“Why just focus on growth, when you could focus on scale? You need to enlarge your thinking!”
~ David Dugan
Growth is attractive at first sight, but the linear growth equation:
More Time + More Effort + More Resources = More Growth
is infinitely less appealing on close examination, especially when you compare it with the exponential equation of scale:
Strategic Effort x Resources x Time = Scale
Can You Use Magnetic Marketing to Create Scale?
It absolutely can! That is really the heart of magnetic marketing!
If you think about it, the reason magnetic marketing is effective is that it attracts people who have a need for your product or service, and provides a compelling reason for them to reach out to you and let you know they exist. That compelling reason might cause them to call you so they can talk on the phone, to sign up for your email list, to download a report, to apply to work with you, or any one of hundreds of options for walking through your metaphorical front door.
Whether you use your magnetic marketing methods to scale your business, or merely to create growth depends on what you do with that prospect when he walks in your door and this is where many businesses make mistakes and unknowingly settle for growth rather than aiming at scale.
The #1 Mistake That Keeps Your Business in Growth Mode
There’s a lot of debate about the relative importance of traffic and conversion, especially on your website and the role of each in your business. The truth is, most of it is quite hollow whether you are talking about growth or scale. Any expanding business needs both more traffic (eyeballs, bodies on seats, people walking through the door…) and higher conversion rates to prosper. However, growth-focused businesses often look at dollars earned, rather than number of prospects engaged.
What’s the Difference Between Growth and Scale Through Customer Attraction?
Here’s how it works.
A growth-focused business is just as happy (or possibly more so) with 1 x $1,000 transaction as it is with 1,000 by $1 transactions. After all, both result in $1,000 worth of sales, don’t they? And doesn’t that mean that they are both equal?
A scale-focused business would far rather have 1,000 x $1 transactions at the front end because it isn’t relying on the initial transaction, it is looking at the potential future value of each one of those $1 customers. That $1,000 customer may be fantastic, and may go on to buy more and more… or they might return your product for a refund, move into another business, or die while each of those 1,000 customers was interested enough to pull out their credit card, invite you to market to them, and try your offer. Now it’s up to you to engage them, deliver value, and show them why they should spend more money with you. That’s potentially 1,000 x $1,000 in future!
Why Wrong Thinking About Your Funnel is Hindering Scale
Once you start thinking about scaling your business rather than merely growing it, you realise that you need to think more carefully about your funnel and product suite. The truth is that many of the most successful businesses simply break-even on the front-end (some of them even lose money on the front-end although this strategy needs to be executed with a close eye on the numbers). They make all their money on the back-end of their business.
A typical example is the Book Funnel which I’m sure you’ve seen. Two common ways of executing this are the $7 book (with free shipping), and the Free Book (you pay shipping and handling). Depending on how effectively you manage your ad spend to promote this offer, this can quickly be turned into a break-even offer on the front-end and your goal is to attract as many buyers as possible.
What you do next with these buyers is what makes the difference. Some of them may be ready to purchase your $1,000 offer after buying this, others might take a $50 or $300 dollar offer… the numbers aren’t the important thing here, the important thing is that each of these buyers has now demonstrated interest in your subject and entered into your community. You don’t yet know how much they’ll be worth to you in the coming months and years, but the chances are strong that their value will grow with time.
How Much Should I Spend to Gain a Customer?
A scale-focused business will follow Dan Kennedy’s advice and spend as much as they can afford to attract quality customers.
Hundreds of my clients have confirmed the oft-repeated truth that in most cases the best lifetime customer come from offline sources. They may cost twice as much to attract in the first place, but they spend more than 10 x as much money over time. This suggests that if you are in business for the long haul, it’s worth spending more to gain your customers… provided the ROI on that money is carefully tracked.
The numbers are different for each business, but the more comprehensive your funnel and the more comprehensive and focused your product suite is the easier it is to make this work. Just remember that scaling your business relies on attracting a large customer base to which you can market.
A Simple Product Suite You Should Build Your Funnel Around
Your funnel doesn’t need to be complicated. The following table shows you what you should try to build.
If you’re interested in a platform that enables you to create products and funnels simply and economically I recommend Kajabi. I love their platform for it’s ease of use, it’s stability, and the owners’ dedication to constant improvement. They have a great free trial you can use to see if it meets your needs which currently includes a complete book funnel. Just follow the link below to sign up for a free 28 day trial.
Free Kajabi Trial https://app.newkajabi.com/r/Fxot97eP/t/2nwenlqh
N.B. Full Disclosure: This is an affiliate link and when you sign up through this link you support my business. I am a Kajabi affiliate because I think this is currently the most robust and effective platform you can use to build and market your products suite.
If you’re in Melbourne, why not visit our Magnetic Marketing Mastermind which meets monthly in Box Hill. To learn more and sign up for notifications visit https://hiltoncopy.com/no-bs-melbourne-magnetic-marketing/