TIE Chapter 10 – The Most Powerful Word In Marketing (Review)


The previous blog post summarized Chapter 9 of The Iceberg Effect book, “Multiple Streams Of Income”. Two types of sales were identified, “One-time sales” and “Recurring Sales”. The blog concludes that the best situation is to make sufficient recurring sales to cover your day-to-day living expenses. This will leave you enough time to concentrate on making one-time sales, which, will hopefully, include enough high-ticket sales to enable you to live the life of your dreams.

Now here’s a summary of Chapter 10 – “The Most Powerful Word In Marketing”.

One day, on a trip to London, Dean was wandering through the famous “Borough Market” where food items from all over the world can be purchased.

While passing through the market area where a huge variety of cheeses were being sold, Dean was intrigued as to why one particular stall had many more would-be customers lining up in front of it than all of the other cheese stalls. On closer inspection, Dean realized that the busiest stall was offering small pieces of several different cheeses free to their potential customers. Frequently people would buy a larger amount of their favorite cheese based on the little nibble they had been given free.

Later that day and during the next few weeks, Dean considered how this tactic could be used in his online business. He soon realized that it was a fairly common practice. For example, gyms frequently offer a free month’s trial membership and coffee shops often offer a free muffin with a customer’s first large cup or mug of coffee, attracting more customers in the process.

Dean didn’t think that the free gift offered to a potential subscriber to join his email list fitted the bill as that did not lead to the potential of an immediate sale. The common word when talking about cheeses, gym memberships, or muffins, was FREE so the expense of the free offer had to be as low as possible to make the scheme viable.

In Chapter 1 of The Iceberg Effect, which was summarized in the second blog in this series, Dean introduced us to Alex Jeffreys, his first “proper” mentor, who was the inspiration Dean needed to turn his life around. Dean was drawn to his second mentor, the famous Russell Brunson, partly because Dean saw one of Russel’s adverts which seemed to solve Dean’s dilemma of how to incorporate the tactic he had witnessed at Borough Market into his own online endeavors.

Instead of the usual digital download, Russell’s advert was offering a FREE physical instructional book. The customer had to pay a nominal shipping and handling charge, but this did not detract from the fact that the book itself was free. Although, depending on where the customer lived in the world, the shipping and handling charge may not cover the actual expense it did have two advantages. It went a little towards the cost to the product owner of the exercise and proved that the customer had access to at least some money. This second point was of particular importance as, of course, the ultimate aim was to sell more expensive products or services to the customer in the future.

Russell has written the foreword to The Iceberg Effect

Dean’s initial inclination was to jump in and try to incorporate this idea into his business on his own. Then he remembered the disastrous and costly start to his online career and he lent out to Russell for assistance. Dean ended up paying five figures to join Russell’s Mastermind Program where he learned, among many other golden nuggets, exactly how the free plus shipping scheme worked in detail. This knowledge has enabled Dean to create the perfect way to welcome perfect potential customers into his funnels. Then he potentially can make high-ticket sales to them after he has developed a long-lasting positive relationship with his new customers.

Cheers

Phil

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