- by Rory Ramsden
When assessing the impact that a product launch marketing strategy will have on your business – and you should do this before committing yourself – it is wise to
take a look at the long term added value that a launch could have.
That is… Apart from making you money, of course
Here are 10 other benefits that your first product launch will bring to your business.
#1. Prospect List Build – You don’t build a list to do a launch. Quite the reverse in fact, you do a launch to build a list. So expect to grow the size of your prospect list by a large factor. For the sake of this example, let’s say you grow your list by 10,000 people.
#2.Value per Subscriber – Even if a subscriber does not go on to buy from you the first time, he or she has a value. If you are mailing 50,000 subscribers and your gross sales on your first product launch are $500,000 that implies a value per subscriber of $10. This is the number that your affiliates and JV partners want to know before they will agree to promote for you.
#3.Value of Prospect List – Multiplying #1 and #2 together – 10,000 X $10 – you get a figure of $100,000. Remember this added value to your existing list so you can see why your lists are the most valuable assets your company owns. They can never be taken away from you. It is wise to put a value on them.
#4. Value of New Buyers – A buyers list is worth 15 times what a simple prospect list so let’s just assume that you made 1000 sales at $500 each. This is a 2% conversion rate which is reasonable. Assuming that you make just one other sale to these people at the original offer value of $500. This makes your new buyers conservatively worth a $500,000 in future revenue to your business – a multiple of only 5 compared to the added value of your 10,000 new prospects.
#5. JV Partner Acquisition – I expect that you have already on all of your competitors’ lists – That way you can keep tabs on what they are doing – So it is reasonable to assume that they are on your list too. They are your potential JV partners so when they see that your product launch is converting well, they may well want to promote your offer to their lists. For the sake of this example, let’s assume you acquire just 3 new affiliates.
#6. JV Partner Value – Say you do 3 launches with each one and for the sake of argument, each time each one nets you just $80,000 each. That makes the lifetime value of these new partners $720,000 – $80,000 X3 X3 – A substantial boost to your bottom line
#7. Value of Re-Launches – Assuming you do 3 follow up launches of the same product and do no better than your 3 new affiliates before you introduce a major upgrade, the net value to your bottom line is $240,000. This takes no account of the momentum you have acquired or the expert positioning you have gained. I show these separately below
#8. Momentum – Stacking product launches is a very powerful tactic. The success of one feeds the success of the next just like a snowball grows in size once it is rolling down a snow covered slope. For this example, we’ll value your momentum by multiplying your affiliate ROI by the number of re-launches you will do – 3 – That’s $80,000 X 3 which is $240,000
#9. Added Positioning – Now use the same numbers to put a value on your expert positioning – $240,000 – The snowball effect works to your advantage here too because you will become the go-to guy in your niche. Word will get round that you under-promise and over-deliver so you will be attracting new prospects without having to work for them. The second time you launch your prospect and buyers lists will grow too. It’s a virtuous circle
#10. Value of New launch Ideas – I have anticipated that from all this money spinning activity, you will come up with just 2 new ideas from which your ROI will be no more than your 3 affiliates managed when they promoted your subsequent launches so that’s another $240,000 to add to your bottom line
That makes the total long term added value to your business of more than $2,000,000.00 and that from just one product launch. By stacking on on top of another, the effects are compounded.
Remember that this is based on just one offer of $500. The more powerful your positioning the more your prospects and clients will be prepared to pay to get exclusive access to you. Your consultancy fees will explode too.
In the meantime… You may be wondering how much hiring a product launch manager will cost and the quick answer is not as much as you might expect. Our aim is to structure a win-win sort of a deal with clients. We get paid when you get paid. That is we work on a percentage of the ‘pre-return’s gross’ revenue that your product launch makes. Naturally, you have to pay a fee to get on our calendar. We can only take on 2 or 3 clients per year so our time is valuable and we must know what our schedule is well in advance. It would be unfair on our other clients if we didn’t insist on this. Find out more by booking a free consultation with me now