Cooperative Marketing Builds Home Business

Cooperative Marketing Builds Home Business

You can save thousands by using a cooperative marketing plan to build your home business. It's a well known fact that advertising is one of the largest expenses you will encounter in starting and maintaining your home business. Advertising as also one of those business costs that we often don't give much thought to when deciding to go into business.

Just how much does it cost to advertise your business?

You can advertise for free or you can spend as many thousands as you can afford, it all depends on you and your advertising budget. Free advertising sounds like a great deal, what could be better than free? An important thing to remember is the old saying "The most expensive thing you will ever get is that free puppy!" How much does free advertising cost? Even seemingly free advertising can cost you a bundle.

What we often forget to take into consideration when signing up for that free deal is the cost to cultivate the results of that free campaign. We fail to realize those hidden costs associated with the advertising campaign. If you do a simple Google search for leads you will find various lead brokers offering lead information anywhere from $1.50 to more than $10.00 per lead. Hearing that I am sure that you will agree that free still sounds very attractive.

To generate your own free leads you must have a marketing system in place to generate such leads. The average cost for such a system is about $50.00 and will generate 7-10,000 leads per month. The average response is 1%, meaning out of 10,000 names you will have 100 people who have responded to your advertising message. The reliability of the contact information is approximately 70%, this means that you will be able to contact 7 out of 10 leads.

Out of the 70 potential customers you have reached, 20% are qualified to buy your products and services. By qualified I mean that they are interested in what you are selling, they have the ability to buy (money), and they are ready to take action - NOW! That leaves you 14 qualified persons who can purchase your items. The operative term is "can". Not every one of those 14 will buy from you.

How much did the free advertising cost?

Up to this point the free lead cost you about $3.50 however we need to figure in the other costs associated cultivating that new customer. Let's talk about your time. According to a report by the U.S. Census Bureau released in 2007 the median household income was $48,200 or about $23 per hours based on a regular 40 hour work week.

How long would it take you to talk to and qualify your 70 free advertising respondents?

How much time would you spend on each call?

Times may vary depending on the level of interest with each individual but allowing 45 minutes per call your labor cost would be $1207, add the system cost the final tally is that is cost you about $90 to cultivate each of the 14 individuals qualified to take action on your opportunity.

Imagine how much it would have cost if you had to buy 10,000 leads?

Think how different things would be if you had access to a cooperative marketing plan. A cooperative marketing refers to advertising and promotional programs in which a manufacturer or distributor supports the advertising efforts of a retailer.

Such advertising is sometimes referred to as co-op advertising. Typically the manufacturer will help underwrite a portion of, or in some cases, pay for completely, the advertising costs incurred by the retailer.

Wouldn't that be sweet?

Now let's stretch our imaginations a little further and think of an even better scenario. What if instead of a company contributing to our advertising budget and us spending our time separating the wheat from the chafe that these companies would offer a cooperative marketing program that would give us direct access to their customer base for a fraction of the cost to develop results from free advertising.

Instead of spending thousands for a handful of "maybe will buy", your money goes directly to the "already are buying" consumers known as customers.

Customers, not leads or prospects are the life blood of your business. Not one business on the planet can survive without customers.

Customer based cooperative marketing does make the acquisition of real customers affordable so you could put your money to work generating income rather than spending it on questionable advertising with unreliable results. Using a customer based cooperative marketing program to build your business is more than good sense, IT'S GOOD BUSINESS!

Aloha,

Al Gonzales-2 Star Trivita Director

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Cell: 808-282-5620

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