A “loss leader” is essentially an item sold at or below cost.
These products are primarily used to attract new customers.
Their purpose is simply to get you through the door in the hope that you’ll buy more products.
(This is also why they’re known as “door busters.”)
This strategy is widely used in the retail industry and has worked for decades.
It’s also a strategy which online entrepreneurs can use with equal success. More importantly, it’s a fantastic way to build your list. Remember, the bigger your list, the more money you’ll make. Not only that, people who have already purchased something are more likely to purchase something else. Another benefit of this idea is that it’s cheaper than advertising on Google, Facebook, or Twitter.
If you’re interested in using this strategy, then here are the steps you need to follow:
1. Find affiliates and joint venture partners
Look for people with big lists who sell similar products to yours. Get in contact with these people and let them know what you have on offer (just note that it’s best to establish a relationship before you launch into the business side of things.)
2. Create your product
At this point you should already have a product to sell. Price this product at $39 (I’ll explain why in minute.) If you don’t have a product then it’s time to create one. The most important thing is that your book is highly valuable and appeals to the market. Creating a quality product also increases the chance that affiliates will choose to promote it.
3. Offer affiliates 100% commission
Approach affiliates and suggest they sell your $39 book to their subscribers for only $19. This way they can give their subscribers a $20 discount. Doing this greatly increases the appeal of your product. Also tell these affiliates that you’re not going to offer the usual 50% commission. Instead you’ll give them 100% commission. This also greatly increases your chances of recruiting affiliates.
4. Provide email swipes
Most affiliates are lazy and don’t want to write their own emails. This why it’s a good idea to provide them with email swipes. Writing these also increases your chances of making sales. After all, as the product creator you’re the person most familiar with your product…and can therefore write the best copy.
At this point you’re set.
If everything goes according to plan, affiliates will send out your emails, make sales…
…and you’ll add hundreds of names to your list.
(With almost no effort.)
What’s more, you can then market additional products to these subscribers…
…and actually start making some real money.