By MaryEllen Tribby
Recently while walking Coco on one of our midday breaks I noticed one of our neighbors was having their fence taken down.
The next day on my walk with Coco the fence was totally down.
And the following day, a new fence was starting to appear.
Given that Coco is the cutest, friendliest white Boxer in all of Boca Raton, she gets a lot of attention. So each day that we passed my neighbor’s home, the fence gentleman had to stop and pet and pay a little attention to Coco.
Well, you know me and business, I used that as an opportunity to talk to this gentleman about his business.
He is a solo-operator who has been building fences for 20 years. It takes him about a week to complete a job that includes taking down an old fence and putting up a new one.
On the last day of his job at my neighbor’s home as we said our good-byes, and he gave Coco one last petting I thought, What a tough business to be in.
You see, I had learned that his fences (even here in South Florida) are guaranteed for 10 years, but most last longer.
Just think about that for a moment. Because he does such a great job, he will not see or speak to 99% of his customers for about 10 years. More importantly 99% of his customers will not pay him another penny for 10 years!
Your Business Should Constantly be Evolving
But for most of you, your business isn’t a fence. There is not a designated start and end point. Your business must be evolving every day, meeting the needs and demands of your customers and staying relevant with the times.
That is why I was so taken aback a few weeks ago when I actually heard someone use the phrase, “Well we built this product, and we assumed they would come.” And when he said “they,” he was talking about customers.
To me that is the same mentality as building a fence. He thought he built the product and now was done!
In direct response marketing and in business, never, ever, ever, ever, ever think, “If we build it, they will come”. Gosh even the blockbuster movie, Field of Dreams, where this line originated was a fictional Hollywood story!
And frankly I have been talking about this for years. And here’s the funny part, even if you’re results are great, you still never stop improving. If you’re results are not what you want, you keep testing.
That’s right – in order for your business to grow, you need to keep finding ways to get better results.
First Things First
The reason many entrepreneurs and business people will dismiss a project too soon is because they don’t have their “make or break” point determined before they launch a product.
And if you take away nothing else from this issue please take away this. The best “make or break” or key indicator that you can measure for a new product promotion is . . .
Drum roll . . .
That’s right – earnings per click.
You determine your EPC by dividing your total revenue by the number of clicks. For example suppose you sent a promotion to your list and you had 2,000 people click on the link and that mailing yielded $5,000. You would take the revenue ($5,000) and divide that by the number of clicks (2,000) to get an EPC of $2.50.
The reason this is such a great metric is because it puts everyone on an even playing field. You don’t want to measure total revenue because all lists are different sizes. But by measuring EPC’s you are comparing apples to apples.
What’s Good – What’s Bad
The numbers just keeps getting easier and easier.
The bottom line is if you are keeping at least one dollar per click, your promotion is working. I have had EPC’s as high as $24 and as low as $2. But for my flagship product Inbox Empire our average EPC is right around $8.00. Remember I said keeping a dollar per click. So if you are doing affiliate deals where you are paying out 50%, you need to make sure you are getting at least a $2.00 EPC after paying the commissions.
Now even at an $8.00 EPC, does this mean I stop testing new promotions? Of course not. I always want to improve on my results. Remember good is the enemy of great!
What if you are right on the cusp of success, what do you test?
The Most Important Testing Musts
- Subject lines
Here’s a big secret – the above is what I continue to test even when my promotions are winners. And if they are winners, I move fast!
Before your next product or new promotion launch, make sure you incorporate everything we discussed today and I bet your results will speak for themselves.
And speaking of results, if you really want results, join me in a Free 3 part video series about living the laptop lifestyle, running your ideal business, and living life on your own terms.