Cheapskates!

Pennypinchers, churls, moneygrubbers, niggards, pikers, pinchfists, scrimps – I HATE them. They have a scarcity mentality and they nickel and dime everyone. I don’t spend any time with them. Frugality is good, but being cheap is not smart when you want to create abundance, friends and happiness. One of the things I have learnt is that I should spend money where appropriate. Don’t take someone to a fast food joint to close a big deal. And don’t spend a fortune on things that show no ROI. But the biggest lesson I learnt is not to do business with tightwads.

Pennypinchers want everything for nothing, and they always want discounts.

Here’s what you should know about discounts:
Assume you’re selling a product or a service for $200 and your costs total $150. That means your profit is 25% or $50. Did you know that if you give some scrooge a 20% discount, you cut your profits by a massive 80%? And, if you really believe in your product or service, increase your price by only 20% - that means an 80% increase in products!

Also, when you discount your product or service, what you’re REALLY saying is, “I overcharged you and tried to take advantage of you, but you saw through me, and now you’re paying what it’s TRULY worth.” NEVER discount. Morton Wilder said, “Money is like manure; it's not worth a thing unless it's spread around encouraging young things to grow.”

Instead of discounting, how about adding value? Using Joint Ventures, you can easily double the value at no cost or risk to you, AND create additional income for yourself at 100% margin! Use other peoples’ resources to create unprecedented value and astonishingly exciting deals, which in turn offer you the opportunity to INCREASE your prices. And remember, a price increase goes straight to your bottom line, and nowhere else. This will differentiate you form your skinflint competitors who give the absolute minimum, don’t you think? When value is perceived, price is forgotten. That’s why people pay $30,000 for a watch that does the same job as a $15 timepiece bought at the airport. I recently paid $250 to service my Rado and add a new winder. I could have bought 16,66 watches for that price… It’s all about perceived value.

Finally, have you heard about the man who bought his dear wife a lovely ring with a cubic zircon and told her it was a diamond? Well, she went to have it cleaned one day and was shocked to find out that, like her husband, it was a fake. When you’re cheap, you are simply telling the world about your feeble self esteem. When you short change your customers, you do the same. Be generous, go for quality goods, quality service and quality people, sow good seed and reap your just reward.

For your complimentary Joint Venture downloads, Podcasts, Ezines, Teleclasses and seminars – click here.

Robin J. Elliott www.DollarMakers.com

Sponsorship – a Wonderful Joint Venture

One of the best Joint Ventures available is Sponsorship. But it takes an understanding of the psychology and dynamics of this win/win scenario to make it work optimally in the interests of both parties. Here are a few guidelines than can make a big difference to your business.

First, let’s think about what you want. You want money and value in return for exposing the Sponsor to your database and public. You want the Sponsor to pay you for endorsing them and promoting them. Enough said.

Now, let’s think about what the Sponsor DOESN’T want. They don’t want to feel they’ve been ripped off. They don’t want to pay too much and get too little. They don’t want to feel they have aligned themselves with the wrong people and sullied their immaculate reputation. And, often, you’re dealing with a fearful sycophant who is terrified of making a mistake and getting into trouble with his boss for making the wrong choice.

Sponsors get approached often by all and sundry, usually charities looking for a hand-out and not offering any reciprocal value at all. So you need to be unique in the way you present this Joint Venture. You need to create massive value. You have to stand out from all the beggars and leeches. You have to get their attention. You’re offer has to be very attractive and push all the right buttons. It must be customized for that particular Sponsor. Right? By understanding the Sponsor’s position, it’s easy to do that.

Many people who want Sponsorship use all the money to cover their costs. Sponsors want maximum exposure and that includes advertising. The event / product / service they’re sponsoring should be advertised in respected and respectable media. They probably don’t want their name mentioned in the Marijuana Mail or the Poll Dancin’ Post. Unless your sponsor is a strip club, that is. So your offer should always include advertising in media that reaches the Sponsor’s demographic model. Sponsors want to know exactly what you’re going to do with their money.

The Sponsors should be shown their potential return on investment. If it’s a realty office, how many prospective clients could they be reaching? What is their closing ratio likely to be? How many sales is that? How much per sale will they earn? Be specific. Discuss these figures with them. Understand their business and their sales ratios. What are they looking for? Leads for their salespeople? Branding? Give them what they want.

Understand your costs and the Sponsor’s costs. If they’re sponsoring a seminar, offer them seats on the seminar – your cost is negligible. If the Sponsor is WestJet, it costs them very little to offer you seats on a flight. If it’s a hotel chain, a room costs them around $20. Get Sponsors who can leverage their own products and services in your behalf. If they agree to advertise you in their newsletter or on their website, make sure the advert actually appears. And you should always offer them proof of what you’re promising, too.

You need to create massive credibility. Do this with an attractive package, testimonials and proof of what and who you say you are. Show the Sponsor what’s in it for them. Show them the money (ROI) and be very professional. Use every tool you can. And, if you’re going to go to all this trouble, approach large Sponsors and ask for a lot. You can always negotiate down. Make sure you really do believe it’s a win/win and seek a long term relationship. Do your due diligence. Just because the Sponsor is well packaged doesn’t mean he’s legitimate, honest or professional. It might just mean that he’s spending a lot of his investors’ money to look successful and attract more investors.

Attracting Sponsors should be a large part of your marketing. Do it right and you will be well rewarded. This is one of the most lucrative Joint Ventures available as you both leverage resources with common goals and a common demographic model.

Robin J. Elliott www.DollarMakers.com