In this article we’ll take a look at some strategies used by successful entrepreneurs to turn their online forays into amazing money-makers.
Creating needs and starting trends
Some of the biggest names in the ecommerce world don’t just address needs, they create them – particularly in relation to information products.
Here’s how it works
1. They build up a client base with a product that addresses a real need.
2. Once those clients’ needs have been addressed and trust has been established, a new product is introduced, or a repackaged existing product available elsewhere to create a new need.
3. Promoting the new product to their client base as something that they “gotta have” and will definitely assist them in whatever purpose, sales are generated purely upon trust.
4. As “outsiders” notice the product through this activity, a trend is begun. The non-existent need the product addresses now becomes real.
A good example of “creating need” are the plethora of products related to search engine optimization. Good SEO boils down to a number of basic, ethical optimization strategies – there is absolutely no rocket science involved.
Many who create and market these products know that these tools have a very short serviceable life – as more people buy them and employ them, the less effective they become. Search engine tweak their algorithms to dampen the effects of these tools. Then we’re back to the basic principles of search engine optimization being the most effective way again.
The short term gain the tool brings pales into insignificance in comparison to if the client had instead just focused on the basics of optimization and steadily built traffic. But given the tool did work, the client is then receptive again for the next tool that comes along that the vendor offers.
This establishes a mentatility – the client is always looking for the “next big thing” – and trusts the vendor to provide it, never actually trying the basics for long enough and discovering that those strategies work equally as well – and for longer.
The inner circle strategy
Competitors within an industry will often collaborate for mutual financial gain.
Here’s how what I call “The Inner Circle strategy” works, again using online business products and services as a scenario. If you’re on any marketing guru lists, you’ll likely recognise the ploy:
Vendor A develops a product and introduces it to his client base, not only to sell to them directly, but also inciting them to promote it to others via the in-house affiliate program. At the same time he approaches Vendor B and offers a generous revenue share if Vendor B will introduce the product to his client list.
Vendor B then advertises it to his clients in such a way:
“I’ve just heard from my good friend A, an online marketing dynamo, who has created the most amazing marketing tool in the history of the Internet. I used it yesterday and it sent 8 million visitors to my site in the first hour – this has got to be seen to be believed! My pal has generated eleventy squillion dollars from using this. I told him that he is crazy to want to release it to other folks; but as you are one of my valued clients, I can get you an amazing discount.. blah blah blah. Act fast before he comes to his senses!”
Using this strategy, Vendor A doesn’t have to earn the trust of Vendor B’s clients. Vendor B has done it for him. In many of these cases, if you go out to Vendor A’s site, you’ll often also see a testimonial from Marketing Tool Vendor B there.
But wait, there’s more…
Vendor C may visit Vendor A’s site, notice the new product, also notice Vendor B plugging it. Vendor C sees an opportunity to make some cash by joining the Inner Circle.
This process is then a case of rinse-and-repeat, until dozens of Vendors are promoting the product and offering testimonials on Vendor A’s site. Given this much coverage from industry identities, a trend is generated and sales go through the roof.
Because so many Vendors are linking to A’s site, A’s search engine rankings also climb, given Vendor A a swathe of extra coverage, sales and affiliate signups at no real cost to him whatsoever.
After Vendor A’s campaign has ended, Vendor B comes up with a new product and the cycle repeats with all the “usual suspects” involved.
This is a classic example of why, in some industries, your “competitor” shouldn’t be seen as a threat, but a great resource.
Similar strategies are also used widely in the upper echelons of MLM and franchising in the bricks and mortar world. It sounds a little unethical, but if the product does deliver results then it just boils down to good business and marketing.
The Inner Circle strategy is *very* powerful and wide open to abuse, so please use it wisely. If you’ve worked hard to gain credibility, don’t blow it for the sake of a few fast bucks.
