MindValley Labs Internet Marketing Blog

I was lis­ten­ing to an inter­view with Bill Har­ris from Centerpointe.

Here’s some­thing quite astound­ing to most marketers.

Centerpointe.com is a site that sells relax­ation audios.
The prod­uct sells for $179 plus shipping.

Yet…every sale of that $179 prod­uct will bring Bill Har­ris an addi­tional $800 in rev­enue over the long run.

How?

Well, each cus­tomer that buys his prod­uct will come back or send their friends to Cen­ter­pointe over and over again to buy addi­tional modules.

From a $179 sale, Har­ris will end up mak­ing $800 from the aver­age customer.

Har­ris does this through a savvy combo of per­son­al­ized emails, bonus gifts, sur­prise fol­low ups and an excel­lent upsell system.

What’s your Cus­tomer Life­time Value? And how can you increase it?

We’ll share ideas and tests in this blog over the com­ing weeks.

Now here’s a ques­tion for you.

If Har­ris was mak­ing $800 from the aver­age new cus­tomer. And just 1% of his new vis­i­tors made a pur­chase. How much could he afford to bid on Google Adwords for a click with­out mak­ing a loss?

The answer is a whop­ping $8.00 per click.

I bet Har­ris isn’t bid­ding this much. But he’s cer­tainly bid­ding high because he dom­i­nates Google for highly com­pet­i­tive terms like “Meditation”.

This advan­tages comes from under­stand­ing the con­cept of Cus­tomer Life­time Value, learn­ing to boost this value and know­ing how much you can bid to get a new customer.

Know­ing this can help you dom­i­nate adwords and strike a blow against your competitors.

Below: Centerpointe’s Site Screen Shot (www.Centerpointe.com)

Last 5 posts by

• The Enlight­ened Entre­pre­neur Expe­ri­ence: How To Expe­ri­ence The “Turn­ing Point” And Com­plete Free­dom In Your Busi­ness — Jan­u­ary 25th, 2010
• Tribal Mar­ket­ing: Sur­pris­ingly Eth­i­cal Ways to Sig­nif­i­cantly Reduce Your Unsub­scribe Rate And Eas­ily Boost Prof­its — Jan­u­ary 19th, 2010
• Break­ing the Silence — August 7th, 2009
• How Rela­tion­ship Mar­ket­ing Trumps Tra­di­tional Direct Mar­ket­ing (and Why the Social Media Craze Is Mostly Hype) — March 31st, 2009
• MindValley’s Social Media Mar­ket­ing Unveiled — Decem­ber 2nd, 2008

About the Author

Vishen is a co-founder of MindValley. Before MindValley, he was an exec in Silicon Valley and New York for several internet and technology firms. He turned bedroom entrepreneur at 27 and by the time he was 31 had founded 6 web businesses and never had to work a conventional job again.

Check out other posts by Vishen Lakhiani

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