About Jodi Kaplan

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Build a Profitable Pricing Ladder

I hear this a lot, “My target audience can’t afford to pay me.” I even fell into the trap myself. Then I realized what I was doing, smacked myself in the head, and fixed it.

An essential part of marketing is to make sure you’re looking for people who can afford to pay for your solution.

A 60″ inch sealed-burner Viking stove for $12,659 (yes, that’s a real price, I looked it up) may be the greatest cooking tool ever — but small mom and pop diners won’t be able to afford to buy one.

So, either you need a new ideal customer, or you need to change your strategy.

Create a pricing ladder

What’s the level of trust they’ll have with you? If they do have $12,000, can they spare it for a super-powered stove? Or, would you have better luck offering a more affordable solution?

Instead of heading straight for the top-of-the-line bells, whistles, fireworks, and party hat solution, try something small first. Products that offer repeatable solutions to recurring problems.

First rung

Offer some free information. A blog. Free reports. A free newsletter.

Second rung

Offer a $7 ebook. Or, a $17 workbook. Something that’s low-risk.

Third rung

Then, create slightly higher options.

Bundle the ebook and the workbook together for $20. Or, add a how-to video for $5 more.

Fourth rung

Then, add an hour of consulting. Or a personalized design review.

Got a ladder yourself?  How many rungs does it have?  What are they?

Image thanks to: myklroventine

Is Your Business Niche Market Too Big?

crowd of colored pegsTrying to sell to an audience that’s too small can kill your business before it starts. Hamster shoes, anyone?

Too big, or too varied a niche can be a problem too.

Trying to reach too many people (or two entirely different groups of people can sink your marketing before it starts.

A business marketing niche that’s too big

Just the other day, someone wanted a business name for a company she was putting together with two friends. She was having a lot of trouble finding a good name, and asked for help.

Each of them had a different specialty. They were: fitness, safety training (first aid and construction), and weddings.

Several people (including me) begged her to reconsider. We said, that’s three businesses, not one. Split them up. She left, disappointed that she hadn’t gotten what she wanted.

Why this business niche isn’t a niche

  • it confuses prospects – the three businesses are so different, people will wonder how you can be good at any of them
  • It may drive people away – do people looking for a wedding really want to see smelly people working out in a gym?
  • They’ll need three marketing plans, three brochures, three sales pitches on the web site, and three sets of audiences to build

A real niche marketing strategy

  • Picks a specific business to be in (say the safety training)
  • Narrows that down further (maybe safety training on construction sites)
  • Chooses a specific problem in that niche (safety training for new workers on commercial construction sites)
  • Addresses marketing, web, business cards, ads, etc. to the people in that niche and only the people in that niche.

Not everybody, just your tribe.  The blue guys.

If you really want to be in two or three different businesses, maybe you need two different web sites.

Tomorrow, can your niche afford you?

Image thanks to  svilen001

The Pajamas, the Lizard Brain, and the Employee Manual

lizard imageMy mom got a  PajamaGram for Valentine’s Day yesterday.  It was packed in a pretty hatbox with a gauzy bow, bath salts, and a card. Someone clearly put a lot of thought into the packaging.

This seems like a win? Right? It turns out it was a small business marketing failure.

She not only loved the gift inside, she liked the hatbox so much she wanted to buy another one and use them for pretty storage boxes.

A marketing “win” gone wrong

So she called PajamaGram.  No luck.  No matter how much she tried.  They wouldn’t give her one.  They wouldn’t sell her one.  They said she had to buy something to get another box.

This could have been a chance to make a happy customer even happier.  She would have told people.  She would have raved!

The rules were more important than the customer

It would have been thoughtful and an easy way to make a connection with a customer, and gain a new fan. But no. Instead, they followed the “rules.” They did what the manual and the lizard brain (don’t stick out, don’t make your own decisions, be afraid) told them to do.

So, instead of a rave, they get a big Bronx cheer.

Manuals are great when they protect you from dangerous mistakes (turn off the electricity before you touch an exposed wire). They’re not so good when they create a barrier between you and your client.

Image: morguefile

Is Your Business Niche Big Enough?

hamsters in a wheel

Is your niche big enough?

Sometimes businesses make the mistake of thinking too big (trying to sell too many things to too many different types of businesses and people).

However, you can also make the mistake of thinking too small. You may want to sell sandals for hamsters, but that doesn’t mean anyone will want to buy them.

Yes, build a tribe. Yes, focus on a narrow niche – but not so narrow that you and three other people are the only ones in it. If you do, your business won’t have enough customers or prospects to survive very long.

Do some research first

Check Google. How many results do you get for “sandals for hamsters” (with the quotes)?

Is there a newsletter? A magazine? How about blogs? Are there any other sites selling hamster footwear?

Find a good angle

If you want to focus on hamsters, maybe you need a different angle. Like hamsters 101, or hamster accessories. Or build-your-own hamster habitats.

If there are people who share your interest, they’ll be on the Internet – they’ll have forums, magazines, blogs, Facebook groups, and events.

Hamster shoes are, of course, silly. The real point is to do some research and make sure there is a market for what you want to sell (hamsters with cold feet?), that it’s big enough to support you, and that they can afford/find value in what you’re selling. $5,000 gold and diamond hamster shoes? Probably not. How about a nice plastic wheel instead?

Photo: cdrussorusso

Email Marketing Best Practices: The Truth About CAN-SPAM

spam with bacon

Once, the name of a cheap lunch meat, spam has now become synonymous with unwanted advertising. In order to fight this, the US Congress and the FCC passed CAN-SPAM laws, designed to help consumers manage their email inboxes, and stop unwanted email.

The original law, signed in 2003, was called: Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003 (or CAN-SPAM. The legislation was later modified in 2008.

The act regulates commercial email messages, which is an email message meant primarily to promote or advertise a product or service. It can be e-books, jeans, flowers, anything.

CAN-SPAM is really opt-out, not  opt-in.

It does not require opt-in (explicit permission to send emails). In fact, before CAN-SPAM, many marketers (at least the reputable ones) worked very hard to get permission before sending emails.

There was a raging debate (still is) over whether single opt-in (sign up and you’re on the list) or double opt-in (a two-step process requiring that you first sign up and then confirm it) was required.

What the email law mostly does is focus on rules for opting-out (removing yourself from email lists).

It does not require opt-in (explicit permission to send emails). In fact, before CAN-SPAM, many marketers (at least the reputable ones) worked very hard to get permission before sending emails.

There was a raging debate (still is) over whether single opt-in (sign up and you’re on the list) or double opt-in (a two-step process requiring that you first sign up and then confirm it) was required.

What the email law mostly does is focus on rules for opting-out (removing yourself from email lists).

email marketing best practices and can-spam rules

Here’s what CAN-SPAM does require you to do.

You must:

  • Include a visible, working method to unsubscribe (opt-out).
  • Remove names from your list within 10 days of receiving the request.
  • Maintain an opt-out (suppression) list. In other words, once people opt-out, you may not mail to them again (except to confirm the op-out), either directly or indirectly.
  • Accurate “from” and header fields (you can’t conceal where the message came from, or spoof someone else)
  • The subject lines must be relevant and can’t be deceptive
  • The message must include a legitimate physical address (this can be a street address or a P.O. Box).
  • Remove people for free. You cannot charge a fee or ask for any information other than an email address to process the opt-out request.
  • Make it easy to opt-out.  There should only be a single step, either an email reply message saying “unsubscribe” or “remove” or a visit to a single web page.You cannot require people to login to their accounts.
  • If more than one company is sending a message, one of them must take responsibility for complying with the rules.
  • Follow the rules whether the sender is a single individual, a corporation, or several corporations or businesses.
  • Remove people who ask from your list, and from the lists of any of your business subsidiaries or marketing partners. If someone opts out from messages from The Gap, and The Gap shares its list or does a co-promotion with Banana Republic, they have to make sure you don’t get that email either unless you say otherwise.

You can allow subscribers to adjust their preferences (removal from newsletter A, but not newsletter B), or offer them less frequent emails.

Transactional messages (such as confirming your order, or acknowledging receipt of an email) are exempt, as are emails to existing customers (unless they opt-out, or specifically say “stop”!)

Best way to email your prospects

A web designer on LinkedIn just asked if it was OK for a client to send a new email newsletter to a list of potential prospects.

During her initial meeting with the client, she correctly told them that reputable email marketing services require opt-ins.

After the meeting, she did more checking and found, to her surprise, that opt-in is not required by CAN-SPAM.

She wanted to know if there was an ethical way to send unsolicited email to a list. Or was that a really bad idea.

CAN-SPAM encourages more spam

She’s right. It’s technically legal to send emails without permission, under CAN-SPAM.

In fact, CAN-SPAM actually encourages more spam. Before the law was passed, marketers worked very hard to get permission to contact people via email.

There was a great deal of debate over whether single opt-in (just enter your email address) or double opt-in (type your address, and confirm it) was required.

Technically right doesn’t mean ethically correct

So, it’s technically OK, as long as you include your physical address, provide an opt-out link, and use a real email address.

It may not legally be spam, but the people who get it will perceive it that way. Your message is more likely to get bounced, blacklisted, or stuck in spam filters.

One reason for using AWeber or Mail Chimp, is because they have a high delivery rate, are a recognized legitimate mailer, and will also manage opt-outs, bounces, etc.

And, before you send email to any list, make sure you know where it came from. Did you “buy” it (the quality is probably poor, and the names scraped from contact information on the Internet, or build it yourself? Were those names collected recently? If they’re from the design conference you went to in 2008, they’re no good. Those people have forgotten about you. If you email them, they will probably think it’s spam.

Image: brownpau

P.S. My free ebook “Email Marketing Made Easy” has lots more tips about email done right. You can download it here. No registration needed.