Life-Cycle Marketing Strategy, marketers should:

  • Utilize the life-cycle stage as a means to narrow data collection.
  • Create rules and personas for each customer segment.
  • Stop thinking campaign, start thinking relationship building.

What about the impact (ROI) of a Life-Cycle Marketing Strategy?

Like any other investment a company will undertake, Life-Cycle Marketing should be implemented with clear goals and expectations for its return on that investment. Unlike traditional thinking where an offer is sent and the direct result of that offer is measured, the Life-Cycle Strategy looks at the whole picture. As the strategy itself implies, marketing is conducted over the life-cycle of the customer. In the same fashion, ROI needs to be evaluated over that same span.

Important Considerations:
Findings from a study conducted by about.com
• Repeat customers spend 33% more than new customers.
• Referrals among repeat customers are 107% greater than non-repeat customers.
• It costs six times more to sell something to a prospect than to sell that same thing to a customer.

Like all good relationships, Life-Cycle Marketing relationships take time to develop, and their value should be assessed over time using a variety of measures. Doing this is not always easy, but for the companies that embrace this strategy, the rewards are worth the effort.

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The Little-Known Marketing Secret That Allows You To Write Advertising Homeruns

You remember Sherlock Holmes don’t you? Holmes was the fictional consulting detective invented by Scottish physician Sir Arthur Conan Doyle. Holmes, as you know, is famous for cracking open difficult cases and solving them with almost magical abilities.

So, grab your inspector’s hat and let’s play Sherlock Holmes for just a moment. We’re going to do a little spying today and see if the “Sherlock” in you can turn up a few profit clues lurking all around.

This is the shortest course to the profit-land in this crazy fun business. The direct marketing or “mail order” business as we affectingly call it have a “secret” way of “spying” on the competition. It’s called “seeding.”

Very simply, seeding is where you get on other businesses mailing list

… for the sole purpose of snooping and finding out what’s going on in your selected marketplace.

This does several things for you.

First, you’ll start receiving offers from the company you inquired about plus competing companies. And these offers can be golden to you by seeing exactly who’s mailing what.

You’ll see firsthand what their winners are, how the copy reads, what offers are hot and ideas will start to catch fire.

And if you go the extra yard and actually buy something, you’ll experience firsthand how you were treated, what upsells they offer, and how they run the customer service side of the business.

Simply put, this is one of the best direct marketing educations you can get. And best of all… it won’t cost you a fortune.

Basically, you get a master’s level marketing education for the mere cost of a postage stamp and the time it takes to “sign up.”

Pretty damn cool, right? As my late marketing mentor Melvin Powers once told me, “There are no secrets in the mail order business.”

You’ll be tuned in to ‘real world-real time’ marketing methods and strategies. This is one of the best ways to stay up-to-date with powerful trends and effective marketing that’s cutting edge.

Seeding gives you another huge benefit…

… A swipe file right at your fingertips.

What’s that, you say? Swipe file? YES! Swipe File!

What’s a swipe file? Hey, I’m glad you asked.

A swipe file is a collection of marketing pieces that have a proven history of positive results. These ads are bringing in bucket loads of profits, leads, store visits or whatever action the ad is asking from the customer.

But how do you know if these ads are profitable or not? It’s not really that hard to figure this out… and you don’t have to guess.

If you see a marketing promotion (advertisement, sales letter, squeeze page, etc.) that runs over and over or is mailed over and over, then you’ll know for sure it’s a winner.

Most marketers, especially direct response type businesses loath wasting money. Again, if you see an ad repeated over and over again, you can rest assured that it’s making money for the advertiser.

Once you start building your swipe file you’ll want to see how you’re marketing stacks up to the competition. Ideas gleamed from your swipe file could be used to improve your marketing.

There’s no reason to reinvent the wheel. In direct marketing (or mail order), you have learned that there are no secrets. Everything is laid out there for you.

And by the way, did I mention swiping is legit… it’s sharply slices a huge portion of the learning curve!

Let me tell you a quick story about one of the most successful, profitable and effective direct marketing promotions to hit during the 20th Century.

It was 1974 and Martin Conroy was commissioned to write a sales letter to sell subscriptions for the Wall Street Journal.

No big deal, right? After all it was only two pages printed front to back… a mere 780-word letter.

But here’s the thing. Did you know that one of the most successful and profitable sales letter ever written…

This super-successful sales letter mailed for 28-years with almost no changes to the original copy. It raked in over an estimated TWO BILLION DOLLARS in gross revenues!

Take one of the most famous copywriting controls, The Wall Street Letter written by the late Martin Conroy. He in fact swiped it from a sales letter written many years before.

So what was the secret to this mega-success letter?

The secret, according to industry insiders, is that Conroy relied on a little-known “trick” to cheat his way to writing the pitch.

It’s helpful to know that Conroy’s letter was not beaten until 2002. It was beaten in two consecutive tests… the first test Conroy’s letter was beaten by less than 10%. The second by a huge 24%.

The second letter was written by copywriting legend Mal Decker.

So, the question is how did Mal Decker come up with a letter to beat the ‘unbeatable’ control?

The answer… again… it’s surprisingly simple… and you my friend can use this ethical “cheat” to produce blockbuster ads, web pages, sales letters, and just about any marketing piece you need to write.

Now I’m not saying its OK for you to straight out copy the ad word for word. Not at all… I’m saying it’s fine to borrow or swipe ideas, concepts and compelling parts that intrigue you and adapt them to your marketing.

Swiping is a great way to infuse new life in old copy and can often lead to more sales and leads.

So start your swipe file today and let the ideas flow.

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Direct Mail Is Still an Effective Marketing Method to Reach New Patients

Direct mail isn’t dead. Even in this electronic age of e-mail, websites, social media, and search engine optimization, direct mail can be a profitable tool for marketing your medical practice. Many healthcare specialties can use direct mail to reach new potential patients very cost effectively. List compilers have access to a plethora of demographic and lifestyle (psychographic) information that can be easily purchased to target very specific types of prospects with your direct mail.

For example, a dental practice can obtain new residents lists, which contain families who have just recently moved into a new home. This is very lucrative for dentists because people who have just moved into a new home have a high likelihood of looking for a new dentist. You can also break the list down to include specific “selects” including household income level or home value, to gain more affluent patients. Searching geographically, such as by zip-code or within a certain distance from your office (referred to as “rooftop radius”) enables you to target only prospects within your marketing area that represent a higher likelihood of coming to you.

Any practice providing elective cosmetic services such as a plastic surgeon or a cosmetic dermatologist should consider a list targeting female heads-of-household that are geographically close to your office with an income select. Practices trying to reach senior patients, such as an audiologist dispensing hearing aids, can obtain a list of seniors where one or more members of the household are over the age of 65. There are even “response lists” available, information obtained from those responding to surveys, for those with ailments such as obesity or arthritis.

I’m often asked, “How far away from my office should I try to reach new patients?” The rule of thumb should be “20 minutes or 20 miles” depending on how densely populated your market is. In large cities, patients will rarely be willing to drive more than five miles, which may take them 20 minutes. In rural markets, where people are used to driving great distances to get to larger towns where healthcare providers are located, I would recommend reaching further than 20 minutes or 20 miles.

Make sure you always use a reputable list compiler, preferably one that’s a member of the Direct Marketing Association (DMA), so they subscribe to the DMA’s ethical standards for list hygiene. This assures you the cleanest lists with the most up-to-date data. I recommend using a very well-established list compiler here in my home town of Boca Raton, Dunhill International List Co. www.dunhills.com.

Keep a look out on Tuesday, August 24th for my next blog “Direct mail isn’t dead: Part 2″. If you would like assistance using direct mail to reach new patients for your practice or need to improve the effectiveness of your current direct mail, call Rich at 561-477-6348.

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Location-Based Marketing For Brick and Mortar Businesses

Mobile marketing can be a powerful and unique medium, but mobile campaigns are not for everyone. Not yet anyway. There’s a lot of opportunity for big brands who are looking to advertise in new and innovative ways. After all, big brands have the resources and budget to test the waters. If their initial attempts fail, it’s not the end of the world and it’s not going to break their bank.

So, is there room in this medium for the smaller guys?

I think there’s one specific area of mobile marketing that is suited incredibly well for brick and mortar businesses of any size, especially in areas with high foot traffic. Particularly retail stores, restaurants, bars and other event venues. This is Location-based marketing. With the differences in handset hardware and wireless and Blue Tooth technology, it’s probably too early in the game to determine how realistic this form of marketing is today, but it’s worth understanding how this can tie into your overall marketing efforts.

What is Location-based Marketing?

Location-based Marketing is the act of delivering targeted content directly to the user of a mobile device based upon their proximity to your business. This is usually done through SMS, known to most simply as text messaging. Information about your location is determined via built-in technologies such as GPS and Blue Tooth, which are quickly becoming standard in mobile devices. What it essentially comes down to is knowing when potential customers are in proximity to your business and sending them a targeted advertisement. This is truly the most direct form of direct marketing available.

How does it work?

Here’s an example: Maybe you’re walking down Ionia Ave. in Downtown Grand Rapids on a Saturday night deciding where to grab dinner and a drink. As you head down the street, you receive an offer via text message prompting you to stop into J Gardella’s for a free drink or to head over to Hopcat for half off an appetizer. Prior to receiving these messages, you’ve chosen to opt in to receive these messages through some other form of marketing. You’re a patron of both establishments and have already given them permission to market to you in this way, so you’re very receptive to such offers.

This is an interesting way for businesses to market to a very targeted group of people: those who are already out on the town on a Saturday night and are in close proximity to your business. Would you have the same success marketing that offer to the same group of people through a direct mailer or a website? Certainly not.

So let’s take it one step further and say you’ve successfully directed this foot traffic to your business but there’s a line at the door. With an effective mobile marketing campaign, a simple text message could allow your customers to be added to a waiting list.

While they’re waiting for a table, why not allow them retrieve a menu or list of specials via another text message?

A few minutes later, another message could let them know when their table is ready. Now your customers are seated and can effectively use the original text message as a coupon to redeem your offer.

Entertainment venues and clubs can use Located-based marketing to broadcast to customers by letting them know what time a show starts, who’s performing, how much tickets cost, etc. I’m a big fan of Dr. Grins Comedy Club at the B.O.B and every week I take a look at their Facebook page to see who’s appearing that weekend. I’d happily opt in to a service that would allow them to notify me of who’s performing and how much tickets cost when I’m in the area. If they wanted to offer any specials to get me in the door, even better.

What are some of the advantages of Location-based Marketing?

You can create a true sense of urgency.

Unlike advertisements distributed through mail or email, you can create coupons or offers that expire quickly — within 30 minutes to an hour, rather than weeks. You know your customers are already in the vicinity of your business and can leverage that to compel them to act out of impulse and urgency.

This creates the mentality that your customers need to act quickly to take advantage of the offer. This is something you can’t do that with a direct mailer.

You’re marketing to your customers at a time when they’re most likely to purchase.

Most forms of advertising will require your customer to remember an offer when and if they’re ready to act on it. If it’s a physical coupon, they need to cut it out, keep it handy and make sure they can actually find it when the time comes to redeem it. If that same coupon sits on their phone — which most people always have with them — you can eliminate the need for them to cut out and carry a piece of paper. I’ve never cut coupons but would be very likely to redeem something that was pushed directly to my phone.

If you are able to market to your customers via SMS as they enter your store, they’re more likely to be receptive to your offers and make a purchase than if you produce marketing that is focused on getting them through door in the first place.

You know exactly who you’re marketing to.

Unlike home phones and mailboxes, people don’t share mobile phones. You’re not marketing to a household or a home phone number that could be shared by several people — some who are in your target and others who are not. With traditional direct marketing, you always face the possibility that your message never reaches the person you intended it to go to.

About Opting-In

The idea of getting these advertisements in small doses would sit well with most people, but you certainly wouldn’t want to be bombarded with these advertisements the moment you step into a mall or walk down main street.

It’s up to the user to choose who they are interested in receiving this type of marketing from, through simple opt in procedures. The user has full control to determine who is able to market to them in this fashion. That’s why it’s important to integrate mobile advertising with your overall marketing campaign. Websites, print ads, radio spots, etc. can provide a direct call to action to opt in to these services by text messaging to a Short Code. These are small codes that you text in to a designated number to sign up for an offer, place a vote or be added to a mobile marketing database among other things.

Take a look at a detailed article I wrote on the subject called “Effective ways to get users to Opt In to your Mobile Campaign” for more detailed information on this topic as well as ideas on how to build a mobile marketing database.

An example of Opting In through Short Codes

How could this work in the case of our earlier examples, Gardella’s and Hopcat? Maybe you’re sitting at either place one night and see an advertisement at your table on a napkin or a drink coaster. Or perhaps a poster on the door or bathroom prompting you to text in to a Short Code to redeem a free drink or discount for joining the list. This could be a very effective way to build a mobile database of customers and offer them incentives for being marketing to in a very unique fashion.

So, while big brands may be the most likely candidates to jump into the mobile marketing arena, these are all interesting ways for brick and mortar businesses of any size to market to their customers in the most direct way possible.

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