Podcast Summary
Balancing goodwill and offers: Maintaining goodwill is essential for making more money. The more conversion points, the more offers, the less goodwill. Successfully managing this balance is crucial.
Building goodwill in a marketplace is crucial for making more money, but each offer made can decrease goodwill. The balance between goodwill and the number of offers is important. Frank Kern introduced the concept of goodwill being directly proportional to the amount of conversion points and the amount of offers made. However, making more offers decreases goodwill. Successfully managing this balance is essential, as opposed to nickel-and-diming customers with multiple upsells. By focusing on maintaining goodwill in the audience and customer base, businesses can make more money.
Considering the goodwill cost and monetizable value of offers: Focus on valuable add-ons or free services to build goodwill, prioritize these offers, and effectively communicate their value to maintain positive customer relationships and maximize revenue.
While making offers to customers can increase revenue, it's essential to consider the goodwill cost and monetizable value of each offer. From a consumer perspective, an offer is a binary event - either you're providing value or asking for payment. However, not all offers are created equal. Offers that don't generate significant revenue but still cost goodwill are a net loss. Instead, focus on offering valuable add-ons or services for free to build goodwill. When selling internally or externally, it's crucial to explain the value of these offerings to maximize their impact. In essence, prioritize goodwill-building offers and effectively communicate their value to maintain positive customer relationships and maximize overall revenue.
Depositing goodwill into a client base: Provide value and build strong relationships to create a loyal customer base, making it easier to expand your business.
Building goodwill with clients is essential for business growth. This can be thought of as depositing goodwill into a "bank account" for future extraction or building up pressure in a customer base before releasing a new offering. The more goodwill you provide, the more likely you are to fill up the next level of your business without much effort. As Gary Vaynerchuk emphasizes in his book "Jab, Jab, Jab, Right Hook," the key is to give more than you ask. By focusing on providing value and building strong relationships with your clients, you create a loyal customer base that will naturally follow you to higher-tier offerings. So, when expanding your business, make sure to fill up the base with goodwill before introducing new, exclusive services.
Providing value for long-term profitability: Focus on providing value to build goodwill and maximize long-term profits, rather than constantly asking for small upsells.
Providing value and building goodwill with your customers is more effective for long-term profitability than constantly asking for small upsells. According to the speaker, this approach not only helps in creating a strong customer relationship but also allows businesses to maximize profits in the long run. Instead of focusing on multiple small revenue streams, businesses should strategically choose the opportunities that have the most potential for significant growth. The speaker also emphasized that goodwill is a crucial factor in making the most money from your customer base. By providing value consistently, businesses can build up goodwill, leading to an overwhelming surge of business that is both profitable and beneficial for the brand. Therefore, it's essential to be mindful of the opportunities to monetize and focus on providing value to your customers to create a loyal customer base.
Sell the value of your content: Believe in the value of your content, communicate it effectively, and establish a strong relationship with your audience to increase chances of success
Providing value to your audience goes beyond just creating and sharing content. To build goodwill and position yourself for future opportunities, you must sell the value of your content as if you were charging for it. By doing so, you create a sense of appreciation and reciprocity that can pay off in the long run. This approach requires genuine belief in the value you're offering and effective communication of that value to your audience. By following this strategy, you can establish a strong relationship with your audience and increase your chances of success when you're ready to monetize or make a move in your industry. So, keep providing value, sell it with conviction, and watch the goodwill grow. Happy New Year, and I look forward to connecting with you soon.
