The ‘Loss Leader’ List Building Approach Rocks!

By Michael Stelzner

If you sell any type of information products, what I am about to mention is a brilliant strategy to build your list AND develop strong affiliate partners.

Now, first let me admit that I did NOT come up with this, rather my good friend Bob Bly did (author of 70+ books).

Here’s the strategy (which I think is VERY sound).

Step 1: Take one of your info products that you typically bundle with other products as a bonus.  It must have a price tag on it.  Let’s say $39.

Step 2: Approach someone with a big list.

Step 3: Offer to provide the product to their readers at half-off the regular price.

Step 4 (this is the big one):  Give the potential partner 100% of sales he/she generates from his/her list.  So if you offer your $39 product for only $19.5 and that partner sells 1000 units, the revenue to the partner is $19,500 and to you: a big fat zero.

Step 5: Welcome the new buying customers to your list.  You now have a bunch of new “buyers” on your list who you can make money off over the lifetime of the customer.

Main Benefit: Everyone wins.  You get a bigger list of people willing to purchase, your partner gets great money and the partner’s readers get a great deal.

If you want to learn more about this strategy, read Bob Bly’s free ebook on the subject (no registration) here: http://theinternetlossleaderstrategy.com/LossLeaders_Final.pdf

What do you think about this??  Lets hear from you.

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  • http://SourcesOfInsight.com J.D. Meier

    Very crisp and clear write up.

    I like the fact that the approached is based on relationship building and long term value vs. one-hit wonders.

    J.D. Meier’s last blog post..My Favorite Personal Development Books

  • http://www.marketersworld.net/ Schan Ezan

    Hi Michael,

    That seems a very good tactic. A win-win solution is always a very good tactic.

    I stumbled with Butterfly reports recently, and thinking that maybe we can use the same theory. Instead of creating a free report filled with affiliate links, write a report which links back to another free report which requires readers to Opt-In. Then, submit your report to butterfly report.com and let those people there use it as their Opt-In giveaway.

    Them – They get good free reports to use as giveaway.
    You – Get to increase your list.

  • http://N/A Ntarugera François

    Mike:

    I find this approach of win win solution as good tactic if only it is achievable.

    But one question for the year 2009: Why this loss leader doesn’t have more readers as it is looks in the response space?

    Ntarugera

  • http://8disk.net Silvia

    yes good tactics are needed in such times,I ‘d rather say unpredictable times.

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