(Jay Conrad Levinson, Stuart Burkow) Guerrilla Pro PDF

GUERRillA PROFITS
Inentlon: Business Owners, Managers. and Professlonals_

Now you can capture the money that most businesses miss.
Most businesses miss profit opportunities on every transaction or
customer/client relationship. They have unique profit potential that
goes completely untapped-and are unintentionally limiting their
incomes without even knowing it.
Your very business existence depends on a steady stream of profits
to pay your bills .... your salary.. .. your employees ....your vendors and
suppliers .... and to secure your financial future . And that's the exact
reason for Guerrilla Profits.
Guerrilla Marketers Rejoice

Now, what Guerrilla Marketing has done to ignite your business
growth, Gue"illa Profits will do to skyrocket your business's bottom
line. Guerrilla Profits is the next step in the global Guerrilla Marketing
revolution .Where Guerrilla Marketing helps you use low-cost and no-
cost marketing methods to get new business, Gue"illa Profits helps
you find your profit leverage points-to increase your profits and
cashflow, capture new prom sources, and get even more business.
Without extra profits or deep pockets, you can 't last long .... or support
the activities, the resources and the people you need to thrive
(especially if the economy gets difficult) . The extra money generated
by Guerrilla Profits could even make the difference between the
success or failure of your business or practice.
n's Just that ImponanU
I SBN 978 - 1 - 6 003 7- 322-0

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Habitat
for Humanity·
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GUlrr111a rronlllmlrDIdoDl1
Business/Management: $29.95 www.guerrillaprofits .com
Could this ooe book
become the kel to lour
success iobusioess;'
Dear Reader,
You are holding an opportunity

in your hands ...
Here between these pages are the secrets

to countless business fortunes that have
been distilled into a mere book.
Rarely as a publisher do I get to be as

trul y excited about sharing a book with
you, the reader- as I am abou t reading
it myselr.
Guerrilla Profits is such a book .
Jay Conrad Levinson and Stuart Burkow

having joined forces (legendary market-
ing icon .... and master business practi-
tioner) -is a windfall to the world of
business and entrepreneurs in every
field .
There are lots of great bus iness books

out there, but none that has this complete
of a laser-focus on the primary factor
that drives all business success: Profits.
Just as Guerrilla Marketing revolution-

ized the way businesses conduct market-
ing--Guerrilla Profits wi ll revolution-
ize the way businesses create profits.
This is one book that you' ll want to read

and act on before your competitors do.
I'm proud of their triumph .... and proud

to be ab le to bring you this book.
To your success,
David L. Hancock
Publisher
Guerrilla Marketing Press

An imprint of:
Morgan James Publishing, LLC
The Entrepreneurial Publisher
Jay Conrad LevInson ,
Father. Guemlla MarketIng
www.gmarketing com
J ay Co n rad Levinso n is th.: author of the

best-selling mark eting series in hi story.
Gllerrilla Murkeli,,~ . and has \Hillen or
co-a uthored 5 7 bllsi nc ~s boob. Jay's books
h<l\ e so ld more than 15 million cop ics
\\orld\\ idt:. and are no\\ in 46 languages.
Hi s guerrilla conc.:pts h<.l\ e influenced 1113r-
keting so much that his books are required
re'lding in many MBA program s. I II! has
\\ ritlen for Enlr.:prcncur & Inc. MagaLi nes.
and onlinc for Microsoft. AOL. and Fonullc
Small lJus iness.
Guerrilla Marketing International
349 Magnolia Place
DeBa~, FL 32713 USA
Voice : 1-360-791-7479
Email: olympiagal@aol.com
Stuart Bu rkow.
The -Kmg of Profits
WrNW kingofprofits com
Stu art Durk ow is a serial en trepreneur.

marketing rainmaker- and a hi gh caliber
business prolits ex pen "i th o,"er 35 years
of direct. hands-on. "i n-the-trenches" expe-
rience. starting hi s first busin.:ss at just 14
years old. He has O\\n.:d . built and operat-
ed succt:ss ful businesses in reta il. "hole-
sa le distributing. manufacturing. publ ish-
ing. mar\...eting agency and sen ices. direct
su les and mai l order... and is President of
Guerrilla Profits Internati onal. based in La
Jolla. C<llifo rnia .
Guerrilla Profits International
7486 La Jolla Blvd. #251
La Jolla , CA 92037 USA
VOIce 1-858-597-0055
Email feedback@guerrillaprofits .com
About the Authors
Jay Conrad Levinson is the author of the best-selling marketing series in
history, Guerrilla Marketing, and has written or co-authored 57 business
books. Jay1s books have sold more than 15 million copies worldwide, and
are now in 46 languages. His guerrilla concepts have influenced
marketing so much that his books are required reading in many MBA
programs. Jay taught Guerrilla Marketing for 10 years at the extension
division of the Univ. of California in Berkeley, was a practitioner of it in
the United States as Sr. VP at J. Walter Thompson, and in Europe, as
Creative Director of Leo Burnett Advertising. Jay has written for
Entrepreneur & Inc. Magazines, and online for Microsoft, AOL, and
Fortune Small Business.
Stuart Burkow is a serial entrepreneur, marketing rainmaker-and a

high-caliber business profits expert with over 35 years of direct, hands-on,
"in-the-trenches" experience, starting his first business at just 14 years
old. He has owned, built and operated successful businesses in retail,
wholesale distributing, manufacturing, publishing, marketing agency and
services, direct sales and mail order-and is President of Guerrilla Profits
International, based in La Jolla, California.
Stuart has worked directly with the legends in business training, growth,
motivation, and marketing such as Jay Abraham, Robert Allen, Dan
Kennedy, Brian Tracy, Denis Waitley, and of course, Jay Conrad
Levinson. He has joint-venture partners around the world-and has
partnered with leading companies and organizations such as: Guerrilla
Marketing Int'l, Nightingale-Conant, Agora Financial, Philips Publishing,
Citadel Broadcasting Corp., Boardroom Reports, British-American, The
Oxford Club, Target Marketing and Agora Learning Institute.
Please direct all inquiries, feedback, comments or suggestions to:

7486 La Jolla Blvd. #251 • La Jolla, CA 92037 • USA
feedback@guerrillaprofits.com
Voice: 1-858-597-0055 • Fax: 1-858-597-0075
www.guerrillaprofits.com
JAY CONRAD LEVINSON
&STUART BURKOW
Forewordbv
Dan Kennedv
New York
GUERRllLA PROFITS
10 'l.. rll' SIn'I,'I. "'Ienlll Ciani., ..... lln'I,. & II' "Ire .1111111
© MMVIII Guerrilla Profits International. All Rights Reserved.
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Information within this book does not constitute legal, financial or similar professional
advice. It is sold with the understanding that the publisher and its authors are not
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Hardcover ISBN: 978-1-60037-322-0

Paperback: ISBN : 978-1-60037-281-0
Audio Book ISBN: 978-1-60037-347-3
I. Business / Management
2. Marketing / Direct
3. Entrepreneurship
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First Edition: Levinson, Jay Conrad. Burkow, Stuart.
Attention: Schools, Corporations, Ad Agencies, and Promoters:

Guerrilla Profits is available at quantity discounts with bulk purchase for educational
or business use. For more information, contact Guerrilla Profits International via
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Cover & Interior Design: David Gough - www.davidgoughart.com/graphics
Inspirational Muse: Donald Wolfe - www.donwolfe.net
Guerrilla Profits (guer·ril·la prof' its) noun.
"The extra money earned by using unconventional
methods to increase profitability and cashjlow"
Contents
About the Authors - ii
Foreword by Dan Kennedy - ix
Introduction by Jay Conrad Levinson - xi
Introduction by Stuart Burkow - xv
Preface - xix
Profit Leverage Points
Your Primary Profit Sources
Thinking diffirently about your business
Chapter 1 - Strategy # 1:
Maximize Your Interactions .............................. 1
The Critical First Points of Contact
Essentials for good customer/client interactions
A rarely used secret weapon
The dark side of employee attitude
Chapter 2 - Strategy #2:

Capture More From Your Transactions .................... 19
Inbound Conversion & Outbound Sales
The 7 Common Transaction Methods
Boost sales: "Good-until-cancelled" options
Increase purchases: Selling "down the line"

Boost Your Marketing Results ........................... 39
The Top 10 Items to Test
Series & Sequence marketing
Standing out from the crowd
Hidden benefits that boost response

Build Up The Value .................................... 61
The problem with price shoppers
A better solution to selling on price
Testing the higher-priced waters
Building value: Package Deals & Bundles

Change The Rules ..................................... 87
Harness Your Competitors to Your Advantage
Alternative Method, Media & Market Combos
Guerrilla Profits. Vll
Promote & sell through alternative markets

Matching offers to markets

Profit From Other Businesses . ......................... 113
The easiest profit-generating phone call
How to structure joint-venture (JV) deals
Powerful profit method: Giving Referrals
Profits from your Vendors and Suppliers

Recapture Lost Profit Opportunities . ................... . 139
A Missing Piece of the Conversion Puzzle
Reactivating your former customerslclients
Recapturing Other Business s Lost Profits
The Hidden Revenue Sources of a business

Gain From Giving Things Away .•...................... 157
A powerful way to get new business
The Law of Reciprocity
Sampling & Trials power methods
The downside of giving things away

Create Excitement . .................................. 173
Turning excitement into profit opportunities
The one method with the highest participation
Interactive ways to create excitement
Free Media Exposure

Capitalize on Your Business's True Wealth . ............... 195
The secrets to understanding your clientele
Profiling Your Best Customers & Prospects
Knowing your customer s Interests, Needs, and Desires
Tailoring offers to your best customers/clients
Bonuses, Free Gifts & Exclusive Offers - xxiv

Reference & Resource Directory - xxxi
Index - xxxvii
Guerrilla Profits 8 ix
Foreword
by Dan Kennedy
ardly a day goes by that I don't find businesses underutilizing

H their assets and opportunities, letting profits go unrealized or
drip through holes in the bucket. It's a crying shame to go to all the
trouble to learn, design, and implement ultra-effective advertising,
marketing, and sales strategies like I teach and like Jay Conrad Levinson
and his team teach, only to fail to maximize the value of every customer
or client such activity produces.
In my 30 years advising business owners I've found it difficult
to keep them from focusing ALL their attention, time, and energy on
pursuit of the next new customer, the next sale. But business shouldn't
be about sales or numbers of customers-neither item ever winds up
paying for your vacation home, children's college educations, or your
comfortable retirement. Only PROFITS pay for these things. This book
directs your attention and thought to where it needs to be: on maximum
profitability. Not by pinching pennies, though-truth is, you can't save
or economize your way to wealth, and the worst thing that can ever
happen to a company is for the bean counters to take control!
This book correctly focuses on maximizing profits by leveraging
every opportunity. It is significant that this book about "profits" is written
not by accountants, efficiency experts, or academics but by top
marketing professionals who know how to MAKE money-not just
count it.
I hate waste. I am wealthy now, but I have been poor, quite poor,
and I have a good memory. To see opportunity and value wasted makes
my skin crawl. But most businesses are, at best, capitalizing on half their
x • Cuerrilia Prolits
value. Stopping waste of the second half can be the difference between
barely making a living or creating wealth from ANY business. It is with
that in mind that I urge not just reading but intensely studying this book.
Of the 10 strategies in this book, my personal favorites are #7 and # 1O.
Strategy #7 is all about plugging profit holes and getting more value out
of every prospect you attract and every customer or client you have. Its
advice about lost customers is dead-on. Strategy # 10 challenges you to
be more sophisticated in the use of customer information, mailing lists,
and related opportunities. Most business owners are woefully neglectful
of the absolute gold mine that exists within their own customer
base-and by extension, others' customer bases. This Strategy #10 can
give you an enormous competitive edge.
If you've had the sneaking suspicion that profits have been
slipping through your fingers and that you should have more net
income left for yourself after all the bills are paid, you're almost certainly
correct, and Guerrilla Profits is the book to help you find that elusive
extra profit. Beyond that, this is also a book that can reveal unseen
opportunities in your business, possibly greater than the core business is
at present.
So turn the page and begin your hunt. There is money to be found
within these pages!
Dan S. Kennedy
Dan Kennedy is a serial entrepreneur, marketing and business consultant and coach
with clients in nearly 200 different businesses, industries, and professions, and the
author of the popular "No B.S." book series as well as The Ultimate Marketing Plan and
The Ultimate Sales Letter. Information about his books can be found at
www.NoBSBooks.com.
Foreword by Dan Kennedy

Guerrilla Profits. xi
Introduction
Change your Business Fortune
and your Life for the Better
by Jay Conrad Levinson
I dedicate this book to my sparkling daughter, Amy, for being so

good at business, and to my wife Jeannie, for being so good at profits.
rom my very first Guerrilla Marketing book, the overriding theme

F has always been about profits.
Now this Guerrilla book goes even deeper in its intense focus on the
name of the game-which continues to be profits. As profits are the core
focus of a business, they are also the core focus of this book. Guerrilla
Profits allows you to monetize your business or professional practice in
ways that you may not have considered before.
You'll find this book has its own distinct flavor and approach that
makes it unique in the Guerrilla family of books. My co-author, Stuart
Burkow-who does our brand proud-brings his vast background of
entrepreneurial experience gleaned from years of real-world business
practice-to infuse with my own Guerrilla Marketing methods.
Guerrilla Profits is the extraordinary result-to show you how to
elevate your business to the next level of profitability.
Ask yourself.... what's the purpose of your business? Is it to provide
you with a comfortable living, a very good living.... to maintain a certain
lifestyle .... or even, to ultimately make you wealthy? You should have
the answer to that early in your business career.
Each person must choose what's important to them. And,
often-especially for solo entrepreneurs and in smaller business-profits
xii • luerrilla Prolils
aren't always the primary motivating factor. But, even though profits
may not be what drives you to get out of bed every day and keep going,
they're essential for you to remain in business.
Take careful note here, and pay close attention.

This book presents you with a unique opportunity to change your
business fortune and your life for the better. Guerrilla Profits is a
distilled collection of business wisdom-that can offer you a path to
greater rewards and satisfaction in your business-and can help cause all
your hard work to really pay-off, while helping you avoid expensive and
time-consuming mistakes.
Whatever your personal purpose is for your business, there's no
denying that being successful in your enterprise sure beats the
alternative. It's more fun to be rich and healthy than sick and poor.
But, a warning:
Don't just read this book .... devour it.. ..internalize it.. .. make it part of
what you do and who you are. Guerrilla Profits can become a huge
catalyst for you, but only if you use it, take action and implement these
10 Powerful Strategies.
If you do, you'll see that Guerrilla Profits is much more than a
book. It's a whole new way to approach and think about your business
activities-to make your expenditure of time, energy, capital, and
resources produce more for you. As you read this book, you'll be doing
yourself a great service if you'll systematically go through each chapter
to pull out the gems that will work for you-then one-by-one, put them
into practice. You'll begin to notice that as you implement-you'll build
a cumulative effect that can become unbeatable.
I also recommend that you take advantage of the additional bonus
tools, offers and resources made available to you in the back of this book.
Introduction by Jay Conrad Levinson

Guenlila Pronts. xiii
Use them as a starting point to help discover the key missing profit
opportunities in your business or professional practice.
Don't make the mistake of undervaluing the power of these extra
bonuses just because they're now easy for you to access ....and they're
being provided to you as part of an inexpensive book. That could be a
fatal flaw in your thinking.
If you' re looking for a path to greater rewards .... you'll find it in
Guerrilla Profits.
Jay Conrad Levinson, The Father of Guerrilla Marketing

www.gmarketing.com
Guerrilla Marketing International

349 Magnolia Place
DeBary, FL 32713 USA
Voice: 1-360-791-7479
Email: olympiagal@aol.com
Introduction by Jay Conrad Levinson

Guerrilla Profits ~ xv
Introduction
The Winning Combo: Marketing + Profits!
by Stuart Burkow
I dedicate this book to my son, David ... whose boundless

energy, enthusiasm and curiosity constantly inspire me.
usiness Profits.
B They are the difference between the success or failure of your
enterprise. They are the fruits of your labor and the essence of why you're
in business.
Without profits (or deep pockets), you can't last long. That's why
it's critical that you begin to explore the very nature of profits in your
business or profession, and it's the reason for this book.
Guerrilla Profits is the culmination of my more than 35 years of in-
the-trenches, hands-on, do-or-die, entrepreneurial bootstrapping. Couple
that with the vast influence and impact of Jay Conrad Levinson's
teachings on literally millions of businesses throughout the world, and
you're getting in this book an unbeatable one-two punch that can
potentially transform your business.
Nothing in this book is theoretical. Nothing is left to chance or
speculation. All of the strategies, tactics and methods are died-in-wool,
time-tested, and rock-solid. I've used these methods in my own
businesses spanning more than three decades. That includes current
ongoing projects as well as earlier start-ups in retail, wholesale
distributing, manufacturing, publishing, marketing agency and services,
direct sales, mail order, and on the Internet. Everything in this book has
been distilled from first-hand experience, in-depth training, and direct
exposure to--and/or from working directly with-the masters of these
methods.
xvi • Guerrilla Proilis
Here's the challenge
You're obviously already doing what you think you should-and
doing what you think is best. That's accounted for whatever level of
progress or success you've achieved so far. But, the dilemma is that most
entrepreneurs, business owners, managers, and professionals are task-
focused, not profit-focused.
That doesn't mean you don't think about making a profit, or don't
add up the profit in a particular transaction, promotion or campaign.
Rather, it means that you may not be focused on what could potentially
produce the greatest profit with the least amount of cost or effort. You
may not be focusing on new profit strategies, tactics, and methods you
could add to your existing arsenal. Let me humbly recommend that you
use this book to strategically plan for profits.
Some possible scenarios

What I'm saying is, there's often relatively little thought given to
new me~hods to earn profits-as opposed to repeating what you usually
do all the time in your business and your marketing. In the best-case
scenario, maybe you're so busy making money hand-over-fist by doing
what you usually do that you simply don't have time to consider anything
else. But if you picked up this book, that may not entirely be the case
(although if it is, congratulations on your willingness to be proactive).
On the other hand, a worst-case scenario would be that you're
barely scraping by---or even failing-and are so busy or so used to
playing catch-up that you can't focus on doing the extra things needed to
get ahead. I hope you're not in that situation.
Most likely, you're somewhere in between the best and worst
cases. And that's ideal-because then you're in a position to want to
implement new profit strategies and have at least the minimal ability to
do so.
Introduction by Stuart Burkow

Guemlla Prints ~ XVll
Getting the most from Guerrilla Profits:

What you' ll learn as a Guerrilla Profits practitioner is to view your
business differently from the traditional person in your industry or
profession. You' ll learn to think of the profit potential from your
business in different ways. You' ll begin to see new profit connections
and marketing opportunities that you might have completely overlooked.
Throughout our journey together into Guerrilla Profits, you'll
continue to add layer upon layer to your business profitability. In fact,
you may ultimately realize that your greatest profits will come from
places that, until now, you hadn't even been aware of.
So sit back. Relax. And take it all in-as we begin our journey
together towards Guerrilla Profits.
Stuart Burkow, The "King of Profits"

www.kingofprofits.com

La Jolla, CA 92037 USA
Voice: 1-858-597-0055
Email: feedback@guerrillaprofits.com
Introduction by Stuart Burkow

Guerrilla Prollts. xix
Preface
What are Guerrilla Profits? ..
And, why should I care?
T he purpose of Guerrilla Profits is to help business owners,

managers, professionals, and entire companies discover powerful,
innovative new ways to become more profitable.
The simple, startling fact is that most businesses miss profit
opportunities on almost every transaction or customer/client relationship.
They have unique profit potential that goes completely untapped. And,
they are limiting their incomes without even knowing it.
Depending on your type of business or professional practice, these
untapped profit opportunities could be at the point of sale, could involve
the relationships and trust you've built with your customers/clients, or
could come from being alert to the many potential profit-generating
activities that simply go unused every day.
Guerrilla Profits will specifically teach you how to capture that
Extra Money-by using unconventional methods to increase
profitability and cashflow. Your business has its own unique Profit
Leverage Points-that offer you the greatest amount of return for your
investment of time, energy and resources. You will instantly recognize
some of these leverage points for yourself-as you read the method
descriptions throughout the book (which is organized into the 10
Powetful Strategies).
Put Guerrilla Profits to work for you

I want to make it very clear right from the start that Guerrilla
Profits is not about cost-cutting, penny-pinching, or inventory and
xx • Guerrilla Profits
operations control. Not that those things don't have their place and, of
course, they're very clearly related to profits. It's just that Guerrilla
Profits is all about doing things differently-to increase your profitability
and create New Profit Sources.
The methods can be applied at various levels of skill. So, whether
you are a complete beginner or have advanced business experience,
you'll find that you can adapt Guerrilla Profits methods to your
circumstances. And, if you are already a fairly advanced business
practitioner, you will be reminded of techniques that you may not have
implemented yet-or that could use some review.
These are universally adaptable methods. From the simple to the
advanced, there are Guerrilla Profits strategies, methods and tactics that
can be applied to almost any business or professional practice.
Your Primary Profit Sources

When you ask yourself, "Where are my profits coming from
now?"-what first comes to mind?
This kind of thinking usually leads to a collection of different
income sources from product sales, services, leasing, ownership
interests, contracts and/or other arrangements (often referred to as "profit
centers"). But here, we want to focus on the additional Profits Sources
that come from applying new methods to the activities within your
business-for increased profitability and cashflow-rather than the
income sources you might think of first.
And we're not talking about the number of items you're offering
(such as a convenience store vs. a grocery super-store). Both of these rely
on the same primary source: walk-in business. So in fact, it isn't the size
of your business that determines your ability to add profit sources, it's
your willingness to adapt new methods-and make them a regular part
Preface: What are Guerrilla Profits ... .And, why should I care?
Guerrilla Profits {I} xxi
of what you do.
Those same stores could be offering gift certificates, collecting data
to bring their customers outside offers of others' products or services,
giving customers the ability to pre-order online for in-store pick up,
providing referrals to other local businesses through inserts, offering
discount coupon books for repeat business on a frequently purchased
item, and so on--each of which would be an additional profit source.
The harsh reality is that the majority of businesses rely on fewer
than five profit sources. Do you have a number of different profit sources
within your business to support you now? Or are you relying on only a
few? Or, even worse, relying on only ONE primary profit source?
Thinking differently about your business

In our Guerrilla Profits approach, this "profit centers" thinking gets
replaced by the concept of a Web of Profits-that is, interconnected
profit sources that all work together to compound the positive effect.
As you begin to add methods that create new profit sources in your
business-you'll begin to see new profit connections that were hidden
from you before. You will discover ways to integrate your activities-
and will start to be on the lookout for those little "gaps" of added
leverage. They can become a strong mesh of connections that literally
strengthens your business or practice, building a solid foundation so you
don't need to rely on only a few profit sources for your survival.
The key will be to take these ideas, put them into effect, and get any
people involved with your business to follow through with your new
methods and policies. Layer upon layer, you'll be able to adapt and
implement new methods to help increase your profitability and cashflow.
That's the Guerrilla Profits advantage: Find your Profit Leverage
Points ....create a strong Web of Profits .... and be able to think differently
Preface: What are Guerrilla Profits ... .And, why should I care?
xxii • luerrilia Profits
about your business or professional practice every day.
How to use this book

There is a logical order to the sequence of the 10 Strategies (and
corresponding chapters)-and they build on the strengths and skills of
the proceeding chapters. So it is best to read them in order. Also, it is
recommended that you read the Foreword, Introductions and this Preface
first, since these lay the groundwork for understanding the Guerrilla
Profits approach and philosophy.
Then, be sure to take full advantage of the Bonuses, Free Gifts &
Exclusive Offers and the Reference & Resource Directory sections in
the back of this book.
A few words about definitions

Since Guerrilla Profits strategies and methods can be applied to
almost any type of business-wherever in this book you read "business"
or "firm" or "practice"-understand that those terms are, for our
purposes, interchangeable. Similarly, "customers" may mean "clients" to
you, or vice versa-which is why they are often referred to as
"customers/clients. "
This book is gender-neutral. Since, of course, both men and women
run businesses and professional practices-we'll use "he" sometimes and
"she" sometimes without intending to exclude the other sex. Also, this
book is written from a single voice perspective.
And please remember, it's up to you to actively think about the
concepts presented-and to consider how to apply a particular example
from a different type of business-to yours. And, that's where the
greatest opportunity is often found: Adapting a method from outside your
business type or industry that is different from what your competitors
usually do.
Preface: What are Guerrilla Profits .... And, why should I care?
Guerrilla Profits e xxiii
Acknowledgments
A book is a product of many pioneers and people who have come
before it. In this case, we'd especially like to thank those hearty
entrepreneurial souls who have blazed a business trail for others to
follow-and whose influence on, teachings related to, or shining
examples of Guerrilla Profits are often referenced in this book:
Jay Abraham Debbie Fields Michael Masterson

Tony Alessandra Steve Forbes Rupert Murdoch
Robert Allen Bill Gates Edward Nash
Mary Kay Ash Michael Gerber Ted Nicholas
Jeff Bezos Lou Gerstner Bob Parsons
Ken Blanchard Seth Godin Tom Peters
Michael Bloomberg Andy Grove Robert Ringer
Richard Branson Gary Halbert Tony Robbins
Warren Buffet Mark Victor Hansen Anita Roddick
Jack Canfield Hugh Hefner Howard Schultz
Jan Carlzon Howard Hughes Charles Schwab
Steve Case Lee Iacocca Steven Spielberg
Dr. Robert Chialdini Steve Jobs Martha Stewart
Steven Covey Drew Kaplan Joe Sugarman
Michael Dell Guy Kawasaki Brian Tracy
W. Edwards Deming Herb Kelleher Donald Trump
Donny Deutsch Dan Kennedy Ted Turner
Barry Diller Robert Kiyosaki Sam Walton
Walt Disney George Lucas Jack Welch
Peter Drucker Peter Lynch Meg Whitman
Michael Eisner Harvey Mackay Oprah Winfrey
Preface: What are Guerrilla Profits .... And, why should I care?
Strategy #1:
Maximize Your Interactions
R egardless of how good your products or services are, there are

numerous self-inflicted reasons why potential buyers may never
get to find out about your products or services at all.
Without even realizing it, you--or your employees, or both-may
have built unintended barriers to entry. Some of these barriers may spring
from factors you've thought about. But, unfortunately, there are many
others you may not have even considered.
In marketing schools of thought, a lot has
been written about lowering the barriers
to entry by, for instance,
offering something free,
offering payments or
rebates, using a toll-
free number, or
having a generous
guarantee policy. But
that's not what I'm
talking about here.
Instead, your
Guerrilla Profits opportunity
to MaximizI! Your Interactions
comes from the ways
2 • Guerrilla Profits
that your customers/clients and potential customers/clients
experience your business. And from the ways that your business behaves
and interacts with them. This goes beyond simply capturing more of the
business that comes your way in the first place. JtIs more about not
"shooting yourself in the foot" along the way.
The Critical First Points of Contact

If you have a register, a receptionist, or any form of walk-in
business, the first point of contact will be the person your customer/client
encounters who works there. This employee may be personable and even
be doing what you consider a good job.
But a number of factors could interfere. For one thing, sometimes
people simply have an "off" day. Even if you are a one-person shop, you
know how you can be affected when you have a sub-par day (and this is
your business). So imagine what can happen with employees who aren't
deeply invested in the outcome of your business. Sometimes they simply
aren't going to adhere to your guidelines, aren't going to follow the
script. Instead, they're going to do the very minimum, just get through
the day so they can get back to their "real life" after leaving work.
Now, of course, this isn't the case always with someone who truly
has a good work ethic and who enjoys his or her job. Usually, that person
is going to perform well. But you just can't count on any individual
employee's performance being as consistently similar to what you'd
expect from yourself.
The same thing applies if you have a business that relies on the
telephone, email, or some other form of communication. Sometimes, sad
to say, even good people can behave badly. It may be relatively easy to
weed out those who are obviously bad. But it's harder to recognize those
who are mostly O.K. but have an "off" day more often than they should.
Or, to recognize someone who occasionally demonstrates inappropriate
behavior in front of your customers/clients.
Haven't you ever been in line at the supermarket or some other
Chapter 1 - Strategy #1: Maximize Your Interactions

Guerrilla Prollts. 3
retailer when the employee who's supposed to ring up your purchase is
whining distractedly to another employee about who has the next coffee
break or was supposed to get the day off but didn't? You're thinking,
"Hello? I'm standing here. Remember me?"
The old adage, "You only have one chance to make a good first
impression," definitely holds true here. This pertains not only to a
customer/client physically coming into your business-but also to what
a buyer encounters when contacted elsewhere by your sales and
marketing staff, account manager, and service or repair personnel. All the
expensive image ads on the planet can't overcome a receptionist with a
lousy attitude, a poorly designed phone-answering system, or a clerk who
doesn't know the first thing about the product line.
A tale from the front lines

A friend of mine went into a mall store specializing in athletic shoes.
The walls were lined with a bewildering array of shoes of all types and
styles: dozens of pairs of running shoes, not to mention walking shoes,
cross-trainers, basketball shoes, hiking shoes, court shoes, and the like.
When a clerk came bounding up to ask if he could help, our friend
earnestly and thoroughly detailed his running regimen and orthopedic
needs and asked which shoes would best match those specifications.
Clearly, this was a buyer who had specific wants and expected a detailed
response. He wasn't about to buy a shoe just because it was stylish or
cheap or because the clerk was personable.
But none of that registered with the clerk. He smiled broadly,
probably in a way he thought was irresistibly charming and replied
offhandedly, "Well, you know what I always say: 'Shoes are shoes. '
They're all pretty much the same. "
Had the clerk not been properly briefed about the store's inventory?
Did he believe his purported charisma would trump the customer's other
considerations? Or did he just not give a darn and was taking the easy
way out? At the very least, he could have referred the prospect to another

4 • luerrilla Prollts
clerk who could explain.
But whatever the reason, the result was predictable: The prospective
customer spun around on his heels and left the store, never to return.
Moments of Magic
Management consultant and speaker Tony Alessandra in The
Platinum Rule describes the range of service encounters this way:
• Moments of Magic: Positive experiences that make

customers glad they do business there.
• Moments of Misery: Negative experiences that irritate,

frustrate, or annoy.
• Moments of Mediocrity: Routine, uninspired service.
You remember Moments of Magic, he notes, but you probably

remember even more clearly the Moments of Misery, such as a clerk who
won't take responsibility for solving a problem. According to
Alessandra, "We've all had those experiences, too. But usually not more
than once at the same place. Because we don't go back!"
Incidentally, I hope you have a system in place to capture customer
issues and complaints---or at least a welcoming attitude toward patrons
who encounter a Moment of Misery. Their complaints can be a great help
in improving your business. As Bill Gates has said, "Your most unhappy
customers are your greatest source of learning. "
The essentials for good customer/client interactions

The first step to knowing what's true about your customer/client
interactions is to have clearly defined and stated expectations of
employee behavior. People like to know what's expected of them. So that
by itself can usually raise their awareness level and affect their behavior.

You should also use scripts for voice communications to train people to
respond with specific words and phrases-and use templates for
communications via letter, fax and email.
But that's not enough. Once you have a benchmark in place for
expected behavior and specific scripts/templates for important
interactions, next you'll need some kind or reporting and feedback
system in place to make certain that these behavior expectations are
being met. This could be direct monitoring (e.g., calls recorded, emails
screened, front-counter intercom) or indirect monitoring through
surveys, sampling of your customers/clients for contact, and active use of
comment cards.
You'll also need ongoing training and reinforcement so you can be
sure that all employees, new as well as pro, clearly understand your
policies. Use role-playing in your training to help with phrases for
opening lines, sales scenarios, and other customer/client service issues.
All this-defining your expectations, monitoring results, and
providing ongoing training-aims at making sure your customers/clients
and equally important, your prospective customers/clients, get the proper
treatment at that critical moment when they are making their decision to
buy from you, or not.
Everybody's in 'Sales'
Make no mistake about it, everybody in your business who has any
form of contact with your customers/clients is in the "Sales Department"
even if that's not in their job description. As a result, all employees
should be trained in at least the basic offerings of your business or
practice from a sales perspective so they can recognize a potential profit
opportunity. That includes employees in service, repair, production,
accounting, administration and all other areas.
Be sure that everyone in your organization has at least the basic
awareness of the array of choices among your products or services. See
that all employees have the ability to recognize customer/client wants
6 • GUlrrllia Profits
and needs-and can either translate that into direct suggestions and/or
recommendations--or at least have the ability to then hand that
information off to the right people in your organization for follow-up.
Getting the behavior you want

How can you get employees to buy into this essential ongoing
emphasis on The Critical First Points of Contact?
First of all, along with selecting excellent employees and training
them well, you'll want to instill a culture of emphasis on the importance
of all interactions between employees and customers/clients. Make it the
central focus along side of their underlying job training.
Then secondly, get employees to cooperate by rewarding the
expected customer/client interaction behavior. When you get to the point
where you have clearly defined expectations and the ability to keep
score, the next step is to tie rewards and perks directly to employees'
good behavior. Make the point: For this kind of behavior, an employee
gets that kind of reward. And, you then also have a basis for tracking and
identifying those who are not being rewarded-so they can receive
further attention, training or other measures to bring them up to speed.
"Holding employees accountable means giving them rewards if they
do what they promised ... and letting them suffer the negative
consequences if they don i, " writes corporate consultant and psychology
professor Jerald M. Jellison in his Managing the Dynamics of Change.
"Holding people accountable sends a critical message about
performance to those who succeed and to those who fail, as well as those
who are watching to see what they can expect when their performance is
on the line. "
So state the behavior-reward equation clearly and state it often. But
be careful not to continuously use the same rewards or even the same
reward program. Otherwise, you run the risk of having it become
expected and routine rather than special.

Guerrilla profits. 7
A rarely used secret weapon
In addition to the usual internal training, feedback, and rewards to
reinforce employees who behave properly towards . your
customers/clients during those Critical First Points of Contact, you can
also "Mystery Shop" your own business or practice. And, do so with
your employees' full knowledge. Being open with them about it will
serve two important functions:
1) They know it will happen, but not when or by whom, and
2) They know that it will get factored into your reward and
feedback system.
Mystery Shopping is common in many chain outlets (restaurant,

retail, and franchises of all types) but much less common in smaller
multi-location businesses and especially rare in single-location firms.
But it can be just as effective there. Services even exist that will do
the work for you. Below are a couple of web links to help you get
started. (Disclaimer: We haven t researched the quality or level ofservice
for thesejirms but rather have simply selected on the basis oftheir online
presence and on the references of others.)
• Mystery Shopping Providers Association (MSPA)

www.mysteryshop.org
This is the largest professional trade organization dedicated

to improving service by using anonymous resources.
• Secret Shopper
www.shopreports.com
This firm claims access to 250,000 mystery shoppers and

more than 15 years of experience.

8 • luerrilia PronlS
Also, there's a Federal Trade Commission (FTC) consumer alert
entitled 'The Secrets of Mystery Shopping Revealed, " is available at:
www.ftc.govlbcp/conline/pubs/alerts/mysteryalrt.htm
It warns consumers about marketers who promise lucrative jobs as

mystery shoppers but fail to deliver bona fide opportunities. The alert
urges would-be mystery shoppers to visit the MSPA site for tips on
becoming a legitimate mystery shopper-but the information is useful
for business people to get some insights to using these services.
The dark side of employee attitude

What we're talking about here, of course, is attitude. And
specifically the attitude your existing or prospective customer/client
encounters at that Critical First Point of Contact with a person at your
place of business. And that brings us to some underlying truths.
How your employees treat your customers/clients will tend to reflect
how they themselves are being treated within your business. Some
employees may also have a hidden agenda if they feel that you are
charging too much for your product or service or if they don't feel that
the customer can afford it. They may even try to discourage the sale.
Also, if they're jealous of your success-while they labor as mere
"wage slaves"-you'll be fighting an uphill battle against those
particular employees. That's all the more reason to have proper
monitoring in place and make it a point to discover the truth about
employee attitudes.
Now....Iet's take this attitude issue a step further

The flip side of how customers/clients are treated when coming to
your business is how they are treated when your business goes out to
meet people. We're talking about sales, marketing, and in some

Guerrilla Prollts 8> 9
businesses, service or repair contact. Let's focus specifically on three

such situations-outside sales, trade shows / conferences, and service /
repair.
Here are some specific areas to focus on:
• Outside Sales
Salespeople live or die on their results. The positive side of that
equation is that when results are good, so will be the salespersons'
attitude. But when sales are down for a particular salesperson (or the
entire company), several things can happen.
Self-starters-for whom success is common-will most likely view
any slump as just temporary and will look forward to their "luck"
changing. Most likely, they'll dig in their heels and work a bit harder to
get their numbers up. From a customer/client perspective, the self-
starters will likely continue to exhibit a positive attitude because they
have the expectation of a positive outcome.
However, those with a low expectation of success (or with little
experience of success in your business, such as new hires and beginners)
will drag their feet or procrastinate. They'll find reasons to focus on the
easy work rather than having to face another rejection. Customers/clients
will experience these salespeople as less convincing and having low
energy-or even worse-a negative attitude. That won't make your
existing or prospective clientele feel thrilled about doing business with
your firm.
Clearly, the best way to keep outside salespeople from falling into a
slump is to stay on top of each salesperson's results constantly by
daily/weekly/monthly activities, follow-up, follow through, and other
results monitoring. Accountability should be required for all
foundational and "building block" activities to fill the pipeline such as
calls initiated, follow-up done, appointments booked and appointments

completed.
In addition, salespeople should be peppered with high-quality leads
from targeted marketing efforts ("lay downs")-and given access to
existing customer/client business ("repeats") when possible. This is
especially important to help them keep their plates full-and to help you
avoid burning through your reps.
• Trade Shows & Conferences

These are often used, and misused, vehicles. Usually, the primary
goal is to hook up with existing customers/clients to sell more to them.
And secondly, to generate new leads (or it's hoped, new business on the
spot).
But for the staff it often means long, tedious hours-maybe
days--ofhanging-out in the show booth waiting to pounce like a vulture
on any prospect who happens by. When activity is brisk, the time goes
more quickly and easily. But it's harder to get things moving when the
pace slows.
Some firms go to great lengths to make their booths enticing .... to
build interest or curiosity.... to do pre-attendance promotion to bring in
the people ....and to even pre-set specific appointments for prospects to
meet with the reps. You can also create specific show promotions during
the event and tie into other programs, extras and promotional
opportunities that the trade show or conference promoter offers.
In-booth promotions help generate excitement not only for the
customers/clients but also for the reps. It helps keep their spirits up, and
that better attitude comes across. Now, I'm not just talking about putting
prospects' business cards into a fish bowl to raffie off some gizmo. Some
real thought needs to be put into something that directly ties into the
show itself, something that relates to what the buyers are there to do and
something that1s relevant to what they want (see Chapter 9 - Strategy #9:
Create Excitement, for more details)
In the fashion industry, for example, it might be having celebrity

Guerrilla prollts. 11
models in your booth at specific times throughout the trade show

(wearing your line, of course). In the wholesale automotive-parts
business, it might be having a famous race car driver make appearances
to endorse and talk about your products. In the book industry, perhaps it's
a chance to meet the authors.
But the possibilities aren't limited to celebrities (although that's a
good way to go). Often, special-trade-show-only deals, specials, and
packages can be a good talking point and give reps something to shoot
for. And if you can entertain your customers/clients/prospects in a
relevant way, it helps attract them to your booth. Educate them on top of
that, and you've got the basis for new business.
The main point is: A good attitude can generate additional Guerrilla
Profits at trade shows and conferences.
• Service & Repair

Here's another opportunity to shine-or decline--during The
Critical First Points of Contact. Many service or repair people believe
it's not their job to sell. That, they think, is for the sales department. But,
ironically, service and repair folks are in the best position to educate
people during the interaction-and more importantly-are in the best
position to determine other potential wants and needs that your
customer/client has at that moment.
Great care should be taken to educate any service or repair staff
about your products and/or services. They should at least know what the
choices and options are and be informed to the point where they can
make a suggestion or recommendation, then hand the potential
transaction off to the right people for follow-up (like we've discussed
earlier in this chapter, "Everybody's in Sales").
As part of every service / repair call report, there could be a section
to specifically address other things that a customer/client may be in the
market for. It could even be a formal assessment or evaluation to
determine if the customer/client needs are being completely met-almost

12 • luerrilia Pronts
a survey that's positioned as a "service check up."
If done with a bit of thought, an entirely new profit center could be
waiting to be explored through existing service or repair contacts. This
can also be applied internally to your inbound service department or
reception interactions.
The biggest Guerrilla Profits opportunity here is that service or
repair people aren't seen as being as much of a "threat" or an
"intrusion"-and in fact, at that point of contact, customers will often
welcome any suggestions or recommendations with much less resistance
than they might have with a sales rep. If you pre-train and pre-dispose
your employees to talk about possible choices from your business
offerings rather than show an "it's-not-my-job" attitude, you stand a
chance of capturing these extra profits.
People-less interactions
So far we've been talking about Critical First Points of Contact that
involve you or your employees talking to present or potential customers
and clients. But what about initial contacts that don't involve people?
These are less obvious, yet equally important. Let's look at some of the
first points of contact that don't involve live interactions:
• Voicemail, Auto-Attendant & IVR Systems

(Interactive Voice Response)
With all the automation today, lots of companies use an automated
front end to their phone system to help route calls, screen callers, assist
without live help, and otherwise filter people into the business. This
can be a huge source of frustration for callers-and a source of
opportunities for Guerrilla Profits for those who carefully design their
system from the caller's point of view. That's the key: Many systems are
designed for (or default to) the business preferences, with only minor
consideration given to the user's experience.
What you want to do is to quickly route callers to a limited number

of major categories (three to four is ideal) rather than a long laundry list
of choices. You can have additional selections in each major category,
but you also have to keep each of those to two or three additional choices.
The upfront message could say, "Thanks for your call. We want to route
your call correctly, so please listen to this short list ofchoices-and we'll
get you where you want to go quickly. "
In addition to routing calls to the right department or person with
your IVR / Auto-Attendant system, you could give callers the option to
select and use the automated system instead of waiting to be given an
array of choices. Some people prefer that, especially when they're
merely calling for routine information like, "What are your hours?" or
"What s your address and directions? "
If there is only a voicemail option, or Auto-Attendant routing lands
at a voicemail box rather than taking people to a live person-just realize
that you'll get a large percentage of hang-ups and frustrated people who
feel they are not getting the help they are looking for.
For systems that do ultimately get live answered, you'll also want to
screen for sales versus service calls right up front. But don't make the
mistake of labeling those choices from the company's perspective (for
example, "Sales Department" should be called "Product Information").
Use descriptive labels that come from your customers/clients'
perspective and the reasons why they're calling you.
Have it take only one or two "press-button" selections to get to a live
person-while still giving you a chance to route the caller to the correct
department. Another option, once the caller has selected from the
major categories or sub-categories, is to have the phone live-
answered by a person who identifies himself or herself as being there
to further assist (for example, by helping route the call to the exact
right person or department).
In a large organization, this operator assisted, in-person connection
serves several functions. But the primary Guerrilla Profits function is to

14 • Guerrilla Prollts
have someone on the line with each person quickly and to determine if
there's a potential profit opportunity. This is a good point (before
handing off the call) at which to make product or service suggestions,
mention sales or specials, or take note of each caller's wants, needs or
frustrations. Also at this point, reps should have database access to caller
records (if available) or should be keeping a "new" log to gather data.
Warning: This must be done in a friendly, non-intrusive (read: "non-
salesy") way. Remember, callers are on the line to get what they came
for-not to listen to a lot of company-focused information.
• On-hold profit opportunities

When customers are waiting for the live answer, that's an
opportunity to educate, give interesting testimonials, or mention specials,
sales, upcoming events, or promotions. Many systems allow you to
change your message as often as you like (rather than use the same old
stale recording or generic music to pass the time). However, almost
anything is better than "dead air" while on hold. It's even better if your
system has the ability to tell people how long the estimated wait time is
every 30 seconds or so while giving an option to leave a message. That
on-hold message option is often missing, meaning a caller's only choice
is-after investing five or 10 minutes-to hang up and start over. That's
very frustrating! You can also make on-hold time entertaining while still
using it as a good promotion opportunity. (Try calling Southwest Airlines
sometime for an example.)
Also, do you have an "distress-escape mechanism" built into your
IVR / Auto-Attendant system? It's a good idea to program your system,
if possible, to read multiple "O's" being pressed as "distress" (read
frustration or irritation) and immediately route the caller to a live person.
And speaking of voicemail.it.s a good idea to actually listen to and
return calls in a timely fashion (/ know, / know-everyone does this
already, right?).

Guerrilla Prolits. 15
• Posted hours
Sorry, but this one is a pet peeve of mine. You'll need to constantly
monitor your locations, phone reps, service departments, and so on to be
sure they're actually open and available during your posted hours.
Nothing can be more frustrating than doing the 100-yard dash or the five-
mile automobile sprint just to be turned away within minutes of the clock
striking the hour.
I recall a recent trip to the Post Office where it became routine for
the "manager" to take a look at the waiting line at 10 minutes before
closing time. Then she'd lock the doors early if it seemed like the line
was "too long," and turn away patrons at the door who were holding up
their watches and raising their voices. The truth is, people expect to be
helped if they're in the door (or at the door)-or on the phone prior to your
closing time.
If you're in a profit-based business, your No.1 job is to bring in and
help as many people as possible. If, more often than not, people are piling
into your door (or on the phone trying to purchase) at your "closing
time," I'd like to humbly suggest that it's time for you to change your
hours.
Of course, some people have a "lifestyle" business, and that's
perfectly O.K. We're just having a conversation here about profits,
remember? If you're dealing with employees (and, of course, payroll),
it's an ongoing balancing act to find the right mix between the
business .... and those you serve.
• After-hours alternatives
The Internet has opened up huge new possibilities for people to
interact with your business 2417, but the phone is also still a primary
channel, even after hours. Using the phone and the Internet together
delivers a powerful one-two punch.
If your IVR / Auto-Attendant system has the ability to time-

16 • luerrilia Profits
change the menus or messaging after hours, you can direct people into
self-help voice systems or direct them to alternate ways to get things
done (rather than just, "Leave a message and someone will get back
with you "-or "call back tomorrow" ).
Have a friendly IVR data-capture system that directs people to leave
specific information rather than just a generic message. This has the
potential to capture information that might otherwise get lost due
to hang-ups and can even be used for order capture. You can also direct
callers from the phone to your web site. Make sure you send people to a
specific URL/web landing page-don'tjust drop them on the home page.
Instead, tell them exactly which page to go to for help or to get things
done after hours (but, keep the URL extensions short and to the point).
That way, people can be directed properly between both phone and
online.
The big picture

All of these Critical First Points of Contact, taken together, have a
huge impact on the experience that your customers/clients have with
your business or professional practice. The importance of good
customer/client interactions canlt be overstated. Maximize Your Interactions
and earn more Guerrilla Profits by making it easy for people to get what
they want from you in an enjoyable way.

Guerrilla Profits ~ 17
Strategy # 1:
Maximize Your Interactions
ACTION POINTS
• Pay attention to The Critical First Points of Contact
which are the "make-or-break" factors that determine who
will buy-and who will walk.
• Have clearly defined and stated expectations of employee

behavior-and use scripts and templates for all forms of
communication.
• Be sure that everyone in your organization has at least

basic product knowledge and the ability to recognize and
act on customer/client wants and needs.
• Reward the expected customer/client interaction behavior

that you want-and also track those who are not being
rewarded.
• Mystery shop your location(s) with your employees full

knowledge and factor that information into your reward
and feedback system.
• Monitor and, when needed, modify employee attitude

-which has a huge impact on your customer/client
interactions.
• Design your people-less interactions from your

customer/clients' perspective-and make it easy for
people to get what they want from you.
Get the latest Methods, News & Updates. Go To: www.guerrillaprofits.com

Strategy #2:
Capture More from Your Transactions
O ne of the underlying principles of Guerrilla Profits is that most

businesses miss out on profit opportunities on almost every
transaction-and are limiting their incomes without even knowing it.
Now, that's not to say that all possible methods should be used every
time, in every customer/client encounter. That's just not practical---or
perhaps, it's not even preferable. Rather, the potential methods available
to you should be strategically peppered into the mix of what's occurring
now---or used wherever appropriate for you-and that increased use will
inevitably generate more business.
Transactions, of course, consist of all the things you
do in the course of conducting
business with your
20 ~ Guerrilla Profits
customers/clients. But, we'll differentiate here from your interactions
(discussed in Chapter 1 - Strategy #1: Maximize Your Interactions)-
which focus on human behavior-by focusing now on some of the
specific transactional methods you can use. These can help you capture
more from the people who are already coming in your door, calling on
the phone, emailing you, visiting your web site, or whom you are going
out to meet.
Let's begin with a quick review of the usual transaction sources and
methods. Then we'll dive right in to the Guerrilla Profits approaches to
Capture More from Your Transactions.
Inbound Conversion
Most businesses have some inbound component, even if they are
not location-based. In other words, even if you have a service business or
professional practice with a limited clientele, you'll still be taking calls
from your existing clients, and hopefully will receive at least an
occasional call from someone who is referred to you.
Taking that activity level up a few notches; retailers rely heavily on
foot-traffic (walk-ins); businesses of all kinds that are regularly
advertising and marketing must be responsive to those who are
responding to their solicitations (via phone, fax, mail); and, the Internet
allows people access to your business 2417 (email, web orders). At every
point of inbound activity in your business-you have the opportunity to
improve your methods.
Now I'm assuming you at least have some sort of system in place to
handle inquiries and convert them into a transaction-that is, to answer
a prospect's questions and close the sale on what they're contacting you
about in the first place. Right? If not, that's a great item to start working
on first.
Pay attention to what's working best now, and to what the most
successful people in your organization are doing that's causing them to
get the desired sales results-and document and script those current
successful methods (the exact steps taken and words used). Then make
Chapter 2 - Strategy #2: Capture More From Your Transactions

Guerrilla Prolits ~ 21
the step-by-step processes and scripts available to every employee who

comes in contact with your inbound prospects and customers/clients-so
they all know how to at least ask for the business-and then train them
to use it. That's the key: asking for the business (i.e., getting your
prospective customers/clients to say ''yes''-and buy from you-in a
proven, consistent manner). It's the minimum entry requirement for all
your inbound activity.
Outbound Sales
In situations where you take your business out directly to people, the
same basics for inbound conversion apply-with the additional dynamic
of being in an active sales mode.
You could have sales reps who are actively soliciting business
through outbound calling, live appointments, or cold walk-ins; you could
be attending live events, shows, festivals, expos, fairs, or other forms of
outdoor retailing; or perhaps, you could be at a seminar, association
gathering, trade show or industry conference.
In all these situations, you get the opportunity to meet and greet
prospects and possibly existing customers/clients-in an environment
that is usually positive for determining their wants and needs (if not
actually closing the sale on the spot).
And, just like with inbound conversion, outbound sales is a source
of transactions where you can apply many of the usual methods-as well
as the Guerrilla Profits methods we'll discuss-in a variety of
circumstances.
Let's explore some of the usual methods first...
Usual Transaction Methods

Here's a quick overview of some of the most common methods used
by most business types-and in most industries-to generate business
(both to generate a transaction and to boost transactional value during the
sale). They can be used singly-but are most effective when used in
combination.

22 • luerrilla Pronts
If you're not already using all of these 7 Common Transaction
Methods-then that's a good place to begin boosting your results. First
we'll list them-then we'll go into a bit more detail on each one.
The 7 Common Transaction Methods would include:
• I-Step ... to Close

• 2-Step (or Multi-Step) Lead'" to Close
• Demos / Trials
• Sales / Coupons
• Up-Sells
• Cross-Sells
• Add-ons
A few definitions:
Just to make sure those terms are clear to everyone, let's go into a
bit more detail and define them:
• I-Step ... to Close: These situations involve asking the prospect

to make a buying decision on the spot, with no additional steps in
between. This might be the result of an inbound inquiry, a direct-
response ad or marketing piece, a direct offer on your web site, or
a sales call.
• 2-Step (or Multi-Step) Lead Gen ... to Close: This is when you
use the media or initial contact to collect the prospect's contact
information (lead generation) for further follow-up and
conversion to a sale through subsequent calls, emails, letters,
visits, and the like.
• Demos / Trials: This is very popular with online services, ASP's

(Application Service Providers), software, and subscription
services of all types (such as magazines, online data directories,

Guerrilla Profits. 23
groups and associations). I'll bet if you give this some thought,
you can think of plenty of examples where you've been offered
a demonstration or free trial of a product or service. This is
usually the ultimate way to lower the buying resistance-and get
potential buyers started towards purchase.
• Sales / Coupons: These advertising and direct response methods

include the Penny Saver, Valpak, Money Mailer, Clipper
magazine, Get! Free magazine, print media of all kinds, and so
forth. They seek to attract people for a particular item (sometimes
even a "loss leader") and then to hopefully bump-up the
transaction size by having the customer find additional items they
want while shopping--or during the course of completing the
transaction.
• IIp-Sells: This can be selling a higher-priced item than was

originally being considered, or a larger amount of the same item
(with or without a discount), or selling continuous or
consistent (delivery of your products or services with
automatic billing discussed later in this chapter under
"Good-until-cancelled"options). Once a customer/client has
made a buying decision, it usually takes just a bit of additional
effort at the point of sale to have a good percentage of people
choose an option that boosts the transactional total.
• Cross-Sells: Selling additional items related to the original

sale-like a carrying case, service plan, paint sealer, extra
feature, carpet spot cleaning, sunroof or car stereo. These allow
you to capture additional business at the time of sale-that are
logical extensions of the existing transaction.
• Add-ons: Additional items that are sold at the time of purchase-

but may not be directly related to the original item (such
as an additional item selection on the order form, impulse items
sold at the register, or a software-bundle or multi-book bundle
offer made during the online shopping-cart checkout process).

24 • Guerrilla Proflls
Now onto some Guerrilla Profits perspectives and methods ...
Without too much extra effort, you can take what you have now and
adopt some additional, powerful conversion strategies and methods.
Most of these methods can be used, adapted, and combined in any type
of business or professional practice. Remember: Keep an open mind as
to how you can use something---even if at first it seems that it's for some
other type of business.
• Online Ordering & Service (web)-and

Order Confirmation Messages (email / fax / mail)
Since so much business is being shifted to the Internet, we'll focus
here on your online transactions. But, the same ideas and methods can be
applied to your offline transactions as well-and you would be well
served to apply the examples listed below to all your sales channels.
Many businesses fall flat when it comes to the online-sales process.
They don't go far enough (if at all) to up-sell, cross-sell and seek add-on
sales while the buyer is already ordering at the point-of-checkout, or
laser-targeting people during contact and service for a specific purpose.
However, a few great examples of sites that do point-of-checkout
sales well are:
www.apple.com
www.godaddy.com
www.amazon.com
www.crateandbarrel.com
It's very educational to explore and/or buy from these sites. Notice
all the options and choices that are presented to you as you're making
your buying decision. And best of all, these sites do this added selling in
a non-offensive, "helpful" way: They simply show you more and more
options until you either fall off your chair from exhaustion--or click
"Checkout," whichever comes first.

According to Smart Money magazine (May, 2007), surveys show
that typically 15 percent of customers actually want to hear additional
offers. And it's likely that if you have something to offer that's relevant
to a particular customer's interests-or to the situation at hand-there is
probably a large percentage of the rest who might be interested.
Some obvious examples in the offline world that you're probably
aware of are. Credit card companies offering credit-report monitoring to
their customers who've contacted them to report their wallet or purse
being stolen. Or, larger sized portions being offered as an option at a fast
food restaurant. Or, the systematic (and sometimes multiple) up-sell of
higher priced options offered when calling to order by phone-while
responding to a TV infomercial offer. Or, the extra service contract that
extends the manufacturer's warranty.
In the online world, since everything can be automated and
customized to the transaction at hand-you have the chance to more
consistently present a larger number of relevant options. The downside is
that it's also easier for people to skip over these additional suggestions-
and just say no.
All the same possibilities exist-for up-sells, cross-sells, and add-
ons to your online sales-as you would normally consider using offline.
The big plus online, though, is that you can give a lot more details about
your additional offer (in multi-media)-and allow customers the option
of drilling down to whatever level of detail they need to make that extra
buying decision. Since they are choosing to learn more-people don't
feel that they are being imposed upon at that point.
Some offers to consider in addition to the obvious ones would
include:
• Additional directly related products and/or services as a

bundle or package deal
• Quantity discounts for purchasing 2, 3 or more of the same

item, at the same time

26 • Guerrilla Pronts
• An additional product or service trial offer at a substantial

"first time buyer" discounted price
For best results, the additional offer should be relevant to the

original purchase and should include a quick opt-out mechanism. Even
an aggressive online marketer like GoDaddy.com, which sells web site
domain names and all the supporting web hosting and services, has a
"quick checkout" option that skips the up-sells, cross-sells, and add-ons.
After buyers have concluded the initial transaction, there's a next
step: the landing page and/or confirmation message (depending on your
sales process). In addition to giving shoppers information relevant to the
sale just concluded, this is a great place to convert them to an additional
special offer not presented before-or to simply come back once again
with additional items as up-sells, cross-sells, and add-ons.
The best response will result from offers that have a very "short
fuse"-that is, an offer that ends in very limited time. A "ticking"
countdown clock on the web landing page can work well to entice
customers to come right back to take advantage of this additional offer
(there are scripts for this that any good web site designer should have
access to).
Ideally, if the additional sale is generated while they are still on your
web site after the initial sale, you'll have your system set up to recall the
customer's ordering and contact details-so they won't have to re-key
everything to complete the additional sale. Making it easy to complete
lowers the barrier to the additional sale. In fact, if you're tracking the
current sale with computer logins and/or "cookies," you could set this up
as a "one-click" confirmation sale (simply clicking the link would take
them directly to the checkout / confirm order page-to approve the sale
using the same order details).
The same holds true for order confirmations sent via email, except
that it won't be quite as easy for the buyers to complete the second

transaction. For emails, make the additional offer after you've confirmed
the initial transaction. Then, if you can, include a custom link that takes
people back to the web site-and ideally, directly to the transaction page
for the new offer with their customer information pulled up from the
database. If you ever use fax or mailed confirmations, "offer boxes"
work well-where their customer information has already been
generated and is on the original order confirmation. This could be a
portion of the confirmation page that can be filled-in, checked-off or
signed, and then simply faxed back.
• "Good-until-cancelled" options
An entirely new channel of profits can often be created by offering
customers/clients a "good-until-cancelled" automatic billing option. That
is, buying once, for continuous delivery of your products or services.
Most often, this is done by automatically charging a customer's credit
card on a regular, periodic basis-but it can also be done through a
printed and mailed statement. For many businesses this is something
that's not currently being done--or has never been tried.
You're already familiar with this concept if you subscribe to a
newspaper, get regular home delivery of bottled water, have a gym
membership, are a club member of a winery, or use a contracted pest
control service. The basic idea is that you make whatever you offer into
a "consumable"-something that buyers are charged for and receive at
regular intervals rather than requiring them to make new buying
decisions every time they want what you offer.
Selling this way has a number of key advantages. First of all, once
buyers have purchased the item and checked it off their to-do list, a
business usually has to "screw it up" somehow to get them to opt-out. It's
also helps make for a more attractive USP (Unique Selling Proposition)
for attracting new business-because you can offer an easy-to-
understand, packaged solution to fulfill a buyer's needs. And, of course,
you get regular and more consistent income from your existing

28 • luerrilia PrOnlS
customers.
What's more, if you set up your good-until-cancelled program as a
pre-paid, there's less risk of losing a customer/client as quickly. They're
"locked-in" for each period of service-until they say, "Stop." These
programs build loyalty to your business, and your good-until-cancelled
customers are more likely to refer others to you as well.
What can be turned into consumables? Most things, even if that's
not the norm for your business or industry. And if you can't sell a
recurring deal for quantities of the same item, perhaps you can bundle a
variety of things together to give your offer more appeal.
Let's take a look at how this might work in different business types:
Service businesses: You could offer packages of services for which

you bill quarterly. The buyer gets a price break by joining the all-in-one
program. For example, an accounting firm might offer a package that
includes estate planning, tax planning, tax preparation, and basic
bookkeeping, all at one continuously billed quarterly fee.
F or a recurring service (such as cleaning, tree-trimming, pet care,
music lessons, fitness training, or spa services), you could simply bundle
everything you can into a specially priced monthly fee billed to their
credit card. Accepting credit / debit cards in this way eliminates the
requirement for your customer/client to have to re-buy from you each
time with cash or check.
For an occasional service (no set regularity), it's probably best to go
with a package deal that can lock in a specific number of transactions
(such as an airport limo service offering a coupon book of 10 rides for
the price of eight). But if you're selling to a large corporate client, it may
still be possible to send them a coupon book (or books) each month on
an "auto-ship" program (where you automatically send them a
predetermined quantity at a regular, predetermined interval). In other
words, whenever possible, create ways to lock in business on a recurring
basis.

Guerrilla ProllIS. 29
Retail: If you have established relationships (such as frequent
buyers you know well), offer them a special Buyers Club where you offer
to select items for them based on their preferences (similar to the types,
styles, and range of pricing of the items they normally buy)-and which
you bring to them on a regular recurring schedule. Then allow them to
approve or decline the item, prior to your committing to the inventory
purchase with your supplier. The advantage, of course, is that you'll
hopefully get more regular and frequent transactions-without having to
commit to the inventory in advance. The items you agree to purchase
from your supplier will all be pre-sold.
Give your Buyers Club a distinct name that positions it as a
beneficial convenience-an exclusive, limited availability service for
only your best customers. You'll want to communicate with your Buyers
Club members regularly via personal notes, special invitations, personal
emails, faxes or letters-and having a regular monthly newsletter is a
good idea.
The set-up dialogue-and program justification for your Buyers
Club would sound something like this:
"By pooling a group of customers with similar interests as yours,

I can buy a quantity of a particular item each time, and pass
along better pricing to you. And I can focus on getting you things
that I may not otherwise be able to stock in sufficient quantities
to have on hand for everyone who would want it. "
There are many examples of clubs, groups, "VIP" (very important

person) and loyalty programs in addition to a Buyers Club (see Chapter
9 - Strategy #9: Create Excitement-for more methods related to
groups). Some types of clubs even offer a list of member benefits in
exchange for a regular recurring membership fee. So, the customers are
actually willing to pay for the privilege of receiving the additional
member benefits, extra communications and special offers.

As Edward L. Nash, author of Database Marketing: The Ultimate
Marketing Tool and former president of the Capitol Record Club puts it,
there's "a sense of recognition [with club memberships that] reinforces
the customer s relationship with the company and makes them feel
special. "
By establishing, say, a "VIP Club," you can even sometimes sell
products or services that are outside the scope of what you can deliver
yourself. A wine merchant, for instance, might make an arrangement
with a tour company to offer excursions to Napa Valley for its VIP Club
members-and reap additional commissions on the trip's revenues.
The profit payoff for a club can include:
• Increased purchases because of customer loyalty

• Additional promotions / events / programs
• Referrals of new customers and members
• Possible membership renewals (recurring fees)
• Sales of higher-end products and services*
• Sales of recommended outside products or services*
(*see Chapter 4 - Strategy #4: Build Up The Value and
Chapter 6 - Strategy #6: Profit/rom Other Businesses)
Ideal retail applications of the Buyers Club concept would be at

restaurants (special-fare dinners), specialty foods, high-end clothing
boutiques, gifts, collectibles, and hobbies. In larger retail businesses,
applying the Buyers Club method can also work, as long as you can
establish a specific person as the figurehead who becomes associated
with the clulr-rather than having the club come generically from the
company. The Buyers Club always works best when customers believe
that there's a specific person who's looking out for their best interests-
and personally selecting items just for them.

You'll need to allow for the possibility that a customer will

occasionally want to return or exchange a particular selection (much as
the Book-of-the-Month club does). A lot will depend on how you set up
their expectations for your return policy-when you have them sign-up
for the program in the first place.
The risk, of course, is that you may have to exchange or refund an
occasional item. But the good news is that most people are likely to stay
with the program if they are happy with the majority of the items you get
for them. In the case of returned products to a retailer, you can most
likely resell any extra items to other non-members at the store.
And, these group and club possibilities are not strictly limited to
retail businesses. If you're in a service business, professional practice,
trade, wholesale or even manufacturing-with a little imagination it's
possible to apply these methods to these business types as well. You may
be surprised at what comes to mind once you begin to consider the
possibilities in your business.
Wholesale & Manufacturing: Use good-until-cancelled re-supply

of essential key items that need to be restocked. This works well with
just-in-time manufacturing applications that are on a fixed production
schedule (whether you're the manufacturer, wholesaler, or agent).
Another wholesale application that can be adapted to many other
situations is the "rack jobber" (those who supply items on a continuous
basis by restocking the shelves and racks for retailers). This is a mainstay
in some distribution businesses-in essence, adding service to the supply
chain for products.
If you have manufacturing capacity that is underutilized, you could
"sell forward" that capacity at a reduced rate to your best clients-for
taking delivery of a set amount in excess of their usual deliveries every
month. In some situations, they'll make extra efforts to move the excess
capacity if the price is right.

But, please beware: You must control your receivables if you're also
extending them credit. I'd recommend offering the "sell forward"
capacity at the right price-for cash only.
• Selling "down the line"

Credit for this idea goes to psychologist Dr. Robert Cialdini, author
of the excellent book Influence: The Psychology of Persuasion. He cites
the Contrast Principle-that is, the way we see the difference between
two things that are presented one after another. "Simply put, if the second
item is fairly different from the first, we will tend to see it as more
different than it actually is, " Cialdini writes. For example, lift a light
object, then a heavy one, and you'll likely estimate the second one to be
heavier than if you'd lifted it first without trying the lighter one.
In terms of a profit strategy that means there's a huge difference in
the results based on whether you are selling "up the line" or are selling
"down the line." Or, as Cialdini says, "It is possible to make the price of
the same item seem higher or lower depending on the price of the
previously presented item. "
If you start with a lower-priced item, then keep moving customers
to a higher and higher price point when showing them their options and
choices for what you're offering ("selling up the line"), they'll tend to get
"stuck" somewhere in the middle (unless they're on a very tight budget).
They don't want to spend "too much"-nor do they want the cheapest
item either.
However, if you start at the top price point and then start showing
items that cost less and less, customers will tend to choose at a higher
price point. That's because by contrast they're having the better (or best)
item "being taken away from them" (e.g., the less expensive items seem
inadequate compared to the better items they've already seen). That's
"selling down the line."

Guerrilla ProlllS. 33
If you start at the bottom end, customers may never even get a
chance to compare to the top because they feel that they're being "sold
to." But start at the top and work down, and they'll feel that you're trying
to help them more. It's just human nature.
• Down-sells
This is a powerful fall-back position if you're in a difficult sales
environment or experiencing abandoned sales or a lack of response. It
can be applied to the web, on the phone (inbound or outbound), with
sales reps, through direct mail, and most other sales and marketing
channels.
If you've really given the offer or sale your best shot-but you get
to the point the customer is not likely to buy (or in the case of the web,
direct mail or other non-interactive response channel, to the point where
they may simply move on or discard your mailing)-that's when down-
sells can work magic.
Ideally, your down-sell will be directly related to the original offer.
And it will give the customer a chance to get into the deal easier, such as
with an alternative related selection, a lower-priced option, payments on
the original offer, financing, or a down-payment with deferred billing.
Down-sells can help you capture a sale where it might otherwise not have
happened-by making the transaction more affordable.
Sometimes a down-sell can be used to ultimately get you in a better
transactional position. Let's say, for example, that your down-sell is for
a quarterly billing option on an annual service fee or subscription-a
sample script for this type of an offer would sound like:
"If it s easier for you to take care of this over time, I can offer
you an automatic quarterly billing option that lets you get
all the features and benefits now. But, your money out-ol-pocket
will be much lower-and you can easily say yes' today. "

Then, of course, the quarterly payments should add up to a bit more
than the single-pay annual service fee or subscription-giving you a
larger overall transaction size. The customer usually doesn't mind
because they didn't have to come up with all the money up front.
Although not specifically a down-sell method, you can also build
the payments option directly into any of your offers-and the full-pay
choice can be positioned as a special discounted price for those willing
to pay for everything up front. You can also add additional bonuses and
incentives to the full-pay option to make it even more enticing. This
method is very popular with infomercial offers on television lately-
where the payments option is featured-then the operator will offer the
discounted full-pay price plus bonuses when the buyer is placing their
order.
In extreme cases, you can go from trying to close the sale-to a
down-sell of a free demo or free trial. But that's not as solid as getting
some kind of purchase commitment (even if only for a small sum). A
way around this is to have people sign up for automatic billing that
doesn't happen until after their free demo or free trial period is over-
using a good-until-cancelled, recurring, automatic billing option. Asking
for that commitment up front will lower the responsiveness to a "free"
trial down-sell offer-but, will also make it easier to convert the trial into
real business after the trial period has ended.
That way, the buying commitment (if not the payment) is made up
front-and the customer has the option of opting out prior to the end of
the free demo or free trial period without incurring any charges. You can
also offer an extended "cancel for refund" period of 60, 90 days, or
more-to help entice them to stay on while being billed. Then they'll be
less likely to mark their calendars with a big "X" to remind them to
cancel prior to the deadline.
• Bounce-backs
These are offers that you put out there as part of a transaction or

customer/client interaction, and they come back to you later. Examples

include package inserts included in a shipment, bag inserts at the register,
coupons on the back of your register receipts, insert offers enclosed when
delivering a subscription service or periodical, offers left as part of a
service call, and so on.
If you're willing to pay attention to this one, you may find you'll get
very good response rates, possibly on par with, or better than, your usual
direct marketing to these customers/clients. That's because the
transaction for your initial product or service is still fresh in their minds.
Give your bounce-back offers a deadline. But make sure that the
deadline makes sense given how the message was delivered. An insert
offer included in a package shipment, for instance, needs more time
before expiration than something given out at the register or included in
the bag at the point of sale.
A great example of a bounce-back offer at a register is the register-
tape receipt given at many major supermarket-chain stores-that
includes coupons printed on the backs. However, I've often seen this
used as an advertising media for other advertisers--either to generate ad
revenue or as a cost-offset for the register-tape rolls-rather than for their
own internal supermarket offers.
The best items to use for bounce-backs are those similar to, or
related to, the first purchase. The items can also simply be in the same
category or categories as the first sale, but the more closely related they
are, the higher your customers/clients' interest level will be.
This is also a great way to again offer any of your up-sells, cross-
sells, and add-ons that may have been presented at the time of the
original transaction.
• Package Deals & Bundles

By putting a spin on up-sells, cross-sells and add-ons combined,
package deals and bundles are a great way to bump the profits on a given
sale. They also give your prospect great incentives to do business with

you more quickly. With specific deals and offers available to your phone
reps or sales reps--or as part of your other point-of-sales-you can
immediately offer the package or bundle as soon as your prospect has
decided to buy one of the items that's already included in it. As long as
the additional items also make sense for the purchase-and offer a
significant enough savings or advantage-a good percentage of
customers will take you up on the offer.
But, rather than just throwing together several items, dropping the
price, and calling it a package deal or bundle, consider carefully how you
can include extra incentives and bonuses that really make that choice
worthwhile. For instance, is there something you can add that would only
be desired or needed because of the original item being purchased? Or, is
there something you can offer that's exclusive to that package deal-that
isn't available separately?
Also consider what you may be able to add to a package or bundle
that lends a sense of urgency. For example, can you come up with
something that's truly scarce, something that's highly desirable for your
prospects-but isn't usually available because of limited supply?
Combining that with a deadline to give the bundle/package deal a sense
of urgency-and that can help make the deal truly compelling (see
Chapter 4 - Strategy #4: Build Up The Value-for more details on
Package Deals and Bundles).
Remember, have fun with these possibilities! As Donald Trump has
said, "As long as you're going to be thinking anyway, think big." Be sure
to test these powerful Guerrilla Profits methods for yourself-and apply
Strategy #2: Capture More/rom Your Transactions in your business or
professional practice.

Strategy #2:
Capture More From Your Transactions
ACTION POINTS
• Avoid missing profit opportunities-and limiting your
income-by focusing on specific methods that can help
you capture more from activity that's already coming in.
• Document and script your current most successful sales

methods-then train every employee exposed to your
clientele to use the step-by-step processes and scripts.
• Use all of the 7 Common Transaction Methods (I-Step, 2

or Multi-Step, Demos / Trials, Sales / Coupons, Up-Sells,
Cross-Sells and Add-ons}--singly, and in combination.
• Laser-target customers during point-of-sale, order

processing and service-to give buyers relevant additional
options, choices and offers with a high sense of urgency.
• Offer continuous delivery of your products or services via

"good-until-cancelled" automatic billing option-to
eliminate recurring buying decisions and lock-in business.
• Master the art of Selling Down the Line (the principle of

contrast)-and using Down-sells (powerful fall-back
positions)-to dramatically boost transaction results.
• Include Bounce-back offers to create additional sales-

and boost your transactional totals with Package Deals and
Bundles that give buyers incentives to spend more with you.

CHAPTER 3
Strategy #3:
Boost Your Marketing Results
T et's face it, even businesses that do great marketing don't usually
L have the complete picture--or know the whole score when it
comes to their marketing results. At best, here's what they can hope to
know with some sense of certainty:
1) The exact cost of each media buy or marketing

effort, then the number of responses generated
by each one (cost per lead / response
percentage), and then ...
2) 1be number of conversions from those

leads (cost per sale / conversion
percentage)
And that's the usual

best-case scenario.
Of course, there are
some exceptions-
the relatively few
businesses that do
accurately and consistently
track their marketing numbers,
statistics and results. These
40 • Guerrilla Proilis
companies may also have the ability to know the number of failed lead
or order captures (incomplete inbound inquiries, abandoned web forms,
abandoned shopping carts, walk-outs without sale, and the like). And,
they may know additional statistics like quantity and percentage of
successful up-sells, cross-sells, and add-ons--or the recency, frequency
and average sale amount by customer/client--or the total purchases by
customer/client.
But, in reality, most businesses have only a partial clue about the
actual numbers and what's working best on a comparative basis. That's
especially true because of incomplete or inaccurate tracking, the inability
to track from initial response to final sale, or the lack of tabulation and
comparison of the data in the first place-even if it's mostly collected,
accurately counted, and available for use.
Now I realize that many businesses subscribe to the "whatever
shows up" philosophy. They figure that if"X" amount of money goes out
and "X-plus" amount of money comes back in, then they're good to go.
Or, if they're in a retail location, it might be "whatever comes in the
door"-with some doing little or no advertising and marketing at all.
Others suffer through the push-pull of being too busy with current
business to do marketing that keeps the pipeline filled with new
customers or clients. When things slow down, they then have to scramble
to get new business (over and over again).
In this chapter, we'll start with a quick exploration about how to get
a handle on the numbers that matter most-and focus on the things you
can test and improve. Then we'll get into some powerful methods you
can use to generate more Guerrilla Profits in your business using
Strategy #3: Boost Your Marketing Results.
Getting to the truth

For many businesses that do regular marketing, the most common
approach is to simply observe the immediate visible results that come in
as a direct result of a particular offer or effort, such as coupons, specific
Chapter 3 - Strategy #3: Boost Your Marketing Results

sale or special offer. And if it seems to work well, then they run it again.
A trade show, for example, will produce a stack of orders that you
can directly relate to that show, so you'll know if you should return to
that trade show next time. An advertisement in the local Sunday paper
will give you a countable stack of coupons returned or calls / visits
generated-that can then be directly linked to that advertisement. Or, a
direct-mail piece will yield "X" number of leads or "X" number of sales
that can be directly attributed to that mailing.
But it's hard to get around the fact that good marketing--done
right-is tracked and measured religiously as an integrated part of the
business. And, that information should be gathered and stored in a way
that you can compare all your results side-by-side-including the
individual steps within each marketing campaign or sales process.
Why this is necessary

There's a big flaw with relying too heavily on the usual
approaches-the "whatever shows up" philosophy, or the recurring
scramble to get new business, or the reliance solely on immediate visible
results-and that is: lack of consistency.
Imagine how liberating it would be to know that you have one or
more processes in place-particular advertising and marketing methods
and a series of steps to your sales and conversion process-that can be
repeated at-will to give you a particular desired result. It's like turning a
faucet on and off whenever you want. You can be confident and fairly
certain that your expected results will show up every time.
But to do that, you must have foolproof methods in place to make
sure that all your efforts are tracked properly-so you'll know with a
large degree of certainty ~ what is working. And, you can use that
accurate data as a basis to test against, to discover new methods that
could give you even better results.
Your tracking is what allows you to know what you should do-and

what you can afford to do--with your marketing and sales efforts.
The accuracy of statistics

A big issue is getting the correct data in the first place to determine
your actual response rates. That might mean having offer codes that are
required to get a particular discount, for example. Or counting the
deliverable emails rather than the list size, or backing out the returned
mail pieces ("nixies") from your physical mailings count, or considering
the incomplete inbound calls that were a result of bad phone-agent
handling.
An uninformed receptionist, clerk, or service rep (or two) can often
skew the results because of the way the responses were handled, captured
(or not), and tracked. Sometimes, the difference between a good result
and a not-so-good result has more to do with how it was tracked in the
first place-because the data you've got doesn't tell the real story.
Rarely, though, is there enough of an accurately tracked, mixed-
media and methods approach-with all the individual results tracked side
by side-and considerable thought given to what the results are telling
you. These are important numbers, especially when they help you
identify unproductive media, or efforts that only worked marginally, or
those specific steps that failed. You might have a marketing process and
series of steps that could work successfully-by simply improving one
or two of the steps.
Or perhaps your accurately tracked data can tell you about some
combination of approaches that work together to give you even greater
results-such as a multi-step campaign that includes direct mail, email,
and outbound calling, all combined. Sometimes one particular step in a
series or the order in which they are used can make a huge difference in
the overall responsiveness of your prospects.
If you don't know exactly what results are being produced for each
individual component and step in your advertising and marketing
process, then how can you make informed buying decisions about your

media-or do proper planning and projecting for your marketing efforts?

It's simply not possible to have a predictable business-short of
relying on a fiercely loyal clientele.
Keeping track
As mentioned, it's important to have foolproof methods in place to
make sure that tracking happens as part of your transactions. If you need
to rely on individuals, ensure your P.O.S. (point of sale) or other system
requires them to enter the tracking code to complete the transaction.
The usual direct marketing tools of the trade include many
traditional tracking methods. The trick is to make sure that the
information funnels back to a central location and is stored, tabulated,
and sorted in a way that makes sense in a tracking database.
These tracking methods could include:
• Print coupons with different tracking codes for each media

(not just for different offers)
• Discount codes that are required (no manual overrides)
• Different tracking codes for every variation of your

Advertisements and Mailings
• Extension numbers required upfront by an inbound sales

IVR (interactive voice response) prior to reaching a live operator
• Dedicated landing pages that automatically track without

having to use "cookies" (more on this below)
The Internet & use of "cookies"

Many web sites and web-based systems rely way too heavily on the
use of "cookies." These are little snippets of text that get embedded in the
visitor's web-browser memory, then interact with the web server that

generated it. They have a number of uses, primarily for tracking,
authentication, and personalization. But from a long-term perspective for
tracking your marketing, they're mostly unreliable.
According to a Jupiter Research study, 58% of online users have
deleted cookies, with approximately 39% deleting cookies monthly from
their primary computer. The study also indicates that 58% of users run
anti-spyware software (which deletes cookies), 56% clear cache (which
contains cookies), and 52% manually delete cookies. All of which makes
for a grim outlook for using cookies to keep track over time.
This data is from 2005. No doubt, as people's computer skills (and
ease of browser use) continue to grow, so will the deletion statistics of
cookies. Many people don't want to be tracked, and they're suspicious of
anything that gets automatically sent to their computers without them
choosing to download it in the first place.
As a practical application, if you require cookies to enter your site
(or a particular area of your site), then those who truly want to access that
area will turn cookies on for a particular session, only to delete them at
some point afterwards. If you're being realistic, you can't expect your
cookies to have any longevity past the current session.
Testing
So once you know what's true (as best as possible) with your current
advertising and marketing, then you can realistically begin to experiment
with other methods and compare to what you know to be true (test). The
most common mistake to avoid (if you actually want to know the truth)
is changing many things in an advertisement or mail piece-and then
calling that a "test." In reality, it's a new advertisement or mail piece. A
real test would be to change only one thing at a time, then compare your
results to the original version.
Now it's possible to speed up this process so that you don't have to
wait so long to get the test results. Just remember to make sure that each
item that's being tested is tracked separately and that the sample size (the

number of people who will be exposed to the new version) is large

enough to give you meaningful results.
The Internet is one way to vastly increase your ability to test new
advertising ideas and marketing quickly. Not only can you do testing
directly from your web site (by serving up different pages to your traffic),
you can also use advertising media-such as Google AdWords-to test
your copy and your approach almost immediately.
Heres a list of the Top 10 Items to Test:
• Headline
• Offer / Concept
• Price
• Body Copy
• Graphics / Layout
• Guarantee
• Deadline / Urgency
• Bonuses
• Call to Action
• Colors
These Top 10 Items to Test are among the most important and could
have the greatest influence on your results, though that's certainly not a
complete list of possible test items. Also, lists and media choice were not
included in the items to test because you should always be testing your
best current advertising and marketing materials with new lists and
media.
Knowing what's working

The goal, of course, is to have advertising and marketing materials

that you can use regularly so that when you place that advertisement,
send that postcard or letter, make that phone call, or send that email (or
some combination of these), you can get a desired, expected, positive
result. And then, along the way, to always be trying new variables with a
percentage of your efforts (say, 10%), looking for something that works
better than what you're doing now.
So, let's say that you've done all that. And you're doing a
reasonably good job of collecting accurate marketing numbers. They're
distilled into a usable format. You have your spreadsheet printout
ready--or a stack of data in hand--or maybe everything summarized
into a colorful chart or two. Now what?
The first step would always be to increase your exposure to the best
media and methods while gauging the relative value of the lesser
producing media and methods. However, this doesn't necessarily mean
you should drop everything that isn't the top performer.
A big, common mistake is dropping things that work just because
you've found something that works better. Often you're getting exposure
to different prospects through a particular media or marketing message
that you may not be getting in other ways. So the fact that there's less
response shouldn't matter as long as what you're doing is producing
some positive result-that is, it's profitable upfront, or it has an
acceptable lead cost.
Segmenting your messages

Another big mistake many businesses make is to take a one-size-
fits-all approach to their advertising and marketing copy without giving
any thought to segmenting the people they're attracting. In fact,
sometimes you can run different ads simultaneously in the exact same
media (or publication) to attract different types of prospects. To take
advantage of this, you'll want to look at those who are attracted to your
current offers and messages first to determine what the "broad
categories" are that would lend themselves to separate messaging.
Some good examples and possibilities would include:
1) Dry Cleaners-Busy women with children -or-

Business people who travel
2) Restaurant-Couples on dates -or-

People who need quick lunches
3) Real Estate-Larger families -or-

Retired couples
4) Physical Trainer-People recovering from injuries -or-

Seniors who want to stay young
5) Financial Planner-Beneficiaries -or-

Post-retirement couples
6) Gift Store-People who need shipping -or-

Businesses' client gifts
7) Contractor-Empty nesters -or-

New families with infants
8) Women's Apparel-Ultra-petite -or-

Career women
9) Yard or Landscape Services-New move-ins -or-

People who've just refinanced
10) Hotel-Business / group / packages -or-

Family reunions
Remember: Take these examples and adapt them to your specific

business or professional practice. The main point is to realize that it's
possible for your offers to become much more attractive to your
prospects when the communications and marketing messages they
receive are more in tune with who they are and what they want.
Series & Sequence marketing

In many cases, simply by adding steps to your current advertising or
marketing process, you can boost your results disproportionately to what
you might expect. Conventional marketing wisdom is that repetitive
advertising gains attention because people need repeated exposures to
take notice and, ultimately, respond. Now how much of this is fostered
by the media that wants your advertising money-versus the reality in
your particular business-is the reason for the testing and tracking that
we've been discussing.
The reality is, if your advertising or marketing doesn't work initially
(some form of positive response, either in actual sales or leads
generated), it generally won't get better over time. For most businesses,
all direct response advertising and marketing-and that's the only type of
advertising or marketing that most for-profit enterprises should do-
needs to be initially productive.
Before we go on, let's define "productive." For our purposes, it's
advertising or marketing that pays for itself out of profits generated
directly--or it generates leads that are expected to convert to paid
business over time (and those profits will cover the costs of that
advertising or marketing effort at some point in the foreseeable future).
So, let's say that the initial purpose of a given advertisement is to
generate leads. Then the process that's used to follow-up with those leads
will have the biggest role to play in the ultimate conversion of these to
sales. And that's where series and sequence marketing outshines nearly
all other methods.
Conventional marketing wisdom also states that if you receive "X"
response from an initial direct-mail piece, you'll generally receive "2X"
by sending a series of three mailings (either the same piece mailed three

Guerrilla ProiIIS. 49
times, or a series that's directly related, but with each piece different).
One of the most illustrative examples of high-impact, three-step
series mailings comes from Dan Kennedy, who teaches how to use the
money collections business "dunning" sequence in ordinary businesses.
In his book, The Ultimate Sales Letter, Dan describes how mailings No.
2 and No.3 should refer to the prior mailing, with each getting more
urgent (just like a collections notice).
Mailing No. 3 then clearly states "Final Notice," building urgency
as the offer deadline and expiration loom. This form of series can have a
huge impact that boosts results higher than usual because of the increased
sense of urgency.
Going a bit further...

Where a series is a number of related steps within a particular
communications channel, you can get even greater response by mixing in
additional steps (a sequence )-involving contacts made by phone, fax
(where applicable), email, inserts (such as in periodical mailings or
package shipments), web, and the like-so that prospects are contacted
through mUltiple communications channels.
This helps assure that your message gets through, and as long as you
have legitimate urgency (credible and believable, not contrived), then
prospects will usually not feel you're bombarding them with too many
contacts. Most likely, people will not receive or pay attention to all of
your messaging anyway, so they're probably exposed to a lesser degree
than you might imagine.
Now remember, we've been describing a follow-up series from a
lead-generating advertisement. But, the exact same thinking and formula
can go into contacting existing customers/clients for an "internal"
promotional campaign.
As you test and track your series of steps using multiple
communications channels, you'll ultimately hit upon the optimal

50 • GUlrrllla Prllits
sequence that produces the greatest result for your particular business.
This isn't necessarily easy, but it can be extremely profitable. And keep
in mind the fact that's it's not easy is an advantage over all those
competitors who are simply unwilling to put in this kind of effort. Often,
very commanding market shares (local, regional, national or
international) can be captured by creating, implementing, and then
consistently using successful series and sequences in all of your
marketing efforts.
Standing out from the crowd

One of the most lucrative ways to boost response is by doing very
high-impact, unusual things that competitors simply don't think of or
simply aren't willing to pay for. Depending on your business and the
dynamics and profitability of your transactions, you may be able to add
steps to your marketing follow-up series and sequences that command
attention and cause your message to break through the clutter.
On the simplest side of this idea, that might include-immediately
after the lead is generated-expedited delivery of the initial follow-up
packet to each prospect via a courier, such as Fed/Ex. That then lends
itself to an obvious follow-up call, "Did you get the Fed/Ex envelope I
sent you yesterday?"
Then on the high-impact side of this idea (again, depending on your
business type and the dynamics and profitability of your transactions),
you could send items that are directly related to your offer-or made a
part of your follow-up process that commands attention in ways that
most people haven't been (or aren't usually) exposed to.
Some examples are:
• Include a CD player along with your promotional CD

(already in the player)

• Include a DVD player along with your promotional DVD

(already in the player)
• Send a telephone with the suggestion that they call you

immediately
• Attach your message to a sports ball (or tie-in to current

events with a physical object)
• Attach a lottery ticket or cash stapled to the top of

your sales letter (included items are known as a
"grabber"- to grab their attention)
• Include something seasonal or holiday-related (when the

timing is appropriate)
• Send a calculator to "add up your savings"
These are different from the bonuses or premiums that might be

used to attract prospects in the first place. These are additional, unusual
items that are unexpected. They're specifically meant to attract attention
and make an impact. A bulky physical object makes it unlikely that your
mailing will be thrown away without being opened and looked at. And,
if you send an odd-shaped item (such as round or triangle)- it requires
that your item be kept on top of the their mail stack.
Be creative, and always be on the lookout for unusual, high-impact
means to get recipients to read and respond to your marketing. But also
be careful. Business owners or marketers are often tempted to cut comers
or costs-and will send something to attract attention that is perceived in
an undesirable way or that cheapens the value of your marketing
message. These attention grabbers, if they're truly desirable gifts, can
often cause recipients to feel obliged to respond because of the Law of
Reciprocity, which states that people want to repay a kindness (see

Chapter 8 - Strategy #8: Gain From Giving Things Away-for more
details on the Law of Reciprocity).
Hidden benefits that boost response

Direct response has always been about identifying and selling the
benefits-that is, what a given product or service can do for, or will mean
to, the prospective buyer. But there are often non-obvious, hidden
benefits that could have even more value to your prospects. And these act
as psychological triggers to boost response rates and cause people to
want what you're offering.
One method comes from famed marketer Ted Nicholas, whose
technique is to ask the question, "If I had unlimited powers, what would
be the single most compelling benefit I could bestow that my prospects
would like to gain from my product?" (or service). He goes on to state
that, "The hidden benefit has nothing directly to do with the product
itself-but the answer to the previous question can become your most
powerful benefit-and thus your headline, as well as the main theme of
your offir. Just make sure your product actually delivers on the
headline spromise. ":Following that line of thought, some hidden benefit
examples might include:
• A cleaning product that doesn't just clean, it makes you

proud of your home when guests arrive
• A fitness program that doesn't just make you feel good, it

raises your libido
• Financial planning that doesn't just help with retirement,

it helps you travel around the world on an endless
vacation
• Dentistry that doesn't just help maintain your oral health, it

gives you the confidence to smile like a celebrity

• A hair-care product that doesn't just help you have

more beautiful hair, it makes you extremely popular
with the opposite sex
Don't these hidden benefits sound a bit more enticing than the usual,
obvious ones? Give this some thought and consider your own products
and services. Ask yourself: If you had the unlimited powers to grant and
fulfill the ultimate wishes and desires of your prospects and
customers/clients, what would that be?
Inserts & brochures on steroids

Advertising and direct response marketing in print, mail, broadcast,
and on the Internet captures the majority of our attention. But sometimes
even the most mundane means of reaching customers/clients can also
yield hefty Guerrilla Profits if used well.
For example, something as ordinary as inserts and brochures-
usually relegated to the back bumer-could, with some thought and
effort, become major weapons in your marketing arsenal. You can give
these ordinary workhorses a makeover. And that mostly that has to do
with specifically how you use them rather than what goes into designing
and creating them (which is the usual topic of discussion).
Non-media marketing
Let's consider that there's usually no additional cost other than the
printing to deliver these messages to your customers/clients at your own
place of business. Then, with just a little effort or cost, these items
(brochures, leaflets, flyers, and handouts)-can be distributed whenever
needed with almost no restrictions in public--or they can be dropped in
quantity at specific locations that you've arranged where they can get
exposure to your target prospects.

54 • luerrilla Proilis
These are some of the most basic Guerrilla Marketing tactics. But in
addition to those usual ways of distributing the information, a number of
other opportunities often are overlooked. And, even though there are
some businesses that use these techniques in various degrees-and even
a few that use them very well-most businesses don't use them at all.
Here are several of the most common methods:
• Bag inserts with every purchase

• Package inserts with every shipment
• Table brochures and check inserts in restaurants
• Invoice and statement stuffers of all kinds
• After hours on-door display brochures
• Countertop or waiting-room special offer brochures
• Product-packaging / box inserts
Now, here's where it gets interesting from a Guerrilla Profits

perspective. You'll recall we discussed the dynamics of bounce-back
offers in Chapter 2 - Strategy #2: Capture More from Your
Transactions. These are offers that you put out there as part of an initial
transaction or customer/client interaction, and they come back to you
later.
In browsing the list above, you may already see some items you
could initiate or expand on-as new avenues for these types of bounce-
back offers. But, what about other possibilities for using inserts and
brochures in unusual ways?
For instance, rather than just using them for offers, what about a
contest? An announcement for a special event? A postage-paid return
card to sign up for your mailing list? (with an incentive, of course). Or
how about as an opportunity for Giving Referrals? (Discussed in Chapter

6 -Strategy #6: Profitfrom Other Businesses.) You could even use these
inserts and brochures to enroll people in your "good-until-cancelled"
programs, Buyers Clubs or VIP Groups (see Chapter 2).
All the usual direct marketing techniques apply to inserts and
brochures as with your other advertising and marketing materials. Use
headlines, strong copy, compelling offers, benefit statements, calls-to-
action, and multiple ways to reply. Include a fill-in response form to
signify that this is something they should be taking action on. And be
sure to put any urgency and deadline information in a prominent
position-to entice people to take action.
Creative borrowing
I collect "junk" mail and advertisements of all kinds. That's not
because I'm interested in all the offers or intend to respond to everything.
And it's certainly not because I need another hobby. Instead, it's because
these are a huge resource for examples of offers, sales copy, headlines,
graphics, style and layout that I can refer to in my own direct marketing
efforts and campaigns. So can you, because such "creative borrowing" is
a real insiders-secret of the direct marketing and promotional fields.
It's been said that most things have been tried before, but I'd say
that's only partially true. Some creative modifications and adaptations,
while perhaps similar in approach, can bring a fresh spin that is unique
to today's marketplace and the current hot topics. Or, this fresh spin
could be a result of using something that's worked well elsewhere-and
now using it in whole new type of business, industry, or marketing
channel.
The point is you shouldn't need to reinvent the wheel every time you
want to create something that's new for you. There are underlying human
behaviors, motivational reasons, and emotional triggers that are universal
to why people respond to all advertising or marketing. By studying and

56 • Guerrilla ProlilS
adapting what's already been successful, you can often shortcut the
process for your own new ads and marketing.
Here are two great books to help jumpstart your thinking on creative
borrowing-plus, the underlying motivations and triggers in sales copy
that cause people to buy:
• Million Dollar Mailing$, by Denny Hatch

• The Adweek Copywriting Handbook, by Joe Sugarman
But here's a stem WARNING: Don't Plagiarize. By all means, use

other materials as examples: Note their methods of approach, observe
their techniques, and study their style. But give your etTorts your own
unique spin and style-in your own words. Your prospects and
customers/clients will know if they've seen or heard something before,
and they'll be turned otT if you are too similar to something they're
familiar with.
That said, many past examples exist that prospective customers
aren't currently familiar with, and those can be borrowed from rather
extensively in terms of style and approach. In addition, you can get ideas
from studying books on classic ads and copywriting techniques. Among
the best of the classic books are:
• How to Write Advertising That Sells, by Clyde Bedell

• Tested Advertising Methods, by John Caples
• The Robert Collier Letter Book, by Robert Collier
• The First Hundred Million, by E. Haldeman-Julius
• Scientific Advertising, by Claude Hopkins
• Ogilvy on Advertising, by David Ogilvy

Guerrllla'rofils. 57
Important creative borrowing tip ...

It's important that the examples you're studying, learning from, and
adapting actually are successful. Nothing can be more wasteful than
modeling a failure. Just because an advertisement looks good or seems
clever--or just because you, or someone you know, likes it-is not a
good enough reason to follow a bad example.
Instead, look to see if it's an advertisement or mailing piece that gets
used over and over again in the marketplace. Short of having the inside
info on the real results of a campaign (or from the classics or examples
you'll find in books and courses), repetition in the marketplace over a
relatively long time is one of the only ways you can discern if something
is working or not. If you see a magazine ad that's been repeating month-
after-month-for many months, you can be reasonably sure that the
businesspeople spending their money on that ad are getting a payback
that warrants them repeating it.
Of course, you can always take what you believe to be the best
elements of an example (or examples), and simply start to test your own
version. Then you'll have real statistics of your own on which to base
your development decisions.
So pay attention to what pops up in your own mailbox, you see on
TV, hear on the radio, or find in your email inbox. Study those magazine
and newspaper ads. Keep an eye out for how the businesses you visit use
inserts, brochures, flyers and other handouts. Draw from all of these
sources to form the basis for your own creative borrowing.
Your marketing pipeline

A key to stability in any business is to always ''prime the pump"
ahead of your need for new business. You want to keep the pipeline filled
with prospects who are in various states of conversion to your products
or services. That way you won't have to suffer from down time or
recurring slow-downs and low-activity periods.
58 • luerrilia Prolits
And a bonus for you from constant marketing to keep the pipeline
filled is that the higher demand for what you're offering can give you
more options and choices. If you're in a service business, a professional
practice, a wholesaler, or a manufacturer-you can often get to pick and
choose the best deals, the best work to do, and the customers/clients
whom you want to work with. This doesn't always apply for retailers,
who will generally try to absorb the spikes and surges in business and
usually want to take all of it that comes their way.
But whatever your business, you can also custom tailor offers to
help fill up your low-activity periods-by specifically inviting people to
take advantage of specials or targeted promotions during those seasons,
time periods, days of the week, or hours during the day when business
normally is slow.
Remember to combine and add in the methods from Chapter 2 -
Strategy #2: Capture More from Your Transactions-with those we've
been discussing here in Chapter 3 - Strategy #3: Boost Your Marketing
Results-for maximum effect and maximum Guerrilla Profits.

Strategy #3:
Boost Your Marketing Results
ACTION POINTS
• Track, accurately count and compare all the results of your
advertising and marketing efforts-plus the individual
steps within each marketing campaign or sales process.
• Test individual elements from the Top 10 Items to Test list

against your current marketing-and always be testing new
lists and media choices to find more responsive audiences.
• Segment those attracted to your offers and messages-then

tailor your ads and marketing for these different types of
prospects based on who th((y~ and what they want.
• Use series marketing (related steps) and sequence

marketing (contact through multiple channels)-to boost
your response rates and get commanding market shares.
• Grab attention in high-impact and unusual ways-using

physically delivered "grabbers," hidden benefits in your
messages, and uncommon use of Inserts and brochures.
• Tap into the huge resource of other's successful ads and

marketing materials-that you can refer to in developing
your own-through the use of "creative borrowing."
• Keep your marketing and sales pipeline filled with

prospects-and always ''prime the pump" ahead of your
need for new business-to minimize slow-downs.

Strategy #4:
Build Up The Value
D o you sometimes feel that customers are shopping you based solely
on price? Do you think that if you don't offer them the best price
or close to it-based on your competitors' prices or the generally
accepted view of what your product or service should sell for-that
they' ll simply walk away?
Pricing is one of the areas where the Guerrilla Profits perspective
and approach can help you most. Short of just flat-out raising your prices
across the board (a sure-fire way to increase profits in most cases if you
can make them stick)-let me suggest that there are alternative ways to
deal with your clientele and to Build Up
The Value that puts you back in
control of your pricing
and profits.
62 (I) luerrilla Proflls
What's needed is a good dose of positioning and a thorough re-thinking
of your concept of "who you are" in the marketplace.
Large companies as well as small ones wrestle with this issue. A
case in point: The Wall Street Journal not long ago (March 25, 2007)
reported that Parker Hannifin Corp., a big industrial-parts maker, decided
its long-time pricing scheme was crazy. For as long as anyone could
recall, the firm had used the same simple formula to determine prices of
its 800,000 parts. Managers would calculate how much it cost and make
and deliver each product-things like valves or heat-resistant seals-and
then add a flat percentage on top, usually aiming for about a 35%
markup.
Managers liked the method because it was straightforward, but the
new CEO saw that the firm was stuck in a pricing rut: No matter how
much a product improved, the company charged the same premium, even
though fully a third of its products fell into a niche with little, if any,
competition. And if the firm figured out how to make a product more
cheaply, it cut the price accordingly.
Parker Hannifin CEO Donald Washkewicz decided it had to stop
thinking like a widget maker and start thinking like a retailer by charging
based on what a customer is willing to pay rather than what a product
costs to make. The result: By challenging its pricing assumptions, the
firm has since boosted operating income by $200 million.
Matching price to cost is a common rationale, but it's not
necessarily logical. Audiences have different demands based on their
environment and circumstances. For example, many resorts in North
America with a summertime draw charge more for lodging in July than
in January, a baseball team may raise ticket prices when it's playing a
well-known rival, and on the flip-side, most businesses don't lower their
prices for students and seniors just out of kindness.
Even if you are charging what you believe to be the "right" price,
how do you know what your customers/clients would be willing to pay?
Have you ever checked? Do you price-test to determine what the market
Chapter 4 - Strategy #4: Build Up The Value

Guerrilla Profits ~ 63
will bear? Have you spent time crafting compelling offers that can draw
people in regardless of price--or even eliminate price as a consideration
or objection altogether?
The point is, whatever the size of your business, you may-with a
little effort devoted to an honest assessment of your situation-be
surprised at how easy it is to command prices and profit margins that you
thought extraordinary or even impossible to achieve. Remember, lower
prices don't automatically lead to higher sales. In fact, if your price is
seen as too low, customers/clients may question the quality of your
product or service-and it may tum them off from doing business with
you.
Selecting your customers/clients

A big flaw in many businesses' approach is a "take-alI-comers"
attitude. In other words, whoever shows up--and is willing to pay you-
qualifies as your customer/client. In some situations that makes perfect
sense, such as a food trailer at the county fair or a telecomm company
that's positioned aggressively to take market share away from
competitors. (Even this latter one might benefit by some re-thinking.)
But if you're in a service business that requires a relatively close
involvement with clients or you sell a product that requires follow-up to
the sale (such as higher-end equipment sales), you may want to be a bit
more selective. You may even want to decide ahead of time who you
really want to attract. (See Chapter 10 - Strategy #10, "Capitalize on
Your Business's True Wealth" about profiling your best customers and
prospects. )
I'd even go so far as to say that you should make a customer's
willingness to pay a premium price one of the qualifications for your
selecting them as a customer/client. Now, I can already hear the clamor:
"What?" ...."How can I turn down business?" ...."Why would someone
want to pay me more than they could pay elsewhere?" Or even the flat-
out statement, "People won't pay that!"

But the real thinking behind that line of self-questioning is, "Why
am I so special?" And that's actually a good place to start. Why are YQY
so special? ... What would make what you offer so compelling that people
would be happy to part with larger sums just to deal with you?
If you relegate yourself to a "commodity" business-where your
offering is interchangeable with what most anyone else offers-then
you'll find it difficult to command higher prices. But with a bit of finesse,
you may find that even a perceived commodity can be positioned in a
way that yields higher margins.
In fact, as "change guru" Tom Peters says, "The more the world
perceives the product to be a commodity, the greater the opportunity to
differentiate and create new and unexpected niches through the unending
accumulation of small advantages."
The problem with price shoppers

An issue we need to address upfront can help steer our thinking
here: What should you do about price shoppers? If you have a business
that relies on coupons, flyers, ValPak and the like, you're automatically
positioned to attract these price-oriented buyers. Also, if you run direct-
marketing discount promotions, in-store sales, trade show specials, or
seasonal/occasional offers, you'll experience these buyers.
Not that there's any problem with doing business with price
shoppers. In fact, at times that's exactly whom you want for closeouts,
excess inventory liquidations, and fast action. The problem comes from
then expecting these customers to remain loyal to you after they've made
their initial purchase. Also, it may take even more price-based offers to
attract their attention next time. Simply put, converting price shoppers to
more "regular" pricing-not to mention premium pricing-is less likely
to occur with these buyers.
That said, one of the hlg exceptions is when you market specifically
to try to capture the "right" buyers by using trial offers, sampling, or even
very low-cost introductory offers. In these cases, as long as you're

realistic about losing 40%-60% of the price buyers after the initial
offer-and your numbers still work in those cases-it does make sense
to filter the "right" buyers into your business this way. Then the
customers who stay and are converted into your usual (or premium)
pricing for products/services will become valuable customers/clients that
you can continue to develop.
A better solution to selling on price

For businesses with limited available time or capacity (such as solo
entrepreneurs, small practices, and small manufacturers), severe
limitations exist on your ability to make more money without ultimately
getting more profit yield from what you're already doing. These are the
businesses on which price shoppers will have the greatest impact. Not
only are your profit margins squeezed, but these types of buyers are
usually the biggest pain to deal with (again, see Chapter 10 about
profiling). They'll cause the greatest amount of service issues, sap your
time (or your employees' time), and will generally be more unsatisfied as
shown by product returns, customer service issues, and impatient or even
irritable behavior.
When you focus on attracting the customers/clients you want and-
specifically, for the purposes of this strategy, Build Up The Value-you
focus on attracting those customers/clients who're willing to pay higher
prices (using methods we'll discuss shortly), you'll find you have a bit
more breathing room. You may even find that these higher-price buyers
make better customers/clients, cause you the least amount of headaches,
and are generally nicer to deal with. (In my own dealings over the years,
that's certainly been true, with only an occasional "problem"
customer/client exception.)
These buyers are willingly deciding to deal with you-and at higher
prices than they might get elsewhere. So there must be a reason why that
happens. And there must be ways you can duplicate the process of
finding more of these "better" customers/clients. Because in Guerrilla
Profits, we don't focus on cost-cutting, penny-pinching or inventory and

66 • IU8rrliia Profits
operations control-but, rather, enhancing profits and finding alternative
profit opportunities-that's exactly where we'll start to look for these
higher-price buyers.
Qualifying your customers/clients

A number of ways exist that you can use to think about whom you
want your customers/clients to be and how you want them to show up.
Aside from the usual marketing-selection criteria (demographics and
psychographics), you'll want to qualify customers in ways that attract
them to your higher-priced offerings. Here are three specific qualification
categories, differing by degrees of loyalty:
1) The "Popularity Contest"-This is the usual "default" method

of most customer/client selection processes. Customers are
simply attracted to and deal with people they like. That means
that if you're charging a bit more than competitor A or
competitor B (and what you all have is similar), you win out
because that customer likes you better. Although this is great
if you happen to be the one that usually comes out on top, it's
truly hit-or-miss in terms of consistently attracting buyers.
But at least there's some basis for this loyalty and for the
willingness of these customers/clients to stick with you for
reasons other than price.
Another winning "popularity" factor that pulls people in your
direction--even if your price is higher-is convenience.
People will pay a premium if you make their life easier.
2) Self-Selection Based on Offer-In this case, customers are

attracted based on the appeal of your offer-and become
qualified by being willing to take you up on a specific offer,
package, or bundle. If you structure your offers carefully
(more details on this in a moment), you can use the offer itself

to the "right" customers/clients show up. And one of the

qualifiers could be that the offer is positioned to attract those
who are willing to pay higher prices in the first place.
When prospective buyers self-select themselves by responding to
your detailed marketing message, you can be confident
they're most likely to be people you can convert into a
customer/client at the pricing and terms you've stated.
They're less likely to want to shop around and more likely to
simply want to get their remaining questions answered in
order to make a buying decision. Once they've purchased,
they'll likely remain loyal beyond the initial transaction.
3) Qualified Based on Criteria-For this form of qualification,

people need to participate in some sort of qualification
process. And once qualified and accepted, they're actually
thankful for the chance to do business with you. You establish
the general "minimum" requirements for people to qualify,
then they must submit information, complete survey, or
answer specific questions in order to proceed. This raises the
bar because people are waiting for "approval" prior to
having the certainty of getting in on your offer.
And, you become the preferred provider to which all others
are compared. Then it's your competitors who are playing
catch-up. The loyalty levels for these highly qualified
customers/clients is extreme because they don't want to lose
out on being involved with you. And depending on how well
you're able to position yourself, price is rarely even a
question.Customers who are criteria-based qualified will
often pay the highest prices.
Getting to higher prices

There are many different approaches I've seen (and done) to set the

68 • Guerrilla Proliis
stage for higher prices. Most involve some combination of the following
strategies and methods:
• Seeking exclusivity. This is a first step in getting to higher prices.

When you're able to base your offer on exclusivity-meaning you have
something to offer that others don't-you're naturally able to command
higher prices because of the limited availability.
Even when you may not believe you have an edge, you can still find
something that helps your exclusive positioning. Take, for example, the
chain of ice cream parlors called Cold Stone Creamery, which is
positioned as "the ultimate ice cream experience." Now, you may think
that after Baskin-Robbins, Ben & Jerry's and Haagen-Daz (to name only
a few of the big ones) and the countless smaller chains and
independents-plus, the frozen yogurt stores-that the marketplace
might be pretty well saturated. Also, Ice cream could be considered a
fairly low-priced commodity, especially in such a mature marketplace.
That's where the exclusivity comes in and Cold Stone Creamery's
ability to command much higher, premium prices. It's positioned itself
based on the concept of ice cream as an experience, which includes Cold
Stone's process. To quote the firm directly, "It starts with using the
highest quality ingredients and ends with our signature process for
preparing your custom creation on a frozen granite stone." What that
means for its customer is ultra-customized, made-to-order ice cream
concoctions, hand-mixed in a unique process right before your eyes."
Does this warrant the exceptionally higher prices? Well ...yes, if you
consider customers want to be entertained as part of their purchase and
to feel individually unique. The same principle applies to the ultra-
customized "cup 0' joe" from Starbucks.
But there's a difference between real and perceived exclusivity.
Real exclusivity comes from the ownership of proprietary legal rights,
licenses, distribution deals, exclusive physical locations in high-traffic
areas, and other things that, by their very nature, lock out anyone else

from having the same advantage. Perceived exclusivity comes from

brand-building, your offers, limited access, and the perception in the
marketplace that you have something to offer that others don't. The best
exclusivity will come from a combination of both the real and the
perceived.
Appeal to your customer's/client's human nature-to want to
purchase things they can't get elsewhere-and in many cases, you'll be
able to charge premium prices.
• Offering limited quantities. Partially, this goes back to the age-

old law of supply and demand-and is also an extension from the
previous section on exclusivity. Items in limited supply generally tend to
bring higher prices in the marketplace. That is, if it's a given that the
products/services are in demand in the first place-and you have the
ability to reach the people who want them.
But just because something's in short supply doesn't mean that
you'll automatically get a higher price. It usually means you have to "talk
it up" in print, on the phone, or in person. This works especially well in
retail sales where you can show-and-tell to a potential buyer. In past retail
dealings, I can recall instances where, rather than relegating items to a
sales rack, the remainders were actually marked-up and sold at a
premium specifically because they were the last ones.
If you have items that appeal to collectors or items that could be
associated with a specific group, organization or association-this is
where a special "limited availability" sales promotion can work wonders.
If you have a service to offer with limited availability or production with
limited capacity (such as solo entrepreneurs, small practices, or small
manufacturers), you can use the limited quantities of your available time
or capacity to your advantage in your marketing and sales approach. This
is especially effective when done in combination with the other
approaches listed here.

70 • Guerrilla PrInts
• Devising compelling and irresistible offers. This can get very
interesting. When you focus on crafting offers to attract the people you
want (think "self-selection based on offer," mentioned above), you can
cast a wide net and pull in those who're willing to pay higher prices.
Rather than doing price advertising and marketing, do customer/client
offers where prospects are making their buying decisions based on their
reasons. In other words, what they want most out of a transaction with
your business.
One way to do this is to play up a very specific benefit that you
specialize in (and feature in your offers) that the more generic offers of
your competitors fail to capitalize on. Most businesses don't do this
because of an often-demonstrated fear that is usually expressed
something like this: "If you're going to go to all the time, trouble, and
expense to advertise or market, you'd better be darn sure that people
know everything about all you have to offer so you don Y miss out on
anyone." Nothing could be further from the truth when it comes to
attracting people at higher prices.
The more effective strategy is to focus laser-like on the one benefit
that causes those who are exposed to your message to identify with it-
and compels them to respond. You'll recall the "hidden benefit" concept
attributed to legendary marketer Ted Nicholas in Chapter 3 - Strategy #3,
Boost Your Marketing Results-that usually unstated, not-so-obvious
compelling reason that drives people to act. Well, the same holds true for
all benefit statements in your advertising and marketing.
The amazing thing is that by focusing on one very specific benefit
(to the exclusion of all others for that particular message), you usually get
more people who may ultimately be good candidates for all the other
things you do have to offer. And when you specialize in your message
themes and differentiate or segment your media or lists to reach o~ly
those most likely to be interested in that particular benefit, you'll find
that those customers you attract are of a much higher caliber and are
more likely to want to deal with you, even at higher prices than the
competition.

Please note: I'm not talking about specializing as it relates to your

product or service. I'm talking about specializing within your advertising
and marketing. For example, an ear-nose-and-throat doctor has her
medical specialty, but her Message Benefit Theme could be "a warm and
caring bedside manner." Now that's a benefit that many people want.
• Defining your advertising and marketing theme. You can't just

use the generic terms and phrases everyone else employs, like "quality,"
"service," or "we're the best." None of that has any credibility until after
someone has dealt with you. Most businesspeople just guess about what
they think their customers/clients want without giving the issue much
thought. I don't recommend that.
Instead, you really want to tap into what the majority of your
existing customers/clients think about your business, what they say to
others about you, and what they truly feel they get from your product or
service. And here's one of the best ways to find out: Ask them. Focus on
asking your best customers/clients first (you want to know their answers
separately from the rest). Offer some kind of incentive or premium to
take a quick survey. Put together a short list of questions (this isn't the
time to hit them over the head with your wish list). Keep it to a maximum
of five to seven questions.
Questions like:
1) What comes to mind first when you think about ?

(your company or product/service)
2) What's the No.1 reason you do business with us? (Or, why do
you buy (your product/service) from us?)
3) What do you feel is the biggest problem or issue with _ __

(your product/service)-and how do you think it could be
improved?

72 • luerrilia Pronts
4) In what ways do we excel in providing you with ?
(your product/service)
5) How would you describe our _ _ _ (your product/service)

to others?
Then compile all the answers and pull out the prominent and
recurring themes to discover the one most powerful benefit that you can
use to attract others through advertising and marketing. When you
combine that powerful benefit with the other elements of a compelling
and irresistible offer, you can discover your winning formula to attract
the people you want-at higher prices. The point here is to attract people
in a way so that price is not the primary reason for their buying decision.
And to also market in a way that allows you to test your price and then
charge what the market will bear-or the optimal balance in your pricing
considerations.
• Lowering the response barrier. Another way to attract the

buyers you want is to lead-generate by giving away helpful information,
such as a report, white paper, expose, or public service announcement-
and then convert people to a particular offer related to that information
after they've, figuratively speaking, raised their hands. People attracted
this way are demonstrating their current interest in the topic or category
for what you have to offer-and giving this information also helps to
position you as the expert or specialist (more on this topic shortly).
This can be very useful in having people self-select and identify
themselves-but you'll have to go the extra mile to convert these
prospects through a carefully orchestrated, systematic, multi-step follow-
up process. You can't expect these people who were attracted to a free
information offer to be pushovers. You'll need to hit them with your most
compelling marketing messages-in addition to providing the
information requested.
Be sure to offer information about a very specific subject-directly

related to your offer-that not only positions you as the expert, but also
has content strong enough to support your expertise. Here's the key: The
most important factor in generating response-next to the copy itself-
is the title for the information you're offering as you set up the
information offer and give-away.
Below are some examples from various business sectors. Please
remember to keep an open mind about adapting suggestions from a
different category to your business (often, the best breakthroughs come
from unexpected applications of these ideas).
Service & Professional:
"Consumers' Guide to Finding the Right Mortgage Broker"
"How to Recognize the 5 Ways Your Current Lawn Service

Could Be 'Clipping' You"
"The Dangers to Watch out For When Selecting a

Personal Trainer"
"The Insiders Guide to Safe Financial and Estate Planning"
"How to Choose a Painless Dentist Who S Right For You"
Retail:
"How to Care for Fine Jewelry"
"The Keys to Determining the Real Value of Your Artwork"
"10 Ways to Select the Absolute Best Gifts for

Your Family and Friends"
"Grilling Secrets of the Award-Winning BBQ Masters"
"The Top 3 Celebrity Tips to Keep From Becoming a

Fashion Disaster"

74 8) Guerrilla ProiliS
Manufacturing & Wholesale:
"Inventory Management Secrets of the Leanest Companies"
"How to Source Super-Star Vendors"
"The 5 Keys to Reducing Employee Burn-Out"
"The 3 Biggest Mistakes Made When Buying Packaging

Supplies and How to Avoid Them"
"The Shipping Industry S 'Dirty Little Secrets '-How to Select a

Freight Company that Won t Take You for a Ride"
But beware: Don't skimp on the value of the free information with
a half-hearted effort--or present it in a way that's not well thought out.
Make sure that what you give is worth receiving.
As an example, I recently saw this free information technique used
poorly by a major health-plan company that should have known better.
The mailing was an 8 ~ x 14 legal sized paper, single-sided printing,
quarter folded (coupon at bottom), with the return address in the top 114
panel positioned to view through a window envelope.
The offer was for a "brochure" intended to interest small business
owners. The brochure title was, "Exercise for Busy People." That's not
necessarily a bad title for the free brochure, but the headline across the
top of the letter read, "I was going to call in sick the other day. Then I
remembered I was the boss." The problem is that it seemed to be
obviously written by someone who was an employee (wrong concept for
business owners.... no one who owns a business EVER feels like they
have to remember that they're the boss). But I'll bet someone in the
health-plan company's marketing department must have thought it was
clever.
The letter, after a quick opening line to identify with the business
owner from a health perspective, then led with the company's self-
interest and finally got to mentioning the free brochure again in the last

GueRilla Profits. 75
sentence (before the signature line )-by simply repeating the title. It felt
like a "throwaway," and it was obvious the intent of the letter was to get
you into a sales conversation about the health-plan. On top of an
educational "brochure" being weak from the client's perspective in the
first place (low value), the copy reinforced that there was nothing really
valuable for the recipient in the free offer-because there was no
mention of the benefits to be derived from receiving the free brochure.
Moral of the story: Give something of value and give it with gusto.
Build the value and "sell" what you're giving away, just as if you were
charging for it. Use a benefit-driven theme as we've discussed. Make it
about your customers/clients-and make it interesting.
Expert & Specialist Pricing vs. Generic Provider

This is where overcoming the "commodity" stigma can be achieved
most easily and you can position yourself to get the highest prices in the
marketplace. When you (or your company) are perceived as the expert
and/or specialist in your field, people naturally gravitate towards doing
business with you.
Let's look at a few examples that generate higher prices or fees in
the marketplace due to this genuine expertise:
• If you own a BMW automobile, would you take it to a

general auto repair shop-or the BMW specialist?
• If you needed an operation on your little toe, would you go to a

local clinic-or the podiatrist?
• If you wanted help in preparing your estate-planning legal

documents, would you go to a financial planner-or an
attorney?
You get the idea. But the added point is, for most "regular" non-
specialized businesses, you can take a lot of steps to differentiate yourself

and appear to be the expert or specialist without acquiring a long list of
certificates or credentials. You can do it with "perceived" expertise.
A couple of the ways we've already discussed include: 1)
specializing by focusing on a specific customer/client benefit, and 2)
offering very useful information about a specific subject directly related
to your offer. By combining these two methods-and choosing a specific
specialty to focus on-you can create your own unique approach in your
particular niche. You can become perceived as the expert and/or
specialist-and can command higher prices-by attracting people
through your advertising and marketing efforts who want to deal with
"the pro."
According to Tom Peters, you must "Niche or be Niched. ... lf you
are not configuring your organization to become a fast-changing, high-
value-adding creator of niche markets, you are simply out of step. "
Here are a few possibilities to spur your thinking:
• Dry Cleaners-specialist in leather and suede -or-

men's suits
• Restaurant-specialist in romantic dinner packages -or-

gourmet omelets
• Real Estate-specialist in jumbo loans -or-

simultaneous closings
• Physical Trainer-specialist in men's upper-body strength -or-
women who've just had a child
• Financial Planner-specialist in early retirement -or-
owners of income property
• Gift Store-specialist in high-end wrapping -or-
remote delivery
• Contractor-specialist in two-story homes -or-

office complexes

• Household Products-specialist in organic ingredients -or-
ultra-safe packaging
• Landscape Services-specialist in homes with pools -or-

hillside homes
• Hotel-specialist in 30- to 50-people group meetings -or-

hotel+entertainment packages
As you can see, lots of possibilities exist to position yourself as the

specialist that naturally attracts people who want to choose you. And
you're often able to ask higher prices than your generic competitors-
due to the perception that you can do a particular specialty better than
others.
When seeking to differentiate your product/service, don't forget to
make that difference very clear to the customer. Tom Peters also tells of
a Scandinavian airline that launched a fare-reduction program and called
it "F50"-meaning fares were cut 50%. After the F50 program flopped,
the next CEO retained the idea but renamed it the "Twenty Dollar Plan,"
signifying the actual fare. The switch to simpler terminology caused the
program to really catch on. "What people don i understand doesn i exist, "
said the new CEO, Jan Carlzon.
Testing the higher-priced waters

When you begin to use these higher-price strategies and methods,
you can start by ratcheting up your prices in steps. If you still get no price
resistance, keep raising your prices.
Depending on the nature of your business and your relationships
with your customers/clients, you may choose to quote higher prices to the
new buyers and "grandfather in" your existing buyers. (This may depend
on whether you're mostly or completely booked already.)
Having such two-tier pricing serves a couple of important
functions: 1) It makes your existing buyers feel like they're being taken

78 • luerrilia Proilis
care of, and 2) You can begin to fill in any additional capacity with
higher-priced business over time. Then, at some point, simply raise all
prices to the new level-with proper warning, of course, tied to a "last
chance" offer.
But, of course, in having a two-tier pricing structure (or any other
variable pricing plan)-you'll need to be willing to charge different
customers different prices for the same thing .... at the same time. As
mentioned, this is common in businesses where the price varies
depending on the supply and demand (or seasonality), such as airline
seats, rental cars, or vacation resorts.
A daring, but seldom used, method is to simply and drastically raise
prices on all new business but keep only the best customers "locked in"
at the old prices as long as they maintain a certain level of consistent
business with you. That can act as quite an incentive to keep your
existing buyer's loyalty-and of course, before you make the switch,
you'll need to test the marketplace to be sure that enough new business
is available at the much higher prices.
You can also create new premium levels of service or premium
products relative to the usual items being offered at the old prices-and
charge a much higher price for this new level (think "concierge level,"
"gold memberships, "or "deluxe-options package"). That way there's no
change to the existing customers/clients-but rather, a new higher-
priced, higher-end option. This is a great way to go for many businesses
concerned about having to "stay competitive" or anxious about
disturbing the status quo of their current clientele.
Whichever way you choose to approach higher prices, you can be
sure that they'll help boost your bottom line and generate more Guerrilla
Profits for your business.
Building Value with Package Deals & Bundles

We referred briefly to package deals and bundles in Chapter 2 -
Strategy #2: Capture More From Your Transactions-when discussing

how to convert more inbound inquiries into sales. But packages and
bundles can also help you to Build Up The Value. Rather than just using
them as a discounting tool-Qr as a way to increase the overall
transaction size (the usual methods)-they can actually help you
command premium prices if done right.
This is a very profitable area because it impacts a couple of other
important profit points. First, it's a way to increase your response rates
by creating more compelling and irresistible offers. And second, it's a
way of making your offer(s) unique and exclusive as compared with all
the other offers in the marketplace.
In your current product/service offers, do you simply offer a single
item choice? Or do you perhaps have different levels of product or
service quality-Qr a mix of different products or services at different
price points for prospects to choose from?
In the case of packages and bundles, the objective is to offer a mix
of items (products and/or services) that together provide a more
compelling choice in the minds of your customers/clients and prospects.
And, in many cases, you can add bonus components to the mix that have
a high perceived value-but that don't have to be costly for you to fulfill.
High desirability
The key for positioning packages and bundles is that any item in the
mix, whether a main component or an added bonus, must be highly
desirable on its own. This isn't the place to pad with overstocks that
you're trying to clear out-Qr to try and bump activity on a slower item
in your inventory. If that's your intention, then by all means go ahead and
create closeout bundles or "grab bag" -type specials.
But here we're looking at using packages and bundles as part of
your regular product mix-as an enticement, an incentive, and as a way
to uniquely position what you have as being different than your
competitors. So make sure that you put your best foot forward and give
buyers a real reason to say "yes" to your offer. Lead with your best stuff.

Because, if you don't, they won't stick around to hear the rest of the
story. I can't tell you how many times I've seen examples of offers where
the marketer holds some of the "best items for last"-when presenting,
or in a sales letter, or on a web page---causing many prospects to simply
lose interest and vanish before reaching the point where they'd hear
about the "best items" and be making a buying decision.
Ideally, there would be a good even mix of all highly desirable
items in any package or bundle you create, with your lead item being the
main thing your prospects desire most. The additional items in the
package or bundle shouldn't distract from that primary desirability and
focus, but rather, they should add to the overall perceived value-to help
increase your total sale .... and your bottom line.
Building up the value while commanding higher prices within a
package or bundle often comes from including items that are intangible
where you can set the "prices" or value of these extras at whatever seems
appropriate for your clientele (items with a very high perceived value and
a very low cost to fulfill). These are usually a service-type of component
or bonus-and they can be bundled with either physical products or other
services.
Examples might include added service on an equipment sale,
educational teleseminars, one-on-one or group consulting time, training
classes or online tutorials, on-location audits, critiques or assessments, or
downloadable information in text, audio or video. These items all help
build up the overall value of your package deal or bundle-and, since
you're setting the price and value of these extras-they can help you
command higher prices than if you were simply offering your usual
products or services where the prices are already known.
Many times, there's also a relatively low redemption rate on these
types of intangibles given in a bundle-so that the time and effort to
fulfill in addition to the cost is relatively low-because of the lower
number of people who actually take advantage of them (of course, you
should initially assume that all offered items will be redeemed-until
you are able to test what's true in your business).

Differences between Packages and Bundles

For the purposes of Guerrilla Profits, here's how we differentiate
between the two (with some examples given in the next sections):
Package: A group of items in the same category that are useful

together. When combined, they give a greater total value to
what's being purchased--either in terms of a volume or bulk
sale-or the specific purpose for which the products/services
are to be used.
Bundle: A group of items that may be similar in terms of their

category but which may not be directly related to each other.
Each item has its own usefulness and purpose-separate from
each other-and might be purchased frequently without the
other components in the bundle.
Why are these differences important? Well, mainly so that when we

discuss them in the context of Guerrilla Profits you'll think differently
about each one. There are reasons why you will want each to have a
different spin or flavor when deciding what's in them-and how to
present them to your customers/clients and prospects.
Packages
When putting together a package, think about what items a
customer/client would want to have together at the same time. A men's
clothing store, for instance, might offer a package that includes all the
components for a complete suit or outfit, including the shirt, belt, socks,
shoes, alternate slacks, alternate jacket, and overcoat-and at a special
package price, of course.
Spas and day salons regularly offer packages that group a variety of
services for "a total experience." The same is often true for travel tours,
cruises, and vacations. If you're not already offering a package in your

82 (I) Guerrilla Profits
business, think about how you could you apply this. I'd be willing to bet
that there aren't many businesses that couldn't find a way.
To take this a bit further-and combine it with some of the other
subjects we've been discussing so far-how about a doctor offering a
preventative health-and-checkup package? Or maybe a dentist offering
an annual cleaning-and-whitening package. (She might, for instance, get
patients to commit to an every three- or four-month schedule rather than
every six months (or longer), and then bill them quarterly.) Or an
industrial equipment company might be able to turn a one-time
equipment sale into a monthly billing program that includes all costs of
equipment, service and maintenance.
Bundles
With bundles, you can put together anything that makes sense from
a buyer's perspective. A fitness trainer, for example, may be able to
bundle together some body-diagnostic services with sports massage
and/or with dietary counseling. Or a CPA may be able to put together a
"total financial review" bundle with the appropriate outside non-
competing professionals-such as a financial planner or investment
counselor-along with his or her own portfolio analysis from a tax
perspective.
For a restaurant, a possibility might be to offer a complete
anniversary or romance bundle. That could include flowers, chocolates,
candle-lit dinner (all inclusive, with dessert and champagne) and maybe
even tickets to a music or theatre event afterwards. Be sure to come up
with a unique, enticing name for any all-inclusive bundles like this,
something that makes the event-and the customers' experience of it-
something special.
As you can see, with just a bit of imagination, you can apply this
bundling thought process to most any business. In addition to your
customers'/clients' experience of your bundle-think about it in terms of
their convenience, so they don't need to worry about any of the details.

Guerrilla ProiIIS. 83
Premium Pricing on Packages & Bundles
Where there are predominately tangible components that are
expected to be redeemed, packages and bundles can not only add value
for the buyers, they can actually command premium prices for you. In
many cases, the way packages and bundles are usually structured and
presented, the buyers assume there's a discount-they assume they're
getting more stuff than usual so there should be some package-deal price.
But you can also position your package or bundle as a premium or
limited availability item that makes it more exclusive.
I've even seen instances where there's a qualifier requirement,
meaning not all customers will get this deal. Think exclusive
membership nightclubs or events where people must jump through a few
hoops in order to qualify for the offer. A great example: a limited edition,
deluxe concert ticket package for fans of Tom Petty and the
Heartbreakers for a recent concert tour. Only a limited number of these
packages were made available to fan-club members only. While it was a
great deal from a convenience and overall experience basis (best seats,
preferred parking, extra gifts, special collectible concert tickets, news
and announcement alerts via email}-the package also came at a
premium price. In short, the exclusive package became a very engaging
and exciting approach.
Using Bonuses in your offers

Something else that really boosts response rates, especially when
there's an offer-expiration deadline, is the thoughtful and strategic use of
bonuses. In some businesses, it's a very common practice, but even I-if
you haven't tried this approach-you'll find it can be adapted to most
businesses.
Here are a few tips:
• High desirability is key. All bonuses must help enhance your

overall offer. As mentioned before, if it wouldn't sell well on
its own, don't try to give it away as a bonus. Usually, bonuses

are chosen to reinforce the main components of the package
or bundle.
• More is better, up to a point. It's tough to get people to wrap

their minds around more than about five items, even though
there are those in the publishing and periodicals business that
say there can never be enough bonuses. You must test your
bonuses with your offers to discover what your particular
customers/clients and prospects will best respond to.
• You must "sell" the bonuses in your copy. It's important to

build up their perceived value just as if you were charging for
them. Don't be haphazard or careless here. The desirability of
your entire offer is also dependent on your presentation of the
bonuses.
• Test giving a bonus that's considered an indulgence or a

splurge item. Make it something that people want but may
not go out and spend their own money on, except on a special
occasion. These bonuses usually aren't directly related to your
business-for example, a spa certificate, an expensive bottle
of wine, dinner for two at a great restaurant, or a gift
certificate for a pricey store.
Sometimes, the bonuses are perceived as being even more desirable

than the original item being offered. That's especially true of limited-
availability or truly scarce items, such as great tickets to a major, sold-
out sporting event. When you have a highly prized and timely bonus
that's tied into the deadline for your offer, you've got what can be a
terrific combo. Customers will have no trouble realizing that the deadline
you've set is for real-when they know that there's a specific date
attached to such a bonus.

Guerrilla prolits. 85
Strategy #4:
Build Up The Value
ACTION POINTS
• Challenge your pricing assumptions-and price-test,
position and custom-tailor your offers to your target
audience-in ways that attract people regardless of price.
• Select your customers/clients and prospects-and if

possible, make a customer's willingness to pay a premium
price one of the qualifications for your selecting them.
• Use both real and perceived exclusivity, limited

quantity offers, and devise compelling and irresistible
offers-to help set the stage for higher prices.
• Define your Message Benefit Theme in your advertising

and marketing-and tap into what the majority of your
clientele already think about your business.
• Position yourself as the expert or specialist-to help lower

the response barrier-and to help you command higher
prices than other generic providers.
• Create Package Deals & Bundles to help build up the

value for your clientele-and also increase transaction size
and profit margins for yourself.
• Add Bonuses to help boost response rates, increase

perceived value, and build a sense of urgency by tying
bonuses to specific offer-expiration deadlines.

Strategy #5:
Change The Rules
ome of the biggest profit pressures facing businesses of all sizes

S come from being in a crowded field. Often, too many similar
businesses flood the market with competing offers. Or, your product(s)
or service(s) are being treated like commodities in the eyes of your
buyers.
The more common solutions to the crowded-field problem-such
as cutting your price, changing your offer, or
giving better service-simply keep you
in the same game against the same
players. But perhaps what you
need to do is Change the
Rules of the game.
"Market leaders make up
the rules," writes Seth Godin, a
popular business blogger and
author of Small Is the New Big.
"They establish the systems and the
covenants and the benchmarks that
a market plays by. ...If you play by
those rules, you will almost certainly
lose. After all, that:S why market
leaders make rules. They
88 8 Guerrilla Profits
establish a game they can win, over and over again, against smaller and
newer competitors. "
Newcomers and underdogs need to change those existing rules of
business. Or as Jay Abraham, the legendary marketing consultant and
author of Getting Everything You Can Out ofAll You've Got, says, "When
you limit your business to doing things the same way every other
competitor of yours does, you can only produce modest, incremental
gains-at best. At worst, you could easily lose ground."
And in fact, being new to a business or profession could work to
your advantage-since you don't already "know the rules."
The culture of change

I regularly observe that one of the most difficult obstacles to trying
out new ideas in an existing business is an attitude of, "That S not how we
do things here." Or, if you're a solo entrepreneur or have a small
business, there simply may not be a lot of time to take on new initiatives.
Only the absolute most pressing things get your attention---even if it's
something that could make you more money.
But assuming that you're willing and able to try new things, then
it's just a matter of adding, step-by-step, each new idea or method. And
over time, you'll gain momentum-and can add the resources and
operational infrastructure to support these new methods. Sometimes,
changes can happen quickly, and you can make large advances all at
once. But most likely, you'll want to ease-in.... to test first.. .. and then
expand on successes as they occur.
When it comes to profits, nothing is more important than finding
new ways to create them, other than capturing the profit opportunities
you're already generating. As you read this chapter, let your imagination
run free with new possibilities. Look for ways to either apply the
methods we'll discuss to your business, or create entirely different, new
ways based on the original methods. I'd recommend making notes of
Chapter 5 - Strategy #5: Change The Rules

these ideas as they occur to you, so you won't risk losing track of
something that could have great potential.
What kind of changes?

Business literature and lore is full of examples of bold, against-the-
grain, alternative approaches to business. There's the often-told FedEx
story, for instance. It applied the banking industry's method of clearing
checks overnight-to the overnight delivery of packages. Just as banks
sent all checks to a central processing point, FedEx began doing the same
with cargo. By routing most of its packages to Memphis-and then back
out for delivery overnight-it parlayed that hub-and-spoke concept into
a $34 billion business.
And, Michael Dell who started his $56 billion company from his
college dorm room with $1,000 in capital. He hit upon the idea of
differentiating his company by selling custom-made computers directly
to end users, eliminating the middleman and emphasizing service.
Or, there's the Tom Monaghan example .... a college dropout with
hardly any business experience, who opened a little pizza joint that had
first-week sales of$99. Twenty-five years later, Monaghan presided over
Domino's Pizza, with 2,500 outlets in the United States and abroad.
Monaghan's breakthrough was setting up a whole new category of pizza
parlors that emphasized delivery-with a unique proposition: ''fresh, hot
pizza at your door in 30 minutes or less, guaranteed."
Exciting and noteworthy as these kinds of Change the Rules
examples are, that's nQ1 what we're talking about here. The big,
breakthrough business concepts are great when they happen-but for our
purposes-we'll focus on particular methods you can adapt to your
existing business. In this chapter, we're looking for new, innovative ways
for you to capture money that didn't exist before-and to see new profit
connections and opportunities that you might have completely
overlooked.
Adrian Slywotzky, co-author of How to Grow When Markets

Don t, says that one way to grow in a saturated market is to "innovate
your own demand." Another writer, Dr. W. Chan Kim, co-author of Blue
Ocean Strategy, advises, "Don t compete with rivals-make them
irrelevant." The Guerrilla Profits solution combines those two ideas:
First, Create New Ways to profit.. .. and second, Go Where Others Aren't.
Let's start with some of the methods:
Create New Ways:

Harness Your Competitors to Your Advantage
This section touches on the strategies covered in more detail in the
next chapter: Chapter 6 - Strategy #6: Profit From Other Businesses.
But here, we want to set-up some of the alternative methods you can
adapt and use to Change The Rules.
Differences always exist between businesses, even if the perceived
offers, products or services seem the same in the eyes of the buyers. The
most visible difference to your customers/clients is their experience with
either you and/or your employees-which we covered in Chapter 1 -
Strategy #1: Maximize Your Interactions.
But the practical differences lie in the way your business interacts
with others and provides whatever product or service you're selling.
There's the initial contact, the presentation of information, attention to
the customer/client desires and details, follow-up, handling of problems
and the intangible feelings they have about you.
Customers buy not only because they believe you'll provide what
they're buying at what they consider a reasonable or fair price-but also
because they believe you're the right provider for them. I hate to say it,
but more often than not, the buying decision is more like a "popularity
contest" than it is a rational choice based on the facts.
That's where this Guerrilla Profits opportunity lies here: The fact
that there are some people who simply won't buy from you-and
conversely, there are some people who won't buy from your stiffest
competitors. Once you fully realize the impact of that fact, you'll be able
to open a whole new door of possibilities.

• Unconverted Leads
One of the best places to tap into this existing potential profit
opportunity is with those prospects who have not yet purchased. We'll
get into some more exciting possibilities for your own leads in Chapter 7
- Strategy #7: Recapture Lost Profit Opportunities. But, here in this
section, we'll focus in on a great way to Change The Rules with
unconverted leads.
The first thing to do is to look at your current unconverted leads
(people who have come in, responded, or contacted your business in
some manner)-and ask yourself, "Why aren't these people already
buyingfrom me (or using my services)?"
Now I'm assuming that you have some form of lead generation in
your business-such as display ads, yellow pages, classifieds, direct
mail, Internet inquiries, or even simple flyers-and some process by
which you inform prospects .... follow-up .... and try to convert them to
buyers (that is, encourage them to do business with you).
For most businesses, there is some aspect of the transactional
process that lends itself to, at minimum, capturing the prospect's contact
data-then having some kind of follow-up process to close the sale. And,
if your business lacks a formal process-you'll want to start there-and
look at whatever processes, if any, you do use.
Many service businesses or professional practices rely on referrals
and simply don't have any formal lead generation-to-conversion process.
This could be a fatal flaw. Ifkey clients leave, you're left with a big hole
in your cash flow and you could have to scramble to replace them.
But assuming that lead-to-buyer conversion is already part of what
you're doing now, asking the question "Why aren't these people already
buyingfrom me?" will help you focus on the issues that your prospective
clientele has with your business-and with your industry. If possible,
survey some of these people and ask them directly, "Why haven't we been
able to do business together yet?"-and make a list of their reasons.
Once you have a full grasp of those reasons, realize that your competitors

are plagued by the same issues as you are.
Again, assuming that you have some sort of system in place to
convert prospects into buyers (and you're not in a field with a very long
sales cycle ),-you could then go to your competitors with a Reciprocal
Lead Swap Deal-and say something like:
"Look, we both have leads for people who, for one reason or
another, didn t buy from us. But they may buy from the other. I've
been studying why people don t buy from (your business
/ industry type)-and have a system to convert people into
buyers-that can work for both of us. * I believe there s an
opportunity here for us to help each other by trading unconverted
leads-so that we each might try to convert them and recapture
some of that lost investment we've both made."
(*Sample "introduction letter" included as part of the Bonuses.)
What if you don't have leads to exchange? Then you can simply
offer competitors a share of the proceeds from your efforts to convert
their old leads. But the easiest "sell" on this type of approach is to have
leads to trade because it's human nature for others to believe they can do
a better job than you. (That may, or may not, be true.) And, if you're not
offering them an exchange, they may believe that they'll eventually get
these people to convert somehow.
Remember, these older prospects weren't converted despite money,
time and effort being invested in them by your competitor. So these leads
are a "wasting asset," and you're offering competitors a way to recapture
some of their investment from leads that, in many businesses, simply get
ignored after a certain period of time.
The key here is to recognize that the prospects (leads) showed up
for a particular reason in the first place. Their interest was keen when
they first replied. So long as too much time hasn't passed-or the
prospects haven't already fulfilled their needs elsewhere-some need or

interest should still exist.

You'll want to arrange to start your follow-up process with your
competitors' old leads as soon as practical after the competitor has
"given up" on them. Ideally, your arrangement would be to get a weekly
batch after a specified amount of time has passed from the first contact
date.
Set-up your competitor (and yourself, if it's a reciprocal deal}-
with a simple introduction letter (or email possibly, but an actual first-
class, mailed letter would be better). You can use the sample letter
provided as part of the Bonuses as a starting point for creating your own
customized version.
The letter introduces you to the prospect by making direct referral
to the actions that the prospect had originally taken with your competitor.
It clearly states that your competitor has asked that you contact them on
their behalf. Make sure to personalize it-addressed to the prospect by
name-and refer directly to the person andlor company that the prospect
will recognize as having been who they've heard from before. Also, refer
directly to what they were interested in (replying to}-and why your
company might be a good choice for them instead.
Note: It's important to mention exactly what you can do for them
that's directly related to what they were originally seeking. Don't add a
laundry list of your offerings-be specific. Make them a special offer
(such as a free consultation, free gift or a bonus) to entice them to contact
you. Then, properly train any initial-contact employees in your business
about exactly how to handle these new people who may be contacting
your business. They should be treated differently than prospects who
come in through your usual methods.
Ideally, you would put these "borrowed" leads into a multi -step
conversion process-with a deadline for urgency. You can make this as
elaborate or as simple as you want. Just realize that a single letter is much
less effective than multiple contacts.
And, if you have access to their phone numbers for outbound

94 • Guerrilla ProDts
follow-up--you can leverage that in a number of ways. When you run
into people who've already satisfied their needs for your particular
product or service, ask them: "When will you likely need our product or
service again?" Or, "Are you satisfied with the new provider you've
found?" And, "Whom else do you know who might have a need for our
product or service now?" You may find that this could be a good set-up
for generating referrals. And, the information you gather can help you
fine-tune your own conversion process.
• "Marketing through" versus "marketing to"

We'll get into the details about "profiling" to attract your best
customers/clients in Chapter 10 - Strategy # 10: Capitalize on Your
Business's True Wealth. But for now, we'll assume that you can already
identify a specific customer/client type that you want to attract through
your marketing-and are taking steps now to market to those prospects.
With that as your starting point-the first possibility is to identify
and locate other non-competitive businesses or special interest groups in
your area that attract similar types of people (or in your field, if you're
not in a location-based business)--and to go introduce yourself to them.
For example, let's consider a high-quality cafe with a healthy
menu. Some of these other businesses might include gyms, spas, health
food stores, physical trainers, Pilates or yoga instructors-and any other
health-oriented people, groups and organizations who come in contact
with others-who would want healthy food.
You'll want to focus your introduction to these other businesses as
just that-"Ijust stopped by to say hi, and to introduce myseif'-then go
on to offer them something free that entices them to come in and visit you
(or the equivalent to this approach if you are contacting people at a
distance-to try out your product or service).
Again, in the cafe example, it could be a free meal-so the new
contacts can sample the food. Or for other businesses, it might be a free

consultation, assessment, gift, or sample-whatever would be enticing
enough to actually get these business people to come in to see you (or to
try out your product or service). Once they've stopped by to visit and say
"hi" (or replied)-then give them what you promised, and more. Build
their natural desire to want to reciprocate-and assuming they're happy
with what they've received from you-to be inclined to introduce you
within to their circle of influence.
Remember, these people are the gatekeepers .... the ones that have
access to people that you want to attract. And, once they've sampled or
experienced what you're offering-not only could they potentially
become customers/clients themselves-but they are also more likely to
refer people to you. And, they are more likely to say yes to you when you
suggest that you could leave some menus, brochures, coupons, or special
flyers at their businesses for their people to take advantage of (or provide
a gift offer.... or do a promotion directly to their clientele, organization,
group, or audience).
In essence, you're marketing to these businesses (the gatekeepers)
differently than how you'd be marketing to the individuals that usually
come in to your business. And, you'll want to systematically cultivate
and develop these relationships so that you stay "top of mind" with
them-and so that they do feel special-and are participating with you at
a different level than being merely another customer/client.
That lends itself to many other possibilities such as: You could hold
a special event that these other businesses would be happy to announce
for you (an entertainment event, open house with free samples, special
private sale, free educational seminar, and the like). In addition to
regularly dropping off your menus, brochures, coupons, or special flyers
at their businesses-you could possibly post flyers or even a poster at
their business. Or, you may be able to have them send an announcement
to their email list as a "joint-venture"-where they participate or receive
some consideration or monetary benefit. There are many possibilities.

The example above is that of "marketing through" rather than the
usual "marketing to" approach. That is, you are marketing your business
through other businesses-and of course, this is just one channel in
addition to your usual marketing to the prospects you want to attract
directly.
A couple of twists on these approaches ...

Now, let's shift our focus to a specific method of making your
direct "marketing to" approach much more highly targeted within a
specific geographic area-so you can attract exactly the right prospects.
In our cafe example, there are a number of good publications,
groups and associations with rentable lists available-in the fields of
healthy food, healthy living, lifestyle, fitness, and diet-that would be
ideal places to find prospects that are interested in this cafe's healthy-
menu fare. The issue of course is to be able to segment these lists by your
local zip or postal codes near you-and being able to identify enough
prospects that are close to you from a list to make renting those segments
worthwhile. Then, renting just those portions of the lists that work-and
contacting these prospects via mail with your offer (more about lists later
in this chapter).
The same would hold true for most other businesses that draw on a
geographic area. Do you know how many publications, groups and
associations there are with rentable lists-that have access to the
audience you want to attract for your business?
This form of list segmenting-along with highly targeted messages
that speak directly and specifically to each publication's, group's or
association's audience--can be highly effective at generating larger
response rates than you would get by using generic complied lists or
general advertising to the public.
But, both the "marketing through" and the "marketing to"
approaches should be used simultaneously-rather than choosing one or
the other. All the offers, ads and marketing materials you create can work

equally well (with just a bit of adaptation) in both approaches. You can
even use the "marketing through" approach with local publications, the
same as you might do with local non-competitive businesses and other
special interest groups. Invite them over to tryout your
products/services.
A reverse twist on the "marketing through" approach is to contact
all of your customers/clients-and do a promotion directly to them-to
ask for referrals of all the non-competitive local groups, associations,
organizations, and businesses they know who might be interested in
learning more about your business.
Include a list of names of all the local entities you already know-
and tell them that you're looking for others that aren't already on the list.
And, offer them something unique or sufficiently enticing as an incentive
(the cafe could offer a complete meal for two, for example}--in
exchange for the complete contact information and any other details they
know about the entity. And, if they personally know someone they can
directly refer you to--even better.
The beauty of this, of course, is that you now have a referral from
one of your customers/clients-who you can now refer to when
contacting the entity, "Our mutual client suggested that I call you..."-
which gives you easier access. And, it makes it more likely that they'll
give you their attention-and be receptive to learning more about your
business when you introduce yourself. (See sample contact letters
included as part of the Bonuses.)
Other Change The Rules Alternatives

Most businesses use only a handful of methods to promote and
sell-and rarely tap into all the possible methods that you now have
access to through Guerrilla Profits. And, they use these same methods in
most of the media and markets in which they participate. What are yours?
For our purposes, we'll define these methods as the strategies,
tactics, and messages that are used to attract people to your offers (your

activities). The media are the specific marketing and communication
channels where your messages are being received (your vehicles). And,
the markets are the specific groups and niches of people with whom
you're communicating (your prospects).
Often, the methods currently used are the most common for your
particular business or profession (the ways that "it s done"). And,
depending on your type of business, your media might include:
• Yellow pages
• Display Ads
• Flyers / Inserts
• Internet (Search / Pay-Per-Click / Po stings)
• Direct Mail
• Classifieds
• Speaking / Seminars
• Trade publications
• Trade Shows / Conferences
• Radio / TV
In this chapter, Strategy #5: Change The Rules-we want to focus

on combining all three into new and alternative ways for you to profit,
through: Alternative Method, Media & Market Combinations.
For instance, let's say that you're a financial planner, or retirement
counselor. We'll define your primary market as "affluent investors"-
and some of your usual methods and media combinations might include:
• Presenting to investment clubs

(Speaking is the method; groups are the media.)

• Exhibiting at financial conferences

(Exhibits are the method; conferences are the media.)
• Advertising in financial publications

(Advertising is the method; publications are the media.)
Now, consider some other alternatives, such as:
• Articles in financial publications

• Having a financial book published
• An active referral network with other professionals
• Reciprocal gifting with non-competitive professionals
• Endorsed marketing through targeted groups
As you can see, a number of ways exist for a financial planner or

retirement counselor to broaden his or her horizon through alternative
methods and media combos. And we've started by focusing on the
obvious. What would you imagine might be some of the less obvious
possibilities?
How about:
• Publishing your own financial newsletter or periodical

• Making yourself available to the media as an expert
• Becoming and add-on sale through other professionals
And, by changing the specific messaging (sales copy)-to focus on

a different market segment other than "affluent investors" (say, "people
going through a career change")--our financial planner or retirement
counselor could open up whole new possibilities using these alternative
methods and media combos in an entirely new market.
These are also combinations that almost anyone in most businesses

and professional practices can tap into. You don't need to be a financial
planner or retirement counselor-just substitute your business for those
business types-and let your mind run wild with the possibilities. Each
of the Alternative Method, Media & Market Combinations is a unique
venue where you can continuously attract new prospects to your product
and service offers.
How would this differ for retailers?

In addition to the combos we've covered, retailers can take
advantage of foot traffic. Now, I define "foot traffic" loosely here to
include online retailers that may not have actual feet crossing their
thresholds.
With that in mind, consider these methods that you can use with a
variety of media:
• On-location or outdoor retail events

(online = hosted web promotions through affiliates)
• Sponsorship of community events or initiatives

(online = participate in blogs / content provider)
• Host product demonstrations or workshops

(online = audio and/or video feeds / web seminars)
What about other business types?

Many of the methods we've covered also apply, in varying degrees,
to wholesale distribution and manufacturing. And, in addition, you may
want to consider these starting points:
• Sponsor tie-in events either before or during conventions

• Host educational seminars or training within your industry
• Find alternative industry associations and trade shows

Use your imagination. Be creative. Think about other times when

you have successfully attracted business easily. How can you expand on
your past successes in alternative ways?
Throughout Guerrilla Profits-you'll find expanded exploration of
alternative methods that can be combined with a variety of different and
alternative media. When you tie the right combinations together for
you-you'll find the sweet spot of results that you're after-that can then
be repeated across a broad spectrum of alternative markets. In effect, you
can create a cookie-cutter program that can be rolled out and duplicated.
Go Where Others Aren't:

Promote & Sell Through Alternative Markets
Other than increasing the number of alternative methods in your
arsenal-and testing them in alternative media-the next area to focus on
is testing your methods and media combos in Alternative Markets.
People are creatures of habit, and, by extension, so are businesses.
We get used to doing things our way. Sometimes that's a very good thing
and works well. Other times, especially when it comes to exposure for
our products and services, our old habits can be a bit like having blinders
on.... we only see what we see.
Let me suggest that, more than likely, there are overlooked and
completely unexplored markets that could potentially be a good fit for
your business. Perhaps even a large number of different groups-and
niches of individuals who would be responsive to your offers-that you
have not even considered before. These could be markets that your
competitors aren't using or even considering-and they could possibly
turn out to be even more lucrative than the markets you're tapping into
right now.
We've already defined your markets as the specific groups and
niches of people with whom you're communicating (your prospects).
Let's expand that to include any potentially responsive groups or niches
that you can communicate with in a cost-effective manner.
So often, a "market" is simply defined as the particular product,

service category or field of specialty that your business participates in-
such as retail clothing. computers. dentistry. investment advisors. real
estate. restaurant. or health and fitness. Or. it's defined by the industry
category you're in-such as energy. transportation. consumer goods.
business services. and the like.
In this case. with our broader definition of market as "any
potentially responsive groups or niches that you can communicate with
in a cost-effective manner," we can start to identify many potential
markets that are distinct and uniquely different from each other. Each
market has its own flavor. its own nuances. and perhaps even its own
vocabulary that you'll want to use and be mindful of--even if they are in
the same broad categories. For example. in the health and fitness field.
you would have quite a different conversation when talking with
someone about the benefits of yoga-versus the benefits of weight
lifting. Think of each market as a unique marketplace or forum where
you can go to attract the customers/clients you want.
Vast Resources a Your Fingertips.••

In addition to the huge commercial List Rental industry-that can
supply you with a seemingly endless number of response-generated or
compiled lists of almost every possible group. niche, buyer. consumer or
business type you might imagine-there are many other great sources.
These include directories. online information databases, and trade
organizations and associations that specialize in being the gatekeepers
for their groups.
There are literally tens of thousands of recognized and established
groups and organizations that exist-as well as many hundreds of
thousands of less formal groups and organizations. Not to mention all the
pUblications. periodicals. news and media outlets. forums. venues and
events-that all have audiences you can potentially reach.
Some of these sources can be tapped with minimal or no cost.. .. but.
will require your time and effort. Others are available for a fee and
require testing before you roll out in larger numbers. The point is to

imagine how you can apply your current methods and approaches in
these new potential markets-and generate positive response to your
product/service offers.
Most information sources have been completely transformed by
the Internet over the last 10 years-and the best way to find out about all
their offerings is through their web sites. So we'll focus exclusively on
referring you to web addresses (URL's) as the primary point of contact
(current at the time of publication).
• Paid online information sources

Let's start with a number of good publication info sources, list
brokers, and directories. Some have become very good at supplying self-
service online tools to help get you started-and then they usually have
additional ways for you to get more personalized assistance, online data
access, or physically delivered resources, as needed. Remember, these
listings are not a specific endorsement for these sites and/or companies.
You'll need to do your own due diligence to determine if any of these
providers are right for you:
Publications & Media

www.mediafinder.com
www.oxbridge.com
www.srds.com
www.ulrichsweb.com
Response & Compiled Lists

www.infousa.com
www.edithroman.com
www.epostdirect.com
www.harrisinfo.com

104 • Guerrilla ProfllS
www.salesgenie.com
www.hoovers.com
• Paid association directory

In the paid-directory category, there's the Directory of Associations
that stands out in this category:
www.marketingsource.comlassociations
Here's the description from its own web site:
"Reach the hidden market! The Directory of Associations is a

comprehensive source of information on associations and
professional societies. We provide detailed information on
business and trade associations, non-profit organizations,
and other charity and community associations throughout the
us. with over 37,000 associations in our database. "
Over 11,000 National associations
Over 16,000 State/Regional associations
Lists 29,000 association executives
Over 6,200 US associations with international reach
Over 25,000 records with website and email addresses
It may seem as if I'm placing an ad for the directory in the middle

of the book. I'm not. I just wanted you to get a really good feel for just
how extensive the associations market can be. Use your own good
judgment when it comes to deciding who to contact and how much effort
you want to expend (free sources, or paid). Obviously, there will only be
a small subset of those 37,000 listings that will apply to your business.
But what if you were able to find 15 or 20 that were a perfect

Guerrilla Pronts ~ 105
match? They might give you exposure to thousands of individuals. What
if you only found 10? Or just 5? Each group, organization, or association
has the potential to reach many individual members.
Because that last URL is a paid service (and there may be other
good association directories not listed here), it's important that you have
a plan for exactly what you'll be doing with these contacts once you've
laid down your money. Here's the main point about a paid service: It has
an incentive to get the details right, to keep its database up to date, and
to give you the correct and current contact information for these groups.
• Free online group, association & business directories

Of course, Google is the current king of online search, and there's
also a wealth of information available through its online, organized
listings (businesses or interests by category I associations)-if you're
willing to wade through it and sort out what you're looking for:
www.google.comlTop
www.google.comlToplBusiness/Directories
www.google.comlTop/ReferencelDirectories
Also try the Internet Public Library:
www.ipl.org
(Subject Collections» Business & Economics»
Business Directories)
www.ipl.orgldiv/aon
(Special Collections» Associations on the Net)
For a free site, this next one has a lot going for it. Although the old
adage "You get what you pay for" probably holds true, you may want to
check out the associations section at:

www.businesstown.comlassociations/index.asp
The following URL has a searchable database that allows you to

pull up information in a variety of ways. Most useful to businesses that
are targeting particular geographic areas is the ability to search by city I
state or province I and country:
www.asaecenter.orglDirectories/AssociationSearch.cfm
Then, there's the open-directory project. Though it has a lot of the

look and feel of Google up front, the similarity soon ends. You'll find
different listings here:
www.dmoz.org
www.dmoz.orglBusinesslDirectories
www.dmoz.org/Reference/Directories
This next one-with links to a variety of resources-looks

promising. But you'll need to do a little digging. Still, there should be a
good deal of useful leads here for trade associations, group directories,
promotional and marketing links, PR I publicity, and other organization
listings:
www.knowthis.comlgroupsltradelocators.htm
And I couldn't help but include this Australian specific resource

because it's very comprehensive. If you're in Australia--or do business
there--check out:
www.ourcommunity.com.auldirectory

Guerrilla Prollts • 107
More Online Resources

Here are some additional hand-selected, topic-specific URLs that
appear particularly useful. Remember, these listings are not a specific
endorsement for these sites and/or companies. You'll need to do your
own due diligence to determine if any of these providers are right for
you:
• Trade shows, conferences & expos
www.eventseye.com
www.biztradeshows.com
www.expocentral.com
www.allconferences.com
• Public relations & publicity
www.prweb.com
www.24-7pressrelease.com
www.pmewswire.com
www.send2press.com
www.businesswire.com
www.intemetnewsbureau.com
• Events, festivals & outdoor retail
www.festivals.com
www.festivalfinder.com
www.fleamarketguide.com
www.dmoz.org/Arts/Crafts/Events
• Online discussion, groups & forums

www.dmoz.org/Computers/UsenetlNewsgroup_Directories
groups.google.com
groups.yahoo.com
www.newsdemon.com
• Adult extension classes & courses
www.leamingannex.com
dir.yahoo.comlEducationiAdult_and_ Continuing_Education
www.worldwide.edulindex.html
www.edu411.org
Stay focused
Remember, when it comes to working with specific groups, or
communicating and getting exposure through new channels, it's easy to
get a bit overwhelmed by all the available data and options. It's important
to stay focused on your outcome .... and your particular methods and
media combos that you want to use in these Alternative Markets. As you
search for groups, organizations, and associations to connect with, keep
in mind these questions:
• What exactly am I promoting and selling now?

• What am I planning to promote and sell in the near future?
• How can what I have (or do) benefit the group?
• How can I make the group leader look like the hero
for introducing me to its members?
• What extras, bonuses, incentives or premiums can

I offer its members as a gift?
• What process(es) will I use to attract and convert its

members into buyers-in an appropriate way?

Guerrilla Profits • 109
Getting into the approach strategies for these Alternative Markets,

structuring your offers, designing your follow-up system(s), deciding
how to contact them and get through to the right decision makers-are
big topics that will be discussed in chapters throughout Guerrilla Profits.
But, first, become clear on how your outcome-and how the best
interests of each group, organization, entity or association intersect. Then
you'll be able to craft your approach with the right attitude for becoming
involved with each group's membership.
Important points about markets

Remember, the exposure you get from all markets (whether your
usual markets or alternative ones) should have mechanisms in place to
not only convert people into customers/clients but also to capture their
contact information and build your list. Do both. That way, prospective
customers who are not quite ready to take the next step will be known to
you-and, it's likely, you can convert some of them over time.
Some of the markets specifically don't lend themselves to a direct
sale. Those need to be carefully approached to get the greatest potential
attraction and data capture-so that you don't waste the opportunity to
gain a prospect. By all means, make a direct sale whenever possible. But
also gather enough information about the prospects-for example, the
source of their inquiry, the reason for their interest, their time horizon,
what they want-and gather those prospects into your complete database
of prospects who've given you permission to contact them on an ongoing
basis. Then of course, follow-up regularly.
Matching Offers to Markets

In addition to considering your potential markets, you'll also want
to match your messages and offers to each particular market and, more
importantly, to each group within that market. Like mentioned earlier in
this chapter, your messaging needs to speak the "same language" and use
the same vocabulary as that particular group uses. I can't stress enough

how important this is for your success. Nothing can bring your prospect's
interest to a grinding halt faster than for them to think, "this is not for
me."
Once you've identified the best product/service Offer Match for a
particular market (and have successfully promoted and sold that initial
offer), you can then start to consider what would be the appropriate next
step--the next offer-to bring to this market.
You can even take this a step further with your existing
customers/clients (consider them to be your own private market) when
you consider, "What else would my customers/clients be interested in
that s a direct extension of what they've already bought from me-or
could be offered in addition to what they're currently buying from me?"
In some cases, these can be more than just simple one-shot sales; it could
open up entirely new profit centers. In marketing circles, this is known
as the "back end" to your business. And, for many businesses-it's
where the real money is.

Strategy #5:
Change The Rules
ACTION POINTS
• Create New Ways to profit-by using innovative,
alternative methods that are right for your business-to
help you capture money that didn't exist before.
• Harness your competitors to your advantage through the

use of Reciprocal Lead Swap Deals and by developing
"Marketing through" opportunities.
• Combine your marketing activities, vehicles and

approaches to profit in new ways through the use of
Alternative Method, Media & Market Combinations.
• Go Where Others Aren't-to find new Alternative

Markets and profit opportunities that you might have
completely overlooked, or hadn't even considered before.
• Tap into the vast resources available to identify and

specifically target Groups, Niches of individuals,
Organizations, Associations, Forum & Unique Marketplaces.
• Consider how the best interests of the Groups and

Organizations you're contacting intersect with yours-so
you can maintain the right attitude when contacting them.
• Identify your best product/service Offer Match-for each

particular market and, more importantly, match your
messaging and vocabulary to each group within a market.

Strategy #6:
Profit From Other Businesses
M ost businesses act as if they' re an "island in a sea of marketing."

They generally act and promote independently from what other
businesses are doing around them (or in their industry). But, let me
suggest that other compatible businesses could be an untapped reservoir
of new profits for both of you.
If you've been in business for any length of time, you'll instantly
recognize the following scenario: You're at a networking event
where you' re meeting some people for the first
time. And inevitably someone asks you, " What
do you do?" They express an interest in
your products or services,
and you excitedly tell them
about it with the positive
expectation that they may
And sometimes
they do. Now
imagine that role
is reversed:
You're interested
in someone else's
products or services. That same excitement and interest towards the
interested party (now you) is what the other person feels.
Then multiply that feeling of excitement many fold when you
contact someone nQ1 for yourself personally but rather on behalf of a
whole group of people-your customers/clients. Now that
businessperson's interest level goes way up because they might possibly
gain a number of new buyers. That's what often happens when you call
someone to ask, "I'd be interested in introducing your
_ _ _(product/service) to my customers. Can you tell me more about
it?" That'll be one ofthe easiest profit-generating phone calls you'll ever
make.
Be the Gatekeeper...
This picks-up where we left off in our discussion from the end of
Chapter 5 about creating entirely new profit centers-the "back end" to
your business-which is often where the "real money" is. That's
because, once you've gone to the time, effort and expense of finding and
converting a prospect into a customer/client-then it's usually less time,
effort and expense to get them to purchase again.
In addition to bringing them offers for your own existing or new
products/services (the usual course ofbusiness)--in this case-you'll be
bringing Outside Products and Services to your customers/clients that
are provided by another business.
There are on two entirely distinct profit centers that can be built
around the powerful method of becoming the gatekeeper for your
clientele-in exchange for a share in the revenue or profits generated.
And, these are just the starting points for harnessing the power of
Strategy #6: Profit From Other Businesses (we'll also explore some
additional methods later in this chapter). These first two are:
1) Dedicated Promotions-where you do a direct offer /

promotion to your clientele on behalf of another business.
Chapter 6 - Strategy #6: Profit From Other Businesses

2) Giving Referrals-where you occasionally, but also

systematically refer your customers/clients to others.
Dedicated Promotions
These promotions are often called "dedicated" because all efforts
made during the promotion are to produce a single result: Create a
specific sale of a product, service, package or bundle. They may contain
a series and/or sequence of marketing steps--or the promotion may be as
simple as sending out a single email announcement. There are no rules-
just whatever works, or is agreeable to your partner businesses.
In all of these deals, the details are usually handled with a brief set-
up discussion in the beginning. And, the responsibilities of the partners
in these joint-venture arrangements should be clearly defined ahead of
time (more details on this later in this chapter).
IMPORTANT POINT: The same thinking here that goes into
creating these Dedicated Promotions for other business's products
and/or services to your clientele (with you acting as the gatekeeper}-
works in reverse. You can just as easily take your own product/service
promotions to other businesses-which then act as the gatekeeper for
their clientele (again, refer to our discussion of Alternative Markets in
Chapter 5).
Agora Financial and Agora Learning Institute are sister companies
that both get this. They are publishers of newsletters and information
products/services-and have a very loyal following of hundreds-of-
thousands of people who rely on them for exciting and compelling
offers-and who enjoy buying these informative products and services.
But, while a majority of their offers are "in house" promotions of their
own items-a large portion of their promotions are joint-ventures and
partnership deals that they negotiate with a variety of providers. And,
they have perfected this into an art form.
If you'd like to see how they do it--{and who knows, you may be
interested in their exciting offers and be compelled to take advantage of
some ofthem}-I'd recommend signing up for their free email lists at the

116 • luerrilia Prollts
following URLs:
The Daily Reckoning: www.dailyreckoning.com

Early To Rise: www.earlytorise.com
The Oxford Club: www.investmentu.com
People often have a greater capacity to buy from us than we have

the capacity to bring them new offers. That's where running dedicated
promotions of Outside Products and Services can work wonders (and
prove very profitable).
Amazingly, the long-term value of the transactions for outside
products and services you provide for a particular customer/client can
sometimes be more profitable for you than the products or services you
provide directly through your own business.
The promotion basics

First of all, determine the items that obviously have a direct
relationship to the current transactions in your business. Let's look at
examples of what these might be in different business sectors:
Service & Professional: Some services are directly related to

what you're already providing, such as a fitness trainer
introducing other forms of fitness, nutrition, or spa services.
Similarly a CPA, a lawyer, real estate agent, or a financial
professional might introduce any of these other professional
services to their clientele. Or a contractor, household or
personal-services provider could introduce outside products
or services that are a good fit to the specific job he or she is
doing for clients.
Rnai!: Items here may be either natural add-ons or products

of high interest that you simply don't carry. Special sales,

events, tastings, or samplings-can help generate some
excitement surrounding the introduction. Look for products
that your customers have been asking for while shopping in
your store but that don't quite fit with what you regularly
stock.
Wholesale & Manufacturing: The industries you serve

usually have their own particular needs. You're in a unique
position because most manufacturing or wholesale
transactions are relationship-based (that is, you generally
might have a better working knowledge of individual
customers than would someone in retail, for example). With
that information, you can introduce many items that can help
and support your clients.
Then go a bit deeper. In addition to the obvious examples, others

aren't always so obvious-but can be very profitable. Look for common
threads in the requests that you get from customers/clients. Consider
doing a survey of your clientele to ask what other products/services they
may be looking for-that they're not already being adequately provided.
Within your products/services category-think about informative and
helpful items that you could introduce, such as books, seminars, classes,
training programs, and outside events. Also, ask yourself, "What items
could help my customers/clients do .... or get more.... of what they want?"
With a bit of research, you may find common threads within your
clientele that could give you a clue about other things that might be a
good fit- that you can arrange to offer them (see Chapter 10 - Strategy
#10: Capitalize on Your Business's True Wealth for more information
on profiling your customers/clients)
Joint-venture (JV) partners

Once you've picked one or more outside products or services to
consider bringing to your customers/clients, you'll then need to choose

118 • Guerrilla PronlS
whom you should be dealing with for these items. Ask yourself, "Who
might be the best provider ofthese items for my customerslclients?" And
also, "Who would be a good candidate for me to be a joint-venture (JV)
partner with?"
Don't just pick your friends and/or closest business associates to
work with. That may seem the easy route when getting started-but, like
mentioned when we began this discussion about being the gatekeeper-
asking to introduce another's products or services to your
customers/clients is one of the easiest profit-generating phone calls
you'll ever make. Use that to your advantage. Do a little research first
and consider carefully who could be the best provider for you and your
clientele. Then make that phone call to ask.
Even very large companies are interested in alternate distribution
as long as the scale makes sense to them. For example, you may not get
much interest from IBM unless you're Office Depot. But, that example
aside-there are millions of potential joint-venture (JV) relationships
that exist out there with businesses of all types and sizes. And at least
dozens exist that are a perfect fit for your business.
The scale is going to completely depend on the access and
relationships you've built with your customers/clients. The larger and
more active clientele you have, the more attention you'll receive from
potential JV partners. That's why, as a Guerrilla Profits practitioner, it's
critical to always focus on building your list and making regular contact.
Structuring the Deals

In most JV situations where one party has the buyer and generates
the sale-and the other party does most of the work after the sale-a
50/50 profit split (or the equivalent if calculated on gross sales) is
appropriate. That amount, when stated in terms of gross sales, can vary
widely depending on the particular product or service and the costs
involved to market and fulfill everything.
For example, if total costs to run a promotion and fulfill the sale
(marketing expenses, product/service hard costs, merchant fees, and

Guerrilla PrOIiIS. 119
shipping or handling costs not covered by the transaction, for
example)--are 50% or less-then each partner will receive at least 25%
of gross (half of 50%, or more depending on actual costs). If you have
higher than 50% costs in a transaction, move on to something else! It just
isn't lucrative enough to warrant the time and effort. In the case of online
email promotions(becausemanyofthecostsarelower).it.s not
uncommon to see a JV partner with the outside products or services pay
out 40% to 50% of the gross to their list partners (you).
In some cases, marketing-savvy companies are willing to give
away up to 100% of the up-front proceeds (gross sales) on a lower priced
item to JV partners-so that they can then have a free-hand at selling
additional higher priced products or services to their newly acquired
customer (yours)-with no further obligation to you. In other cases, you
can strike a deal to participate in some or all of the additional or
subsequent sales that your JV partner is able to generate from your
clientele. On the Internet, this arrangement is common in affiliate
programs-where it's practical to continuously track additional business
after the initial sale.
You'll need to decide if that's an option with each JV partner and
deal you set-up. However, if your JV partner is getting the benefit of a
high-value customer/client with no further obligation to you (especially
true with services or events), it's justifiable for you to take the lion's
share of the upfront sale.
Gross sales vs. net profits

A share in the gross sales or proceeds is easier to account for than
a share of the profits. Both will work, but it's often easier for you to get
your new JV partners to say "Yesf'-by making it simple for them to
understand how you get paid. (Remember, you're asking them to make
their product or service available to your customers/clients in a dedicated
promotion that you run on their behalf.) You can also get paid a flat rate
or fee per sale on a particular promotion-which is also easy to account
for. In all of these scenarios, you'll be referring the transaction to your JV

partner for processing and fulfillment.
A profit-share is more common if there are hard costs up-front that
need to be reimbursed as part of a promotion. It is common for these to
be paid back to the JV partner that covered these costs otT the top-
before a profit-share calculation is done. Also, it is often the case that the
partner with the most expense in the deal is the one that controls the
transactions and the accounting-so they can get their costs back right
away.
Of course, if you're the one who is handling the transactions-then
you'll be paying your JV partner the percentage of gross, profit-share, or
flat rate per sale, with you keeping the ditTerence-depending on your
deal.
Controlling access
As the gatekeeper, you'll need to decide how much control you
want over the transactions themselves. However, you'll absolutely want
to retain control of the access to your customers/clients throughout the
contact process-so that, in most cases, your JV partner only gains
access to a new buyer.
There are many degrees of transactional control. Lets categorize
them into three specific types:
• Complete Control-This means you contact, you sell, you

complete the transaction, and you deliver the product. Or in the
case of a service, you then hand otT your customer/client ~
the sale is made and you've collected the money. This gives
you the most control, but in the case of a product sale, your JV
partners aren't getting access to the buyer at all, so it's more
like a wholesale transaction for them than a true Jv.
• Shared Control-Here you contact, you sell, and you

control the transaction (collect the data from the buyer) but
then you hand the customer data from the sale otT to your JV

partner for fulfillment. In this scenario, either party can do the

transaction processing, as agreed. And both are sharing in
the customer data (as well as the proceeds) generated from
the transactions.
• Entrusted Control-This requires dealing with someone

you can rely on to; a) do what they say, deliver quality, be
reliable and responsive; and, b) treat your customers/clients
right; and, c) pay you and do honest accounting. When you
have a gem of a JV partner like this, you can focus on handling
the marketing with your customers/clients-and simply have
your buyers respond directly to your JV partner. Then they'll
take it from there-handling the transaction, doing all the
processing, fulfillment, covering all costs and details, and
providing all accounting and payments. All the work is done
for you.
But, please beware! Entrusted control doesn't mean that you put
everything into the hands of others. Don't just hand off your list,
contacts, or database to someone else, then trust that they'll do exactly
what they've agreed to. That rarely happens to your expectations-
especially with something as valuable and sensitive as your customer list.
You'll want to handle the marketing and communications to your own
people yourself-and then decide how you want to handle the
responders.
Defining responsibilities
You'll be well served by having a clearly defined list of details and
responsibilities for each JV partner to refer to. This should cover the
basic points about the promotion, offer, dates and times, marketing steps,
and details about who handles which specific functions. Clearly spell out
the details of your JV deal, transactions and payments. Also, consider
who's the point of contact for Customer Service-when your

122 • luarrilia ProDIS
customers/clients have a question or issue about anything. You may want
to keep yourself in the loop about this, just to make sure that your people
are getting cared for properly-even if the primary responsibility is
placed in someone else's hands.
A simple confirmation email-clearly stating what will occur in
the JV can be very useful-so that you at least have something to refer .
to should a question about the deal arise. Or, you can confirm the details
on your letterhead-via fax or mail. If you have nothing at all in •
writing-you could run into problems when memories fade-after a
period of time has gone by since your initial set-up talks (especially when
dealing with a new JV partner with whom you haven't had regular .
dealings).
Usually, long contracts are a bad idea; they simply inhibit your
ability to set-up JV deals in the first place. And, try not to get into a big
negotiation or protracted deal discussions. In many cases a simple deal
memo (one or two pages) is a good idea-if there's any participation
extending beyond the initial transaction-to spell out the terms and
specifically what's expected. You would also be wise to offer to write any
simple deal memos yourself-in plain language. But much beyond that
often spells the end of JV possibilities, not the beginning.
Doing due diligence

When considering a new JV partner-be sure to check out their
reputation, quality, values, ability to deliver-and, generally-whether
you believe they will make you "look good" to your own clientele.
How can you do this? Do several Internet searches on your new N
partner's name, company name, and any proprietary product or service
related details you can discover to search on. Check with industry or
trade contacts, groups or associations (if applicable). Ask them for
references of others whom they've partnered with-and call them.
Request references of their current customers/clients so you can ask how
satisfied they are. Remember, this is definitely a situation where "guilt by
association" applies-so you don't want to become involved with

someone who might soil your own good reputation. With just a little bit
of caution, however-and some good JV partner choices that your
customers/clients will appreciate-Dedicated Promotions of Outside
Products and Services can become an outstanding source of new
Guerrilla Profits for you.
Giving Referrals
Imagine what it would be like to have others-outside your own
business or professional practice (not employed by you}-do the work,
but you still get paid. But, that's just the beginning ...
What if those new-found profit sources were only partially related
to your current business, or even completely unrelated? And let me go a
step further: What if those new-found profit sources could actually
eclipse the profits being generated now from your traditional business?
That's the power of: Giving Referrals.
During your dealings with customers/clients, there are times when
it will be natural to introduce an outside product or service to them.
Unlike what we've been discussing with dedicated promotions (doing
these introductions in an active way through a marketing promotion)-
with Giving Referrals, you'll do this individually, one-on-one. New
products or services can be introduced as part of the individual
conversations, consultations and interactions that you (or your
employees) have with your customers/clients. You should always place
yourself in the position of being a trusted source of relevant ideas, news,
helpful and useful information to your customers/clients. And by being
in that position, you're in a position to recommend new things to them
that they may also want.
You'll recall the section from Chapter 1 - Strategy #1: Maximize
Your Interactions-where we discussed how service and repair people
are in an ideal position to make suggestions or recommendations-
because, at that point of contact, they aren't seen as being as much of a
'threat" or an "intrusion." The same principal applies at many points of
contact-and in many situations you'll find yourself in with clientele. In

124 • IOlrrllla .ronts
those situations, where your customer/client truly wants or is in need of
a particular product or service, having a specific recommendation
coming from someone they trust and are already doing business with is
welcome.
In fact, you can set-up an entire network of such referral
relationships-where you systematically and regularly refer-and you
get paid a variety of fees, receive a share of profits or revenue, or other
forms of compensation and consideration from your "preferred
providers." These are deals where you send people directly to the outside
product or service provider-and the transactions are coded and
tracked-so you both can account for the resulting new business that's
generated.
These deals are "Pure Profit"

The downside to systematically Giving Referrals is that it happens
over an extended period of time-rather than the relatively quick pace of
doing dedicated promotions. The upside is that these deals are "pure
profit"-meaning that there are no costs and minimal time and effort on
your part. Once you have you preferred provider(s) in place-and they
actually do what they say and pay you-this can become an ongoing
stream of income for you. Just like with dedicated promotions-you'll
need to decide up-front if your participation is for a lion's share with no
further obligation to your referral partner. Or, if you are able to
participate in some or all of the additional or subsequent sales that your
referral partner is able to generate from your clientele.
Starting with the basics

Most businesses receive some form of referrals. In fact, some
survive solely on them as their primary source of new business. But how
many times can you recall someone going out of their way to hand you a
new customer/client without you asking? Don't you appreciate it when
that happens? You gain a new customer/client who is predisposed to do
business with you because they trust the person who gave them the

referral.
Think about when someone has done that for you and how the
whole process happens naturally. Let's say you needed a new CPA,
gardener, dry cleaners, handyman, business vendor or supplier-so you
ask friends or business associates for a referral. If they knew of someone
good, weren't they usually happy to tell you?
In business (especially sales), it's common practice to have a
formal system in place to ask for referrals once you've successfully
completed a sale, job, or other transaction with your customer/client. It
may be less common to have a network of referral providers that you
cultivate in your networking circle, but that's still fairly common. Yet, it
is relatively uncommon to set-up a network of Referral Partners who
you ~ business to on a compensated basis. These deals are similar to
dedicated promotions-where you become a source of new business for
others. With Giving Referrals, you go to outside providers and say
something like, "I'd like to refer some ofmy customerslclients to you that
could use your (productlservice)-for a share of the new
revenue that s generated. How does that sound to you?"
Would you find that proposition interesting if someone said that to
you? Do you think others might be interested in receiving new business
they didn't have to work hard to get, advertise for, or pay sales and
marketing expenses to acquire? Do you also see that because it's "found
money," it's easy to justify paying the referral provider a share of the
revenue (for some period of time) because they didn't have any costs or
effort to get this new customer/client? The fact is that most people you
approach will say "yes" to a no-cost, no-risk proposition like that-
provided that you do have the ability to give them quality referrals.
Types of Referral Partners to look for

Just like with dedicated promotions-the first step is to consider
the Outside Products and Services that are directly related to your
current business and the circumstances of your current transactions. If
fact, some of these new referral partners might be the same ones with

whom you can do dedicated promotions.
What other items are directly related to the products/services that
you now offer? What does your clientele need to have just before buying
your product/service that you're not providing? And, what else might 1
your customers/clients want or need in addition to what you're now

offering-after you've provided your product/service?
Again, let's look at some examples from different business sectors:
Service & Professional-Any financial or legal-related

practice (such as CPA, financial planner, lawyer, investment
broker, real estate agent, or banker) can cross-pollinate with the
others to form a network of Giving Referrals. A residential-
based service (like yard service, cleaning, repair or handyman,
pool service, tree service, chimney sweep, or landscaping) can
do the same by Giving Referrals within their circle of
residential-based services.
The same thing holds true for the grouping of personal
services such as spa and massage, physical trainers, nutritional
counselors, chiropractors, and other wellness services. And, one
group in particular has a definite advantage in this process:
contractors. That's because it's in the nature of that business to
be consultative and recommend other items that could fit within
a particular project.
But don't limit yourself just to other services. The same idea
can be applied to products that are related to the service you
offer.
Retail-It's usually true that retail provides an environment for

higher in-person traffic than other business types-and that
increases your ability to tap into the "buzz" by listening to
what's being requested by your customers. Many people come
in with something already in mind that they're looking for.
Often, if you don't have what they want, customers will

naturally ask, "Do you know where I can find ?" (the
product/service). And, this provides a great opportunity for
Giving Referrals (the same holds true for hospitality, restaurant,
and travel-related businesses).
Your ability to gather information while helping customers
helps you tap into what's "hot." Many businesses will try to
incorporate these new hot items or categories into their business
and will use customer requests as a way to increase their
offerings, change their offerings, or otherwise satisfy those
customers themselves. The problem with that is, sometimes it
takes a while to implement such changes. But by Giving
Referrals, you can short-cut your ability to profit from new hot
items without investing in them.
Aside from tapping into the buzz-having a network of
referral partners works the same for retail as was described in
the examples for service and professional businesses. Walk-in
retail specialty stores-such as gift, fashion, cosmetics, jewelry,
and accessories--can all be Giving Referrals to each other in a
systematic way. And pairings of products with related services
are a natural:
• Fashion or Menswear -with- Drycleaners

• Gift and Jewelry -with- Engraving
• Furniture -with- Interior Design & Decoration
• Home Improvement Supplies -with- Contractors
• Restaurants -with- Entertainment & Events
Wholesale & Manufacturing-This is a naturally good

environment because consultative relationships also are
common in wholesale and manufacturing. Perhaps not quite as
common as with some service businesses or professional

practices, but certainly enough to make Giving Referrals an
integral part of your approach.
Often you have a trade association or other industry groups,
organizations, and conferences where you can network with
other wholesalers or manufacturers who offer non-competing
items that your customers/clients may also purchase. Entering
into these Giving Referral arrangements can be very easy to
arrange, and they can be especially lucrative if you can find
partners that are also willing offer your products/services to
their customers in return.
"Wheeling and dealing" are common practices in many
manufacturing and wholesaling operations, so putting deals
together like these often comes second nature.
Be creative
Think about how you can set-up a formal system in your business
for Giving Referrals-and don't just limit yourself to the obvious items.
Once you've set-up a few of these arrangements, it can become a natural
part of how you do business. Soon you'll begin to notice Guerrilla
Profits opportunities using this method that you'd never even considered
before.
Setting-up the deals

So what's an appropriate way to set-up the deals with referral
partners? The answer is: It depends. Mostly, it depends on two things: 1)
The ease (and willingness) to track and account for the referred business,
and 2) The value of the new business that comes from your referral-
versus the cost to generate that same business without you.
You'll find that with service businesses of all kinds, the service
providers will want to phase-out (or "sunset") the payout more quickly
because of the general attitude of, "Hey, I'm the one doing the work
here." Wholesale and manufacturing businesses will be more likely to
allow these arrangements to last longer (or even indefinitely)-especially

Guerrilla prolllS. 129
since finding the customer is more likely to be recognized as the real
value in these businesses. The profits in these lower margin operations
happen over time and come from repetitive transactions-usually
conducted by a primary account executive or contact who can track the
business that's generated from each referral. Eventually however, in a
larger organization, someone may decide that they've paid out enough
and the deal may need to be re-negotiated.
Retail is another story. There you'll need specific ways to keep
track of multiple transactions that take place over time-usually without
a specific person being in the loop on every transaction. If you do happen
to strike a deal with a smaller merchant who will personally be involved
with each transaction-this process could run smoothly in their hands.
But generally, tracking can be more easily accomplished by Internet-
based businesses (affiliate programs are one such example)--and also by
many catalog, mail-order, and other companies that are database driven.
If tracking will be an issue in a referral arrangement-but you still
want to deal with the products or services-the best way to structure
these deals is on a transaction-by-transaction basis. Create a specific
offer that's exclusive or unique to your referrals. That way, your
customers/clients will be going to this new business for a specific deal,
and everyone who shows up at your partner's business for that deal will
be directly attributable to you. Another way to profit more on the up-
front transaction is to focus on higher-priced items where you'll receive
enough on that initial transaction to be worthwhile (such as luxury goods
of all kinds).
How much should you get paid .... and for how long?
Again, the answer is: It depends. It depends mostly on the
transaction size .... multiplied by how often your referral will purchase
again from your partner.... over a specific time period.
If there's a large value to be generated over time-and not
necessarily on the first transaction-then it's more likely that you can
justify your continued participation. In these cases, have it be an open-

130 • IUlrrllla PrOnlS
ended arrangement, where you are able to continuously profit from your
referral. But, where there may be some hesitation over an open-ended .
arrangement-then consider this guideline: A term much longer than 12
months tends to decrease the likelihood that your new partner will want
to deal with it. And term of 12 months-or less-will make your Giving .•
Referrals deal more attractive because your partner will see that his or ~
l
her business will have the new customer/client "free and clear" in a •
reasonable amount of time.
In many situations with new or untested referral partners (or when :
this process is new for you)--it's often a good idea to have a shorter term .
where you get the lion's share of your payout up-front. Also, the best
results often happen initially when you refer some of your best
customers/clients and they could wane a bit over time after that initial
period. Plus, you'll be more likely to receive payment while the deal is
still fresh .... and your new partner's interest is still keen.
You'll also want to capture a larger percentage of the front-end sale
for yourself if the transaction size is smaller. There's no "usual" payout
amount for these deals-and different businesses or professions may
have customs for referred business already in place (deals can be
anything you're able to arrange and agree upon). But, as a general
guideline and reference-the following chart may be useful-which lists
amounts paid to you by your referral partner as a percentage of gross
revenue on the first sale:
Transa~ti!!n Siz~ First Sale 019

Less than $50 50-60%
$50-$100 40-50%
$100-$300 35-50%
$300-$500 33-50%
$500-$1,000 30-50%
Over $1,000 25-40%

Guerrilla Prlflts. 131
You'll notice that as the transaction size goes up, the bottom end of
what might be available goes down. This chart also doesn't take into
account the additional back-end sales-which could reduce the first sale
percentage you get-if you've got a solid long-term deal in place. But,
more importantly, the amount you get is a result of the negotiating you
do with your partner and how compelling a case you can make for the
vitality and value of your customers/clients. Much below 25% would
only make sense at a significantly higher transaction size and would
depend greatly on the nature and cost structure of the business you're
partnering with.
I can almost guarantee you that it costs most businesses more than
25% of gross to acquire a new customer/client in the first place (think ad
budgets, yellow pages, direct mail, salespeople, trade shows, overhead to
conduct business, and other considerations). So paying you at least that
amount in most cases just makes good business sense.
If you create a compelling package or bundle offer for your
clientele to respond to, that deal can have a certain amount of profit built
in to help cover your share (and for your partner to justify the
transaction). And often the most valuable reference point you can use in
making that compelling case is to compare your deal to the time, effort,
and cost your potential partner would normally have to go through to get
that new customer/client on their own.
You'll simply have to feel out each situation to get a consensus on
what might be available or agreeable for compensation. Once you get an
idea of what seems right for your particular business-and get specific
partner feedback by testing the waters-you can then use that as the basis
for additional deals you set-up going forward.
Ways to refer
So let's say that you've arranged for one or more referral partners.
Now what? Let's take one of the easiest examples to track and account
for in low-transaction sizes or in higher-traffic situations such as retail:
printed referral cards that offer a free gift, free sample, free trial, a

132 • Guerrilla PronlS
discount--or something similar that you give to your customers-which
has a source code that can be tracked at the receiving point-of-sale,
register, counter, or web site. For higher-priced products or in
professional practice referrals-a fancy certificate or "letter of
introduction" can be used-with an offer for a gift consultation, a test
drive, an exclusive preview event, a private tour, or the equivalent. These
can give the referral a higher sense of value.
You can also use special coupons, offer slips, bag or package
inserts, statement stuffers, or hand-out flyers. With these Physical Offer
Devices-your partner now has a way to count up the sales attributable
to you at the end of the day-and pay you your agreed amount.
And, if possible, build in urgency to your referral offers-to
compel your customers/clients to take advantage of it right away. A
wonderful example I've seen of this-a timely referral with urgency built
in-is where a local deli restaurant handed-out coupon cards to its
patrons at the end of each meal that offered them a discount for going to
the movie theatre next door on the same day as their meal. There was
actually a date hand-stamped in red ink on the business-card sized
referral card.
Giving Referrals is one more way you can generate Guerrilla
Profits in your business or professional practice. And, once set-up, this
can become very lucrative.
More ways to Profit From Other Businesses

In Chapter 5 - Strategy #5: Change The Rules, we began
discussing methods that involve other businesses by covering Reciprocal
Lead Swap Deals and "Marketing through" opportunities-as well as
getting an overview of the vast possibilities using Alternative Markets.
Here, we'll continue with our theme of generating alternative profits by
involving other businesses in unusual ways, with: Guerrilla Profits from
your Vendors and Suppliers.
Many businesses simply view their vendors and suppliers as the
" ...place where I get ___"-without really considering what other

options or opportunities there might be, in addition to getting supplied
with the items those companies provide.
But consider this for a moment: if you have a supplier that's
providing a major component of what you do .... without whom you may
not even be able to do what you do-then realize that they have a major
stake in seeing you be successful. Because, the more successful you are,
the better it is for them. So it stands to reason that, if asked, they might
be willing to participate in non-competitive ways that you both could
profit-or be willing to share non-confidential information that could be
helpful to you. And, all it might take to set something up is a quick phone
call (or be as easy as asking}-since you're already doing business with
them. A natural, of course, is to set-up Giving Referral arrangements
with select vendors and suppliers where you could refer other similar
non-competitive businesses in your field who need some of the same
items.
From a valuable information source perspective, for example, if
you're a retailer being supplied by a distributor or manufacturer-the
distributor or manufacturer might be able to suggest other hot items that
they don't carry-that they've noticed are doing well for some of their
other similar retailer clients. Or, they may be able to suggest other retailer
clients of theirs that might be good JV partner candidates for you.
The same "information source" tactic applies to service businesses
and professional practices. An office machine supplier to an attorney's
office might be the ideal person to ask for info about growth-oriented
financial professionals, CPA's and other professional service offices in
your area to partner with. A printer may have a diverse clientele that
would lend itself to this approach beautifully. Perhaps your vendors or
suppliers may have a local trade association or commerce group where
you could be introduced to the membership. Or, if you're a service
provider or have a professional practice with a good reputation and track
record with your suppliers-perhaps they'd be willing to allow you to
send a letter of introduction to their compatible clients.

Here are a few more possibilities:
• A box and packaging supplier is an ideal source of

people who need courier or delivery services
• A restaurant supply company is an ideal source of people

who could use an electrical contractor
• An equipment rental company is an ideal source of

people who'd want building materials
• A home medical supply company is an ideal source of

people who might need care givers
• A car insurance agent is an ideal source of people who

might want mobile car detailing services
• A produce supplier is an ideal source of people who might

also buy other food items
• A local hardware store is an ideal source of people who

might need a general contractor
• A private mailbox store is an ideal source for businesses that

could use out-sourced business services
• A truck freight company is an ideal source of people who

may need warehouse supplies
• A computer supply company is an ideal source of people

who might need networking or other computer consulting
services
All of these potential scenarios can be used as a direct source of

referrals .... or as possible joint-venture deals where it is in the supplier's
Chapter 6 - Strategy #$: Profit From Other Businesses

financial interest to help you. You can structure these deals in any way
that makes sense. The main point is-if you'll help them get what they
want-they'd probably be willing to help you get what you want. So,
give this some real thought. Sit down with pad and paper and really
brainstorm this-rather than simply reading this section in passing.
Ask Yourself:
1) Who do I know that supplies me now that could help me?
2) Which of my suppliers have access to other businesses or

people that I want to reach?
3) If they have customerslclients that Iwant to reach .•.. How

can I be o/service to them in a way that they'd be happy
to refer me to their customers/clients?
4) What other suppliers have access to the businesses or people

I want to reach that are not currently my suppliers?
5) What other types of businesses have similar clientele as mine?
A sample initial vendor and supplier contact letter has been

included as part of the Bonuses (modify as needed)-that could set-up a
phone call to discuss your ideas further. Of course, since they are a
vendor or supplier-you could simply pick up the phone and use the
above letter as the basis for an initial contact script.
This can work in reverse

The flip side to working with your vendors or suppliers-is that
you may be a vendor or supplier to someone else. In that case, you may
want to be the one that initiates some of the Guerrilla Profits methods in
reverse (suggest that they could earn extra profits by Giving Referrals to
you).

136 • loarrilia Prollts
Ask yourself:
1) What trade associations do they belong to?
2) What conventions, seminars or events do they attend?
3) What other types o/vendors or suppliers do they have-that

others like them would have?
4) What trade publications, magazines, or other periodicals do

they subscribe to?
5) What trade directories or web sites might they participate or

be listed in?
As you can see, there are many possibilities to help identify and
target select, specific groups of similar customers/clients-by simply
spending a little time and research on this. You could survey your
customers/clients to ask them-and a lot of this information is available by
simply searching online.
Taking this a step further...

Vendors and suppliers can also be a great source of referrals for other
vendors and suppliers that you need- that aren't in competition with .... or
the primary suppliers of your existing vendors/suppliers. Most of them
would be happy to suggest a possible source for other things that you may
need. And they may even be able to help you shortcut the usual research
process you'd have to go through to find great prices, quality service, or
perhaps, flexible suppliers that can custom tailor to your specific
requirements.
Just remember to come from their perspective on this. If it seems like
you're trying to circumvent them and get to their suppliers .... they aren't
likely to want to help you. If, on the other hand, you are asking about
service providers or product suppliers that are not directly related to what
they are supplying you with now-then they'll most likely be willing to be
helpful. Use your good judgment.

Strategy #6:
Profit From Other Businesses
ACTION POINTS
• Be the Gatekeeper and bring a variety of Outside
Products and Services to your customers/clients that are
provided by other compatible businesses.
• Run Dedicated Promotions-where you do direct offers

and active marketing campaigns to your customers/clients
that feature these Outside Products and Services.
• Take your own product and/or service promotions to other

businesses-which then act as the gatekeepers to run
Dedicated Promotions to their customers/clients for you.
• Set-up a network of referral partners-where you are

systematically Giving Referrals to them-and you get
paid a variety of fees, or a share of profits or revenue.
• Use Physical Offer Devices-so your referral partners will

have a way to count up the sales directly attributable to
your efforts-and so they can easily pay you.
• Decide how much control you want over N transactions

and fulfillment-but, retain control of the access to your
customers/clients throughout the contact process.
• Capture alternative profits-and gain access to valuable

information that could be helpful to you-through your
relationships with your Vendors and Suppliers.

Strategy #7:
Recapture Lost Profit Opportunities
W hen people show up because of your advertising, marketing,

referrals, trade shows, the Internet, or simply because they just
walked in the front door, the clock starts ticking. Everyone has a reason
to show up in the first place. Whether it was to receive the perceived
benefit you've communicated, because they're interested in or want what
you're offering, or because they were attracted to your business for some
other reason-at that moment they're at a peak level of interest and
desire.
Then time goes by.
If they don't buy from you or make a decision to use your services
right then (either in-person, on the phone, online, or through any other
channel)-your only
hope is to collect
enough valid contact
information for
follow-up.
You then have
a declining
window of time
to convert
them. That
length of
140 • Guerrilla Prolits
time depends on: a) the lifecycle of your product or service (the
frequency 0 f purchase for a particular item); b) the
customers' Iclients' ability to get what they want elsewhere; and, c) their
continued interest in and/or desire for what you're offering.
As an extreme example at one end of the spectrum: If you have a
restaurant on a trendy street with a number of good restaurants next to
each other--each with a hostess standing out front next to the menu and
encouraging passers-by to come in-that length of time to convert can be
measured in minutes or seconds. And, there's usually no data capture or
follow-up done of any kind.
At the other end of the spectrum, for example: If you sell a piece of
industrial machinery with an expected useful life of 48 months, you
obviously have a much longer conversion window as your prospect
considers your equipment versus your competitors-and weighs all
options to make the best equipment choice. These sales will often involve
multiple contacts, phone calls, and perhaps an in-person meeting and/or
live demonstration.
And, in another example, if you're offering tax-preparation
services-people who use another service will tend to stick with what
they've got-unless they're ready to (or need to) make a change. In that
case, it's a moving target, and once the need arises, clients will choose a
new service relatively fast-based on their workload and deadlines.
Some situations do lend themselves to quick recurrence. In our
restaurant example, the prospective diners-unless they're from out of
town-might try that place another time. But, for most businesses, once
the initial contact is made-your prospects will either buy from you
within the natural buying lifecycle, buy elsewhere, or not buy at all. And
often, the difference in converting them-if they are still interested-
depends on the information you gather and your diligence in follow-up.
You can't do much about lack of interest or desire-but, assuming
your prospect still wants what you're offering .... and hasn't bought yet (or
could buy again soon)-you still have a chance to convert them and
Recapture Lost Profit Opportunities-that were missed during the
Chapter 7 - Strategy #7: Recapture Lost Profit Opportunities

initial contact. Your greatest Guerrilla Profits advantage you have in

these situations-comes from paying attention to your Lead Flow as a
process within your business.
Three basic truths about leads:
1) Most businesses don't formally examine, distill and

refine their Lead Capture-to-Conversion Process (Lead
Flow).
2) Many businesses have no formal process(es) in place for

capturing leads at all.
3) And, most businesses that do collect leads, create an

effective database, and even have some specific follow-
up programs, then drop the ball on capturing the
details needed for the continuous and added personal
contact it takes to ultimately convert over time.
Now, I'm specifically focusing here on those prospects who

haven't bought from you yet. Once people buy-and they become a
customer/client-then the information-gathering process is more likely
to be a part of the transaction (unless it's over-the-counter retail, or like
our walk-in restaurant, for example). However, in all these situations
(even in retail and the restaurant)-capturing leads should be made a
priority-and processes put in place to regularly and systematically
follow-up.
There are many examples throughout Guerrilla Profits-of
methods you can use to contact people, spice things up, create
excitement, make compelling and irresistible offers, build value and
convert prospects into buyers. Consider using all of them. But here in
Chapter 7 - Strategy #7: Recapture Lost Profit Opportunities-we'll
focus on developing your Lead Capture-to-Conversion Process

142 • IU8rrilia Profits
mind set-and on re-activation methods for customers/clients who haven't·
bought from you for a while.
A Missing Piece of the Conversion Puzzle

The biggest lead issue and challenge within most businesses isn't just
identifying when that lead showed up, what they were responding to, or
where they were responding from-such as an offer, an ad, a mailing piece,
a trade show, or a web page. Instead, the information you really need to
help convert them into buyers over time is: Their reason for why they
showed-up in the first place, and what specifically they want. And you can
only get that information by asking them directly (preferably at the first
point of contact).
You'll want all prospects to at least:
1) Give you their basic contact information as a regular part of

all transactions (at a minimum, this should include their full
name, address, phone, and email).
2) Tell you why they showed up and what they want. If they had
something specific in mind that you don't carry, you should ask
what else they're most interested in that you do carry.
Make gathering this information easy and fun by giving people an

incentive to answer (see Chapter 10 - Strategy #10: "Capitalize on Your
Business's True Wealth"-for more details on specific incentives you can
use). If you give your prospects good reasons and incentives for the
information you request, they'll be more willing to give you the correct and
complete details you are asking for.
Where many lead capture approaches fall flat is when it comes to
converting people over time. The only way you can reconnect with
people-in a way that's meaningful to them-is to pick up with the
conversation that they were having with you (not the conversation you
want to have with them). Again, what you're seeking to learn is why they

came to you-and what they want.
Examples for specific situations might include:
• A restaurant learning why they came in (such as a

romantic dinner, a quick meal between errands, or a
convenient place to go during lunch hour)-and what
types of dishes they prefer.
• A financial-services professional learning why they

contacted the firm (such as lacking assistance in that area,
unhappiness with their former service provider, or having
had a change of circumstances)-and what specific services
they need.
• A movie theatre learning the non-obvious reasons why

they're there (such as a date night, family movie outing,
or dropping off the kids for a matinee)-and what types
of movies they prefer.
• An airport-shuttle service learning why they're traveling

(such as a one-time vacation, frequent business traveler, or
regular visits to family)-and what type of shuttle service
they prefer.
• A gift shop learning why they walked into the shop

(such as something for themselves, something for a
significant other, or a gift for a friend)-and what
specific gift they had in mind.
Not only is this data useful for individual follow-up and conversion
purposes-it can also help you segment your list for crafting targeted
messages to segments of your list that have similar desires and interests.
Many times this information comes up naturally during the course of a

144 • luerrilia Profits
new prospective client interview (either on the phone, or in person)--or
with a sales clerk in a store. But do you have a mechanism in place to
actually capture this information to use later?
Whatever you do should be non-intrusive and feel like it's a part of
the natural course of the business at hand. And, your process should
allow you to help people get what they came for. For example, in a retail
store with an out-of-stock situation--or where the requested item isn't
currently being carried by the store, the clerk could say, "Let me check on
that for you and I'll get back with you as soon as I find out." Then, the
clerk would gather the basic contact information, the reason why that
customer is there, and what particular item is being requested.
When it's done in a casual way like that, most people will respond
positively to an offer of assistance. Then, at that same time (after the
initial information has been gathered), it's easy to ask, "Is there anything
else that you're lookingfor that I could help you with?"-so you'll know
what else they may want (whether you carru that item or not). And also
ask, "Would you like to be notified of store specials and sales that are
related to these items that you're looking for?" That way you can get
people to opt-in to your mailing list-whether or not they've purchased
from you at that moment. And, of course, follow-up with the specific
requests you receive to convert people into buyers whenever possible.
This approach helps capture information that's usually lost when
people walk out (or hang up) without finding what they were looking for.
But, remember, anyone who's taken the time to physically walk into your
place of business (or call your office )-is more likely to do so again if
they feel like you're interested in helping them get what they came for.
And, being able to systematically follow-up with them because you've
captured their data-makes it more likely to happen.
There are also good ways to do this on your web site, with "live
operators"-who can answer questions on the spot through Live Chat
(serving the same purpose as an in-person or phone encounter). Using the
same formula described above in the retail example-you can implement
web site solutions that make it easy to have a live operator capability.

Some possibilities include (remember, these listings are not a

specific endorsement for these sites and/or companies. You'll need to do
your own due diligence to determine if any of these providers are right
for you):
www.activalive.com
www.boldchat.com
www.zifftalk.com
www.liveperson.com
The quality of your leads

Knowing why they showed up (or responded) and what they
want-helps give you the information needed to initiate a future
conversation and recapture their attention. The same holds true for
knowing what else they might be interested in that you could possibly
provide for them. In addition to that, if possible, capture information that
can help you determine people's interest levels for particular items, and
specifically, to qualify them for how close they are to a buying decision.
This is especially important with a longer Product or Service
Lifecycle-and with higher priced items.
A Moving Target
As we've already mentioned, there's usually a declining window of
time to convert them to their original why and what. You should have a
follow-up system in place to systematically contact people immediately
about their inquiry (depending on the Product or Service Lifecycle,
within the first few minutes / hours / days / weeks / months}-and then
in a series of additional contact steps that makes sense for your business.
The better and more detailed the information you've captured
about each prospect up-front-the greater chance that, even if you don't
make the original sale, you may still be able to do business together at
some point.

Many times, especially in higher-value or higher-cost transactions,
an assumption is made that because they didn't buy from you initially
they must have bought from someone else. That mayor may not be true.
In many cases, they haven't made the purchase at all, and you are doing
yourself a disservice by giving up on these prospects too soon. In these
cases, a personal letter or note card could work wonders (see sample
contact letter included as part of the Bonuses).
With each day that goes by, it's usually more and more difficult to
get back to that original peak level of interest and desire that was present
at the moment of first contact. But, the biggest form of waste in lead
value doesn't usually come from this waning interest over time. (In many
cases, a product or service lifecycle will bring prospects back to desire
again at some point.) Rather, the biggest waste in lead value usually
comes from your ability to collect, maintain, and pay attention to the
why, what, and what else details about your prospects-so you can act
on that information over time. That's where the greatest Guerrilla Profits
Lead Capture-to-Conversion opportunity comes from.
Reactivating Your Former Customers/Clients

Other than selling to your active customers/clients-or converting
new prospects into buyers-the next best source for generating business
and Guerrilla Profits comes from reactivating your former customers or
clients who have stopped buying from you (or whom you haven't seen in
a while).
Start by taking a look at the frequency of purchase for your
products and services (the Buying Frequency Period). Is there a clearly
definable point when people need to come back to you for more? Do you
have a way to track and determine when someone hasn't come back to
buy again from you in the expected amount of time?
It's rare to find a business where you sell something once, then
never do business with that buyer again. If your business is like that, it
could get you in trouble. An obvious example of a tough second-sell
would be a contractor that exclusively does swimming pools-because

homeowners usually don't put in a second pool. So, it's hoped, that if
that's your business (or something similar), you'll be thinking about,
"What else can I offer to people who've just bought pools?" Of course,
that's in addition to asking for referrals, "Who else do you know that may
be interested in having a pool?"
Those kinds of businesses aside, most rely heavily on repeat buyers
and depend on them for the bulk of their day-to-day business.
Customer/client churn
At some point, some of your customers/clients will stop buying
from you. Maybe they move away (perhaps they've even passed-away),
find a new supplier, change their habits, or are no longer satisfied with
your product/service.
But, interestingly, the No.1 reason cited by many sources (as many
as 60-70% of responders surveyed)-that customers or clients stop
buying from a particular business is: They didn t feel as if anyone cared
about them. They were put off by what they perceived as indifference,
little or no contact, delayed responsiveness, employees not doing what
they promised, lack of follow-up, and other similar causes.
And that No.1 reason means that it's squarely on your shoulders to
Initiate the Interactions and conversations to show that you do care
about them. You can't just pitch them on something and hope they'll
come back because they like your new offer (although you could get
some response that way-and that's how many businesses handle
reactivation attempts). If you want exceptional reactivation results, then
you'll need to actually contact them in a meaningful way to ask them
why they left (remember, you care!)--and to discover what you can do
to remedy things, if needed.
Now, I know this can be a bit scary. After all, what if what they tell
you opens up a whole list of new problems and issues you have to deal
with. Well, let me ask you, would you rather know about the problems
and fix them (for everyone)? Or keep your head blissfully buried in the
sand? (I didn t say this was going to be pretty, but it doesn t have to be

too tough, either). Along these same lines-knowing this information
can be very useful to you in the normal course of business. When you are
prepared to address problems and issues head-on when they arise-you
can often turn around a potentially damaging or unprofitable situation
and regain a satisfied customer/client. You can also make it a regular part
of your after-sale follow-up program-to Initiate the Interaction and
conversation-and make sure your recent buyer is satisfied.
Having a dialogue .... not a monologue

The biggest issue I see in many reactivation strategies and tactics
is that they focus on making special price offers to bring customers back
in. But customers have many different reasons for not coming back to
your business, and price isn't usually the main one. After all, we're
talking about people who've already bought from you, so price wasn't
the issue in the first place.
Following this line of thought-and wanting to show that you care
(you do, right?}-the best approach is to personally contact people, if at
all possible. That can take the form of a phone call, personal visit,
personal letter, or a note card .... anything that's personal.
A personal approach is much more productive than just barraging
a customer with impersonal solicitations or offers-in the hopes that one
will catch their attention. As Seth Godin notes in his book, Small Is the
New Big:
"How did Amazon get so big and so profitable and so

important? Not by interrupting people who don ~ want to be
interrupted. By interacting with people. Interactions are a
million times more powerful than interruptions."
When thinking about the time or the cost involved, consider how
much it costs you to get a new customer/client in the first place. And,
that's true even if you rely primarily on referrals, where there's often the
mistaken belief that it doesn't cost you anything. It does still cost you all

the time and energy you've invested in the relationships with the people
who refer to you. So it's even more critical not to lose these people.
Spend at least a large portion of the time, energy, and cost you'd
usually expend in getting a new customer/client-to reactivate former
customers/clients who haven't bought from you in a while (or who have
gone beyond the usual Buying Frequency Period). You may find that it
actually takes much less effort to reactivate someone who already knows
you than it takes to activate someone new.
A powerful method
One method stands out in these circumstances and has a good
chance of working-when used along with personal contact. And that is:
the "Ask+Gift Approach."
Let's examine this. Have you ever had a business you've stopped
buying from actually try to contact you to ask "why?" It's a rare
occurrence-so being asked "why?" makes that business positively stand
out from the crowd. It also conveys that the business cares about you as
their customer or client-and wants to retain your business.
Now apply this thinking to your own clientele-who will have a
similar reaction when you contact them to ask "why?" And, when
making this personal contact to ask "why?"--offer them a gift to entice
your former customers/clients to personally contact you in return. With
this approach, you've got a shot at re-connecting. Just make sure the gift
is very relevant to your business .... and also relevant to what they came to
you for in the first place. (Sorry, no steak knives unless, ofcourse, cutlery
is a part of your business). That way, the gift helps reconnect you in a
way that helps pick-up on the business conversation and interaction you
were having with that customer/client.
A great gifting tool that does this is information-a guide, report,
white paper, directory, audio interview, or the like. Give it an enticing
and desirous title like, "The 7 pitfalls to watch out for when working with
- - -" (for more examples, revisit the section entitled, Lowering the
response barrier in Chapter 4 - Strategy #4: Build Up The Value).

Remember, the gift should be helpful and directly related to the business
you're doing with them. Other possibilities could be a sample of a brand
new item they haven't seen or tried yet, a complimentary new dish being
prepared from a new menu, or something related that's very useful, such
as a highway safety kit gift coming from a tire store.
When contacting using a personal letter, you'll want to start by
recognizing that it's been a while since you've seen them (or since
they've been in), Mention that they must have a good reason, or perhaps
their circumstances have changed. Either way, you want them to know
that you're available to help them and be of service. And, if there's
something wrong that needs to be fixed, to give you a chance to fix it.
Then, you'll lead into offering the free gift-if they'll contact you or
simply come in (see the sample reactivation letter included as part of the
Bonuses.
You can put the letter on your company stationery (use nice paper,
not just regular old printer paper). It should be a one-sided, one-page
personal letter. And you can enclose it in a matching nice envelope (same
paper choice, that is). For an extra personal touch, have the envelopes
hand-addressed (also, nice handwriting) -and always use live, first-
class stamps. Don't skimp on this step. Nothing can do more to damage
this approach than to use a pre-printed postage indicia that makes it look
like advertising or marketing materials. It's probably best to not use your
usual company envelopes or logo on the envelope. It should be addressed
from one person to another.
Taking this a bit further

With just a little modification, the Ask+Gift Approach using a
personal letter (or other method}-can be used to go back to your
unconverted prospect lead file just as effectively as with your former
customers/clients. It can also be used as one of the steps in your original
Lead Capture-to-Conversion Process.
Since you haven't yet done business with these prospects-modify
your letter to ask them to give you a chance to prove yourself to them. Also

ask them to do you the courtesy of letting you know either way, even if
they've already decided to buy (or have bought) from someone else. You
want to come from the perspective of "helping you whether you buy from me
or not."
Another powerful twist on this method is to use the Ask+Gift
Approach-as a variation on the introduction letter to harness your
friendly competitor's Unconverted Leads (as described in Chapter 5 -
Strategy #5: Change The Rules).
With just a bit of finesse, you can become very good at
Reactivating your former customers/clients-and also at using these
techniques and methods to generate more Guerrilla Profits with your
prospects or those of other businesses.
Recapturing Other Business's Lost Profit Opportunities

Now that we've discussed some of your lost profit opportunities,
we'll get a bit more in-depth about working with other businesses-
where you set-up ways to help them Recapture Lost Profit
Opportunities (while creating profit for both of you). This will expand
on the ways to leverage other non-competitive businesses, friendly
competitors, or even not-so-friendly competitors to mutual advantage-
that we started exploring in Chapter 5 - Strategy #5: Change The
Rules-and Chapter 6 - Strategy #6: Profit From Other Businesses.
This can be a significant source of Guerrilla Profits.
As a businessperson, when you experience other businesses that
are different than yours, what comes to mind first? Do you simply relate
to them as a customer/ciient--or, do you think about how they operate
and about all the complexities and issues they face? And, when you
consider and experience your competitors, what comes to mind first? Do
you experience competitors out there doing what you do in a friendly
way, with plenty of room for everyone to share in the marketplace? Or,
do you experience them as being cut-throat and trying to take business
from you in a significant way? (Perhaps you just go about your business
without giving it much thought at all.)

152 • Suerrilia PrInts
Whatever your experience of other businesses that are different
than yours--or of businesses that directly compete with you-let me
suggest to you that every other business is a source of hidden revenue for
those who know where to look (although, not every other business may
be a good match for you to tap into that hidden revenue). And, it's the
way you perceive and think about other businesses-and their intangible,
Hidden Revenue Sources-that holds the key to unlocking that revenue.
The Hidden Revenue Sources of a business

Remember, in all businesses-people show up and buy from that 1
business because of the advertising and marketing that business is

doing .... or via the Internet.. .. or via referrals .... or simply because the
customer/client walked in the front door. Each business expends a
considerable amount of time, energy, capital, labor, materials and/or
effort to attract people to their business-and there is always a good sized
percentage of what comes their way that simply doesn't get translated
into completed sales. Or, they also have customers/clients who have done
business with them in the past that are not currently active (just as may
be the case in your business).
The opportunity lies in the fact that most businesses simply don't
recognize or properly value and utilize the past leads they've generated
that haven't converted. Or, they don't realize the potential value with
their former customers/clients that haven't bought from them (or been in)
for a while. And quite possibly, they aren't using any of the techniques
and methods we've been considering.
Let's think about this for a moment

Consider a company that regularly advertises in a consumer
computer magazine, for example. Let's say they regularly run half-page
ads to generate leads about a particular product, and let's say they have
been consistently using the same ad for a period of more than 6 months.
This company has a significant investment in that ad-and chances are
that they are receiving a positive result--or they would have changed the

ad, or stopped running it (but for our purposes here, it could be to our
advantage if the ad was under-performing).
The company most likely then has a follow-up, sales and
conversion process in place. There are most likely investing in a series of
steps and contacts made with each lead that comes in-to try and convert
them into a completed sale. Sometimes this can be a significant effort and
cost. The flip side to this may be a company that is relatively weak at this
follow-up, sales and conversion process-which can also work to your
advantage when contacting them. For all businesses that advertise and
market to run a Lead Capture-to-Conversion Process-that investment
of time, energy, capital, labor, materials and/or effort has been made up-
front. Once the results are in (sales completed)----or the follow-up process
is done for those contacts (the "dead" leads file)-that's it. Most
businesses simply move on to the next promotion or campaign, and at
best, the contacts are dumped into the general mailing database for
occasional contact-or have been opted into the company's email list as
part of the initial process. In rare cases, there will be additional
segmenting done-with future attempts to reinitiate contact with these
leads based on what they originally responded to.
Now... .let's consider all the businesses that are out there every
day-advertising online, in newspapers, in magazines, on the radio, on
TV, through direct mail, and all the other direct response methods. Then
imagine all the time, energy, capital, labor, materials and effort that has
been expended to produce a result (or not)-multiplied by all the
businesses doing it-and you can start to get a feel for the enormous
amount of value that gets "used up." That's many billions of dollars spent
and gone every year (or globally, billions of , pick your
currency).
And, that's where you'll find the opportunity..•

Armed with this knowledge, you can be the one to capture these
additional Hidden Revenue Sources-by systematically going out to
other compatible advertisers and marketers-and suggesting some
alternative ways for you both to profit. When you get real good at

154 • luarrilia Profits
spotting these Lost Profit Opportunities in other business's advertising,
marketing, sales and conversion efforts-you'll be in the unique position·
of being able to help each other out significantly. There's generally no
downside to these types of deals-and more likely, there's much to gain..
You'll be the one that can suggest:
• Capturing value from their past advertising,

marketing & sales efforts
• Creating new sales from their unconverted leads
• Reactivating lost customers/clients that haven't

bought from them in a while
In effect, you want to put yourself in the position of being the

gatekeeper of the ways and methods to do this-while educating them
about the fact that it can be done. Rather than showing them how to do
it, you'll want to focus on making it as tum-key as possible for them
(handle most or all of the details). That way, you can avoid becoming
replaceable. Of course, that may happen anyway, so be prepared to
suggest other profit opportunities.
You could also put a completely different spin on this-and try re-
introducing the original provider's product(s) or service(s) in a new way
for them to their unconverted leads or non-active customers/clients. Or,
you could even introduce other 3rd party's Outside Products and
Services to your JV partner's unconverted leads, former
customers/clients, or active customers/clients (brokering a 3-way deal).
The sky's the limit-as long as the numbers make sense-and you have
willing JV partners.
But, keep in mind-the easiest possibility to get approval for is to
make use of the unconverted leads or inactive buyers they have-that
they're not doing anything with right now. Suggest a low-cost, small test
first-to make sure that there's enough value to recapture. Then, once
you have a positive result-you can ramp up your efforts.

Strategy #7:
Recapture Lost Profit Opportunities
ACTION POINTS
• Pay attention to the Lead Flow as a process within your
business-and constantly examine distill and refine your
Lead Capture-to-Conversion Process.
• Capture the reasons why prospects showed-up in the first

place, and what specifically they want-in addition to the
usual contact and responder data.
• Take extra steps to capture the information about what else

a prospect may be interested in that you don't carry
(or provide)-and that they're most interested in that you do.
• Consider your Product and Service Lifecycles-and look

at how often your customers/clients buy your products and
services to determine the Buying Frequency Periods.
• Initiate the Interaction with all prospects and

customers/clients in a meaningful way-to help you
understand any problems and issues you need to deal with.
• Reactivate your former customers/clients using personal

contact methods-that show you care about and are
interested in them-such as the "Ask+Gift Approach."
• Recapture other business's Lost Profit Opportunities by

helping them discover the Hidden Revenue Sources in
their business-that they're probably unaware of.

Strategy #8:
Gain From Giving Things Away
M any businesspeople have had some experience with sampling,

trials, free gifts, and bonuses as part of their marketing. And most
have certainly experienced these as a consumer.
But many businesses that do use "gifting" often do so in a random
way. Or, they ' ll make use of gifting as a response tool-as part of their
marketing or a new product launch-without exploring the full spectrum
of possibilities. So now, we'll take the obvious advantages of gifting and
put a Guerrilla Profits spin on it. Plus, we'll factor in some additional,
not-so-obvious methods-to help you generate more
business and better results.
There are some businesses
that are ideally suited
for the practice of
giving things away.
as part of their
customer/client
interactions. For
instance, grocery
stores or specialty
food retailers put out
sample trays.
Professionals often
give free initial consultations. A computer software publisher may offer
a free-trial, a store offering home-improvement supplies may set-up a do-
it-yourself seminar, and a wholesaler may regularly provide samples to
the trade. The obvious reason, of course, is that giving something away
lowers the barriers to entry. It makes it easier for prospects to begin a
dialogue with you, to seek more of what they've been given, and then
makes it easier to say ''yes'' to your offer.
And, for those businesses where gifting is not a regular practice-
or where it seems that it's not as ideally suited-let me suggest that there
are still ways to harness powerful gifting methods that can work for most
businesses.
A Powerful Alternative Way to get New Business

One such method is Reciprocal Gifting-where businesses
partner-up to systematically and actively use a method similar to Giving
Referrals (from Chapter 6 - Strategy #6: Profit from Other
Businesses)-but in a very specific way, and with a different outcome.
Here's how this works: All around you, businesses exist that don't
directly compete with you but have access to the same clientele that each
of you wants to attract. We've referenced some of these examples
throughout the book, which include:
• Clothing Retailer / Dry Cleaners

• Restaurant / Entertainment
• CPA / Financial Advisor
• Real Estate Broker / Contractor
• Massage / Spa Services
• Fitness / Nutrition
• Pet Store I Veterinarian
Chapter 8 - Strategy #8: Gain From Giving Things Away

And the possibilities aren't just limited to these obvious pairings.
For businesses that are in close proximity to each other, such as retailers
and service businesses within the same mall, it's possible for almost any
of them to partner up. For example, the frozen-yogurt shop might join
forces with the gift store.
The two main qualification questions to ask yourself are:
1) Does that non-competing business have access to the

prospects I want?
2) Can I give them access to the prospects they want?
If the answer to both questions is affirmative, you then go to that

non-competing business-and offer them a free gift they can give to their
customers/clients. And, at the same time, you suggest they give you one
that you can offer to your customers/clients in exchange (rather than it
being a profit or revenue-sharing deal).
In the case of professional, service, or B2B (business to business)
firms-create an introduction letter for each partner that introduces one
to the other and gives the reason for the free gift (see sample gift letter
included as part of the Bonuses). For retail, use an insert that's given to
each buyer at the point of sale. The gift should be of sufficient value to
get the attention of customers/clients and be appreciated by them. And,
of course, it should set-up the possibility of additional sales once they've
received their free gift-but purchase should not be required for the gift
to be redeemed.
Some examples could be:
Professional & Service--Offer a free consultation, assessment

or evaluation with a particular purpose (such as, "Learn how to
protect your heirs from probate," or, "Help reduce your
skyrocketing heating bills with a comprehensive Home Heating

Audit," or, "A 7-point health check-up for your dog. ").Be
specific. Let the prospective clients know what to expect-and
lead them towards the next step without the free gift being a sales
pitch.
Retail-Give a free sample that, when redeemed, allows your

staff to follow-up with an immediate up-sell, coupon book, add-
on item, package deal, or some combination of these. "Enjoy
brealifast on us," for instance, or "a complimentary dry cleaning
of a men s or ladies' suit." This sampling-with-follow-on-offers
technique is also effective for manufacturing, wholesale, and
agent use.
From a prospective customer/client point of view-most won't be

put-off by there being additional choices and options being presented-
when they are obviously receiving something of value. They realize that,
"you don ~ get something for nothing"-but, they also don't want to get
hammered with your pitch either. But, it must be done in a carefully
crafted way. The soft-sell approach is best.
You won't close every person, of course. And, you can expect a
certain number of people to take the free gift-and that's that. But some
will also likely take you up on the next step or offer, and if you've
presented yourself well, become regular, paid customers/clients.
Reciprocal Gifting has some distinct and key advantages:
• Both businesses can look good to their existing

customers/clients for bringing them this gift.
• Both are able to get referrals from credible, trusted sources

that they may not otherwise have had access to.
• Both get more responsive customers with almost no cost.

Guerrilla Profils '* 161
As a straight exchange between two businesses, setting up

Reciprocal Gifting deals works best if the traffic flow or customer/client
lists are similar in size. But, if not, don't worry. If you and your partner
have different traffic-flow volumes or customer/client list sizes, you can
always pick a specific number of "exposures" to exchange (coupons,
certificates, inserts, letters to send, and so on). And, you can always offer
a larger partner some share in the first transactions generated from their
customers/clients to sweeten the deal.
The Law of Reciprocity

Market-research firms have mailed consumer surveys with a dollar
bill attached. They knew the dollar wasn't really all that important to the
recipient. But by keeping the money, many recipients felt obligated to
reciprocate by answering the survey. So response rates increased because
many felt it would be wrong to take the dollar without filling out the
questionnaire.
Similarly, you've probably received personalized address labels in
the mail with your name and address printed on them-from charity
organizations hoping that you'll make a donation. That same principle of
reciprocity is being put to use by the charity-that went to the trouble to
produce the address labels for you.
Or, to take another example, aren't you influenced by the free food
samples given away at a supermarket or specialty food store? First, of
course, you must like the morsel's taste. But if you do like it, aren't you·
inclined to occasionally buy the item that you received the sample of?
Dr. Robert Cialdini, in his ground-breaking book Influence: The
Psychology of Persuasion-that we cited earlier, also writes about the
"Law of Reciprocity," which he says is pervasive in human nature:
"The rule says that we should try to repay, in kind, what another
person has provided us.... if a couple invites us to a party, we
should be sure to invite them to one of ours. By virtue of the

162 • Guerrilla ProliiS
reciprocity rule, then, we are obligated to the future repayment
of favors, gifts, invitations, and the like. So typical is it for
indebtedness to accompany the receipt of such things that a
term like "much obliged" has become a synonym for "thank
you, " not only in the English language but in others as well. "
You can also use this Law of Reciprocity to your advantage. One
example comes from Bob Bly, a direct marketing consultant and
copywriter (and author of more than 60 books). He tells of a promoter
who sent a crisp, new $50 bill to 23 people with mailing lists that he
thought would work to promote his coaching services. Thus, he gave
away $1,150 in cash.
But he certainly got the attention of these potential JV partner
recipients. Eight of the 23 promoted his program to their subscribers. (A
few others, who had to decline the offer, sent back the $50.) But here's
the bottom line: The promoter added 4,000 new subscribers to his e-mail
list-and closed coaching contracts worth around $100,000. Even after
paying out a revenue-share to his new JV partners-there was still a
sizable remaining chunk of revenue left over. And, all of those new
coaching sales were to customers on his affiliates' lists-people whom
he didn't have access to before. So, giving away $1,150 in cash turned
out to be money well spent.
"Reciprocity," Bly wrote, "means you give something away to your
prospects-and in so doing, you create in them a need to reciprocate in
some way. As a result, they feel obligated to-if not buy what you are
selling-at least consider your proposition."
Give Something of Value

In your business you don't necessarily need to give away money,
like the promoter example. You can give away something else that has
value-a product, a service, or some other consideration or discount that
your prospect will appreciate. If the recipients find your gift valuable and

useful, that doesn't guarantee a sale. But it does increase the likelihood
that they'll listen to your sales pitch, read your sales copy, perhaps accept
a free trial of your product or service, and will more seriously consider
buying from you.
Let's look at some of the forms these gifts can take:
• Sampling & Trials

Giving away samples has been around since people first began
trading with each other. It's evolved in the modem-day mass consumer
market to include such things as brand-building sample packs and offer
handouts at high-traffic venues like sporting events, fairs, shopping
malls, and inserts in the Sunday paper.
Many businesses that don't sell consumer products still have their
own versions of sampling and trials. And, if you don't already have some
form of sample or trial as part of your business (most every business or
professional practice can find something to offer)-then that's a good
place to start.
However, the key to creating Guerrilla Profits with sampling and
trials is to make it part of the transaction-rather than having them
make two "buying" decisions--one for your triaL .. and the next one for
the actual product or service purchase. Because even if they're not
paying for the sample or trial-they still are "buying you" when they
decide to invest their time and attention to learn more about your product
or service.
Several ways exist to do this. First, you can have them agree to only
pay you if they're satisfied with what they've received-after the product
has been delivered or the service has been rendered. This may seem very
risky to you, but a number of companies have made a standard practice
out of this approach.
Some examples include:
• Book of the month club (or CDs, wine, or chocolate)

164 • Guerrilla Prolits
• "Send no money now"-30-day free trial (mail-order offers)
• Carpet cleaning-must be happy or don't pay
• Only pay shipping up front-in-home trial offers
• Attend first half of I-day seminar free-then pay to stay
In all these examples, there's the underlying understanding that

customers are participating in a transaction-but the buying decision has
only been tentatively made (also known as a "soft close.") The customers
still have some control over the buying decision-and retain the ability
to change their mind for a specified period of time.
There's also a famous example about a puppy dog (known as the
"puppy dog close"), which, when summarized, goes something like this:
The transaction takes place up-front at the pet store-with the expressed
understanding that they're going to still have some time to "try it out" at
home-to make sure they're happy with their new pet. Once you send a
puppy home with the family for a "trial," chances are high that they'll get
attached to the puppy and will want to keep it (especially if children are
involved). Many other situations might work the same way.
Another way that we discussed in-depth in Chapter 2 - Strategy #2:
Capture More From Your Transactions-is the "good-until-cancelled"
approach. But here, the twist is to capture the full transaction details up
front-while offering a trial-period-allowing customers/clients a
specific period of time to cancel, prior to any charges being made. Billing
begins after the trial period expires and then continues on a regular basis.
Customers then also have the option to cancel at any time after billing
starts. This is very common with home-delivery water services, gym
memberships, and local newspapers.
The main point to remember is-rather than just giving away a
sample or trial and then asking prospects to make a separate buying
decision-ask them to make their initial buying decision as part of the
sample or trial.

• Free Gifts
Gifts are a real workhorse of direct response marketing. Usually,
free gifts are used as an enticement-to take some form of action such
as:
• Take fast action (beat a deadline)

• Accept an appointment for a product demonstration
• Choose a higher-priced option
• Physically show-up for a consultation
• Visit a department store
• Tour a time-share property
We'll make a distinction here between free gifts and bonuses

(which we'll discuss in more detail below). A Free Gift we'll define as
something used to induce action or desired behavior that doesn't require
a transaction. Bonuses, on the other hand, are used to build the value of
your offer and are included as part of the transaction. Gifts do not require
a transaction to be received. They are the inducement to interact with
you.
A very powerful use of free gifts is to provide them in exchange
for information. What kind of information? Well, this could require the
filling out a survey, giving a referral, providing specific performance
feedback after a transaction, or furnishing contact information when a
prospective customer/client signs-up for your mailing list.
These extra "thank you" gifts can help boost dramatically the
favorable response to your requests. But, please, make sure you offer
something that's enticing enough to show customers/clients that you
value their time as well as the information you're asking for. I've seen
too many instances where the free gift was either weak or mismatched to
the circumstances (or completely missing). And the business owner was

166 • Guerrilla Proills
probably left wondering why he or she got such a small response.
• Bonuses
Bonuses are another valuable tool in the direct response bag of
tricks-and we've already covered using bonuses as a way to build-up
the value and urgency in your offers (see Chapter 4 - Strategy #4: Build
Up The Value). We'll expand on that that discussion here.
Sometimes the use of bonuses can take the form of a massive, even
overwhelming, "value build" of additional items. In these cases, the
perceived value of the bonuses may even far outweigh the cost of the
main item being sold. The usual school of thought is that you should be
cautious about offering so many bonuses that you run the risk of losing
people's attention (like mentioned, it's tough to get people to wrap their
minds around more than about five items). That said, there's a flip side
to this thinking which is to simply go for the gusto-and test offering
prospects everything you can get your hands on that makes sense for
your offer---even 10, 12, 15 items or more. Then, it's thought, prospects
will simply cave-in to the overwhelming value, often without looking at
the particulars or even understanding each bonus. They simply buy
because there's so much being offered, and they've noticed at least a
couple of the bonuses that they really do want.
In some cases, the buying decision springs from the fact that the
customer's desire for one or more of the bonuses is even greater than the
desire for the original item. This could be because a bonus is rare or is a
collectible, is something that's simply hard to get, or perhaps is an
indulgence that the customer wouldn't ordinarily splurge on.
The buying decision could even come from an Unlikely Bonus
Match-up that just happens to be desirable enough to boost response.
The famous example from early direct response infomercial days was the
set of steak knives. It was such a popular unrelated bonus that it became
almost a joke in the marketing industry. The announcer would excitedly

say, "But wait, there s more! Plus, you get this fabulous set of steak
knives." Do you remember those offers? It was simply discovered
through testing that customers were highly motivated by and desired the
steak knives as a bonus.
The point is, ask yourself, "What would be enticing with my
clientele and with what I'm offering-that I haven i even considered?"
And also consider, what would your prospects find so compelling that
they might desire it in addition to-or even more than-your original
product or service?
• Loss Leaders
In retail, it's common to advertise particular items at a very low
price to attract prospects with the hope that, once they show-up, they'll
find other things that they want or need to buy at regular prices. A similar
mechanism is at work in convenience stores where staple items (daily-
needs items, such as bread, butter and milk)--are offered at lower prices
than the usual margins. That encourages customers to shop often for
those basics in the hope that they'll also buy other items at higher mark-
ups.
Other loss leader examples might have "bonus-like" qualities-but,
where bonuses are generally meant to build-up the value, as part of an
offer, to close the sale-loss leaders usually offer price discounts or up-
front lead generation incentives to attract the buyers in the first place.
That might include a day spa that offers a free facial with every deluxe
spa package booked. Or a resort hotel offering half-priced rooms for
parties booking "X" amount of tours, dining, golf, spa or other services
offered by the resort during the stay. A restaurant could promise a free
dessert, free bottle of wine, or a "kids-eat-free" deal with certain types of
reservations or group sizes.
It's also very common in services for there to be special pricing for
first-time clients. Or sample rates that wholesalers or manufacturers give
first time buyers to have a product available for comparison or testing.
Now, let's put a Guerrilla Profits spin on it:
• You can give away something from Category "A" (or

offer a very large discount) for each item that customers
buy from Category "B." (Example, in a retail store, let
patrons choose anyone item from the "Gift Rack" for
free for each regular item purchased).
• A wholesaler could allow customers to purchase "X"

amount of a desirable item at a specific discounted price-
in exchange for each "X" amount of an item purchased that
the wholesaler wants to sell.
• Businesses with a continuity component (that is,

customers paying on a recurring basis-such as "good-
until-cancelled" options)-could offer an item up-front
that would usually be sold for full price that's obviously
worth more than the first month's cost-as an incentive
for people to sign-up.
And you can often use the item being offered as a loss leader as a
qualifier-to attract the people you want in a particular category.
A great example comes from Drew Kaplan ofDAK Industries who,
in the early days of audiotapes, advertised the blank tapes as a loss leader
through mail order to attract people who were interested in audio. Once
he was able to identify customers as buyers of blank audiotapes
("audiophiles"), he could then assume they would also be interested in
audio equipment and other audio supplies. His specialty was in going to
the Orient to personally check out all the latest gadgets, then reporting
back to his buyers and making the best items available to them for
purchase.
This built a huge mail-order business with more than 400
employees. Starting with loss leaders like the blank audiotapes, he went

on to sell 250,000 equalizers, 100,000 subwoofers, 150,000 modems,
450,000 radar detectors, 75,000 computers, and 350,000 CD-ROM
drives and scanners-to the list of buyers he'd accumulated through his
loss leader advertising.
Looked at from this perspective, it's easy to see that loss leaders,
done with some forethought and planning, could give you access to many
more customers/clients. Your job is to then keep them coming back for
more-after you've initially attracted them in the first place.
Cross-Pollinate Methods & Test

All of these possible gifting items: Sampling & Trials, Free Gifts,
Bonuses and Loss Leaders-serve the same primary purpose: To attract
new business. We've touched on some possible new methods you can use
specific to gifting-such as Reciprocal Gifting and how to make
Sampling and Trials part of the transaction. You can also use many of
the other Guerrilla Profits methods we've been discussing in other
chapters, along with gifting.
Lead generation is a primary beneficiary from this chapter's
perspective on Gain From Giving Things Away. You'll want to test and
use every type of incentive that works in your business to get your
prospects to, figuratively speaking, raise their hands. In addition, you'll
also want to be mindful of:
• The downside of giving things away. Giving things away

doesn't always immediately result in business. A certain
number of people will be attracted to your lead generation
but have no intention of buying. They simply want the
freebie. This has become so commonplace on the Internet
that it makes many of the freebie-generated, opt-in email
lists very low quality in terms of responsiveness.
When you're dealing with lead generation that involves
direct contact with people (in-person, phone, in the field),
then you're more likely to get better conversion rates. So as
long as the economics make sense anyway (even if a high
percentage of the people don't ultimately buy), then you're
on the right track with whatever process you're using.
• The necessity of trial and error. You need to figure out if

it's better to give things away with no strings or to give
things that are directly attached to the type of response you seek.
Think about all the examples given in this chapter as well as
your own experience either as a businessperson or as a
customer/client of other businesses.
• The logic of testing many different items & approaches.

Often what turns out to be the best free gifts, bonuses, and
loss leaders can come as a surprise. What your prospects see
in terms of maximum desirability may be very different than
what you might think are the obvious items.
Of course, the overarching point is that you don't have to accept the
status quo in your business or profession when it comes to generating
profits-and new business. "In life and business, there are two cardinal
sins," said well-known investor Carl Icahn. "The first is to act
precipitously without thought and the second is not to act at all."
By acting to take advantage of Strategy #8: Gain From Giving
Things Away, you can open the door to another one of the 10 Powerful
Guerrilla Profits Strategies.

Guerrilla Prollts ~ 171
Strategy #8:
Gain From Giving Things Away
ACTION POINTS
• Implement Reciprocal Gifting programs-where non-
competitive businesses partner-up to actively lead
generate with free gift offers to each other's clientele.
• Harness the power of The Law of Reciprocity-which

causes people to want to repay a kindness or gift either "in
kind"--or alternatively, with their attention or a response.
• Give Something of Value-that your customers/clients or

prospects will appreciate-and which makes it more likely
that they will seriously consider what you're offering.
• Make Sampling & Trials part of the transaction-so the

purchase details are handled up-front, rather than having
your prospects make two separate buying decisions.
• Put a twist on Free Gifts by providing them in exchange

for information-such as filling out a survey, giving a
referral, providing feedback or contact information.
• Test highly desirable Bonuses that could have an even

greater influence on prospect's buying decisions-and
look for Unlikely Bonus Match-ups that boost response.
• Use Loss Leaders-to attract buyers through advertising,

stimulate traffic, and as a qualifier to attract specific
catagories of buyers.

Strategy #9:
Create Excitement
eople like to be entertained. And they like to have an experience

P that takes them out of their normal surroundings and
circumstances---or to take part in something special.
Just look at the popularity of reality TV, movies on the big screen,
live sports, county fairs, music concerts, dramatic theatre, and the like.
These all serve to give us a diversion, to thrill us, to engage our attention.
And the same mechanisms that are at work there can also be applied to
your business to
help you gain
MR FOX'S JAMBOREE attention and
attract people to
your offerings.
So, what does
it take to get
people excited ani
interested? What
will cause them
to choose to give
you their time
and attention-
amid all the other
choices they have?
And, how do you tum this excitement into potential profit opportunities?
That's what we'll explore in this chapter.
Why should you want to Create Excitement?

When people are in a heightened state of involvement,
participation, and activity-their experience is out of the ordinary and
causes them to be more receptive to what's going on. Consumers have
gotten very good at blocking out sales messages coming from all kinds
of marketing channels. But an exciting environment helps lower the
usual blocking patterns and barriers towards these messages. That's
especially true when that environment comes from the business that's
providing the excitement for them in the first place.
Let's start by defining excitement for our purposes here: An
environment with a heightened sense of interest, awareness,
receptiveness, and responsiveness. You can create excitement in a
number of ways. Some methods are a part of what you would normally
do in your marketing-such as making compelling offers, giving
incentives and bonuses, or creating deadlines and urgency. Other
methods that we'll discuss in this chapter include Special Promotions,
Contests & Drawings, Recognition Awards, and Live Events. Also,
when you involve customers with interactive participation-and doing
things in a unique, unusual, or uncommon way for your business-that
naturally creates excitement.
The one method that's "king" in terms of involving people is
finding ways to stage .... and invite people to attend .... exciting, in-person,
live events. It's one of the fastest and easiest ways to generate lots of
interest, awareness, receptiveness, and responsiveness-in a short
amount of time. Live events are, of course, held at a specific date and
time-and generally at a specific location. But you aren't limited to a
strict definition of "location" for your events. Some businesses are
having tremendous success using teleconference calls and
teleseminars-and one of the newer incarnations over the Internet is
Chapter 9 - Strategy #9: Create Excitement

called a "webinar." Just keep in mind that the one of the most effective
methods-in terms of participation and responsiveness-is an in-person,
live event where people show-up.
Getting People Involved

To get people to participate, you need a compelling reason or
something that they want. All the usual motivating factors would apply.
For example, the customer/client who has a very high interest level in
your product(s) or service(s)--already has their own compelling reason.
Short of that, one of the best ways to get people to participate is to offer
some form of gain or advantage-such as a prize, an award, exclusive
and limited privileges, special considerations, recognition, assistance,
special pricing, exclusive offers, a one-time experience, an indulgence,
or just a good time.
Special Promotions
Take the possibilities and suggestions given here-and brainstorm
how you might be able to apply them to your business or practice.
Remember, many ideas are completely transferable, and you can take the
examples and ideas from one business type and adapt it to your business.
Have fun with this .... and use your imagination:
Your Usual Products or Services: Here's an obvious place where

you can take what would have been a simple (or even complex)
marketing project and have some fun with it. Do a special assessment or
audit that helps your customers/clients discover things they could
improve-and, of course, your product or service helps them do exactly
that. Find something in the news that has created a "buzz" that could be
related to your product or service, and refer directly to it in your
marketing communications. Tie your promotions to holidays--or to
specific outside events in the community that people can relate to. That
will give you the added advantage of creating urgency as the holiday or

event nears. In all forms of special promotions, be sure to have a"
deadline. It's often best to use a series of communications with a '
countdown to the expiration of the offer.
New Arrivals: The same approach applies here as you might use .
for your usual products or services but with even more emphasis on the
items themselves. If you have a service business or professional practice, .'
then instead of new arrivals, your focus will obviously be on a new offer,
announcement. Depending on your business type, it's also a good idea to ,
emphasize that you'll notify customers/clients of new product arrivals or .
special offers on your services-when they sign up for your list (and in
all channels you intend to contact them: email, mail, phone, or fax).
Possibilities might include: giving a gift to the first 100 people who come
in to view the new collection (or come in for a consultation for the new
service), special pricing on the new items during a special promotion on :
the release day, or extra services (or other considerations) for early
buyers.
Inventory Reduction or Clearance: Consumers love to get a

good deal. And special sales are a mainstay in retail, though
manufacturers or wholesalers can also use these types of promotions. Try
listing the items in a special flyer to be handed out at your store(s),
mailed to customers/clients, or distributed at a trade show or outdoor
retail event. Give specific quantities and detailed information about the
original prices versus the marked-down price. Be specific on actual
prices. Listing them as "Marked Down to $9.95" is much better than
saying "50% Off" because it makes it easier (and obvious) for customers
to know the final price without having to give it much thought.
Scratch-and-Dent Sales: This is also known as the "non-fatal flaw

approach." People understand that there are often open boxes, returns,
items that get slightly damaged or scratched, or have small flaws or:~
,j
Chapter 9 - Strategy #9: Create Excitement ~
imperfections but are still in perfectly good and usable condition. These
are ideal items to build a promotion around. There's even a fabled
marketing story about an appliance company that secretly takes a
hammer to the backs of select items it wants to include in its scratch-and-
dent sale, creating a dent that's not visible once the appliance is installed.
Now I'm not suggesting you purposely set out to damage goods that are
otherwise in perfect condition, just that you think creatively about how
you might be able to apply this idea to your business.
Private Sales: Here's where you can really make your

customers/clients feel special and feel as if they're getting special
treatment beyond what Joe Q. Public might receive. Do invitation-only,
very time-sensitive exclusive promotions for your best customers/clients
in which the offers are genuinely being made "behind closed doors."
Another popular approach in retail is to have a special preview day that
allows your existing customers/clients to get a head start over the public.
For a service business, especially if there are limited appointment times
available for a particular offer or package deal, you can do a private offer
to existing clients first-giving them first shot at your available time
slots.
Contests & Drawings

This is a way to get people very excited-and can be a huge
motivator-because for relatively little effort (and, in some cases,
relatively little cost), customers can get the chance to be rewarded in a
grand way. Just look at the popularity (and history) oflotteries, gambling,
sports betting, sweepstakes, and other competitions. And, when it's used
in business to create excitement in the form of contests and drawings, the
same forces are at work.
First, have something meaningful or worthy of being a prize.
Nothing causes a bigger yawn than offering something that isn't
significant enough. And, depending on your business and the size of your

audience, there are often other businesses that would be willing to donate .
the items you give as prizes-in exchange for gaining exposure (and/or
leads) during your contest promotion. The sky's the limit on what you·
can offer as prizes. Truly, this is a wonderful opportunity to create .
excitement.
But perception of value is in the eyes of the beholder. So it's
probably a good idea to conduct a quick survey of a select group of
customers/clients to ask them which out of, say, five choices-they
might be most interested in winning as a prize. If you do this right, you
could also set-up these same people to be more receptive to your contest
or drawing-because they were involved in helping select the prize.
(Note: Specific examples of items that could make great prizes are listed
in the Recognition Awards section, below.)
Contests and drawings are also used in lead generation efforts.
That's not what I'm talking about here. I'm talking about using a contest
or drawing as an incentive to help build excitement, attract attention, and
to motivate people to take some action that you want them to take.
As with all contests and drawings, it's best to offer a number of
second and third prizes, rather than just a single grand prize-if there will
be a lot of entries (and, therefore, fewer chances to win). You can even
offer a "fourth prize" that everyone wins no matter what-and that could
be some kind of assessment or audit that you put a "price tag" on, if
purchased separately (give it a real value). The assessment or audit can
help your customer/client discover things they could improve (related to
your products or services, of course )-and also act as a tool for you to
collect information that could translate into new business.
Here are some great Contest & Drawing possibilities:
Store or Office Visits: A very simple, yet effective, technique is to

offer a chance to win every time your customer/client visits your store,
office, or other location within a certain period of time. Allow people to
enter as often as they like (perhaps limiting it to one entry per day). Also,

allow them to bring along a friend, who can also enter as often as he or
she likes. (You'll want to mention this "bring a friend" suggestion in your
announcements about the contest or drawing.) Have a name and reason
for the contest or drawing-give it a special title and description. That
helps bring people in on more days than they might otherwise visit. You
can either tie it to a transaction (purchase required) or make it no-strings
(just for showing up).
Orders Via Mail. Phone. Fax or Internet: Sometimes you might

want to build up a particular response channel, and offering a contest or
drawing as an incentive can often work wonders here. Just like with the
on-location approach, you allow people to enter as often as they like-
but it's for each transaction they complete through that particular
channel. But beware: There's a drawback to limiting people to one entry
per day or one entry per transaction: the likelihood is that some people
will draw out their purchases to create more entries (either more
individual transactions or over more days). It's better to allow them to
get one entry per item ordered with no limits. This helps give an
incentive to order more items per transaction-and doesn't inspire any
order-shifting tricks. Of course, if you have a single high-ticket item that
customers aren't likely to order more than once, then the contest or
drawing could be used as part of a special promotion where all response
channels are offered.
Refer-a-Friend Promotions: Here's where many businesses have

used contests and drawings to their advantage. Give your existing
customers/clients an entry for each person they refer-with no limits-
along with incentives they can freely share with their friends (such as a
special offer, coupon, discount, gift, or other valuable bonus) to entice
their friends to come in or respond. Of course, offer the same incentives
to your referring customers/clients ("one for you, one for a Jriencf'). A
number of ways exist to set this up. You can simply have your existing

customers/clients tell their friends to mention their name to get the
incentive. Then make sure your organization is set-up and prepared to
ask for and keep track of these referrals-and follow-up with your
referrer to give them their incentives (and confirm their entry).
Another way is to provide your customers/clients with "fill-out
cards" that offer their friends a coupon, discount, gift, or other valuable
incentive on one side, then have spaces for your customer/client to put
their name on the other side (so they'll get the credit for it). You'll also
want to have fill-out spaces on that side of the card for the referrals to put
their contact information. And as a kicker, you could also allow the
referrals to enter the contest-and also set them up as referrers-ifthey'd
like to get more entries.
Survey Responses / Giving Feedback: The usual approach to

getting survey responses and asking for feedback is to offer some kind of
gift, bonus, incentive, or more often than not, nothing at all. And then
there's the classic "attach a dollar bill" (or something valuable) to the top
of a mailed survey-with the reasoning that the law of reciprocity will
kick-in (like we discussed in Chapter 8 - Strategy #8: Gain From Giving
Things Away). Why not try using a drawing on top of the usual
incentives? That way, people get the immediate gratification of receiving
the incentive up-front, plus the added incentive of a chance to win
something more. Of course, with a survey, there should be only one
chance to win per person-and you'll need some mechanism in place for
keeping things honest.
But, in the case of feedback, you can offer people an entry for each
specific idea or unique comment with no limits. If you want to allow
people the maximum freedom of expression-you'll want to tell people
that multiple ideas and comments submitted at the same time will still
qualify them for multiple entries (again, so they won't string out their
feedback submissions just to create more entries). In that case, you'll
need to rigorously and accurately track these-so people get the number

of entries that they're entitled to. As an alternative, you may want to ask
people to submit unique ideas and comments separately to automatically
create separate entries via email or the web. In all situations, you'll need
to decide what will produce the best results for you-and create the
greatest excitement for your clientele.
Trade Show Attendance: A lot of what we've been discussing in

this section applies equally as well to trade shows. And, again, we're
talking about using a contest or drawing as an incentive to help build
excitement, attract attention, and motivate people to take some action
that you want them to take (rather than just a fishbowl drawing to collect
business cards). So additionally, at a trade show, you might want to
consider: Specific times for drawings that require people to be present to
win (that is, return to your booth); a show special or package in which
everyone who purchases it gets entered into a special drawing just for
them; a "during trade show only" drawing that allows a small handful of
people to attend a specially hosted training session (a benefit for them
and a chance to tell your story); a drawing that's based on order size with
an entry received for each "X" amount purchased of your products or
services; or a contest with a grand prize for the largest number of
referrals to your booth during the show (provide fill-out cards as we
discussed in the "Refer-A-Friend" section above). Just focus on how you
can offer the greatest incentives for the desired behavior, and you'll be
on the right track.
Recognition Awards
People love to be recognized for what they've accomplished or for
things that are important to them. And this is a great way to connect with
customers/clients in a way that's meaningful. Recognition awards are
different than simply using gifts in marketing because the recognition is
focused squarely on your customer/client-and is not tied to a
transaction. These could include things that are personal to them-but

generally, they are related to your business, such as length of time as a
customer/client, high-volume buyers, achieving a level of accomp-
lishment (such as completing a training program, implementation, or
installation), for referring people to your business, or simply for
customer appreciation.
One grand example of recognition awards that were given for
"customer appreciation" (but, on a much larger scale than usual and for
obvious PR benefit)-was when Oprah Winfrey celebrated the premiere
of her 19th season by giving away 276 new cars to each and every person
in her audience. Now that's recognition!
Recognition solely related to your customer/client could include
birthdays, anniversaries, spouse's birthdays, kids' birthdays, and
graduations---or some other recognition that's personal. It could even be
recognition of their pets-if you happen to run a pet store. Be creative
and use your imagination. People love to have others remember and
recognize what's important to them.
Southwest Airlines, for example, does a great job of sending its
frequent-flyer club members a special birthday card as personal
recognition. But I'd also recommend including some type of
Recognition Award-in addition to the card. Don't you just love getting
birthday presents? Wouldn't it be great to see a $20 gift certificate in your
name included in the card (that's being sent anyway)-that's say, good
towards the purchase of any flight within the next 60 days?
Clubs and other rewards programs (including frequent-buyer
punch cards) are often geared towards incentives that help generate new
transactions for the business. But they often lack any recognition awards
for customers, except for those who jump through the hoops to
participate at higher levels by purchasing more frequently. It's a good
idea to build in other awards that help keep people engaged in the
program, reinforce their joining the program in the first place, and build
the sense that you care about them. I can't tell you how many frequent
buyer clubs I've joined where the only communication I get is focused

on the business and their promotions-with almost no recognition or

acknowledgment of me, personally.
Remember, recognition awards, as we're describing them here, are
given independently from the transactional activity-and are not tied to
purchases. They're meant to be in addition to those programs you may
already have in place. And in some cases, you may be required to collect
and track certain data and information, so you can implement the
program.
Here are some of the best Recognition Award choices:
Gift Awards: This is the most common form of recognition award.

Many businesses will offer a special item as a gift, cash, or a gift credit
towards products or services because of a special occasion (like the
recommended Southwest Airlines birthday example, above). Sometimes
the "gift" is a discount or other similar coupon, but the problem with that
is that it just doesn't seem as generous to your customer/client-even if
the discount works out to more than the gift credit. It's better to give
something specific, like a gift credit with a specific value or a particular
extra service, rather than a discount. If you have a business that holds live
events, seminars, or other trainings that people usually pay to attend,
offering free attendance is also a great gift award. You may also want to
consider gift certificates from other businesses-such as restaurants,
department stores, mail-order catalog companies, or "indulgence"
service providers, such as a day spa. This is often perceived as a much
higher value because you had to go out and get it. (If you're dealing with
a particular supplier on a regular basis, you may even be able to negotiate
bulk-purchase discounts for these gift certificates.)
Certificates. Plaques and Trophies: These most recognized of

award items have the added appeal of the recipients being able to show
them off and put them on display. Don't underestimate the recognition
that certificates, plaques, or trophies bestow. It may seem a bit corny, but

people do still respond well and feel appreciated. And such items are
relatively inexpensive compared to many recognition awards. Think
about how you can combine these awards with others listed in this
section. You may want to offer a plaque plus a gift certificate, for
example, to give the recognition award added impact.
Travel and Mini-Vacations: Obviously, these are high-end gifts-

and it would depend on the economics of your business relationship
whether giving something of such high actual value would make sense.
But if the transactional size of the business allows for this, you couldn't
ask for a better way to create excitement and goodwill. Often, even a
quick overnight weekend getaway can make a huge impression. And the
many all-inclusive packages available make it easy to give something
impressive while keeping the arrangements to a minimum. Good
examples include a bed and breakfast, a mountain or beach lodge, a ski
resort, a two-to-three-day cruise, a golf resort, or a wine-tasting tour.
.sporting. Music Events or other Entertainment: Tickets for an

evening out to a very popular event are great for recognition awards. The
major drawback: If you're awarding an item that isn't part ofa contest or
drawing (where the people were attracted to the tickets in the first place),
then you may wind up with a recipient who's not a fan of the particular
event. A way around this is to offer a choice in the award, but this doesn't
have the same impact as someone holding the actual tickets in hand when
they first receive the award. Even better would be to survey ahead of time
to know a bit about your customers/clients' interests-and then custom
tailor the recognition award to those interests. This is almost never done,
unfortunately, except in cases with a limited clientele with lots of
personal involvement, or with a select group of top clients that make it
worthwhile to go to the time and effort to get acquainted with them. But
technology tools are available where the appropriate data could be
collected and personal interests tracked on a large scale. And you could

make this information a part of every customer/client record
(see Chapter 10 - Strategy #10: Capitalize on Your Business's True
Wealth).
Live Events
As mentioned at the start of this chapter--one of the best ways to
create excitement is through live events. They provide the highest levels
of participation-and the greatest opportunity to get to know a number
of customers/clients all at once, on a personal basis. An event must be
interesting, enticing, and compelling enough to warrant someone
interrupting his or her usual schedule, possibly traveling, and otherwise
setting aside the time to attend. These events can be as simple as an
intimate gathering of a dozen or two of your best customers/clients (or
prospects)--or as elaborate as a huge circus tent in a stadium parking lot
with parking for hundreds or even thousands. And in some cases, you can
conduct a live event via teleconference or "webinar"-that is still very
effective and requires no travel.
To attract people, you'll want to make sure that your event has a
clearly stated title and purpose. To create excitement, you'll need a good
reason for people to show-up--and not have your event be perceived as
just another sale. But you should absolutely use these events as a way to
showcase your products or services-and give your customers/clients or
prospects the chance to take advantage of special offers.
Here are some excellent Live Event opportunities:
New Product or Service Launch: Throw a party and invite your

customers/clients. Have them bring spouses, friends, or business
associates. Have demonstrations, activities related to the new product or
service, or just a great chance to show-and-tell-while providing great
food and entertainment. Of course, people should be offered the
opportunity to purchase or book an appointment, but that shouldn't be the
only focus. The main focus should be to educate, demonstrate, and

introduce something new with fanfare-while giving options for taking
the next step should they choose to. Have special launch-only pricing, a
charter member or buyer club with extra benefits, client-exclusive
appointment schedule to choose from, or some of the other examples
listed in the earlier Special Promotions section. For instance, a clothing
store could hold a fashion show to reveal the latest arrivals; an equipment
manufacturer might demonstrate a new piece of equipment (along with
some kind of "take away value" and benefit, such as education or
training, in addition to a special offer); an art gallery or gift shop could
hold a reception to showcase its new additions; or a car dealership could
host a new model test-drive at a local racetrack or in a stadium parking
lot.
Completed Project Parties: Every time you complete a project,

installation or assignment could be an ideal opportunity to-not only
celebrate-but to create excitement that could lead to more business.
This is also one of the easiest ways to generate larger-scale referrals than
the usual one-by-one methods. The best use of this party isn't just to
reward the client whose job has just been completed, it's to use it as an
opportunity to show-off your work to other prospective clients who visit
the new installation and get direct positive feedback and testimonials
from your existing client.
Because you're hosting the party, most clients will be agreeable
about you inviting people to admire your work-and you'll also want to
encourage your client to invite family, friends, neighbors or business
associates (depending on the completed project, of course)-to the party
who may be looking for a similar installation. This form of completed
project party can be adapted to many services. For example, a computer
network firm could throw an office party upon completion of an office
network installation. Or, a contractor could host a house-warming party
to celebrate a recently completed remodeling, room addition, or
landscaping project-or a poolside party for a pool installation-and
thereby get a chance to meet all the friends and neighbors who may also

be interested in getting some work done.
Office Remodel or Open House: Here's a chance to capitalize on

a capital expenditure-and a great way to reward your existing
customers/clients-as well as possibly re-activate old customers/clients
with whom you haven't done business in a while. And because it's such
a rare occurrence (after all, how often do you remodel?)--it's a perfect
excuse to hold a live event. Of course, the same reason can be used for a
store remodel, a major warehouse renovation, or a major equipment
upgrade at a manufacturing facility.
Holiday or Seasonal Events: Hold an event to celebrate a specific

holiday or the season, such as a summer BBQ, harvest festival, holiday
party, winter fest, first day of spring, and so on. Numerous holidays and
seasonal events offer possibilities all year round-and sometimes more
than one in a given month. Even though many businesses use marketing
campaigns that reference specific holidays, few actually hold a live event
that's planned specifically to Create Excitement-using the variety of
methods and suggestions that we've been discussing. One winery that I
know of holds a Harvest Festival BBQ and picnic with live entertainment
as part of its wine club member-appreciation event-and members can
also pick up their latest wine club selections. Give this some thought:
How many ways can you tie your business into all the holidays or
seasonal possibilities?
Regular Entertainment or Activities: This is an easy way for

certain types of businesses to generate additional traffic-and
excitement-by hosting regular entertainment or activities. Some
examples: A coffee house may have local musicians at certain times or
even host a regular live-band night; an arts and crafts store can hold craft
workshops for specific types of projects or for the kids; a bookstore
might host book signings and "meet the authors" events; or a restaurant

can hold cooking classes. Although these examples are primarily skewed
towards retail, if you have a different type of product business, a service
business, or even a professional practice, you can adapt by using
entertainment or activities as a draw for the occasional live events that
you host.
Customer Appreciation Events: We've discussed recognition

awards and methods that don't necessarily involve a live event. But,
using live events for customer appreciation, recognition, or as the finale
to a contest are all great ways to Create Excitement. All of the
possibilities we've been discussing can be used in various combinations
to produce a unique event for your customers/clients, one that lets them
know how much you care about them-and appreciate their business.
You can also allow them to bring family and friends, depending on your
budget-but the added benefit of attracting new people to your business
will usually justify the expense (in addition to the goodwill that you build
with your existing clientele). But a warning: Plan well. You want to make
sure that your event is cohesive and runs smoothly, with the customer
recognition done expressly and wholeheartedly. Also, take steps to create
an environment for people to relax, feel good, and enjoy themselves-
while also offering clear ways for their family and friends to learn about
the benefits of doing business with you-in a soft-spoken, easy, non-
threatening, but direct way.
Interactive Ways to Create Excitement

Many ways exist to be interactive with your customers/clients, and
the Internet has made this even easier (even if impersonal). There are also
many ways that you can have your customers/clients participate to create
excitement. (Remember, we're defining excitement as "An environment
with a heightened sense of interest, awareness, receptiveness, and
responsiveness.") What we're seeking here is to merge the two and look
for ways that the combination-interaction plus excitement-gives your
clientele a unique experience.

Let's start by considering what you do already. What types of
interactions do you create now? Are you currently:
• Faxing customers a fax-back form to fill out?

• Emailing them a survey to complete?
• Prompting them to a pre-recorded voice message?
• Outbound-calling them?
• Voice-broadcasting your messages?
• Providing instant messaging or chat on your web site?
• Visiting them at their places of business?
• Holding teleconference calls with Q&A?
• Blogging on your web site?
• Doing web-based polling with instant tallied results?
As you can see, a number of ways exist use current technology plus
tried-and-true methods. But, where this gets very interesting (and
exciting) for your customers/clients is when you can craft promotions
that really get them involved-and ask them to participate in more
meaningful ways than just responding to a marketing message or sales
pitch.
These can take the form of:
• Having customers/clients involved in helping you design

and create products or services they really want.
• Rewarding them for specifically helping you improve your

business through interactive surveys and feedback.
• Opening up a dialog with customers/clients to connect

with them and give them an outlet to be heard (through

a special email in box, a telephone hotline, open call-in
phone sessions, or live online forums).
• Offering an interactive live-operator function as part of your

voice broadcast to get immediate response or feedback.
• Giving them an opportunity to submit their questions

prior to a live teleconference call or seminar-and then
specifically addressing those questions.
• Allowing them to vote on and influence your product or

service offerings-so you can get early feedback, prior to
investing a large amount of your time, money or effort on it.
• Letting them choose from a select group of choices what

content they'll receive in a publication, at a training
session, or in your email communications.
Be creative and use your imagination. People want to feel

connected to the places they frequent. And, there's no better way to keep
people coming back for more than by making them feel like they're
involved with your business through interaction.
Getting Free Media Exposure and Other Coverage

Here's where you can be the one who gets excited. Because, in
many cases, you can leverage your Special Promotions, Contests &
Drawings, Recognition Awards, and Live Events through the media or
through a variety of publications and organizations. Whenever you create
something that's newsworthy, of special interest, has human interest, or
is otherwise notable, you can often get written up, thus giving you
relatively low-cost exposure that helps attract people to your business-
by including them in your Create Excitement activities. There are
usually a good number of broadcast media, publications (newspapers,
magazines, trade journals, newsletters, and so on), groups, associations,

and clubs in any given area that are always on the lookout for interesting
things to bring to the attention of their readers, viewers, listeners,
subscribers and/or members. And, if your business scope is greater than
local-then regional, national, and even international outlets exist as
well.
Lots of books and training are available for business owners,
managers and professionals to learn how to do PR themselves (public
relations -or- publicity)-and of course, there are many firms that you
can hire to do it for you. If you're with a larger company (which is more
likely to be retaining a firm to handle this)-simply ask your PR firm
which of your Special Promotions, Contests & Drawings, Recognition
Awards, and Live Events it believes would be best to promote-and
when the deadlines are to effectively use PR in the media they suggest.
Then make sure that all your promotional materials and event details are
submitted to your PR firm in a timely way-so it can submit the press
releases and announcements to the appropriate outlets. (A significant
lead-time is often required to be considered and make the deadlines for
calendar sections in your local newspapers, for example).
For those who intend to do publicity themselves, I'd recommend
the following resources:
'PR Books:
• Guerrilla Publicity: Hundreds of Sure-Fire Tactics to Get

Maximum Sales for Minimum Dollars
by Jay Conrad Levinson, Rich Frishman, and Jill Lubin.
• The Publicity Handbook, New Edition: The Inside Scoop from

More than 100 Journalists and PR Pros on How to Get Great
Publicity Coverage
by David R. Yale.

• Complete Publicity Plans: How to Create Publicity That Will
Spark Media Exposure and Excitement
by Sandra L. Beckwith.
PR Training and Assistance:
• Raleigh Pinskey - www.promoteyourself.com

• Rick Frishman - www.rickfrishman.com
• Jill Lublin - www.jilllublin.com
Explore these books and resources-and consider all the ways you
can Create Excitement in your own business or professional practice-
while harnessing additional free exposure through PRo You may be
surprised at how a little effort in this channel can help yield results that
are vastly greater than the effort that it takes. But it will require some
learning, some planning, and some follow-through.
But, keep in mind that getting free media exposure-or other free
coverage-is the icing on the "excitement cake." The bulk of your focus
should be on the excitement you can create with your prospects and your
existing customers/clients-by using the methods we've been discussing
in this chapter. Adapt and use as many of these methods and examples as
possible to Create Excitement-and to help you generate even more
Guerrilla Profits.

Strategy #9:
Create Excitement
ACTION POINTS
• Create an environment with a heightened sense of
interest, awareness, receptiveness, and responsiveness-
to help gain attention and attract people to your offerings.
• Use Special Promotions to spice-up your usual offers-

with new arrival announcements, inventory reduction,
clearance, scratch-and-dent or private sales.
• Hold Contests & Drawings to motivate people to respond

or take a desired action-such as increase visits, respond
in a specific way, refer-a-friend, or give feedback.
• Give Recognition Awards-to connect with customers/

clients in a way that's a meaningful to them-and to help
you build their loyalty and participation.
• Host in-person, Live Events-one of the fastest and easiest

ways to generate lots of interest, awareness, receptiveness,
and responsiveness in a short amount of time.
• Involve customers/clients and prospects with Interactive

Ways to Create Excitement-and do things in a unique,
unusual, or uncommon way for your business.
• Get Free Media Exposure and Other Coverage for your

promotional activities by creating something that's
newsworthy, of special interest, or that has human interest.

Strategy #10:
Capitalize on Your Business's True Wealth
he real "gold" in any business are the relationships you have with
T your customers/clients. These are the people who are loyal to
you-and who keep coming back again and again-and will usually
continue to come back unless something gets screwed-up, they move,
they die, or a competitor steals them away from you with a better offer.
These relationships are the true essence of your business. They are what
feed you and make it possible for you to be in business. And, they are the
measure of the true wealth
that can be monetized-
should you ever decide to
sell your business.
That's why, when
observing some
businesses, I'm
often appalled at
the complete lack
of a conscious
effort to build their
customer /client list in
a methodical way-
and to then use
that information to
their advantage on an ·
ongoing basis. It seems as if they simply expect the customers who've
shown up before (or prospects who've called, or replied)-will continue
to do so again with no additional effort. That's rarely the case. You can't
just take it for granted that because they buy from you now that they'll
continue to do so.
The importance of having and building a comprehensive list
(database) of essential customer/client and prospect information--can't
be overstated. As Jack Welch, the legendary former CEO of General
Electric, has said, "Everything we do is aimed at either getting a
customer or keeping a customer." Let me suggest that your database is
what allows you to understand your customers so you can get more of
them-and allows you to build loyalty so you can keep the ones you've
got.
Even the local coffeehouse can lose some people just because they
want a change of scenery. But by building and using a customer list, the
coffeehouse might spice things up a bit with announcements about new
menu items and treats, or enticing events such as a live-music evening.
But, more importantly, that list of their most loyal customers (which I'd
venture to say that most coffeehouses don't have)-would add
tremendous intrinsic value to the business itself-as well as Guerrilla
Profits to the bottom line.
First of all ...

You must collect information regularly as part of every transaction.
You must gather that information into a central location (database) where
it can be reviewed and segmented. Then you must be able to act on that
information-and custom-tailor your messages to customers/clients
based on their interactions with your business-and the major categories
about them that you can identify.
The previous few short sentences encapsulate an entire philosophy
and business culture that few businesses achieve. Of course, if you have
fewer than 10 clients, you can personally do this. But if you intend to
Chapter 10 - Strategy #10: Capitalize on Your Business's True Wealth

have 50--0r you already have 100 or 1,000, or if you're a Fortune 500
company with global reach and hundreds of thousands of customer
records to deal with--chances are you've already got some serious
issues.
The larger the organization, the more likely your approach is
campaign driven. There may be several follow-up steps, but the effort is
usually geared towards specific marketing goals or sales campaigns.
Then customers or clients get relegated to an occasional follow-up
status-or they just receive the more generic communications going
forward that are sent to the entire "house list."
What's generally missing is the whole notion of identifying people
based on specific criteria-so you can categorize them for ongoing,
targeted communications over time (like we've discussed in Chapter 3 -
Strategy #3: Boost Your Marketing Results-about knowing who they
~ and what they want-and also in Chapter 7 - Strategy #7: Recapture
Lost Profit Opportunities-about your Lead Capture-to-Conversion
Process). Call it "mass customization" in highly-target messages-to
specific customer/client types. Categorizing can help group those who're
most likely to be interested in items related to that subject, need, desire,
product, or service.
Let's be clear about our terms: A "customer list" is simply a form
of database-with the most basic contact information. And a "real"
database, generally, is an enhanced customer list. That can also be fairly
simple-or it can include any types and quantity of information that can
be collected in a manageable way. For solo entrepreneurs and smaller
businesses, a real database could be collected into an application such as
Outlook, Apple Mail or QuickBooks (which additionally allows the
tracking of transactions along with customer data). Anything that allows
you to have standard contact data....plus extra customized data fields (a
specific category of data, such as "last name"). We'll discuss more robust
database options a bit later on in this chapter. But, whatever tool you use

198 8) Guerrilla Proilis
to collect and use your customer/client information-you'll want to
make it a part of your business to build your database at every
opportunity.
What data •... and how should you collect it?

Short of a complete dossier on every individual who makes any
form of contact with your business, you'll need to have a practical and
realistic approach to what and when information is acceptable to ask
for-and most likely to be received-given each circumstance.
I can recall being asked for my complete contact information at
Radio Shack (a good effort on its part) but resisting because I was paying
cash for just a few batteries and was in a hurry. Now, I realize Radio
Shack wanted to put me on its marketing list, but there was no incentive
offered for me to do so--or explanation about what all the data would be
used for. Such a request would come across much better if there were
beneficial reasons (if not actual incentives) given for collecting different
types of contact information.
There could perhaps be different types of opt-in such as catalogs
via mail (along with a coupon for 10% off your first purchase via the
catalog)------or special private sales and exclusive discounts for people who
receive the weekly "news flash" email. In those circumstances, people
would be giving a much greater level of "buy in" to being included on
the customer list-and would be inviting the sales messages via those
communications channels. After all, you don't want to waste your time,
effort and money on follow-up with people who aren't likely to be
responsive.
Another starting point I've seen that's less intrusive at the point of
sale (with walk-in business)-is to ask for ZIP codes (postal codes) with
the specific reason given that you want to know what areas people are
coming from who shop or visit there. Once customers have given at least
that initial bit of information, it's easier to take the next step and offer to
put them on your mailing list. Mostly, when I've seen this done-there
still wasn't any beneficial reason given except to receive announcements

and notices. It would be much better to give specific incentives and "sell"
people on the benefits of being on your mailing list.
Just keep in mind that-without specific incentives and benefits
being provided through the communications channels you are collecting
the data for-a sizable percentage of the information you receive will be
bogus. (Sorry, folks, some people just don't want to be bothered. They
just want to get their transaction done.) So it's very important to build in
specific mechanisms that require customers to give you their correct
contact information. This is especially true with email addresses. Many
people now often have their "public" email address-and then their
"real" private email address that they only give out selectively. I promise
you, as a marketer, you'll be getting the public address. That's the one
they only check occasionally (if at all). But, if you're giving them an
incentive they really want, you'll possibly get their "real" email address.
Contact through multiple methods

When gathering data, consider giving customers multiple
incentives to entice them to want to opt-in and give you a variety of ways
for you to contact them. Depending on your type of business, these
incentives could include:
• Physical address-Mailed coupon book, printed report, or

physically delivered premium
• Email-Links to: PDF download, audio recording, or private

web page-or specialized information directly via email
• Phone--Free consultation, report of findings, or private sale
• Fax-Weekly "hot sheet," requested information, or "flash"

specials
As mentioned, offering incentives helps you get their "real" data,

and giving them multiple incentives helps give you more accepted and
approved, opt-in ways to contact them.
Tools of the trade

With all the powerful computers and software available, you have
many options for keeping your data together-from a simple spreadsheet
to very complex database applications-to hosted, online web-based
applications.
The primary functions and features you'll want for any real
database solution you might choose are:
1) To customize the individual fields to suit the data you'll

be collecting
2) To import entire records and specific data fields into

existing records
3) To sort, search on and export sub-sets of your total

information-in a variety of formats
4) To create specific fields to track what customers have

purchased or inquired about (including long notes).
This should be something that makes it easy to get real work

done-and that doesn't have too steep a learning curve. A personal
favorite is FileMaker Pro, which is available for both PC and Mac:
www.filemaker.com.
Whatever tools you do choose, you can be fairly certain that it's
light-years ahead of the old Rolodex--or 3-by-5 card system. There's
just no excuse not to use these very powerful and relatively inexpensive
ways to create your customer/client database.

Profiling Your Best Customers & Prospects

Most information you'll encounter about "profiling" your
customers/clients is skewed from the perspective of the advertising and
list industries. These sources talk about things like "hypothetical
demographic," ''predictive data mining," and "data enhancement." All of
which are valuable marketing tools, but they are not where the Guerrilla
Profits opportunities are for most businesses. The most useful concept to
pull out of all this is: "Similar Others." Because armed with this
information, you can leverage you current customers/clients in ways you
may never have considered-in addition to attracting new ideal
prospects.
The basics
A primary focus in marketing is to "profile" your current
clientele-to create a demographic (characteristics such as age and
gender) and psychographic (interests, attitudes, and opinions) model-
that you can use to attract prospects based on that model. Then to go out
and use every type of media you can find-to attract others who are like
them. This presumes that if you do attempt to find and specifically target
those that fit your ideal profile, they will also be attracted to and
interested in your offerings.
It's hoped the media you choose will include a high probability of
finding those prospects who are already expressing an interest in items
similar to what you offer. For instance, an IT/tech offering might work
well in Network World magazine as a display ad. And, if they wanted to
find prospects who are local to them (versus attempting to market to all
businesses in their area)-they might be able to select a segment of that
magazine's list that's geographically desirable to reach using direct mail
(see our discussion about "marketing through" and "marketing to" in
Chapter 5 - Strategy #5: Change The Rules).
The media itself may help you determine potential interest in a
particular category of product or service. And usually, an advertising or

202 • luerrilla Prollts
rentable list's Media Kit will include basic information, such as age,
gender, geographic location, responder vs. buyer, and recent buyers or
subscribers (known as "hotline buyers"). Sometimes, you'll be able to
select a list based on occupation, job title, income, or marital status-and
some might even have some behavioral data such as actions taken in
response to other campaigns. Most response lists should have specific
details about products or services purchased along with the exact price
points-or ranges of prices paid.
We can't get into all the nuances here about selecting the proper
media or lists (and other issues like response vs. compiled lists).
Needless to say, this is the guts of direct response marketing, and you'd
be well served by learning all you can about it. (A great reference is
Edward L. Nash's book, Direct Marketing: Strategy. Planning,
Execution. )
Where this can get you in trouble

Where this falls flat is in not really being able to know where your
prospects are in terms of their Interests, Needs, and Desires-and also
at what point they are in the Buying Cycle (that is, how close are they to
making a purchase of your product or service). And beyond that, you
need to ask yourself the question, "Are these prospects likely to become
some o/my best customers/clients?"
The match that's usually being made is between your product or
service offer (or lead generation promotion)-and the prospects available
through a particular media or list-with the expectation that a certain
small percentage of them will be interested in your offer. While that
works, and is a tried-and-true way to proceed, the danger is that those
prospects you're attracting-and the process you're creating-may not
be bringing you those who can become your best customers/clients.
Rather than just focusing on having people respond (traditional
marketing thinking)--consider up-front whom you ideally want to
respond-and specifically target them with your messages (see the

section on segmenting your messages in Chapter 3 - Strategy #3: Boost

Your Marketing Results). This one shift in focus by itself can transform
the way you think about your marketing and your business.
Marketing and business consultant Dan Kennedy cites the budget
chain Motel 6 as a textbook example of being selective in targeting the
clientele it can serve best-while avoiding those it cannot. It advertises
for customers (such as traveling salespersons and budget-conscious
families) who want a no-frills, no-services room, and nothing more-but
at a price far lower than most motels. So, rather then over-promising, it
lowers expectations by telling prospects they'll get a clean, comfortable
room, and nothing more.
This would fail to satisfy many other types of customers. But Motel
6 goes out of its way to let those more demanding folks know this is not
where they should stay. It very deliberately segments the available
market, matching its message with a target segment and, as Dan Kennedy
says, "... talking to that segment in a way that it will like but that you
know will be a big turnoff to the other segment. "
Asking the right questions

Traditional profiling asks questions like:
• Who are my customers/clients?

• What do they need or want?
• What do they buy now?
• Where can I find them?
• What will they respond to?
But Guerrilla Profits profiling asks questions like:
• Who are my best customers/clients?

• What do they have in common?
• How can I find more of them?
• Why are they attracted to my business?
• What will keep them coming back?
Attract The People You Want

Life is too short to be dealing with people who are a pain. This can
be applied to all types and sizes of businesses, not just solo entrepreneurs
and small business owners-who are lifestyle-focused. The same
principle applies to larger, employee-driven companies-because a
handful of troublesome prospects and customers/clients can drain the
time, energy, motivation and attitudes of even your best people.
The difficulty with larger and more public businesses is that you
can't control who walks in the door. However, you can have clear
policies in place for dealing with "problem" customers to help limit their
impact. For example, you can remove from your mailing list the names
of customers/clients who repeatedly return things-because the cost to
handle these customers can outstrip the profits generated by the few
items they may keep.
Or, you can monitor the customers/clients who generate the
greatest number of service issues and complaints. Once you've been able
to determine a pattern of abuse-and are certain your employees are not
the cause-simply take steps to "flag" these people in your system and
alert others in your organization. If you're lucky enough to be in a
position to "fire" these problem customers/clients, you'll find that it can
help improve morale for your employees who've had to deal with
them-and will set the tone (and example) that you also care about your
employees.
But be careful
The old adage, "The customer is always right" still applies (up to a

point). Employees must realize they are there to serve first-and solve
problems whenever possible. But if you've got a customer/client who
simply can't be satisfied, then-if you're able to in your business-
liberate yourself by taking that customer/client aside and suggesting he
or she may be able to get better served elsewhere.
But on the Internet this may not be possible. Seth Godin has this to
say about handling customers online:
"This is the Internet age in which bloggers and news groups

and Google can turn every act-positive or negative-into a
recorded experience. That means every customer is 'a potential
brand destroyer. ... or a potential brand builder. ' No person or
no company can escape their past. The result: Treat every
customer as though he could turn into a testimonial. Treat
every vendor as if she could give you a recommendation. And
then, when the time comes, the seeds you've sown will payoff."
(p. 274, Small Is the New Big)
Most people will be fair-if you're fair with them. But for those
few who aren't, you'll free up unproductive time if you don't have to deal
with these "psychic vultures." If you are in a position to gracefully bow
out of bad situations with toxic people-and can successfully cut them
out-it can lead to higher productivity and higher profits. But that's not
the main focus and purpose of this section.
Getting to the heart of the matter••.

The real Guerrilla Profits point about profiling is:
1) How do you define and identify your best

customers/clients and prospects?
2) How do you use that information to attract more

people like them, get better results from the ones
you've got, and increase your profits?
First of all, from your list of customers/clients, identify those who

are in the top 25% of your buyers in each of several categories (most
active, largest transaction sizes, largest total volume, most profitable,
least service issues, and so on). Clearly define which combination of
these qualities is most desirable for you. For example, someone who
purchases often and does large volume with you but is only marginally
profitable-may, or may not, be who you really want to attract now.
Then again, that same customer could be ideal to have as a closeout
buyer. Or, if you're a manufacturer, that customer might help carry your
production base. Or, for a wholesaler, that high-volume, low-margin
customer could help keep up certain volume requirements to get larger
discounts. The same holds true for a retailer who attracts the "sale" and
"coupon" buyers.
It really is up to you to decide whom you do want. And, it is
important to have a variety of different customer/client segments that you
attract for different reasons. So, I'm suggesting that you use this profiling
process to find those "ideal" customer/client segments that you define-
so you can do two specific things:
1) Use those criteria to help attract prospects who share those

characteristics (and, therefore, stand a chance of becoming
some of your best customers/clients).
2) Be able to focus your efforts internally to increase business

with your best customers/clients.
Once you are clear about who your ideal target customer/client
segments are (on your terms )-then you can use direct marketing to
attract prospects with similar characteristics-and specifically target

those segments with your custom-tailored advertising, sales copy and

messages.
As an example, there are two letters that are part of a copywriting
book by AWAI entitled, "Great Selling Ideas for 50 Super-Successful
Direct Mail Letters and Direct Response Ads." These two letters in
contrast-show very distinct language that seeks to bond with each very
different target audience.
Sample from the letter for Popular Mechanics magazine:
"This invitation isn't for deadbeats, rip-off artists, or

'gentlemen' who hate to get their hands dirty. It sfor the rest of
us. It sfor the average guy who works hard for a living (and
wants to live better). Who knows the value of a buck. ... Who is
willing to trade a few drops ofsweat for the chance to save big
bucks. "
Contrast that one with this sample from a promotional letter for the
Oxford Club, a investment advisory service:
"You have been chosenfrom a select list to receive an invitation

to into what must be the world s most remarkable-and
profitable-financial alliance. It s an alliance that includes
many wealthy investors, financial experts, and extremely
successful entrepreneurs... "
Note the different language styles used in these two letter samples.
Short, staccato words are used in the first example-to appeal to the do-
it-yourself crowd. And longer words and sentences and more
sophisticated phrasing in the second one-that's aimed at serious
investors. This contrast should be helpful in jumpstarting your own
thought process-about distinct messages to use for the different
segments in your business.

Tailoring Offers To Your Best Customers/Clients
Most businesses completely underestimate the willingness and
ability of their best customers/clients to buy from them-or use their
services. Often the simple process of defining and identifying those
people whom you do want (and what they have in common) will almost
immediately bring to mind a myriad of ways you can custom-tailor your
offers to them in a way that boosts the level of business you're doing
together.
You want to be mindful to come from your customers' /clients'
perspective with these new offers. That is, think what they want from you
rather than what you want from them. Asking yourself, "How will this
serve them?"-is a good way to keep focused on what matters from your
customers/clients perspective. There's no doubt that it's easier to
generate additional business from customers who already know you and
trust you-than from someone who's still deciding whether or not to do
business with you in the first place.
Re-shaping your internal marketing to specifically focus on
segments of your existing customers/clients can be one of the most
profitable ways to get better results (and you can have lots of fun with it).
Be sure to offer them extra incentives-and focus your efforts on them
as individuals.
Take it to the next step

Beyond what you can find out by examining the customer/client
data in your own business or practice, the next step is to ask them. Survey
your best customers/clients to not only get feedback for sales and
marketing purposes-but to truly give them a hand in helping you shape
and custom-tailor new offers. Ask for their input, feedback, opinions and
suggestions. You'll be surprised at how much people want to have some
say-so if they believe it will help them get more of what they really want
from you.
Michael Dell writes, "Our best customers act as leading indicators

Guerrilla ProliiS • 209
for where the market is going and tip us off to ways of improving what
we already do well. They raise the bar, encouraging us to continually
evolve from a company that sells components of a solution to a company
that provides the entire solution." While there are lots of ways to spend
your day, "there s nothing more redeeming or refreshing than spending
time with customers," Dell adds. "/ ask lots of questions, like: Are we
doing a goodjob? How do you like our products? Our service?"
Seeking customer input builds loyalty and recognition in ways that
you can't do through marketing alone. Think about the launch of the
Saturn automobile in 1990. Its motto was "A different kind of company,
a different kind of car." Saturn values were communicated through its
advertising. Saturn employees spoke a carefully selected language meant
to emphasize a "new world" of cars, steeped in the best customer service
practices of the travel, hospitality, and consumer retail industries, not
necessarily the traditional car business. The result: Saturn inspired a
"cult" following with annual gatherings of Saturn owners-as well as
day-to-day special events in retail settings.
Don't just ask leading questions meant to bring people to some
logical marketing-contrived conclusion. This isn't meant to be a stunt.
It's meant to be a way to really know what your customers/clients think,
how they feel, and how you can better serve them. Use this information
to enhance the customer/client data you already have for them as
individuals.
The fallacy of the "hot" prospect

We've come a long way together in this book-as we've covered
the 10 Powerful Strategies of Guerrilla Profits. And, there are more
profit-generating tools and resources for you-to help you capture that
Extra Money to be found in your business-{}escribed in the next
section: Bonuses, Free Gifts & Exclusive Offers.
You can immediately access them all-by following the special
web page URL that you'll be given. In addition, you can get the latest

methods, news and updates-by going to the Guerrilla Profits support
web site at:
www.guerrillaprofits.com
I'd like to leave you with one additional thought for now about
your existing customers/clients-versus your prospects-that can help
you Capitalize on Your Business's True Wealth.
Be careful about not falling into the "grass is always greener" trap
when marketing to the pUblic. Once you've clearly defined and
identified your ideal customer/client segments, there's an underlying
facet of human nature to deal with: The feeling that a customer or client
you may have now isn't as good as that next, bright, shiny, "hot"
prospect.
Rather, adopt a relentless internal focus-to highly develop the
individual relationships with your existing customers, plus a constant,
ongoing external focus-to "prime the pump" with new prospects that
could potentially become some of your best customers.
The best return on your investment of time, energy and resources
will most often come from the combination of using all the Guerrilla
Profits strategies and methods you can-to help increase your
profitability and cashflow. Decide now to take action and get involved
with Guerrilla Profits in your business. Find your Profit Leverage
Points .... create a strong Web of Profits .... and begin to think differently
about your business or professional practice every day.

Guerrilla Prollts ~ 211
Strategy #10:
Capitalize on Your Business's True Wealth
ACTION POINTS
• Build a comprehensive list (database) of essential
customer/client and prospect information-to help you
understand your clientele and to help you build loyalty.
• Use specific incentives and benefits that you provide

through the communications channels you are collecting
data for-so you will receive your prospect's correct data.
• Get to know about your prospects Interests, Needs, and

Desires-and also at what point they are in the Buying
Cycle (how close are they to making a purchase).
• Attract The People You Want to your business-and

consider up-front who your ideal prospects are .... and who
are likely to become your best customers/clients.
• Profile your customers and prospects to discover segments of

Similar Others-then target those segments with your
custom-tailored advertising, sales copy and messages.
• Custom-tailor Offers To Your Best Customers/Clients-

and also ask for their input, feedback, opinions and
suggestions to help you shape and custom-tailor new offers.
• Develop a relentless internal focus-to build the

relationships with your existing customers, p~ an ongoing
external focus-to "prime the pump" with new business.

Guen1111 Prints. xxiv
Your Secret Combination to Unlock The Vault ...

Bonuses, Free Gifts & Exclusive Offers
"How Much Extra Money per

month in your Business would
Completely Change Your Life?"
by Stuart Burkow
President, Guerrilla Profits International
ometimes in business, all that stands in the way between you and
S your dream life are a few specific strategies, tactics and methods-
that YOU ACT ON. Reading this book is one thing. Getting started and
then taking that action is a
completely different subject.
And, that's the purpose of
these additional profit-
generating tools and
resources I'll be
describing in this
section of the book:
To help jumpstart
your success.
If you haven't read
this book yet-then please
start in the front. All the
Bonuses, Free Gifts &
Exclusive Offers in the
world won't mean anything
xxv • Guerrilla Prolits
to you if you don't have the background on their use and their purpose.
You'll be doing yourself a huge disservice-and will greatly reduce your
profit potential. These bonuses and gifts are part of a complete
"package"-and will have much less meaning and effect-if used prior
to you beginning to truly read (not just skim) Guerrilla Profits. Start
reading the book first.
Your Reasons for Success...

True entrepreneurs are a particular breed of people. For some,
there's such a strong, burning desire to accomplish and build-out their
vision-that nothing else compares to that passion. They are someone
who is willing to take a risk-and put it all on the line-to accomplish
their goals and vision. However, this is NOT the majority of people in
business.
You may simply be in business as a way to take charge and control
your own destiny-and you have the confidence to produce better-than-
employment returns on your efforts. Or, your professional practice is the
result of years of dedication to your profession-and you want nothing
more than build up a satisfied and loyal clientele. Maybe you're part of
a company that is willing to support learning and implementing new
strategies and methods to generate extra profits. Or perhaps,
circumstances are requiring that you choose self-employment-and you
need to make a go of it. Then again, you may be thinking that you'll
eventually start your own business-and you want to learn all you can
now.
Whatever your reasons for being attracted to this book and the
whole new category of Guerrilla Profits-you have demonstrated your
interest in alternative, new ways to Increase Cashjlow, Boost Earnings
and Get More Business. So the natural next step is for you to decide that
you want to harness the full potential of Guerrilla Profits in your
business or practice (or your start-up). And, then--decide what your
target goal is-in terms of extra money per month that could completely
change the dynamics of your life. Now, that's something to shoot for.

Guerrilla ProDts • xxvi
What is that number for you? Is it $3,000 more per month? .. .is it
$5,000 more? ... or, $1O,000? Maybe, for your business or practice that
number is $50,000, or even $100,000 .... or more-in extra money
generated per month that's yours to keep or do with as you please-that
will truly change your life. For larger businesses, these numbers may still
seem too low. For start-ups, you may be happy to see results at the lower
end of the spectrum.
But, regardless of which number is right for you-simply decide
now to fully utilize and implement Guerrilla Profits to help you achieve
your target goal. That's the key. And that's also the exact purpose of the
Bonuses, Free Gifts & Exclusive Offers ....to help you get started
towards the profit results you want in your business or practice.
The Web Site holds the Key to your Bonuses & Gifts
At GuerrillaProfits.com-through a special web page URL (details
in a moment)-that's where you'll have access to:
• Fast-Start Guide-to help you get a step-by-step jumpstart at

the members-only, private section of the web site.
• Audio Introduction-mp3 audio download that I did with

Jay Conrad Levinson gives a Guerrilla Profits overview.
• Contact and Promotional Letter Templates-referenced

throughout the book, are all archived for your use.
• Extra bonus Profit Articles-to give you additional detail

and insight to expand on.... and add to the book topics.
• Online Interactive Training Program-will take your profit

awareness to the next level-through a series of steps and
exercises designed to get you started with Guerrilla Profits
implementation in your business.

xxvii • Guerrilla Prollts
• Guerrilla Profits Alert Service-sent via email and fax will
give you the most timely, up-to-date information, news,
announcements and details about Guerrilla Profits. It is the
lifeline to keep you in the loop and informed.
• The Guerrilla Profits Letter (printed monthly newsletter via

mail)-gives you the extra edge needed-by providing you
information that's not released to the public, exploring more
advanced methods, and by giving you added detail beyond
what's covered in this book.
A Comprehensive Guerrilla Profits Experience

Remember, earning profits is about more than just the difference
between income and expenses-or cost-cutting to maintain your
margins. It's about focusing on the innovative, alternative, and more
effective activities that produce higher profit margins-and that generate
more business for you. Guerrilla Profits is all about learning and then
using these Unconventional Methods to increase Profitability and
Cashjlow.
And that's where your free trial to the Guerrilla Profits Letter (sent
via mail)-can help you the most. It's the insider's information that
supplements and expands on this book. Once you've set-up your web site
access login account-and have signed-up to receive all your bonuses-
you'll be rushed the current month's Issue of the Guerrilla Profits Letter
as soon as it's "off the press." This is a monthly subscription
newsletter-and you'll receive an Exclusive Offer to continue your
subscription at a preferred Charter Subscriber Rate-or you may simply
cancel after your free trial, with no obligation.
As part of your trial, you'll also receive a separate envelope via
mail-with some very special extra bonuses: Three critically important
Profit Reports (these three reports alone are valued at $87, priced at $29

Guerrilla Prollts • xxviii
each). I only ask that you cover a very small amount for postage-and
these three valuable, printed and mailed Profit Reports are yours:
Profit Report #1:

"The 3 Easiest Alternative Ways to
Get New Customers or Clients Fast"
Profit Report #2:

"The Single Biggest Reason why
most Internet Marketing Plans Fair'
(and what you can do about it)
Profit Report #3:

"Getting Things Done while maintaining
your Sanity and a Balanced Life"
You'll need to go to the following special web page URL (link)-

where you'll set-up a login account for web site access-and will sign-
up to receive all your bonuses and gifts, at:
gifts.guerrillaprofits.com (no "www" needed)
If you go to the web site directly (without using this speciallink)-

there are additional resources for you that will be updated periodically.
But, you can only access these Book Reader Bonuses & Gifts by
following this URL.
All together, the Bonuses, Free Gifts & Exclusive Offers are
easily worth hundreds of dollars (if we put a price tag on everything)-
but it terms of what they can do to help you....their real value could very
well be the target profit goal you've set for yourself. They can also help
propel you to action-to get those results you want in your business.

xxix • luerrilia Prollts
Additional Options For Those Who Want More
On an extremely limited and highly selective basis-I'll personally
work with a handful of clients to help them achieve results in three ways:
1) Profits Critique: This is intended to focus on a specific

Advertising and Marketing campaign or process within your
business-and all related marketing materials, the series and
sequences you use .... your conversion steps .... and any related
or missed profit opportunities.
2) Premier Profits Consulting: When you want to work on

specific Profit Issues or Projects-this is the best choice for
getting some real work done. In addition to your specific
areas of focus, and as part of this process-you'll receive a
dynamic and powerful 70-Point Profit Assessment.
3) Complete Company Profits Makeover Program: This is a

very in-depth, 12-month program that is meant to literally
transform your entire company's profitability. It is geared
towards growth-oriented businesses that are already doing
significant sales (and is a very hands-on, high-impact program).
Please keep in mind that I'm doing this to give some structure to
the requests I get for help-and so I can carve out enough time. Mostly,
I'm taking care of running my own business-and must be careful not to
overbook my schedule. I've got more on the line by taking time away
from my own business to help you-than this type of service work could
ever produce for me. But, I do love doing it, on occasion, and I love
working with great clients who value my contribution. It's also a good
way for me to add some variety-and helps keep my Guerrilla Profits
focus sharp. For complete details go to:

Guerrilla Prents. xxx
You'll also find an additional offer from Jay Conrad Levinson (on
the 2nd to last printed page of this book)-to join and participate in the
Guerrilla Marketing Association. That's where you'll be able to get
additional insights from .... and involvement with the Father of Guerrilla
Marketing-with live weekly teleclasses and monthly Insider's Reports.
This is available through Jay's members-only web site at:
www.guerrillamarketingassociation.com
So, let's get started

You'll be in the best position to put the Guerrilla Profits methods
into action-and to grow your business profits-by going to the web site
now to sign-up and access all your extra Bonuses, Free Gifts &
Exclusive Offers-at: gifts.guerrillaprofits.com. And, I'll look forward
to hearing from you about your success story...
Stuart Burkow, The "King of Profits"

Guerrilla Profits Intemational

La Jolla, CA 92037 USA
Voice: 1-858-597-0055
Email: feedback@guerrillaprofits.com

xxxi • Guerrilla Prollts
Reference & Resource Directory
Books:
Abraham, Jay, Getting Everything You Can Out of All You've Got
(St. Martin's, 2000)
Alessandra, Tony, and O'Connor, Michael, The Platinum Rule:

Discover the Four Basic Business Personalities-and How They
Can Lead You to Success (Warner Books, 1996)
AWAI copywriting book, "Great Selling Ideasfor 50 Super-

Successful Direct Mail Letters and Direct Response Ads."
Beckwith, Sandra L., Complete Publicity Plans: How to Create

Publicity That Will Spark Media Exposure and Excitement
(Adams Media, 2003)
Carlzon, Jan., Moments of Truth (Collins, 1989)
Cialdini, Robert, Influence: The Psychology of Persuasion

(Collins, 1998)
Dell, Michael, and Fredman, Catherine, Direct from Dell:

Strategies that Revolutionized an Industry (Collins, 2006)
Godin, Seth, Small Is the New Big (Penguin, 2006)
Hatch, Denny, Million Dollar Mailing$ (Bonus Books, 2001)

Guerrilla Profits • xxxii
Jellison, Jerald M., Managing the Dynamics of Change: The

Fastest Path to Creating an Engaged and Productive Workplace
(McGraw-Hill,2006)
Kennedy, Dan S., How to Succeed in Business by Breaking All the

Rules (Dutton, 1997)
Kennedy, Dan S., The Ultimate Sales Letter (Adams Media, 2006)
Kim, W. Chan, and Mauborgne, Renee, Blue Ocean Strategy:

How to Create Uncontested Market Space and Make Competitors
Irrelevant (Harvard Business School Press, 2005)
Levinson, Jay Conrad; Frishman, Rick; and Lubin, Jill, Guerrilla

Publicity: Hundreds of Sure-Fire Tactics to Get Maximum Sales
for Minimum Dollars (Adams Media, 2002)
Nash, Edward L. Database Marketing: The Ultimate Marketing

Tool (McGraw-Hill, 1993)
Nash, Edward L, Direct Marketing: Strategy, Planning, Execution

(McGraw-Hill, 2000)
Peters, Tom, Thriving on Chaos (Knopf, 1987)
Slywotzky, Adrian, and Wise, Richard, How to Grow When

Markets Don t (Warner Business, 2004)
Sugarman, Joe, The Adweek Copywriting Handbook (Wiley,

2006)
Yale, David R., The Publicity Handbook, New Edition: The Inside
Scoop from More than 100 Journalists and P R Pros on How to
Get Great Publicity Coverage (McGraw-Hill, 2001)

xxxiii. Guerrilla Profits
Books-Advertising Classics:
How to Write Advertising That Sells, by Clyde Bedell
Tested Advertising Methods, by John Caples
The Robert Collier Letter Book, by Robert Collier
The First Hundred Million, by E. Haldeman-Julius
Scientific Advertising, by Claude Hopkins
Ogilvy on Advertising, by David Ogilvy
Database Software:
FileMaker Pro - Complete relational database system (PC and Mac)

www.filemaker.com
Web sites I Online Resources:

Remember, these listings are not a specific endorsement for these
sites and/or companies. You'll need to do your own due diligence to
determine if any of these providers are right for you.
Chapter 1 -
• Mystery shoppers
www.mysteryshop.org
www.shopreports.com
Federal Trade Commission (FTC) consumer alert entitled

"The Secrets of Mystery Shopping Revealed," available at:

Guerrilla Proills • xxxiv
www.ftc.gov/bcp/conline/pubs/alerts/mysteryalrt.htm
Chapter 2-
• Point-of-Checkout Examples
www.apple.com www.amazon.com
www.godaddy.com www.crateandbarrel.com
Chapter 5-
• Publications & Media
www.mediafinder.com www.srds.com
www.oxbridge.com www.ulrichsweb.com
• Response & Compiled Lists

www.infousa.com www.harrisinfo.com
www.edithroman.com www.salesgenie.com
www.epostdirect.com www.hoovers.com
• Paid association directory

www.marketingsource.comlassociations
• Free online group, association & business directories

www.google.comlTop
www.google.comlToplBusinesslDirectories
www.google.comlToplReferencelDirectories
www.ipl.org
www.ipl.org/div/aon
www.businesstown.comlassociations/index.asp

xxxv • Guerrilla Prollts
www.asaecenter.org/Directories/AssociationSearch.cfm
www.dmoz.org
www.dmoz.org.Business/Directories
www.dmoz.orglReference/Directories
www.knowthis.comlgroups/tradelocators.htm
www.ourcommunity.com.auldirectory (Australia only)
• Trade Shows, Conferences, and Expos

www.eventseye.com www.expocentral.com
www.biztradeshows.com www.allconferences.com
• Public Relations / Publicity

www.prweb.com www.send2press.com
www.24-7pressrelease.com www.businesswire.com
www.pmewswire.com www.intemetnewsbureau.com
• Events / Festivals / Outdoor Retail

www.festivals.com www.fleamarketguide.com
www.festivalfinder.com
www.dmoz.org/Arts/Crafts/Events
• Online Discussion Groups & Forums

www.dmoz.org/Computers/UsenetINewsgroup_Directories
groups.google.com
groups. yahoo. com

Guerrilla Prolils • xxxvi
www.newsdemon.com
• Adult Extension Classes and Courses

www.leamingannex.com
dir.yahoo.comJEducation/Adult_and_ Continuing_Education
www.worldwide.edulindex.html
www.edu411.org
Chapter 6-
• Promoter Examples
The Daily Reckoning - www.dailyreckoning.com
Early To Rise - www.earlytorise.com
The Oxford Club - www.investmentu.com
Chapter 7-
• Live Support Operators
www.activelive.com www.zifftalk.com
www.boldchat.com www.liveperson.com
Chapter 9-
• PR Training and Assistance
Raleigh Pinskey - www.promoteyourself.com
Rick Frishman - www.rickfrishman.com
Jill Lublin- www.jilllublin.com

xxxvii • Guerrilla ProDts
Index
2-Step 22 Bundles 35, 78-83

7 Common Transaction Methods Buyers Club 29, 30, 55
22 Buying cycle 202
Buying frequency period 146,
A
149
Add-ons 22, 23, 35, 40, 116
Advertising and marketing theme
c
71 Complaints 4, 204
After-hours 15 Completed project parties 186
Alternative markets 101, 108, Conferences 8, 11,98,99, 107,
109, 132 128
Alternative Method, Media & Contests 177-1 79, 190
Market Combinations 98, Conversion 20,24,39,41,91,
100 140, 142, 153
Ask+Gift Approach 149, 150, Cookies 26, 43, 44
151 Coupons 22,23,35,41,64,132
Associations 96, 97, 100, 102- Creative Borrowing 55, 56, 57
106, 108 Critical First Points of Contact 2,
Author Bios 11 6, 7, 11, 12
Cross-Sells 22,23, 25, 26, 35
B
Culture of change 88
Barriers to entry 1, 158 Customer appreciation 182, 188
Bonuses 34,36,83, 85, 165, 166 Customer chum 147
Bounce-backs 34, 35 Customer service 65, 121, 209
Brochures 53-55, 95
Index
Guerrilla Profits • xxxviii
D Good-until-cancelled 27-31, 34,

164
Database 14,27,30,43, 141,
Grabbers 51
196-200
Guerrilla Marketing 54
Dedicated promotions 115, 124,
125 H
Definition: Guerrilla Profits vi Harness your competitors 90
Demos 22 Hidden Benefit 52, 53, 70
Directories 102-106 Hidden Revenue Sources 152, 153
Direct marketing 35, 43, 55, 206 High-impact marketing 49, 50, 51
Down-sells 33 Higher prices 65, 67-70, 75-80
Drawings 177-181, 190
Due diligence 103, 122
Dunning sequence 49 Inbound conversion 20
E Inbound inquiries 40, 79
Incentives 34-36,37, 108,167,
Employee attitude 8 174,179-182,199,200
Exclusivity 68, 69 Indulgence 84, 166, 175, 183
Expert 75, 76 Inserts 35,53-55,132,161
Expos 21, 107 Interactive 12, 174, 188-190
F Interests, Needs, and Desires 202
Inventory reduction 176
Festivals 21, 107
Irresistible offers 70, 79
Free gifts 157, 165, 169
IVR - Interactive Voice Response
Free media exposure 190, 192
12-16,43
G
J
Gatekeeper 95, 102 114, 115
Joint-venture 95, 115-117, 134
Gift awards 183
N partner 117, 118-122, 133,
Giving Referrals 114, 123-132,
154, 162
135, 158
Index
xxxix • Guerrilla Prolils
L Office visits 178
On-hold 14
Law of Reciprocity 51, 161, 162
Online ordering 24
Lead Capture-to-Conversion
Open House 187
Process 141, 150, 153
Order Confirmation Messages 24
Lead generation 91, 167, 169,
Outbound sales 21
178
Outdoor retail 21, 100, 107
List Brokers 103
Outside Products and Services
Live events 174, 183, 185-188 ,
114-123, 125, 154
190
Outside sales 9
Loss leaders 167-170
Loyalty 28, 29, 66, 67, 78, 196, p
209 Package Deals 35, 36, 78-84
M Physical offer devices 132
Positioning 62, 68, 79
Mailing list 144, 165, 198, 199,
Posted hours 15
204
Premium pricing 64, 83
Marketing Channel 179, 199
Price shoppers 64, 65
Marketing pipeline 57
Product and Service Lifecyc1es
Marketing through 94-97
140, 145, 146
Matching Offers to Markets 109
Profiling 201-206
Membership 29,30
Profit Leverage Points xvii, xix,
Message Benefit Theme 71
210
Multi-Step 22, 42, 72
Profit Sources xviii, xix
Mystery shopping 7
Promotions 10, 114-117, 174-177
N Publicity 106, 107, 190-192
Non-media marketing 53
Q
o
Offer match 110 Quality 63, 71, 145
Index
Guerrilla Profits 8 xl
R T
Reciprocal Gifting 158-161, 169 Tailoring offers 208
Reciprocal Lead Swap Deal 92 Templates 5
Recognition Awards 181-184 Testing 44,45, 101, 170
Refer-a-Friend 179, 180 Top 10 Items to Test 45
Referral partners 125-132 Tracking 6, 40-44, 129, 197
Relationships 29,95, 118, 127, Trade Shows 10, 11, 107, 181
195 Training 5-7, 191, 192
Response barrier 72 Trials 22,23, 157, 163
5 u
Sales 5, 9, 12, 13, 21, 24, 32, 33, Unconverted leads 91,92,154
41, 125, 176, 177 Unlikely bonus match-ups 166
Salespeople 9, 10 Up-Sells 22, 23, 26, 35
Sampling 157, 163
V
Scratch-and-Dent 176
Scripts 5, 21 Vendors 132-136
Seasonality 78 VIP Club 30
Segmenting 46, 96, 153 Voicemail 12, 13
Selecting your customers 63 w
Selling Down the Line 32
Web of Profits xix, 210
Sequence marketing 48-50
Series marketing 41, 42, 48-50
Similar others 201
Specialist 75-77
Statistics 39-43
Suppliers 132-136
Surveys 161, 189
Index
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GUERRillA PROFITS

Inentlon: Business Owners, Managers. and Professlonals_

Guerrilla Marketers Rejoice

n's Just that ImponanU

I SBN 978 - 1 - 6 003 7- 322-0

You are holding an opportunity

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There are lots of great bus iness books

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Chapter 2 - Strategy #2:

Chapter 3 - Strategy #3:

Chapter 4 - Strategy #4:

Chapter 5 - Strategy #5:

Promote & sell through alternative markets

Chapter 6 - Strategy #6:

Chapter 7 - Strategy #7:

Chapter 8 - Strategy #8:

Chapter 9 - Strategy #9:

Chapter 10 - Strategy #10:

Bonuses, Free Gifts & Exclusive Offers - xxiv

ardly a day goes by that I don't find businesses underutilizing

Foreword by Dan Kennedy

I dedicate this book to my sparkling daughter, Amy, for being so

rom my very first Guerrilla Marketing book, the overriding theme

Take careful note here, and pay close attention.

Introduction by Jay Conrad Levinson

Jay Conrad Levinson, The Father of Guerrilla Marketing

Guerrilla Marketing International

Introduction by Jay Conrad Levinson

I dedicate this book to my son, David ... whose boundless

Some possible scenarios

Introduction by Stuart Burkow

Getting the most from Guerrilla Profits:

Stuart Burkow, The "King of Profits"

Guerrilla Profits International

Introduction by Stuart Burkow

T he purpose of Guerrilla Profits is to help business owners,

Put Guerrilla Profits to work for you

Your Primary Profit Sources

Thinking differently about your business

How to use this book

A few words about definitions

Jay Abraham Debbie Fields Michael Masterson

R egardless of how good your products or services are, there are

The Critical First Points of Contact

Chapter 1 - Strategy #1: Maximize Your Interactions