It’s been said that on the Internet “Content is king.” Well, if content is king, then relationships go cha-ching!
And even Tom Petty knows “It’s good to be King!”
(you can register below to listen to the entire song free)
Of course, cha-ching is the sound of the cash register ringing—the sound of making money.
Another popular online marketing adage is “The money is in the list”—meaning if you have a list of prospects and customers, the money is in farming the list.
In reality, the “Money is in the relationships,” including relationships that are embodied within mailing lists.
No relationship = no money.
Great relationships = great money.
These “Circles of Trust”, as illustrated at the top of this post, are where the real money is made. Get inside one of these major circles, and you’re in the money. And the more of these circles you become a part of, the easier it becomes.
Tapping into these circles of trust is probably the biggest untapped potential for social networks to create tangible value for online businesses.
One of the fastest and most reliable ways to make money online is to build relationships and then turn them into money. Sounds simple enough…
RELATIONSHIPS = MONEY
For example, let’s say you have a friend or business associate that has a newsletter and blog in your target market. Let’s assume this person has built a following of 30,000 newsletter subscribers and 20,000 regular blog readers per month.
These aren’t uncommon numbers on the Internet; in fact, these are relatively small compared to many people I know personally.
So, you convince this person that it would be in her subscribers’ best interest to know about your new product. As an added incentive, you agree to pay her a 20% commission on every sale you make from her subscriber base and blog. Never mind exactly how we will track those commissions (it is easy) for now.
I am going to use this concept of a “Trust-O-Meter” (below) to depict how much trust a prospect has developed in us. The following Trust-O-Meter shows how much our associate’s audience trusts her:
Like a thermometer, the Trust-O-Meter represents the level of trust and relationship strength, in a simplistic way, so we can conceptualize it better. As we see above, our friend’s audience not only trusts her, they like her. We might even consider extending the scale further to the right by adding “Respected” (not shown here).
Why Affiliates and Bloggers Are Trusted
Continuing the affiliate example above, since most of her audience has been with her for some time, they have not only developed a high degree of trust in her, but they also like her. Going beyond trusted to liked is a sure way to make more sales—a lot more sales.
So, we were introduced by our friend and associate to her audience. What is our Trust-O-Meter reading with them at the start?
Because we were introduced by a person the audience (those on the affiliate’s list) both trusts and likes, we get the benefit of the doubt and begin in a semi-trusted state with her audience.
We will have to earn the rest of their trust…
Together, you and your friend come up with a strategy for communicating and involving the subscribers:
- An initial email and blog entry that introduces you to her community
- A free teleconference where she interviews you about a hot topic of interest
- A recording of the free teleconference posted on the blog site and a brief email note sent to the subscriber list
- A free giveaway item you provide that is relevant to her audience
- A “special offer,” a time-limited discount on buying your product!
Assuming your product can interest the majority of the 50,000 audience your associate has just introduced you, guess what just happened from the above steps?
First, a foundation of trust and respect existed between your associate and her subscribers and readers. Second, she introduced you to them. You are no longer considered a stranger, so you instantly became semi-trusted.
Next, your free teleconference gave those who attended an opportunity to learn firsthand what kind of person you are and to ask you questions and see how you responded. In effect, you became an authority who is operating at nearly the same level as your associate, and perhaps even at a higher level in your particular area of expertise.
Incidentally, everyone who actually registered for and attended that teleconference just became qualified leads for your product, since they invested some time with you.
Next, everyone else who listens to the recorded teleconference audio also trusts you more (assuming you didn’t blow it during the interview by trying to sell something!) Notice how you have moved up in the Trust-O-Meter!
Next, you gave away some of real value to her audience. This shows what a stand-up kind of person you are, someone who cares and is trying to help.
Finally, she pitches the special offer for your product to the subscribers and audience. In this pitch, your friend is effectively endorsing you and your product, which confers an even greater amount of her trust equity onto you.
I call this “transitive trust,” since her audience now implicitly trusts you primarily because you have been endorsed and approved. Why do you think companies pay so much to get celebrities to endorse their products? Because they are both trusted and liked by so many.
Now, let’s run some numbers to put this example of ours into the proper perspective.
Out of 50,000 subscribers, only 50% are even mildly interested in what you have to say or offer them, leaving 25,000 potential prospects.
By the time she makes these 25,000 the offer, around 40% have enough interest and familiarity to open the email and learn more (This is your email “open rate.”) That is 10,000!
Out of those 10,000, about 25% click through to get more details on this special offer— that is 2,500 qualified prospects that now show up at your website (instead of her blog).
Let’s assume your offer is truly special and motivating to the buyers who have an immediate need and budget, and now trust you enough to buy from you. Let’s assume that 20% end up buying your product over the next 30 days as a result of this campaign.
So you make 500 sales! About 1% of her total subscriber base ended up buying your product. Not bad for a brief campaign with this associate of yours. Let’s say your product sells for $100. You just generated $50,000 in sales.
Let’s say your product sells for $995. You just generated $497,500 in sales! Now you are talking!
What just happened here? You went from zero to half a million in sales and 500 new customers in a matter of a few weeks. That is what happened. What other business do you know of where those kinds of results are possible? It happens somewhere on the Web every single day.
The truth is, this happens in online businesses all the time. In fact, I’ve seen product launches orchestrated with multiple partners who have large subscriber bases sell many thousands of units in less than 24 hours—generating millions of dollars in just hours.
All of this is only possible when you have the right relationships in place.
Remember what I said: Relationships go cha-ching! It’s so true.
And, it’s good to be King!
Tags: affiliate marketing, blog, bloggers, blogging, cha-ching, circle of trust, content is king, Email Marketing, email relationship, lead generation, lead nurturing, money is in the list, money is in the relationship, online relationships, relationship development, relationships, relationships equal money, Social Networking, social networks, subscribers, trust, Trust-O-Meter, trustedRelated posts:
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