Sometimes a loss leader can be risky - but is it worth it?
A Loss Leader is one of the more powerful brand building strategies that any business can employ.
And statistics, for what they're worth, usually bear out that you'll always earn more money per customer AND create a larger customer base if you're prepared to sell a product for no profit, or even a LOSS in order to create a relationship with a customer.
But it's Risky.
It's Risky for a few reasons:
1 – To sell at no profit or a loss means that you're sometimes selling low-value stuff.
Right? You've seen the Big Box Retailers offer crazy deals on low-end electronics in order to get people in the door. The problem is, the offer is usually "LOW END". And the customer experience that follows doesn't, shall we say, build the most loyalty.
2 – Also, it means that you MUST have a system to follow up with those new customers – meaning, you need to be ready to walk them up the "Ladder of Intimacy" to create future sales.
"Ladder of Intimacy?" Picture one of those A-Frame Ladders. You're on one side and your customer is on the other.
At first, you're far apart and low on the ladder – meaning, you've offered SOME value, and you've only asked for a LITTLE bit of a financial commitment for it.
The trick is getting them to climb that ladder. Each rung is a more expensive offer, but it also brings YOU closer to that customer because you're providing MORE value as you climb together.
Sexy, eh? 
The problem there is, the first thing you're offering (because you need to keep it inexpensive for cash-flow reasons) is also probably of lower value to the customer.
There's the rub.
What if you could invert the ladder? What if you could deliver AMAZING value for a low price, and begin your relationship with your customer in a place where they are already confident that doing business with you will result in great things for them?
So, if you've ever asked why StomperNet makes free videos to promote its new products, the answer comes from customer comments like this:
"If this is what you are GIVING away, I can't imagine how good the stuff is that I get when I buy".
WIN. Profound WIN.
And it works, every time.
This Video is a text book example of how to structure an Inverted Ladder.
In one of my last newsletters, I de-constructed and reverse engineered Frank Kern's Mass Control Video – it was very well received for one very important reason:
"SHOWING" details, not "Telling" Details.
It's one thing to TELL YOU how to do something, it's another thing to SHOW YOU what it looks like, then talk about it why it works after.
This is the definition of Kinesthetic Learning. See it, Understand it, Do it. And it's why Medical Schools employ that kind of education – because it's CRITICAL when you're saving lives.
So, check out the video, and come back here to StomperBlog.com and tell me what kind of VALUE Propositions most appealed to you.
Thanks!
Andy Jenkins
P.S. Here's the Video Link again.
P.P.S. Next week, it's all about SEO here at StomperNet….
Advanced SEO, that is.
Stay tuned for a Video from SEO Expert Leslie Rohde. He's gonna tell you why LSI is lame.
Yes. Lame.
(I love causing trouble).
Hello again! We're back posting once more from the StomperNet LIVE home base with another report – this time, I want to focus on Saturday's first standout keynotes.
If you can't nail down the quality of your event in the first hour of the day, it's going to start off dragging and it won't EVER pick back up.
But this is StomperNet. It NEVER drags over here. 
So, let's start at the beginning. On Saturday morning, we subjected our attendees to something very… loud.
Perry Belcher on the stage, laying down the foundation for social marketing domination
So why Perry? Why social media? Maybe because he got TENS of thousands of Twitter followers in less than 200 days. He's maxed out on Facebook in the same amount of time. The results of Perry's twitter linking is the same as instantly mailing a list of 30K+! And that's INSTANT. That's 100% deliverability. That's control that anyone can replicate.
The BIG picture is all about linking together all your social activities, but "Step 1″ might surprise you. According to Perry, even though it's a relative newcomer to the social site game, Twitter is the start of EVERY social campaign, simply because that's where the fast responders are. Twitter users want new fresh info immediately, and they gain a kind of "social currency" by repeating that info.
Therefore, it's the PERFECT place to try to gain fast followers, and begin to release your info.
Of course, there's a LOT more to becoming a Twitter demi-god, which is why when Perry asked for more time, the audience told him he could take as long as he needed! Wow. The crowd has spoken.
Maybe they were just hypnoized by those crazy shirts of his. Here's a better look, in case you didn't see it loudly enough in the first picture.
Here's a better shot of Perry's shirt (batteries not included).
I honestly wish I'd had my camera at Saturday night's cocktail hour, because the shirt he wore THEN was even MORE… enthusiastic. (Think flames and dollar signs!)
Now, Perry set the tone for the entire day, giving our attendees a great foundation to be able to discuss their ongoing business-building and marketing efforts with our faculty and their fellow entrepreneurs, business owners, colleagues, and peers.
And throughout the rest of the day, during our confidential roundtables and site reviews, the high energy level Perry set in the morning carried through WELL into the evening.
So how do we keep it going on Sunday? Even though we LOST an hour to daylight savings, things kept rolling like an avalanche coming down the mountain.
Stay tuned for an update a little later on!
As you may know, we're LIVE in Atlanta with StomperNet's 7th Face-to-Face event, and we wanted to update you folks who couldn't be with us with a few photographs we've snapped here at the event so far!
There's never an "Off" moment at LIVE Events.
The real benefit of our LIVE events is what you see right here. Getting to sit down with us and talk about YOUR business and interact with the Faculty, Staff, AND your fellow Stompers. None of us is as smart as all of us, and that's never more clear than when we get together.
Paul Lemberg delivers shockingly simple product creation methods.
We kicked off the event with a FULL Friday of FormulaFIVE business growth. The day was dominated by super-consultant Paul Lemberg, creator of F5. In addition to going deep into the time management power of FormulaFIVE's "Turbo Thruster" we also got to see Paul's secrets for nearly INSTANT and INFINITE product creation. If you have more products to sell, you make more money. Makes sense, right?
StomperNet Faculty Andy Edmonds shows off his iBlipper iPhone to enthralled Stompers
Andy Edmonds sometimes talks over people's heads, but that's just because he's so dang smart! In additon to sharing his formidable SEO and usability skills with Stompers, he's also been showing off his new iPhone app "iBlipper" – (available soon!)
Faculty Dan Thies shares some candid advice in between sessions
Here's another example of how a Stomper event breaks down the "wall" you might see at some other events – here's Dan Thies, right off the LIVE stage, interacting directly with members. You can come to our events and ask us ANYTHING about your business. And if you're not comfortable asking in a crowded hotel lobby, you should check out the Confidential Roundtable discussions. I'd tell you what was discussed (but you might never see me again!)
Faculty Don Crowther does Q&A in front of a slide from his presentation
Here, Don Crowther brings his social marketing expertise to the table and lays it out for our FormulaFIVE Day attendees – and not only did he deliver BRAND NEW content for our members, but he hung around afterwards to make sure everyone had every question answered. It's not just about listening – everyone is here to LEARN and we make sure that happens.
Andy, Janeen, and Stomper Coaches mix it up after a long day
Towards the end of a long and information-packed day, we like to unwind and network, and that's exactly what we do. Here, you can see members and staff after hours. Is Andy threatening this guy for wearing the same shirt to the party? Probably not. After such a long day, we'll let the fashion faux-pas slide.
Faculty Sherman Hu consults with a Stomper who KNOWS how to get attention
Okay… maybe not! Just when we thought we were done discussing fashion, this guy walks in. No, not Faculty Sherman Hu. The other guy – with the hat! As a special bonus for demonstrating his understanding of "attention marketing", Andy gave this guy an hour of free consulting with the Stomper Faculty member of his choice. It PAYS to come to LIVE events, in many more ways than the obvious one.
And that was our Friday. Saturday would prove to be even MORE busy and literally busting at the seams for some sessions. In fact, it was SO hectic, that I'm only just now getting to tell you about Friday, but we promise, check this space again very soon for another update from the floor of LIVE 7, including details and tidbits from our presenters, and of course, more photos!
If you want more up-to-the-minute updates, lots of buzz (and tweeting) over on Twitter! (Speaking of Twitter, the next post will have some good stuff from Perry Belcher's presentation, so don't miss it!)
Also, don't forget to leave us a comment if you like the pictures.
Talk again very soon!
