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KingHippo
09-02-2008, 05:07 AM
Now that I'm back in product development mode, certain fears are hitting me. The biggest one of these is not being able to make even the first sale.

My competitors have sold tens of millions of computer educational products, yet I am still worried about getting just one simple sale of any of my soon-to-be products.

Has everyone here made their first sale so far? How did you go about doing this? Who gave you that first sale and what advertising method was used to get it?

KristineS
09-02-2008, 11:17 AM
I think everyone worries about making that first sale.

The biggest key is to make sure you have a good product and you know where your potential customers are and what the best way to talk to them is. Also, try to generate a buzz around your product. If you know writers or bloggers or someone who is influential in your industry, ask them to review your products. It can be a big help in getting that initial sale.

vangogh
09-02-2008, 07:54 PM
What you're feeling is natural. Until you make that first sale it's easy to think you may never make one. For the most part I've only sold services. My first sale was to a friend of a friend who I didn't know at all until she contacted me about hiring me.

I think my first few sales were through other people I know. People I'd worked for or someone who knew what kind of work I was doing. Word of mouth is great marketing. Make sure everyone in your family and circle of friends knows what you're doing.

I really use much the same strategy online. I participate in a variety of social networks including forums so people know who I am and what I do. It's the online version of word of mouth.

To simplify marketing, it's about understanding who your customers are, finding out where they spend their time, and building a favorable presence in those locations.

If you sell computer educational products do what you can to figure out who are the people that would buy those products. Do your best to understand why they make purchasing choices, and why they don't. Make sure you meet with their reasons for making purchases. For example if your customers would buy a comp ed product because it's the easiest to use then you need to make sure your product is the easiest to use and make sure your customers know it's the easiest to use.

Once you've tailored your product to your market, craft a tailored message to that same market and get your message in front of them as best you can.

That's all over simplified, but I think it's marketing in a nutshell.

Paul Elliott
09-07-2008, 11:39 PM
Now that I'm back in product development mode, certain fears are hitting me. The biggest one of these is not being able to make even the first sale.

My competitors have sold tens of millions of computer educational products, yet I am still worried about getting just one simple sale of any of my soon-to-be products.

King, what are your products, and who do you think will purchase them?

Paul

orion_joel
09-11-2008, 12:08 AM
My first sale was a little easier then i would think most peoples are. It basically involved my father calling me, asking how much a particular product the company he worked for needed and buying because it was a better price then where they were getting it. The first sale i make other then this came from it was either someone clicking on the google adwords ad i was running at the time or directly finding my site i am not sure which.

However i am sitting in the situation like i am having to start again and make my first sale again. While i am still making the odd sale here and there it is not consistent and not what would make you a full time living. So i think while the first sale is a challenge the bigger challenge is making consistent sales.

Paul Elliott
09-11-2008, 01:16 AM
Joel, what is your backend?

Paul

orion_joel
09-11-2008, 06:11 AM
What do you mean by Backend Paul?

Paul Elliott
09-11-2008, 10:53 AM
What do you mean by Backend Paul?

Sorry, Joel. I violated my one of my own principles: Do not use field specific terminology without defining it.

Backend is what you sell your customers AFTER you have sold them the thing that gets them into your funnel.

An example might be someone who has a store selling signed sports cards who goes back to those purchasers with other sports memorabilia.

Another would be a person who sells an ebook online about marketing on the Internet, who goes back to those customers with an offer of CDs or downloadable MP3s of a seminar on the same or similar subject that gives more intensive information. IMO, there should always be a backend, no matter the goods or services.

ALWAYS have a backend!

I teach my clients that, properly done, the backend will ulitmately be larger and more lucrative than the frontend.

Paul

orion_joel
09-13-2008, 09:41 PM
Yes, yes i do have a backend. Or at least if i was making primary sales i have a back end product.

One of the products that i love to sell, is Laser Printers, not only because there is usually a good dollar value profit even at just 10% margin or sometimes more, but because of the consumable sales that come afterwards. Although just looking at figures from my business over the past 5 years are not what i expect, i sold by dollar value about twice as much in primary sales as backend sales. I don't think this is truly indicative of the potential.

For example the primary client that purchased the printers in the primary sales, twice for a total of probably 2.5 years of this time was purchasing the toners (backend sale) from other sources, namely generic from another supplier rather then the original i was supplying. This was mostly happening for the final 1.5 years i was supplying this client in which i would have expect the most backend sales, because they had the most unit's in the field in this time. I think if i had been able to maintain the supply the potential would have been in the range of more then twice the value in backend sales compared to primary sales. If this makes sense.

I am sure that there is even more potential within the market that i am in to make a good range of primary sales, that correctly followed up could lead to even anything up to 10 times the backend sales. The key is getting the primary sales, and then continually following up so that you are the business that they think of when they need those backend products.

Paul Elliott
09-13-2008, 10:16 PM
Yes, yes i do have a backend. Or at least if i was making primary sales i have a back end product.

One of the products that i love to sell, is Laser Printers, not only because there is usually a good dollar value profit even at just 10% margin or sometimes more, but because of the consumable sales that come afterwards. Although just looking at figures from my business over the past 5 years are not what i expect, i sold by dollar value about twice as much in primary sales as backend sales. I don't think this is truly indicative of the potential.

Do you only sell printers and related supplies, or do you have a retail computer store?

Paul

orion_joel
09-14-2008, 09:07 AM
At this point no retail store, although that is something that i would like to do in the future, it is most possibly the hardest industry to make the choice weather to give it a go or not based on the competition that is out there who love to make almost no money on it.

Printers is not the only product but the best one that illustrated my backend product options. Probably best illustrated through the fact that a majority of printers use at a modest page yield about 3 times the cost of the original machine in supplies in the first 3 to 4 years. Really this is why i like printers and the consumables so much as a product, once you sell the printer if you provide good service you can have a customer you know is going to buy something every couple of months for a few years. Plus you can add even more service time if you get the installation in the sale as well.

I know i am talking it up, and you are probably thinking "If it is so great why are you not doing it?", and my answer would be "I have trouble finding an idea of marketing to cut through the competition". While there are a lot of marketing options i could use i just cannot seem to get motivated on an option.

Paul Elliott
09-14-2008, 08:06 PM
At this point no retail store, although that is something that i would like to do in the future, . . .

Printers is not the only product but the best one that illustrated my backend product options. Probably best illustrated through the fact that a majority of printers use at a modest page yield about 3 times the cost of the original machine in supplies in the first 3 to 4 years. Really this is why i like printers and the consumables so much as a product, once you sell the printer if you provide good service you can have a customer you know is going to buy something every couple of months for a few years. Plus you can add even more service time if you get the installation in the sale as well.

So, if I understand your business correctly, you are doing direct sales and installations without a retail store front. If not, please define it more for me.


I know i am talking it up, and you are probably thinking "If it is so great why are you not doing it?", and my answer would be "I have trouble finding an idea of marketing to cut through the competition". While there are a lot of marketing options i could use i just cannot seem to get motivated on an option.

With a better understanding of your business and your market, we can look for precisely that.

But prehaps you'd rather not share these things, and that's fine. OTOH, if you wish to explore it further, welcome to the discussion.

Paul

orion_joel
09-15-2008, 12:53 AM
So, if I understand your business correctly, you are doing direct sales and installations without a retail store front. If not, please define it more for me.

Yes this is correct, the primary business that i am in is the Direct Sale and installation/support of technology related products from a home based office. This has slipped to a small degree to include wholesale to one customer, which is not really profitable but it doesn't cost me anything and what i do make on it probably covers the time.

I have no store front more so due to the costs associated with it. The last time (earlier this year) when i looked into the costs i would have been looking at about $45,000 for a shopfront in a shopping centre without competition. Then when you add on even just one staff and other expenses to operation a store, i would have had to make over $100K per year profit before i could take anything out for myself.

At this point in the last 2 financial years tunrover has been fairly low, i do realize that just by opening a retail store there is going to be business gained without a second thought, however i am having trouble justifying to myself that i would be able to drive sales to achieve the figures mentioned above.

About 4 years ago when i was doing much more in sales, i really liked how i had managed to put together myself at the time and it did actually make 2 or 3 sales, through adwords and just general people finding it. However the problem i had at the time was that it was very user intensive to update or edit, and as such i found that i ended up not doing so. Which to date i have been unable to actually replicate the site in a easy to update fashion. Visitor wise for the website this was the peak of visitors and since then have not managed to have over 100 visitors in a month since then.


With a better understanding of your business and your market, we can look for precisely that.

But prehaps you'd rather not share these things, and that's fine. OTOH, if you wish to explore it further, welcome to the discussion.


I don't mind sharing, my business as such is hardly a massive secret, there is not much to it and in reality i don't imagine that a potential competitor is going to happen across it here anyway.

Paul Elliott
09-15-2008, 09:28 AM
Thank you for the additional information. Now, we can get to work.


I don't mind sharing, my business as such is hardly a massive secret, there is not much to it and in reality i don't imagine that a potential competitor is going to happen across it here anyway.

That's OK. If you're doing things well, you will generate competitors, and competitors are good. They make us leaner and more effective. They force us to be more creative and innovative.

1. What's your USP? A USP is your unique selling proposition. IOW, what is the reason I should buy from you rather from the person/service down the street?

Examples--(not sure they're all represented down under)

Wal-Mart - Low Prices Always
Home Depot - You build it, we'll help.
Lowe's - Let's build something together

To create a good USP, I suggest you get out a yellow pad and start writing down every word, phrase, or thought that describes or relates to your business and service.

It doesn't matter how stupid or silly it may sound because you're the only on who will ever see this list. Sometimes a silly phrase will actually trigger other, much more useful ideas, so don't hold back.

When you have at least 75 (I recommend 150.). Then, you can begin mixing and matching looking for that perfect idea which can be used to distinguish you in your market place.

2. What are the 3 things your customers most often have need of that you don't provide? These may not be directly related to what you currently do.

3. Your business is ideally suited to the "7 Way to Stimulate Word-Of-Mouth Advertising" free e-course in my sig.

Paul