The Internet Loss Leader Strategy – A Little-Known List Building Secret
For decades, retailers and direct marketers have used "loss leaders" or inexpensive items sold at or below cost to acquire new customers. This proven technique also benefits Internet marketers to build their email lists using an online variation of the offline loss leader technique.
For Internet marketers, your list is your key to making money online. The larger your e-list, the greater your online revenues – all else being equal. Reason: the people on your e-list already know you and trust you, so they are more inclined to purchase products from you.
The Internet Loss Leader Strategy is a simple, yet powerful secret weapon for building your e-list. An example of how it works: you've created an e-book priced it at $ 39 and notified your larger affiliates that they could offer it for only $ 19, a $ 20 discount off the cover price. As an incentive for promoting this product, your affiliates will earn a 100% commission on each sale, instead of the usual 50%. Your affiliate takes all of the revenue for sales from this e-book.
However, every person on your affiliate list whoorders will do so through an affiliate link direct traffic to your landing page for the e-book. As a result, each person who buys the e-book will be added to your e-list.
These subscribers are more valuable than those acquired through general marketing techniques. They have already purchased a product from you and will be likely to do more purchasing. Initially, it seems like you're taking a loss, but adding these names to your file is priceless … once they are in your sales funnel this person could spend tens of thousands of dollars over the course of a lifetime.