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How to leverage your marketing dollars: Shared Cost Marketing
Another nugget from our marketing grab bag . . .
Last time we talked about Loyalty Marketing and how it can turn your marketing dollars into a profit center versus an expense against sales.
This time you’ll see how you can market your business in collaboration with other non-competitive businesses right within your community and using none of your own money.
A small start-up company in south Texas came up with an idea of publishing a simple online and print version of a new Directory for complementary businesses within its community. Keep in mind any existing business can fill the publisher role. The idea is to boost sales for each business in the Directory through collaborative (shared cost) marketing, while the publisher profits directly from the advertising subscriptions of each participating business.
This is really cool! It effectively leverages marketing dollars for the Directory participants while making money for the publisher with up front out-of-pocket costs born by the subscribers. It’s another wrinkle on OPM “other people’s money” or in this case “other businesses’ money.” To make the Directory even more attractive a business can elect to pay monthly or take a discount for paying annually. (If you’re going to allow monthly payments I recommend collections via ACH – it’s the cheapest method – or use PayPal). The nice thing about collecting monthly is it creates a sort of residual income for the publisher.
You incent consumers to buy the Directory with a modest price point, (say around $20.00), which includes a value-savings card, good for discounts determined by each participating business. The Directory with the card is sold and distributed to customers at each participating business location. Additionally, the Directory may be sold through the publisher’s website. It’s a great way to make money.
If you’re looking for more ways to increase profitability, this marketing model can be used by any existing business, or it can stand alone nicely as a completely new business venture.
Tags: marketing