Home Based Business Marketing Money Magnet

Home Based Business Marketing & LTV:

Planning to implement your small business ideas soon to make money at home? Understanding and implementing a well placed LTVC (life-time-value of your customers) Internet marketing plan will save you hours of turmoil.; having a viral marketing plan and working with social networks will also keep you on the cutting edge of technology & best practices. (Ref. article)

In these uncertain times of recession, it will be wise to be frugal with your business budget and build a small business online with a well placed marketing plan, to save you from leaving loads of money on the table with your customer purchase transactions.

It is a fact that you can control the flow of funds (cash flow) significantly by implementing a well placed LTVC; the idea is to calculate the value of each of your customers. Use that calculation to increase your cash flow at a moments notice.  (If you are an affiliate you do not have such an advantage because the company owns those customers.)

As a small business owner you can get increased web site traffic when you are in total control of your business and are able to build a workable business cashflow system.(Ref. article)

Moments from now our online classes can get you started crafting a lucrative business management strategy to begin your Internet business education or your business is going to be stalled until you do...

Revolutionize your business by understanding the LTV of a customer. Normally, people in business online follow this scenario: They spend their time & money looking for a customer that will buy their product or service; they are looking for a one-time-sale. Once the sale is made, they then get on the hunt for another willing customer one-by-one. (Ref. article)

In other words, they are looking for first-time sales from all of their prospects. It will be much easier filling up the ocean with a small bucket full of holes. There is a better way...

Depending on the Internet business model you use in home based business marketing, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value(LTV) is a metric that projects the value of a customer over the entire history of that customer's relationship with a company. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales (Internet business model one).

Customer lifetime value has intuitive appeal as a marketing metric, because in theory it allows companies to know exactly how much each customer is worth in dollar terms, and therefore exactly how much a marketing department should be willing to spend to acquire each customer.

(Square one in business is planning) (Ref. article)

This online business education is about marketing research & strategic planning. In reality, it is often difficult to make such calculations due to the complexity of the calculations, lack of reliable input data, or both.

The specific calculation for home based business marketing depends on the nature of the customer relationship. For example, companies with a monthly billing cycle, such as mobile phone operators, can count on a reasonably reliable stream of recurring revenue from each customer. Car manufacturers, on the other hand, have less insight into when or whether a customer will make a repeat purchase.

 
Nevertheless, certain data inputs are commonly used when making customer lifetime value calculations:

  Acquisition cost The amount of money a home based business marketing department has to spend, on average, to acquire a single new customer.  

Churn rate The percentage of customers who end their relationship with a company in a given time period. Churn rate typically applies to subscription services, such as long-distance phone service or magazines.    

Discount rate The cost of capital used to discount future revenue from a customer. Discounting is an advanced topic that is frequently ignored in customer lifetime value calculations.

The current interest rate is sometimes used as a simple (but incorrect) proxy for discount rate.  

Retention cost The amount of money a company has to spend in a given time period to retain an existing customer. Retention costs include customer support, billing, promotional incentives, etc.  

Time period The unit of time into which a customer relationship is divided for analysis. A year is the most commonly used time period.

Customer lifetime value is a multi-period calculation, usually stretching 3-7 years into the future. In practice, analysis beyond this point is viewed as too speculative to be reliable.  

Periodic Revenue The amount of revenue collected from a customer in the time period.
 

Profit Margin profit as a percentage of revenue. Depending on circumstances this may be reflected as a percentage of gross or net profit. For incremental home based business marketing that does not incur any incremental overhead that would be allocated against profit, gross profit margins are acceptable.  

Look at it this way, all the time, effort & money it took to prospect them and for them to trust you enough to make an initial purchase is the hardest part of selling in your business. Starting fresh with a new prospect sounds a bit silly. This is why I am here to show you a much better way.

It is your job to build trust in your prospect; they will not buy from you until they trust you first. Trust building is a process; this is where marketing begins the process. When done properly, home based business marketing makes you extremely attractive to your prospects.

Make sure you don't forget that viral marketing is the way to get the buzz going your business. So take serious consideration in building long-tern trust with your customers by starting a viral campaign.

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Page References

Introduction to Preselling

Law of Attraction

Marketing Plans

Understanding Human Behavior

Website Marketing Strategy

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