Years ago, my marketing mentor Dan Kennedy taught me this formula…
In almost any population of prospects for any product or service:
- 1% are rich, 4% are affluent
- 15% are price sensitive buyers with little disposable income
- 80% are on the edge financially, and (regardless of need), can’t afford anything beyond absolute necessity.
In dear ol’ Dan’s words:
“Your best prospects for your high-dollar product or service are the affluent prospects in the TOP 5% of your prospect pyramid. These people can easily afford your premium product or service. And easily afford to do business with you again and again.
“Having a reliable system to connect with prospects at the top of the pyramid is the KEY to leave competitors in the dust and get the kind of payoff you want for all the blood, sweat, and tears you pour into your business. A system that accomplishes that for you, would indeed be worth its weight in gold.”
Let me emphasize the big lesson here that Kennedy often repeated:
5% of your customer base are willing to buy from you again at higher prices.
In fact, right now, you are probably not offering them what they want.
You should be spending more time thinking about serving this 5% than you do trying to get new customers.
Why?
Because it is far more profitable to do so.
Here’s a few questions you can answer that will help…
→ Who makes up your 5% of most affluent customers?
→ What more do they want that they would be willing to pay for?
→ Can you offer a higher-level product or service that brings more profit into your business?
Little-known fact: The more affluent the customer, (generally) the less hassle they are to serve.
Therefore, in most businesses things work one of two ways:
A) 100 customers paying $500 = low profit margin, lots of work
B) 10 customers paying $5,000 = same revenue, more profit, less work
You’re doing yourself and your family a disservice if you’re not pursuing option B.
Bottom line…
If you have a customer base of 50 people, there are 2-3 people that want to spend more with you.
If you have a customer base of 100, then there are 5…
If you have 1,000, then there are 50.
Make it possible for your best customers to give you more money.
Here’s a real-world 5% Profit Pyramid success story…
Recently Coach Daniel and I did an ‘Offer Audit’ for my friend Nolan.
Nolan is a YT expert and he had a $1,500 coaching package.
Daniel and I went to work like Profit Miners…
Digging through and extracting hidden value from every aspect of Nolan’s program.
We took his suggested value from $12,500 to over $35,000 in benefits…
This allowed Nolan to take his real-world price from $1,500 to $5,000.
He then got his offer in front of his audience (which includes the 5% at the top of his profit pyramid).
The result?
In one week, Nolan sold 3 out of 4 prospects on his $5K program.
That’s a 75% close rate… on 3X the price.
(And he used my IG Social Story Selling System to generate the leads!)
Game changing.
This also means that Nolan’s offer just became exponentially easier to scale to 7-figures.
At $5,000 a pop…
He now only needs 200 buyers to hit $1,000,000 in sales.
(vs the 660+ he would’ve needed to reach the same revenue with a $1,500 product).
Isn’t millionaire math fun?
I highly recommend spending some time thinking about this…
… and how YOU can tap into that top 5% in your own business.
Let me know how it goes!
Success Loves Speed,
PS - If you found this idea useful…
This week I’ll be sharing how you can get even MORE high powered strategies to dramatically grow your business and profits just like Nolan did.
Just keep your eyes peeled for my email tomorrow…
More details then. | 