Simon Payn's Effective Customer Newsletters

Your Contact List: Build it or See it Die

Over the years, I've gained a lot of experience about what works...and what doesn't.

These lessons don't just come from my own experiences, they also come from those of members. So I will be sharing some of these experiences with you so that you can learn from them.

However, I warn you: I'm going to give you some tough, frank talk. After all, it's my aim to help you succeed, so I'm not going to hold anything back.

Today, let's talk about list building.

It's very easy for me to tell whether a member will be successful. That thing is: how quickly is their list of contacts growing?

Members who are disappointed with their email newsletter results show a very typical pattern. It goes something like this. They join enthusiastically and upload their contact list. Usually that list is between 100 and 200 people. They then send their newsletters to that list for perhaps four to six months.

And that's it. That list never grows. Indeed, what happens is that over time, the number of people on the list slowly goes down as emails bounce and people unsubscribe.

Their list withers. And so does their business.

The difference between these people and those who are successful is simple:  the successful people keep building that list - each month they add new names and email addresses.

Here's something that's super-important to grow your business (indeed, to stop it going backwards), you need to increase he number of people you are in touch with.

If you fail to grow your list of contacts, your business doesn't just stay static, it goes backwards. Why? Because, over time, that number of contacts goes down. People change email addresses, they move home...and sometimes they simply die.

It's not enough just to load your initial list into the system and then hope that's going to fuel you for the future. Because it won't.

Here's what my successful members do.

1) They are always adding to their list. Every month they update their list with the new email addresses they have gained (and who have given their permission to contact them.)

2) They put forms on the website to collect new names. If you want to see how I do it, just look at the Ready to Go Newsletters website you joined at, and you will see a form right there on the home page. Remember the bonus reports I give you? The reason they're there is so that you can use them as “bait” to attract people to join your list. You say something like: join my list and get this free, valuable information.

3) They remember that their number one job is to collect (high-quality) leads. So every time they meet someone in a business context, they ask if they can add their name to the list. And every  marketing piece they produce mentions the bonus report and encourages people to join up and get it.

Here's the thing. A business is like a living organism. You need to feed it. If you don't, it just withers away. Yes, it requires work. But it's better than the alternative.

Picture credits here and here.

 

Print newsletters and Canada's second currency

OK, let me get the wisecracks about the title of this post over with right away - in case I lose my residency in Ontario.

No, Canada's second currency isn't the US dollar.

And it's not the euro either, as an earnest store associate suggested to a friend last week in upstate New York. "Would you like to pay with euros?"

Hmmm.

No, Canada's second currency is Canadian Tire Money.

For those of you not in the know, Canadian Tire is an iconic retailer up here - it sells everything from auto parts to barbecues, passing through tools and housewares on the way.

Some people hate it (you can never find an associate) but more, I think, love it.

Canadian Tire is piled to the roof with cool stuff you can mess around with on weekends.

And it gives you money.

Spend enough at the cash and you get Canadian Tire money back, in "real" bills you can use at the retailer. Now, these bills are measured in cents, not dollars (for the most part) but it's like...real...money.

***

There's been talk recently about Canadian Tire doing away with the bills. Indeed, there's an announcement on the reward program's future today. Maybe they'll replace it with electronic rewards - like most other retailers - but there's also talk of introducing a Canadian Tire dollar coin.

We shall see.

But doing away with the paper money would be a big mistake. And not only for the ebay folks who collect the stuff.

You see, there's something special about paper. You can touch it - feel it crinkle. And you can carry it around with you - it pokes out at you from between the real money and frayed receipts.

And when you keep seeing it there, you remember to go back to Canadian Tire and spend it. Hey - I've got $2 in money I can use towards that $400 drill press I've been lusting after. Betta spend that quick!

I think that's super-powerful.

***

So - you can see how it relates to newsletters, can't you?

Now, I'm not one of these guys who says print newsletters are the only way to go. Or, for that matter, email only.

I'm platform flexible.

For the newsletters I send to my own clients, I started out with print, then switched to email. And next year I'll be sending print newsletters again to select people in my database.

After all, it's about what works - what brings the best return on investment.  Email is cheap...but print can work better.

Why? Because it's physical. You can't just hit the delete button on it.

Print newsletters stick around. Articles get clipped and pasted on the refrigerator. (I know this happens with the newsletters I make for members.)

You can read them in the bathroom.

So I urge you - and Canadian Tire, because of course they are reading - to keep the faith in print. By all means use electronic methods too, but don't forget the power of "real" money reminding you that it's there to be spent.

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A Newsletter for Every Business:
http://www.anewsletterforeverybusiness.com

Sign up to receive these message by email: http://www.tinyurl.com/30Emails

When 1 + 1 = 3

As someone smart enough to be reading this blog, you know math.

So that means you understand that:

1 + 1 = 3

And 1 + 1 + 1 = 9

And 1 + 1 + 1 + 1 = a-heck-of-a-lot

This isn't some kind of wacky math. It's the power of groups. They work "to the power of."

Kind of an exponential thing.

Last night I was the guest speaker on a teleseminar for business owners in a particular industry. The theme of the call was - naturally - newsletters. I supply a newsletter that these business owners use as the core of their marketing programs.

Although I was the one doing most of the talking, the power of groups is such that you always get back as much as you give. Often more.

(This is the reason I'm a member of a mastermind group here in Toronto. I know that I've added thousands of dollars worth of income to my business through being a part of this - ideas multiply when several smart people are in one room.)

Anyway, I thought I'd share with you some of the things I learned - or at least had reinforced - last night. There's a kind of random nature to this - but I hope you find it interesting anyway.

• One person put a folder of newsletters on the side of his car when he was out on a job. People could pick a newsletter up as a kind of business card as they were passing by.
  
• Someone else said that the most successful real estate agents in his town used newsletters. We talked about why that might be - I suggested that it was because they had long-term perspective, because they understand a value of a client over time. (One of the reasons people leave my program is that they want to get results instantly - they're not thinking of a client's lifetime value. Instead of building a viable business, they go from shiny object to shiny object, never building any customer relationships.)
  
• On the theme of lifetime value, we talked about the cost of sending a newsletter over the lifetime of a client vs. the income you get from that client. (Understanding that the newsletter is one of the tools that keeps a client with you forever.) I did that math once for real estate agents - see http://tinyurl.com/lifetimevalue
  
  
• Treat nodes in your community with extra respect. Nodes are people with lots of connections to the kind of people you reach. If you're in real estate, for example, a node might be an interior designer. Make sure they get a newsletter -even several. These people could be power-distributors for your message.
  
• Focus on marketing your business, not doing your business. This is an old one, but something people often still don't get. You can leverage your time by investing it in marketing and systems instead of trading hours for dollars by working "in" the business. (I shared my story about why learned marketing as my first step into being a business owner - because I knew that without knowing how to market my business, I would have no business.)
  
• The power of customer profiles. A great way to get engagement with your clients and to share their success stories. Goes back to the old newspaper law that says it's names and pictures that sell papers. People like to read about people who are like them.

Anyway, like I said, this is all a bit random. But I hope you can see how much value you an extract from just one hour.

If you can get together with other business owners - preferably outside your industry - you'll be able to get the same wacky math value that I got last night.

[Photo credit]

30 Days in November, 30 Interesting Messages

Want to take part in an interesting experiment?

Want to see me potentially humiliate myself in front of thousands?

I've been challenged by copywriter John Fancher to hone my email writing skills.

He has pledged to create one auto-responder message each day.

What is an autoresponder? It's computer software that automatically sends emails to your prospects and clients. You pre-load the content, which could be months' worth of newsletters and email messages, and the system does the rest. If you want to try one, go to my website and complete the box there.)

Why is this challenge worthwhile? Auto-responder email sequences are a great way to build relationships  with prospects and customers without you having to do a lot of manual work - and the best way to get good at writing them is to practice.

So...to get my own practice (to get ready for a new product I'm launching early next year) I too am pledging to write one interesting email message a day for 30 days in November.

What will I write about? Well, it will be roughly related to the content of this blog. But we'll see...

Will I succeed?

Will I have anything interesting to write about?

Will I be able to add value to the lives of people who read them?

It's up to you to decide.

Just complete the form below and you'll get signed up to receive them. You can of course unsubscribe the moment you get bored or the moment I annoy you too much (although I hope that doesn't happen.)

Contact Information
First Name *
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So what's that new project you're talking about?

Well, it's related to my 30 days of emails. I'm not ready to give you details yet, but I can tell you that anyone who signs up will be eligible for a discount or some other kind of bonus.

[Picture by Lincolnian]

Why Your 'Bonus Document' Is at the Heart of Your Newsletters

Members of my real estate newsletter service know that they get at least one bonus document as part of the program.

Don't take the power of this document too lightly. It's at the heart of any successful newsletter.

Here's why.

The terrible truth is that people don't want to sign up for your newsletter.

They're thinking, "not another useless newsletter to fill up my inbox or mailbox!"

"No thanks!"

(That's because most newsletters are self-promotional garbage. Of course, you know better than to send one out like that.)

So you have to go the extra yard.

You can't just say "sign up for my newsletter". You have to give them something that's extra valuable. Something that they feel they have to own.

It's a reason why the bonus documents I offer have enticing titles, such as "How to Survive the Recession ...Stronger Than Before" and "50 Essential Tips to Prepare Your Home for a Speedy, Top-Price Sale."

Don't you just have to read those...at least if you're in the right target market?

It sure is a lot better than just "sign up for my newsletter."

So what you do is promote the document in ALL your marketing materials. Everywhere. Every time.

And when they sign up to receive it, let them know that you will be sending them your newsletter too (and that they can quit receiving it any time they want).

If you do this, you'll get hot leads from people who are really interested in what you have to say.

If the idea of a document or report isn't for you, check out the ideas for other "bait" offers in this article and this article.

Attention Real Estate Agents!

A great way to use your bonus document is to mention it on postcards.

Postcards are an effective (and cheap) way to contact lots of prospects and to entice them to sign up to get your bonus document and your newsletter.

So that's why I've put together some postcards that make the fullest use of your bonus documents.

At risk of bragging, I think they're quite beautiful. Jae, my designer, did a fantastic job.

Find out more here.

Will Your Newsletter Pester People?

 I had an interesting chat earlier this week with someone who is thinking of joining my newsletter service.

He was pondering sending a newsletter only every quarter instead of monthly.

Why only every quarter? Because he didn't want to "pester" his readers.

It's at that point that I said, "Hang on just a minute...."

Here's the thing.

If you are in danger of "pestering" your readers, you shouldn't send a newsletter monthly.

You shouldn't even send it quarterly...or annually.

You should send it never.

***

Fears of "pestering" come down to an anachronistic way of looking at the relationship with your clients and prospects.

My caller was doing business the old way. In the past, marketers interrupted people with their message.

They said "buy my stuff," and "hire me today".

And ... this is the worst sin of all ... "I'm really great, you know."

"Me, me, me!"

Sure....that's pestering - like the child who can't pass a Baskin-Robbins without tugging on his hapless parent's arm.

That kind of newsletter deserves to go straight in the trash.

***

But that's not the best way to communicate with your prospects and customers.

Instead, your aim with your newsletter is to make your prospects' and customers' lives better.

To help them do their jobs better, to make their days easier.

That's why instead of putting out a newsletter that's overflowing with self-promotion, you publish something that's packed with useful information.

Content that has value.

If you do that, people will start reading your newsletter. They'll even start looking forward to it.

Not only do you avoid pestering your readers, but you become in their minds a trusted advisor.

And they're much more likely to do business with a trusted advisor ... who is thinking of their needs ... than someone who interested only in themselves.

***

PS. If, despite all this, you are still seen as pestering your reader, then you don't want them to continue receive it; clearly, the two of you are not on the same page. It's better to spend your resources on someone who appreciates your newsletter content.

PPS. If you see this newsletter as "pestering" you, please unsubscribe. The link's at the bottom!

[Picture by Gordana Adamovic-Mladenovic]

Why Real Estate Agents (and Others) Need to Be Publishers not Advertisers

Once again, Seth Godin is speaking my language.

In a post today he draws our attention to the difference between renting eyeballs (the old media way, where you buy an ad that is shown to the readers of, for example, a magazine) and actually owning the platform - owning the magazine or other media.

He gives an example of the local real estate agent:

She can spend to run ads every week in the local paper, or she can use the same money to start a legitimate media channel, a digital magazine, say, one that cheers on the school and gives the local paper a run for its money. And oh yes, the only houses listed for sale are hers. It might take a lot of work and even some money. But what does she get? A platform forever.

This is what I've been urging my real estate (and other) clients to do. Make their newsletter into their own magazine...be a community hub (like this hypothetical bar or this funeral home). 

It's the route to owning the market.

Seth wraps up with this:

Compared to the cost of renting eyeballs, buying a platform is cheap. Filling it with people eager to hear from you... that's the expensive part. But if you don't invest in the platform, you'll be at a disadvantage, now and forever. The smart way to build a brand today is to invest in the elements of the platform... the product, the technology, the websites (plural) and the systems you need to make it easy for people to show up at your very own trade show. And then embrace these people and shoot for 90% conversion, not .5%.

Like most good investments, it's expensive and worth more than it costs.

Be a publisher, not an advertiser.

(P.S. When I last wrote on this theme, someone emailed me to say that yes, it's a good idea, but not practical. No real estate agent (or other) is going to do this. That's almost true. But I said in reply that the one that does do this - that does invest the time, energy and money - will clean up.)

Real Estate Agents: How to Make 4x as Much Commission

Here's another of my little charts. This one applies to real estate agents and mortgage brokers in particular - but the general idea applies to any business.

It makes a compelling economic case for keeping in touch with clients over the long term.

 

The chart shows the difference in commission earned by a real estate agent (or mortgage broker) who keeps clients for life compared to one who just does a single transaction with a client.

The difference results in four times as much earned in commissions.

How is it worked out?

Consider that a real estate career lasts 30 years.

The average time a family spends in one house is said to be 7 years.

So, over that 30 years, the family will move 4 times (4x7=28).

Instead of earning one commission over your career from one client, you earn four commissions.

Let's put some numbers on those bones.

If the median home price in the US is $180,000 and commission is 5%, the commission earned would be $9,000. 

So four times that sum is $36,000 - a difference of $27,000.

Of course, this doesn't account for commissions shared, and portions paid to the broker and your costs...but the result is the same. You earn a lot more money by keeping a client for your career.

Of course, keeping in touch with clients through newsletters is the best way to be top of mind so that they call you when they're ready to move.

So how much will it cost to keep in touch with them?

If you do it by email, the cost is practically zero, as emails cost nothing to send.

If you do it by mail, and you send newsletters every month, you are looking at an approximate lifetime spend of $576 per client. (That's made up of $1 per month to print the newsletter for 360 issues, plus 60 cents per month for postage.)

Of course, that doesn't include membership to a newsletter program, running at around $49 per month - but that program can be used for multiple clients. And - of course - results will vary, postage and printing costs will go up, and not everyone will get every client to come back every time.

But still...the economics are pretty compelling:

Commissions earned over lifetime per client: $36,000

Cost to keep in touch with client over lifetime: $576

Total commissions minus cost: $35,424

versus..

Commission earned with one transaction: $9,000

Cost to keep in touch with client over lifetime: $0

Total commission minus cost: $9,000

Difference: $26,424

Now, multiply that by the number of clients you might have, and the math is truly astonishing.

As I say, not everyone will get the same results - you could not do as well. Or, with rising house prices, you could do better.

But when you look at it, the investment in keeping in touch is so low and the benefits are so high that it's something you must consider.

Find out more about newsletters for real estate agents and mortgage brokers.

How Repeat Customers Add Thousands in Income

Here is a chart that every business owner should print out and paste above their desk.

What does this chart show?

The bottom line shows the cumulative income of a business that has zero repeat customers.

The higher line shows the cumulative income of a business that has 20% of its customers returning.

Interesting, isn't it? That top line continues going up and up - like compound interest in a bank account.

Yet here's the funny thing: most businesses do NOTHING to encourage customers to come back. Instead, they're continually going after new customers.

That's why most businesses have incomes that look like the lower line in this chart.

At the least this strategy is shortsighted; at worst it's negligent. What would the investors, partners and spouses of these business owners say if they knew so much money was being left on the table?

What's even more crazy is previous customers are the easiest to sell to. After all, they already know and trust you.

When you look at this chart, there's only one conclusion: can you afford NOT to at least spend a few bucks a month sending a newsletter?

Just sayin'.

Realtor Earns $19,950+ in Commissions with Real Estate Newsletter

If you need proof that real estate newsletters (indeed, any newsletters) work, take a look at these stats.

One agent has been a member of my real estate newsletters service for nine months.

Within that time, he has earned $19,950 in commissions with up to another $28,000 on its way.

All these commissions came from clients who were found via farming with his real estate newsletter.

I'm delighted this client had such success.

Read the full details and income disclaimer here.

[Photo by Paul Falardeau]