This is the episode where we dive deep, deep down in to the local business marketing model.
You’ll discover exactly
- what it’s all about
- whether you’re suited to it
- how to set yourself up as a local business marketer
- what tools you’ll need
- even how to price yourself.
Quote of the show – “I equate that to having a Ferrari parked in a dark alley with a cover over it!” – James Schramko on poor website development.
Links & Resources mentioned in Freedom Ocean 6:
Custom websites from $299 – Built by James’s people using WordPress.
Smart SEO -This is James’s traffic supply service. All done for you.
Traffic Grab – James’s brand new product that will show you how to attract some serious traffic!
1. Be the first to know when a new episode is launched. 2. Receive a transcript of every episode. 3. Discover valuable tools and resources that will have you swimming in the Freedom Ocean sooner than you ever thought possible.
Subscribe via iTunes
Tim: In fact, yes it is. What I’m loving in this Ocean is that everyone is engaging with us. People might not know, listeners may not know but we don’t do the shows each week, one show a week, where actually up here you’re in the lab and we’re bet to knock-off quite a few. So it don’t necessarily have the benefit of weekly feedback that said, we’ve now got 5 shows out there and we’re getting wonderful engagement really knowing what people are thinking and much more importantly wanting to hear from us.
James: Yeah, I think this whole engagement topic should be slated for us to discuss at some point Tim. And I’d also be really interested to know if our audience would like to know some of the things that we’ve actually done like a case study sort of point of view. What things we’ve been doing with their own-
James: Internet marketing related business that they could perhaps apply to their own business? Because the same things we are doing will work for just about any business.
Tim: Well, that won’t be the topic of today’s show but it will be a topic of a forthcoming show because as you all signed before we hit the record button, we have – what’s happened since that fun call a few months ago where I rang you and said, “James, I think there’s a podcast audio here and from that point we now have 5 episodes out there. We have a YouTube site; we have a Facebook Fan Page where people conversing with both us and each other. We’re out there on our individual Twitter’s watching blogs. It’s everywhere, and I think it’s going to be very interesting I’m sure, I hope, our listeners will be interested on how that came to be.
James: Well, one of the other things we have is a customer database where people actually want to hear from us.
James: We could talk about some of the interesting points that I guess quite often I’ve overlooked from my experience when I’m talking to businesses. Things such as how many people actually join a newsletter list and how many people then open e-mails for that newsletter list. These are just some of the things that I think are very important in a business that so many businesses could benefit from. If people are interested in that sort of information, I really think we should discuss it at some point.
Tim: I am astounded at the up and rights we’re getting on the e-mails we’re sending out. They are fantastic and the responses we’re getting from them. People know, well they’ve known now because in their last e-mail we said just hit reply and ask us a question [laughs]
James: [Laughs] well, that’s fair isn’t it? You mean you can actually contact the person. You don’t have to – I love those no reply e-mail back. It says, “Sorry, no one is reading this e-mail…”
Tim: Ain’t that bizarre?
James: They might as well just say, “Look, we just don’t give a shit about you at all.”
Tim: Absolutely. And I think internet market is in particular although, large corporations do this.
James: They do.
Tim: But internet market in particular often hide behind pseudonyms or something whereas I think clearly what’s worked for us, one thing that’s worked for us is that here we are, you can reply to an email where you can get on the Facebook and I’m loving the conversations here in what people are – I am personally loving the fact that there are a lot of small business owners of bricks and mortar, product and service based businesses listening to this show which was a dream of mine. There are a lot of internet marketers listening to the show as well which we would expect. But it’s wonderful because I strongly believe that the good internet marketers are doing things that are so incredibly relevant to the marketing of small business these days. And yet, they’re not finding out about them.
James: I remember talking to a local business about their e-mail form on their website speaking of access to the customer. And I said to them, “Look, there’s something missing from your form.” And they said, “What?” I said, “The DNA sample.” They’re like, “What?” I said, “Well, you want everything else.
James: You want their name, their address, where they live, their phone number,
Tim: Surely you want some blood.
James: Their second phone number, blood type, I mean you’re just missing the DNA sample.
James: No wonder nobody is filling out the form.
Tim: It’s funny you do, I signed up- I’m running a discovery session with a client next week about discovery sessions. So when I do that I generally sign up for whatever they’ve got going so I can get a sense of what they’re about. And he had a pop-up on his site. So it was great. He’s in the financial planning area. Popped-up, unfortunately the form it didn’t require DNA, it did require blood group laughs] but no it was a lot. I mean why, why. Seth Gordon in permission marketing which I think we might have touched on before, it’s an old book but a good book and what he does say is ask for the simple stuff. First name and an e-mail and then overtime as you get to know them and they get more trust then you can slowly ask for more. It’s not even in real life, is it? You meet someone and you say, “Hi!” Yeah, second, third time you meet them, “What’s your number?”
James: I wonder if our listeners have gone along to freedomocean.com and seen what details we asked for. You’d think that us putting out a website and asking for subscribers would be using some of the ideas that we’ve talked about.
James: Now here’s a thought Tim, you might be surprise or maybe not to know that a lot of businesses are quite eager to pay somebody to learn about more advance internet marketing strategies as it becomes apparent that the internet is here to stay. There’s a whole business around that. Would that be a good topic to talk about today?
Tim: I do. I do. What would you call that topic?
James: Well, I call it local business marketing or local business consulting and it’s one of my passion businesses because it was the one that allowed me to step away from my job.
Tim: Okay. Well, I think that will be the topic of today’s show. And just for those listeners who are wondering because we have got a lot listener’s questions James, I’m talking lots of pages and pages which are fantastic. What we are going to do, today, we are going to cover local business marketing or local business consulting and then in the next show we’re going to take some listener’s – we’re just going to go with some listener’s questions.
James: Let’s do the hot seat.
Tim: The hot seat. You’re exactly, right.
James: I want you to fire them. Tim’s got a million questions and they’re his and others [laughs]
Tim: Yeah and in fact one of our listeners did say, “I love the fact that you’ve asked the questions from us but I thought you would have got all the questions so….” Yeah, well I am but I think in the spirit of this being a show for the people, I think everyone should have the opportunity.
James: It is a two-way street here. This is one of the – let’s go back to engagement here. It’s not about us creating something and then pushing it out to the marketplace. It’s actually a responsive dynamic situation where we’re creating things that are actually useful for our audience and in order to continue to that core thing to have integrity, if you like, we really do put a lot of effort into making sure that we’re covering the needs of our audience base by asking them what they think and demanding feedback. And I love seeing the comments on iTunes, there’s lots and lots of comments but it’s what is said in the comments that actually drives the future of the next podcast.
Tim: Absolutely it does. Okay, well let’s gets talking into today’s topic which is local business marketing, heading the front is James, what is it?
James: This is simply a case of where you have some internet marketing knowledge. You don’t have to be technically competent. You just have to understand that the internet is a marketing channel and that there are suppliers out there who supply services to a competent level and you’re deal is to more or less be the middleman to join up an internet marketing supplier and we’ll go further in what a supply might actually do to a customer who has a need which would typically be a business. Now, the very, very large corporations have in-house stuff and they’re very, very difficult to deal with. They’re laid in bureaucracy and 5-year contracts with suppliers. They’re very difficult to crack. Then there’s the Mom & Dad, the one or two person business that’s just too small that they’re not making enough money to be a useful client for you or for them. It would break them. But in this SME market as we call it, in the strategy, the small to medium enterprise, there is huge opportunities for a win-win situation where your client is going to be better off, your supplier can get work and you get to profit from being the matchmaker. It’s really just being a matchmaker.
Tim: So it’s as simple as you’re the – it’s an online consultant. It’s almost an online strategist taught position?
James: Yeah, I think strategist is the better position to take rather than the technician.
James: Now this is where a lot of people come way on stuck. They might be handy with doing websites or search engine optimization and let me know if I’m getting too technical.
Tim: Yeah, I’ll get the fun bog out.
James: That’s it, I’m just nervous now.
Tim: Yeah [laughs].
James: So you might be good at the technical skill and you think well, I’m just going to go and get someone to pay for my services. But there’s a massive problem with that and that’s capacity, there’s only so many websites you can build and there’s only so many websites that you can help get a better ranking in Google. So, the better business model is to be the strategist and to facilitate the business online but not to actually do the work, not to supply the end product.
Tim: It’s quite exciting that idea because I talked to a lot of the clients that I come across in the small to medium business world and this concept of the virtual marketing team is so achievable these days. Many small to medium businesses would just think not in a million years could they have a marketing team on board. You couldn’t have done that 10 years ago it would have been too expensive and too hard to access. But thanks to the power of outsourcing these days, the idea of having that – surrounding ourselves with specialists to cross all areas of marketing is quite possible. And the strategist is that person who can bring us together for the local business.
James: Yeah and it shouldn’t be too hard a concept for people to grasp if you would have use perhaps a metaphor or an analogy.
Tim: Here we go Ocean.
James: Ocean, let’s see, have you ever been to a fish and chip shop?
James: And you’ve bought your….what would you buy there?
Tim: I’ll get the fried flake.
Tim: A couple of them is while I’m waiting for the order to come through [laughs]
James: Okay, flake that’s like shark. Is that a fish?
James: So you might see on the shop sign thing they might say something like, “Our fishes cook the finest ingredients or whatever.” Now, did that fish shop actually catch the fish?
James: Did it own the boat that caught the fish?
James: Did it own the fishing or the reel, the hooks, the bait? It doesn’t actually have to be the person that does everything. They’re all really is to introduce the buyer, the hungry person to the meal. And they’re going to make up that meal from various suppliers. They’re going to have the flour delivered in the truck from the flour company. They will have the oil delivered from the oil company and they’ll have the fish delivered from wherever the markets. And they’ll put it all together and package it and market it and sell it to you for markup. That’s pretty much what’s going on here. But in this case, we are like the small business internet marketing shop and we are selling a meal to the business. We’re helping them with their online efforts. We’re not going to be going out and getting all of the raw ingredients ourselves. We’re going to outsource that. We’re going to find them from other places and put them all together and package it up at a margin.
Tim: It’s pretty much a marketing consultant but one who is specializing in the online world.
James: Exactly. A marketing consultant is a perfect term for that.
Tim: It’s not an inspiring term, marketing consultant, I do like the word strategist.
James: Consultant always cracks me up.
Tim: Yes, it does.
James: It’s like that story of Betsy and her little cat Freddie who’s out doing the rounds and the neighbors are asking, “How’s Freddie?” And she said, “Look, he’s still out doing the rounds and Freddie had an operation.” She said that, “He’s just consulting these days.”
James: And really, it’s like.
Tim: Off the tools.
James: Yeah, it’s like consultants have no balls because otherwise they’d be doing it themselves.
James: Now, there is some truth to that and I mentioned before that I started, this was the thing that got me out of my job, the other thing we really have to work on the whole strategy and mindset behind this because if you want to go into this thing, you will have to make a decision early on, is this your whole business? Or is this a side business? Because what I’ve found was it’s a great way to bring in cash, it is a very powerful business model and there’s huge opportunity but it also means you have customers and as you know I have certain lifestyle standards and that means that I don’t want too many customers because customers can also bring issues such as expectation, demands, requirements, stuff ups, delays problems, bad billing. These are realities of business and that’s-
Tim: That will be your customers out there [laughs].
James: I laid it to all my customers. No, I love my customers because they’ve passed the test. They have gone through the filter and they would what I would define is the perfect customer. And I would also suggest that my customers are actually very happy dealing with me because most of them got into my internet marketing consulting type programs when I didn’t cost as much. And so whereas now my day rate would be $10,000, some of them are on a recurring monthly maintainer, a maintenance package and they would have been on that for 3 years. So those early customers invested in me and I return that favor. I actually said to them. “I’m going out on my own, this is what I do. Would you like to come on board? Whoever takes me up first will get the first deal ever because you’re taking a risk on me and I’m taking a risk on you.”
Tim: And the price goes up.
James: I haven’t actually had a single customer leave yet in 3 years.
Tim: Tell me, this model; let’s talk practical terms about how this model plays out. Okay?
James: Yeah, there are some issues we need to talk about.
Tim: Yeah, there are. So, you’ve got the person – who’s it suited to? Before we talk about the practical issues around – how the model applies out. Who’s this model suited to?
James: This model is suited to somebody who considers themselves reasonably confident and fairly business minded. This does not suit overly technical people because they will find themselves obsessing and trying to perfectionalize over the actual deliverables.
James: So the example there would be I gourmet chef would not be the right person to run the restaurant business in many cases because they’d be obsessed over the food and the ingredients and the temperature instead of making they have enough covers for the evening and process enough orders. So it actually suits somebody who’s good at project management. That would be one of the top skills that I would recommend somebody investigate or develop. And also suits someone who has a reasonable sales and marketing attitude. Because as soon you understand this is a sales transaction, you are buying and selling. It’s trading.
Tim: Okay, and clearly someone who’s got some insight in being able – in going to a business, see where the problems are, and provide solutions, they’re going to hit that business objectives.
James: Most consultants have the prerequisites. If someone was currently selling the yellow pages then they could easily switch to this type of business model.
Tim: Well I reckon there might be a few of them who will be looking to do that in the coming months.
James: [Laughs] well I know you are already – I know there’s already Tim Reid dartboards in the yellow pages head office.
Tim: [Laughs] correct. Tell me, okay, so we know who it suits. Let’s play, give us a practical example of this model? So does the strategist I guess, they recommend the solutions, the suppliers to address business problems, create things, it might be websites, it might be SEO, it might be Pay per Click advertising. Do they provide the introduction and then step away or do they manage the entire process and deliver it to the client?
James: Well, there are a few ways to do that and I do both. One way is to do a maintenance package where the client pays you an amount per month. And for that amount per month, you just take care of everything. That’s like when you take your car for a service, all you want them to do is take the car behind the wall and bring it back brand new. You don’t want to see the sparkplugs, the oil, the rags and the gun overalls. You don’t want to know that. You just want the job done. So does that talk of relationship? And then there’s the other one where you are actually where you’re actually getting paid as the expert. Where you are the person with all answers and then you are introducing them to the end supplier. And the end supplier can deal directly with them and invoice them directly. But you are getting your maintenance for your consulting fee regardless.
Tim: From the business.
James: From the business.
Tim: No the supplier.
James: Correct. Now, you may also get some consideration from the supplier but in most cases you want to just make sure that you clear about how that works with you customer.
Tim: 100% transparency.
James: Your loyalty lies to the customer. So what I’d do with my customers is I’ll say I’ll introduce to my suppliers and I’ll instruct them to deal with you at the same rates they deal with me. So that will get wholesale rights rather than a markup and they get a kickback. Because they are paying me to advise them and give them the best advice. So you can do that any way you want and I’m sure some people play it both ways.
James: But I actually current run both of those models right now. I have people who pay me in amount per month just to tell them what to do and to introduce them to people in their own team. So this will typically be a larger business that will usually have 3 or 4 people who I meet with on the firm once a week. And we have a little meeting about what the strategy is. What are tactics being played out and where they’re up to? And then the other one is where the customer is completely hands off, hardly ever heard from them and they just pay them out per month. And for that, we actually subcontract services and manage the whole campaign as if it’s one of our own web businesses.
Tim: Okay, so typical products that a strategist, the local business strategist could have in the kit, in the toolbox to take the local businesses. What are we talking?
James: We’re talking the obvious stuff like websites. That’s the foundation for most.
Tim: It is.
James: You’re online real estate.
Tim: I cannot believe the amount of small businesses that I continue to speak to. I don’t know where I touch on this last episode. I don’t think I did. But I’m went into Country Victoria and spoke to 120 or so small business owners. Some of which still didn’t have a website. A surprising amount didn’t have a website and upon asking why, the answers were two-folds. One, they didn’t know how to go about getting one or they just thought it was going to cost them thousands of dollars. So maybe not a little informed but just not up with it.
James: Yeah, it’s just there yet. Websites now you can have from $299.
Tim: Yeah, well tell us about that.
James: Well, actually this is funny. I’m taking my own advice here, I evolved my original business where I was doing this myself to figuring out that other people would want to learn this and should be doing it and it is going to be a big thing. So my little article predicted this was coming down the path and I actually said to my wife, “My God, in terms of timing and positioning, we’ve just hit the jackpot.” Because I’ve always have an act of timing. I mean when there was a recession on the last time around I was debt collecting [laughs]. And in the good times and the credit burn I was selling luxury prestige vehicles.
Tim: [Laughs] right.
James: Yeah, I’ve got a gift of timing for some reason and I recognized this as big. So what I did is actually developed web development business and a search engine optimization business. I certainly tried a few others because you don’t always get everything. I’d tried Pay per Click management. I tired logos, that sort of stuff. But there are some reasons why those businesses are more difficult and we might even get to that. But I put these businesses in place so that I now have somewhere to take all of my students to who – I’m telling them to do this model but how do they actually get supply. So I’ve just to lead you out of that whole problem. Now I can go straight to the supply and get the websites. Also, I can go straight to the search engine optimization and get search engine optimization at whole sale prices. And now they literally double the price and sell that to the end customer. That’s pretty much the rule of thumb. And this is one of the things that you have to consider. When you’re going into this business model, I’ll just recap it’s making sure you identify how heavy you want to go into it. Secondly, you want to get yourself setup with the right advice from an accountant and the lawyer because you’re in a business here. Make no mistake this is a big moneymaker. In my first 12 months doing this business I generated well over $100,000. Now for most people, that’s really time to go and see your accountant and your lawyer and start thinking about other considerations like liability, insurance and tax. It might sound really scary but it’s not. An insurance policy with a big company and a session with your accountant and lawyer should see you with the right company structure, the right sort of protection, and then you’re good to roll. That one step, if you get that setup, you’re now committed and you’re into this business model. The next stage is actually quite easy. It’s identifying suppliers and I’ve just mentioned we’ve taken care of that for my students. Anybody listening to Freedom Ocean connects us the same supply source. If you like, we can put on now to our products page.
Tim: Yeah, we should. In fact their products page as we do the show is going to take on some serious development in the next couple of days while we’re together. So our paper will be able to go to the products page on Freedom Ocean. And here from you and I going to reach the products and explaining who it’s for, who’s best to utilize it.
James: Exactly what it is, why it came about.
James: What the hell I use it and we’ll be guided by the questions we will save on those pages.
Tim: We’re getting a lot of questions from listeners which we’ll go through in the next show. But they are – there are a lot of people wanting to know at what point? Where do you dive in? Which part of the ocean you dive off the jetty, you’re wondering?
James: Well it’s just with this particular business model, if someone is listening to this now, they already know if this is their model. If they’re scared shit with some of it, they should move on to the next one [laughs].
James: The more passive ones, the less assertive ones. This one is high reward but you’re going to have to put your confidence out there. you’re going to have to be the expert and you’re going to have to go and deal with business owners either face to face over the fun or if you’re very strategic, there are ways to actually have the customer coming to you where you don’t have to do any cold calling whatsoever. But you still have to be a business operator and a project manager.
James: And you’ve got to be able to deal with that customer when they want to know where they’re websites’ up to or they want to change something or like with their invoice or whatever. You’ve got to be able to support yourself and be ready for that. However, if you do that, you certainly can. I know of some who’s build a million dollar business off my idea about this from 2 years ago.
Tim: And is that the one I’m looking at right now?
James: No, it’s not.
Tim: [Laughs] podcasting is not a visual medium. Sorry, this is what I was going to mention because you talked about I mean you don’t have to be the cold calling expert to live this business model.
James: You don’t.
Tim: And most people will go either we’re turning of now if they think they have to be because most do not want to do that.
James: Well, let’s put that carrot there but I think we should not get there yet.
James: I think there are a few steps in between.
Tim: Not get where? To this business model that…
James: To this secret magical,
Tim: This little secret magical thought that I’m looking at.
Tim: The poor listeners, they just…
James: Well, sorry.
Tim: We’re now talking in – we’re talking in tongues.
James: Right after this commercial [laughs].
James: No, seriously,
Tim: But there is a menace. Okay, well we will have to mention this at some point.
James: But we’re almost there too.
Tim: And the fact is I love it. But people don’t know what we’re talking about but hey let’s build some excitement. I love what we will talk about in the future because not only does it mean none we’re cold calling and looking at the method it looks as it’s a method setup where customers are going to be calling you.
James: Well, let’s talk about how it got invented.
Tim: But it’s a beautifully produced product.
James: It is.
Tim: It is. So I’ll leave it to you as to when we mention that.
James: We’re almost there. But I just want to talk about supply for a minute.
James: If you’re going to start this out you basically get yourself setup, identify what your strategy will be, get some good advice, get yourself the structure that you need. You’re going to need your own website, of course, as your calling card our your base to run your system from because whatever method you’re using to get the customers whether it’s fun, whether it’s not cold calling using the secret method, whether it’s direct response letters are very powerful, whether it’s just going to local business meetings. Whatever method you use, you’re still going to want your own brand online, your own website with the devices that we’ve talked about in other episodes. You want to capture details, you want to offer solutions. The next step is to really hang in your position in the marketplace.
Tim: Just hold that forth, anyone who’s considering this business model and if they are, they’re probably already aware of local businesses’ lack of knowledge around –
James: Yeah, they know nothing about this.
Tim: They know nothing.
Tim: So instead of going into a business and decide, here’s some things. To be able to stay high, get a website that is built for good that it will find you.
Tim: That catches contact details simply and easily.
Tim: That sets up a series of e-mails that go out automatically. You create once and they out again and again and again to optimize it ongoing so that when someone does a search in Google for a term relevant to your business it will pop-up number one organically. These things for you and I and maybe for some of the listeners, I just got, this is kind of as I would say when I was kid, do afraid. This do afraid stuff will be a start. This is like, no one knows about it.
Tim: And there are still just – how many businesses are out there saying that it’s almost like get the website, job’s done, guys. It’s not, it’s like it just started.
James: Well most businesses, if they want a website, they’ll start looking for online websites that will get very confusing, build your own or we’ll do it for you but we’ll charge you $20,000 for agency types.
James: And God bless the agencies. They can make some pretty looking sites but designers are clueless in terms of how to structure it so that Google likes the site. So I acquainted that to having a Ferrari parked in a dark alley with a cover over it.
James: It’s just wasted.
Tim: It is.
James: No one is going to see it. So yes, if someone has listened to all of the podcast up to this point, you already know 10 times more than your average business about internet marketing. So you’re good to go. So you work on your positioning, that’s really just your message. It’s how do you translate to a business that you can help them and give them the confidence that you know what you’re talking about. And I would suggest the best thing that most people could do is to go and set up a website and get it rank for something. Something similar to what you would like your customers to be able to rank for whether it’s mechanic parameter or a butcher bend together.
James: You want to be able to prove that you can do something. Now, of course as soon as you get one client who’s happy for you to use them as a reference for none compete customer then you’re away. You’ve got your portfolio, and you only need one. And if you have to do your first one at a cost price to get your foot in the door, you can name your own ticket once you’re up and running.
Tim: What’s the value proposition for the strategist’s site to the local business? Is it “I’ll create you an online presence that will get you on page one of Google every time?” Is that the goal?
James: No, it’s actually simple than that. Would you want to do a role play?
James: Okay. So you’re a business, Tim. What sort of business are you?
Tim: I am a news agent.
James: (Laughter) I thought you’re going to say a fish and chip shop
James: Okay. You’re a news agent.
Tim: I’m a news agent.
James: Let’s say Tim –
Tim: Do our listeners know what a news agent is?
James: Well, it’s someone buying magazines and newspapers, and lottery tickets.
Tim: Okay, especially.
James: If you don’t– if you’re not listening in this podcast, you’ll probably buying a lot of lottery tickets because that’s the best option–
Tim: It’s a good point.
James: – to making million [mills]. Tim, are you happy with your business, how it’s going right now?
Tim: It could be a lot better, and in fact that feels a little bit stuck in the dark. I just–
James: Yes, a lot of people tell me that. Would you like to bait your competition?
Tim: Every day of the week, I’d love that.
James: Right. Well, I can help you with that.
Tim: James. Welcome aboard! (Laughter)
Tim: Is that it?
James: That’s pretty much it.
Tim: How are you going to help me? Come on, I have everyone– I stand at my counter every day of the week, Mr. Schramko, and people coming and say, “I can help you grow your business.” Why are you different?
James: Well, for the first thing, I’m not actually in here trying to sell your business. I’m in here buying a magazine. And you just happen to struck up a conversation that led us to how is business. So you have to ask all those people if they’re so good at bringing business online, why they’ll bowling into your shop looking for customers. So that pretty much excludes everybody else. In my case, I just build websites. I just quietly do it from home and like lots of money, and occasionally, I work with someone else as long as they fit my criteria. They’re someone I want to work with and they’re prepared to recognize the value that I can bring to their business. And Tim, you’re probably wondering what value can I bring to your business?
James: I can bring you more qualified paying customers who are happy to get your products and services, continue to order– in fact in many cases, they’ll do it on auto-pilot.
Tim: Why you were such different to every other block who’s coming and show me his website model?
James: Well I have access to proprietary tools and information that is certainly well beyond the average understanding of most people in that industry.
Tim: Okay. And clearly, you’re going to cost a fortune then?
James: You would think that. In this case though, we have packages that suit just about everybody. I’m not dealing with everybody. I’m only dealing with select clientele, but in your case Tim, I think it’s happening that’s so little effect. I would never recommend something that I think is not going to give you a huge return on investment. Otherwise, it wouldn’t work for you or for me. I want you to be in a position where you are so happy with what we can do for you that you’re more than willing to tell other people about it. In fact, that’s how much our business comes.
Tim: James, I love what you’re saying. However, however, at the end of the day, you know what, I’m a little shop in a little local village that gets a lot of passing by traffic, and I’m not sure whether having an online presence is super-duper as you’re proposing is what I need?
James: Well, you don’t know what you don’t know, Tim. So I understand that position. And if you always want to be a little shop in a little village, then keep doing what you’re doing. But you did say before that you’re not happy with how you’re business is going that it could always be better.
James: So you’d have to wonder, “What would that be?”
James: What would better look like?
Tim: Well, I have heard of businesses, James, where there are people– there are people who have sold products everyday of their life, every year and year half, and they started to sell online. They had what I– they– I hear this thing there’s a shopping cart or something.
Tim: So clearly, there might be another channel to market beyond just opening the door each day. Is that what you’re telling me?
James: Well I’m telling you when you say on– what radio station do you listen to?
Tim: I love Gold 104, the oldies.
James: Gold 104. See, when they’re saying hop on to Twitter or Facebook, you’ve got to wonder, maybe there’s some people on there. And if I told you this, 500 million people on the air and that more than half the population of this country logs on every day.
Tim: But James, they’re not going to walk past my shop.
James: But you can actually target people in your local area. Did you know that?
Tim: No, I didn’t.
James: Just people on your area. You can even target– I mean you have magazines on the racks here, don’t you?
Tim: We do. You’ve just bought one.
James: Well, what’s all the topics do you cover here on the magazines?
Tim: There’s a magazine– this surprises me James, there’s a magazine for every topic you can imagine.
James: Well, imagine if you could target people who are interested in that topic who live in your area.
James: Would that be interesting?
Tim: Now you’re talking.
James: So we can find just your customers in their [wheels].
Tim: Where do I sign?
James: Well, (laughter) right here.
Tim: End of role play.
James: Sign the check book [Tim]
Tim: We’ll have to put some music under that, so that the people could get the role play, and not may I ask you, completely stupid questions.
James: Well, I have to say, I’ve never had a role play that’s being more difficult than this.
James: It’s usually substantially easier. What I call, it is pull market. And you’re not here about much because much people are push market. That’s where they push, push, sell, sell, and pound.
Tim: Buy this, buy this, buy this.
James: Pull marketing is where you draw the customer and then they’re asking you the questions because they’re interested and they hear that shift from somewhere else so they’ve been exposed to some stuff that makes them very interested in understanding what it is that you can do to help them. But there are certainly things– you’ll find your positioning and the banter that works for you, that works for me because that’s been tested for me every time with plenty of customers.
Tim: I think, just I have experienced experimented with this model, and I found it most successful when you actually add to the conversation. You’re going to need to listen and follow what are these that I have to say, because sometimes you can enter a client relationship and that client just really wants to buy into what are these you’ve got that they end up jumping out of the top and actually manipulating it back to how they want to see it.
James: Well, the classic case of that is web design.
Tim: Oh, yeah. This is–
James: A customer, you can do a web brief. You can build a website, and they will still nine out of ten times, they want to have a big, fancy, flash Fandango video on the front page that looks amazing and does nothing. We’ll not get found. We’ll not close a sale and you have to set up some rules. So that’s my next topic actually, it’s setting the rules for the relationship. And I think I picked this up from [Brad Shoe Biz], one of his books but he has some sort of thing with his students where if they don’t implement what he’s given in the first step, he won’t even talk about step two.
Tim: Yeah, that’s excellent!
James: So I say to my customers, “Look, when you’re coming on board, you’re coming onboard because you believe that I can help you and that what I know is going to be right for your business. So I want you to place that trust in what we’re doing because I know about this stuff. This is what I do. You do news agency stuff. You do lottery tickets. You do newspapers. I don’t know about that stuff. You do. I know about Internet. I know about marketing. I know how to make your phone ring. I know how to get customers turning up to your shop. Let me take care of that.” So that’s why a client like the [motto] where the customer just pays a monthly amount and you do the stuff in the background. Maybe like the Wizard of Oz, behind the curtain.
Tim: Yeah, behind the scenes. And I think that what I do like about this model is that clearly, it’s about going and creating website which is a one off payment but the SEO, the search engine optimization of that website is an ongoing. You want to maintain– you want to be known for a particular set of [key prices] on ongoing basis. And that requires ongoing work. So there is actually an ongoing fee attached to this model.
James: Well. You might be wondering, why would someone keep paying for 3 years? Well, the fact is– I spoke to one of my clients today. The first time I spoken to him this year, right, and the time of recording that means it’s about three and a half months. And they pay a substantial full figure per month maintenance fee. And the only question was about the dates on the emails that come through it because it’s on a US based server. And he said, “Look I have got to go.” So with, everything is going awesome. We’re just so busy right now. We just– basically, there’s nothing else they need. It’s just status quo, keep doing what we’re doing. It’s working. It’s fantastic.
Tim: Perfect! Everyone’s happy.
James: Well that’s the thing. The last time I spoke to him was about nine months ago. So imagine that a customer paying, let’s say it’s around $6,000 a month, per month, and you speak to them once every nine months. Will that be good?
Tim: Spot on.
James: And that’s because you’re solving the problem.
Tim: [You’re always] solving the problem.
James: And because it’s measurable, that’s the other big thing. The customer knows if their phone’s calling from the website when you tell them to put a special phone number for the website. A customer knows when a phone comes through from the website that you built and drive traffic to. They know the phone comes, its actual deliverable and you can see it, and they can see it.
Tim: With that customer, do you have a reporting function? Or was the reporting function naturally self-reporting because the customer is seeing the result?
James: Customer is so busy, they kind of ring me to tell me that they need more–
Tim: You’re sending, a maybe a good analytics report or–
Tim: – and they see update on what you’ve ranking for or–?
James: Yup. So in this customer’s case, so I just go to Analytics, so I set the report to email that weekly, and every week it is load of emails. Bang! Nothing happening from my point of view. I actually don’t physically do anything to make this account continue. I just make sure that the suppliers who are helping me with this account are actually doing their job. And I make sure that they send me a report once a month. And I look at the stats once a month. That’s it. So there’s no hands-on. I’m not– now in the beginning of this account, back when I had a job, I built the first website. I did the first SEO, and I was working couple of hours a day on it. So like from a couple of hours a day, took out [hours] a year because that of mindset shift. And I’ve created a situation where the results are better now because I’m leveraging it than what I could do myself, because I do other things as well including nothing which I count as a thing. (Laughter)
Tim: Yeah. (Laughter) Well, it’s got the word “thing” in it.
James: It does.
Tim: Tell me, just to be clear on suppliers.
Tim: So what would a typical toolbox contain for a local marketing strategist?
James: I would suggest that they get access to a professional suite of reporting tools where they can upload their own banner or graphics, so they can look really professional.
Tim: Okay. I mean more, what are the particular tools– and we talked about, you‘ve got to be able to get a web– the first thing is get a website, so go to a product page and they’ll see–
James: Yup, yup.
Tim: – a website creation product. Did –
James: Well, I still count this is a tool.
James: This is a tool. They need to take a subscription or buy a product, one of the products and we can list this somewhere in their report if you want. It’s called IBP and that helps people generate a website status report and put there own logo on it. And they give that to the client. And that’s a really nice, official looking “here’s what’s wrong with your website” report
Tim: What’s IBP stand for?
James: It’s Internet Business Promoter.
James: Another tool, like that but better that we use is called Raven Tools. And Raven tools lets you hook up Google Analytics. It helps you run a keyword research report. It helps you interface with social media which is another item that I suggest. You supply for an end user and that’s central dashboard allows you to stick your own logo on it and generate this fancy reports. Instead of coming from Google Analytics, now it’s going to come from Timbo’s marketing consultancy. And it looks expensive and it’s a valuable tool that it does landing page optimization stuff, so just this monthly subscription. That should be in the tool kit. That’s really going pro. And from then, yes, you need a website supplier, a search engine optimization supplier, and you may– I mean that did the main things, but you might also want to branch out and do things like autoresponder website, sales copy, sales writing, and you might want to supply a logo. You might want to do social media. Set up in management perhaps go in and like what we do with freedomocean Go and [nominate] a YouTube channel and deck it out with the company library and upload content basis.
James: Is it “livery?”
Tim: Oh man you’re from Sydney.
Tim: Maybe “livery” is a Sydney thing.
James: Could be, “livery.” Well, it’s a big word for me.
Tim: It is.
James: And deck it out and do the same with Facebook and Twitter and companies love anything with ego or with band presence, is going to tick boxes for customer. They love image and ego marketing, just love it.
Tim: I think importantly to one of the things for the person that’s considering this model is that this got to be an end point. Like here’s the thing, I’ll get you website. I’ll get you social media happening. I’ll get you optimized, get you a beautiful logo, and it’s just a nice package. And maybe, maybe there is, maybe on that is two or three packages or it is there’s just the website package or there’s the full launch a [ladder] which is–
James: I recommend that they talk more in terms of packages and give them names and don’t give customers a shopping list. Don’t say this is going to have this with this, this, this, this, this, and this because then, the first thing that customers is going to do is get online and start punching in stuff and end up getting screwed over by some backyard widow who’s got an idea, or an agency who’ll place them for ten times more money and do it at nothing. We actually supply services to big agencies because they have no idea about this stuff. They’ve got some forty five [grand] clock in the office. I don’t know they going to know about the latest search engine optimization strategies for Google. But they do know to get someone like us to supply the service in their port that they put their logo on and give to the end customer.
Tim: Let’s– before we wrap up this show because we have gone for quite some time.
James: You want to talk about traffic?
Tim: Let’s get and talk about traffic. I was actually going to talk about pricing as well.
Tim: We touched on to the start but just now that we’re very clear on what this business model is all about for the internet market– the local marketing strategist to price themselves. Well, I think what you spoken at the start was there might be a smaller fee that does some brief work which is an introduction to the supplies, and then the client works with the supplies, then there’s the other one where it’s like the old [encompassing] where you pay me and I’ll handle the lot.
James: Yeah. If I’m going to introduce supplies, I’m going to charge a big fee. Otherwise, I’m giving away my years’ worth of experience and I pay for too little value.
James: So my starting price is $5,000 a month for that role, that’s just the straight [consult fee.]
Tim: That’s your consult fee.
James: That’s the last price that I accepted somebody on. I’ve actually closed that now. Now, today right speakers, I can’t even justify selling my time for $5,000 a month. So now because it’s too much but because it’s too little, that’s one of the points there.
James: In case I was wondering. You want to– you wonder maybe that you’re the expert. I’ve really want to emphasize this. This is where 99% of the issue has come where an internet marketing savvy person is going to undervalue themselves. And that is because they are hanging out in the warrior forum where everything must be free or no more than $7. And if it’s more than $7, it’s not right. It’s unbe– and people still cannot believe that I charge thousands per month because they’re headed stuck in $50 a month.
Tim: Well, in previous episode, we’ve talked about free and effect of this and cost attached to free, and
James: Well, not just that. I’m really talking about self value.
James: If you can help a business, now in the case of my customer who I speak to once every none months, they’ve got hundreds of thousands of dollars worth of profit from single customer inquiries that I’ve helped them generate. I know that I can justify my fee, for years based on just one transaction. Imagine all the other ones I’ve got. So I would be under valuing myself if I charge them $500 a month.
James: So work more to the customers’ problem than your own belief of what you’re worth.
Tim: Yup, and forget the [alley] right and think about the– of what you’re going to achieve.
James: And if I will say that in a different way, let’s say forget about [cheap ask] customers who want to screw you around and pay you nothing–
James: – because there’s plenty of them out there. Turn them off, switch them off the filter. As soon as the customer says, “Can I get the job and then pay you?” Say, “Sorry, we get paid in advance and then we supply the goods because it’s a service and once we do it, we cannot get the time back. It’s a waste of resource.” So always paid in advance and I to have a hundred percent paid upfront, that’s my terms. Now, in the beginning, I could actually safely build somebody a website. Let’s say I built a law knowing service, a website. I could actually build it. Now, and if instead they [don’t] want to buy it, then I could sell it to their competitor.
James: And think about this, once I’ve built one, is they’re much talking me going to the law knowing servicing in other state, in offering them the same website but with their own name on it, with localized search terms and some customization of images and lay out. Very small changes, I can leverage that one time effort. There’s so much opportunity in this market, it’s ridiculous.
Tim: As you’re talking too, James, and not that I mean to adopting, particularly even from personal point of view, the idea of hiding into one model and really earning that model is quite appealing. That’s it. The idea of maybe taking this model of local marketing and having one [cloth] at any one time would be nice little cash care where you can– you just know that at any one time, all that one local business for which I’m developing their online presence for. And once that job is done, they now can get another one. And in the mean time, so that’s [catch] flowing some stuff, but in the mean time, I might be the end focus on one of the other business models that we’re going to be talking about in future shows.
Tim: So it’s not an all or nothing?
James: This is like investment strategies, really. Your shares, or property or what sort of guy, you can do both, you can do none. You can do either all.
Tim: What’s your thoughts on that day because as I’m saying that, having one– going along all the time and then maybe off doing some affiliate stuff, and then another one– another business model. You’re starting to create [pain] or–
Tim: – do you think it’s okay to–
James: You will lose energy between them. When I started, I stuck to one model and built it up for a year and a half. And then I let to my second business model.
Tim: Why did you choose the one you chose?
James: Because it was perfect to do while I still have a job, because it didn’t involve dealing with customers. It was something I can just chip a way at.
Tim: This is affiliate, wasn’t it?
James: Affiliate marketing.
James: I can just chip a way at it and grow it, learn it, without much risk. It doesn’t have as big a pay off either. It was the local business one that I just– I hit that one and like literally within days, I was out to quit my job. It was that instant.
Tim: How do you go about getting the business? Where you called calling?
James: In this case, I’d actually built websites for both of these customers and– or actually the first customer I’d already built a website for through word of mouth. One of my friends said, “Hey, you should talk to James. He does this for himself, affiliate sites. He could probably do one for your business.” So I had a check to them and they paid me five and a half thousand dollars for their website, and I built it. And I thought, “Wow, this is actually pretty cool.” I remember going to where I bought my first mountain bike with the amount they paid for that. And the mountain bike was worth half that, by the way. (Laughter)
James: So then I thought, “Well, I should do more of this.” The real epiphany came when I thought, “Hang on a second, I should be charging monthly fee.” Everything I switched my whole business from one time to monthly. How do I make everything pay recurring? As soon as I made that shift, everything changed. So I went back to that client. I also had a friend of mine fishing around with me saying if you have a such and such, how would you help them? And I said, “Well, I do.” I sit in there and I said, “Listen, why don’t you just get them to call me.” So this guy called me and I go in to hop on to Google. And we went all that, his website. Well he was looking on the website and I was on the phone looking at the website, and I talked him through it and he had been getting quotes around the companies. And he said, “Any chance you could do this for us?” And I said, “Sure.” So I paid my friend a spotter’s fee for the first 12 months. And that was, if I remember it, it was 10% of the job. Wherever I go, I said, “I’ll give you 10% of whatever I get if you want me to do this directly.” He said, “That’s fine.” And I got the job and then I approached both of them and said, “Let’s do this monthly. You’re going to need traffic for this.” And we got huge results from that. Now, the best thing, I actually posted about this on my website, on my blog, internetmarketingspeed.com, years ago, that you can create little Camtasia videos of someone’s website and then send it to them, and talk through it with them. And then years later, I have my mastermind group and I’ve got one of my students who’s come to me to learn about doing corporate workshops of all things and he was telling me he that he’d seen my parts then was doing this video thing and sending them off to customers. And so like a [cold] calling thing, just sending off the videos, just pro, just targeting the perfect customer from the yellow pages and then sending it off. If the website was on page three of Google and they were advertising yellow pages, pick, make it a little video, send it off, and I said, “Kevin, you need to sell that as a product. Forget the workshops.”
James: “Sell that as a product.” And he goes, “You really think so?” And I said, “Yes. I really think so.” And fast forward now, Kevin McKillop has made an amazing product and this is the super special product.
Tim: This is what we were talking about.
James: Yes, “Local Video Method.” And he actually takes his–
Tim: We’ll put a link to this in our “Show Notes.”
James: We will put out. I do recommend this as– this is the ultimate traffic strategy because you don’t have to cold call.
Tim: That’s a big goal you just said there, the awesome traffic strategy.
James: It is the ultimate traffic strategy.
Tim: It is pretty good.
James: For his business model.
Tim: For this– okay.
James: For this business model, and I’ll tell you why I think it’s ultimate, because while I’ve made a conscious decision not to get any mode customers now from an active perspective, what we have done is set up our own business, my own team of special [ninjas] have created a business that makes these videos and they resale their own SEO and website services or another product.
James: And that is a powerful thing because now I don’t have to get involved. I’ve done my– my famous thing is to make myself redundant in the business so I’ve taught my team the sales video method. They’ve gone through this product. They have been constructing sales videos. They’ve even done auditions for he’s got the best voice.
James: And they now do voiceovers on sales videos and we’ve set up a website just to resell our own traffic and websites.
Tim: So what we’re talking about here, just so we’re clear and people will may to– go to our “show notes” and you’ll find a link to this method because it is phenomenally simple.
James: It is very simple.
Tim: It is basically saying go and finding a business. It is online and he’s marketing themselves and saying okay, I’ve had a look at what you’re doing. I’ve seen your yellow pages presence. I’ve seen you’ve run a couple of ads in the local paper. I’ve looked at your website. I’ve checked your ad on Google. I notice this, this, and that. Then, put that to a video.
Tim: Using as your site, Camtasia for PC or ScreenFlow for Mac. Then providing some solutions saying, “Okay, well, I can change your world. I can change it so that you’re getting more inquiry, more traffic, and ending in more sales because what are we doing is making change to things that are going to get you found easy on Google. So things that you want be found for, and you can have an online presence that will pretty much probably cost less and have more impact than what you’re currently getting. And this is all done by the creation of videos that you send off to that person that’s never heard from you in a million years. And I can imagine the chances of actually then calling you, very high.
James: Well, and also the chances of rejection are quite low. No one’s personally is telling you to get out the door, whatever.
James: A lot of the things that’s stopped the people I fear, fear of rejection, for picking up the telephone or walking no business are removed from the equation.
Tim: Yup. So that is a – and what I also love putting a completely [under light] is affected. This is a great way of getting traffic for this business model. Is that the way this product has been together is super-duper.
James: Well Kevin is over high production values standard.
Tim: He sure is.
James: He’s very, very particular.
Tim: He’s got high production values. He puts forward a very compelling argument presented in video, [we should] expect because he’s selling video product. And just the entire argument I lay out of the page, the copy, the way he explains what you get and what it will produce. He’s got testimonials. He’s got a guarantee.
James: Want to know a secret Timbo?
Tim: Go on.
James: He’s using my sales video profit system for the compelling sales copy.
Tim: The Sales Video Profit System which–
Tim: – once again found on our product page.
James: Not yet, but it will be. It’s only being used by my students and myself.
James: It’s not being published. And the results that students are getting with it, phenomenal.
Tim: Well, it’s [preface] to the point.
James: But anyone who listen to this will get the first tips on it because we’ll let you know when it’s released.
Tim: Yeah. Well, register at freedomocean.com.
James: That’s how you get the transcripts.
Tim: You get the transcripts and also, if there is something released, they’re going to be the first to know about it by being on a mailing list. And I very clearly say Freedom Ocean, James, because I had a couple of people say, “Oh, I though your show was called “Free Timocean.” (Laughter)
James: Well, I had someone say that it was a “Free Demotion.”
Tim: (Laughter) Great!
James: So well, if it’s demoted from the corporate ladder–
Tim: Corporate life–
Tim: Absolutely it is.
James: I’ll go with that.
Tim: Yup. It’s nice. So that’s pretty much one business model. But I [seek] it as promised James, they will get nine to go.
Tim: (Laughter) So we might wrap it up there. We have covered a lot and in our next show, we are going to jump head first into some fantastic list of questions. Absolutely fantastic list of questions covering a broad range of things, not a particular area first, just let’s get back into them. So thanks James, it’s been a great episode. Lots to learn. Transcripts– the transcripts should be good because people can be circling and highlighting and scribbling–
James: Just to– it’s almost an information product in one. The transcript– to get the transcript is just freedomocean.com and to well, go and see what we ask you to enter.
Tim: Absolutely! That’s a really– you touched on that before and just before we finish, I say to a lot of my clients, when they’re aiming and airing about approaching the marketing in a certain way. I‘ll identify a big brand marketer that’s doing something like that and just ask the question, “Are they doing it?” So I’ll give you an example like flash. Flash has a limited role in the online world, yeah? And many– so many clients, “Oh, I want a kind of cool front page in my website.” This animation and flash or whatever it is. And I’m just saying, I’m like, “A [rebay] using flesh? Or iTunes using flash?
James: Is Google using flash?
Tim: Is Google using flash? And the thing is these guys have done all the testing. So why go and recreate something?
James: Well, a great site to look at for testing is Amazon.com.
Tim: The surest.
James: And interestingly, they use lots of bright orange buttons.
James: [Days] long form sales copy?
James: From many of their pages, all the things that people are going to say, “No, don’t do that.” And I go and look at the site that gets a massive amount of volume that has in house testing [frakes.]
Tim: Go, I can tell you now, listen, because on way out, James and I are going to seek the whole process of how Freedom Ocean came about. And I can say hand on hat that if you go to freedomocean.com and have a look at how their page is set up, none of it is by accident. Because all I personally propose to a lot of things to James, how we should go about setting up the form. How we should go about setting up all sort – all parts of it, all parts of it. Some of which you just said, “Yeah, that’s a good idea. Let’s do it” But more often than not, you’re challenged to be on it, really challenge me on it, flipped me a 190 degrees to where I thought the right place to go was and we’ve got a fantastic result so there’s lots on it for– worth for future shows.
James: Yeah. I’d love to go over some battle tested case studies from the Freedom Ocean, behind the curtain. (Laughter)
Tim: (Laughter) Behind the curtain.
Tim: We will go behind the scenes–