Gangster Profit

Business and Marketing Web Radio Show featuring Robert MacDonald and Kevin Bombino

Episode 035: How To Actually Make Money From Your Superconference

Filed Under: Marketing, Length: 9:37
The guys talk about their buddy's info product business's yearly convention and why it isn't making nearly as much money as it should.
035

Transcript:

K: We want to talk about...some buddies of ours run kind of an info marketing company where they basically sell a lot of info products and live coaching in a particular niche. And, basically, we want to talk about how they are running an upcoming, like, a conference.

It’s basically like...you know how a lot of companies will do these kind of like yearly conventions where they kind of rent out like a banquet hall and they’ll do several days of speakers and talks? That kind of thing.

And we’ve been to their conference a couple times. And it’s pretty awesome, I would say. It’s really wonderful. Delivers really good information. New information. Fresh information. I would say it really makes people happy.

R: Yeah. I think they’re extremely focused on adding value and I think it is a ridiculous value for the cost. And the problem is that we don’t think that they’re making nearly as much money off of this conference as they could be.

K: They’re pretty much not making money.

R: Yeah. They’re probably making some kind of a profit, but it’s not much, considering that it’s an annual event that they get at least over a hundred people to attend. And they should be getting way more. At least a thousand people attending.

K: Yeah. Basically, we just want to talk about...if you throw these sorts of live events, we want to talk about what we think they’re doing wrong. And don’t catch yourself making these mistakes.

R: Yeah. A lot of these things that we’ve learned about throwing live conferences...by the way, we actually have learned from Dan Kennedy. I know we throw Dan Kennedy around a lot all the time, but he’s the man when it comes to selling things in person. And his whole thing is that...he will go and speak for free and he would go on these tours around the country with a bunch of other speakers and it would be completely free to attend, but then, at the end of their speech, they pitch a product. And they made a killing pitching these products to people.

So, people show up there and they don’t think they’re going to spend anything, but they’re so impressed by the speaker that they’re glad to buy it by the end.

K: Yeah. So, basically, let’s just talk about these guys event. So they do...I think it’s a 6-day event or something like that or 5-day.

R: Yeah.

K: It’s really full. It’s like 8-hour days. It’s about a hundred attendees, I would say, something like that. And they charge...I think they charge fifteen hundred bucks for the event. But they give out coupons pretty much readily, so it works out to about a grand for the event.

R: Because most people get these coupons in one form or another.

K: Right. I think if you just call and ask for the coupon, they’ll just give it to you. I’m not even sure.

R: And then, the other side of it is that they have so many volunteers for this thing and “groupies” and different people who find one way or another to come to the event without really spending very much money at all just for volunteering or finding some way to host people at their place or whatever.

So, the issue is that they’re really just not...they’re not convincing people to reach in to their back pocket and actually pay for the value that they’re receiving.

K: Yeah. I think these guys are getting way, way, way more than a thousand dollars worth of value for the 6-day conference. I mean, we go to conferences all the time where the top registration is like 22 hundred bucks, 24 hundred bucks, 16 hundred bucks, and oftentimes, these are like 3-day conferences. So when you’re doing a full week-long conference, I think they should be asking for at least 2 grand.

R: Yeah, absolutely.

K: But I don’t think that’s their biggest problem.

R: Correct.

K: I think their biggest problem is that they’re not promoting it nearly hard enough.

R: Right. So, the only people that they actually are promoting this to are the people who are on their own forums. That’s it.

K: That’s it.

R: That’s it.

K: They’re not mailing. I haven’t gotten a single mailer about it.

R: Yeah. It’s mind blowing because they actually have a list and they’re not even using the list.

K: Yeah. So, they have an incredible list that’s got to have at least...several, I mean, maybe even a hundred thousand people on their list. Maybe 50, who knows.

R: Who knows? But it’s a sizeable list, they’re not using it. Number 1.

K: Number 2. They should be mailing to other people’s lists.

R: And they’re clearly not doing this. Because they have a number of direct competitors that have extremely similar customers and would love to probably attend this event if they even found out about it.

K: Yeah. I mean, this is the great thing about an event like this is that whatever registration charge you’re charging is basically pure marginal profit, once you’ve paid for the hall. So, you can afford to split that 50-50 with just to let someone else mail it on their list.

R: Absolutely. There’s some kind of a thing going on in this community where I think that these coaches and whatever, they’re very competitive and they’re very prideful of the fact that, you know, either you listen to my advice or you listen to their advice. But in reality, most of these students are listening to everyone’s advice, or at least listening to more than one person’s advice. So, why not take advantage of that?

K: Yeah. Here’s the thing. It’s a win-win for everybody. I mean, if you get someone else to mail out to their list about your event. Even if you get only one additional registration, I mean, that’s an extra 500 bucks that you made, and an extra 500 bucks that they made, which is enough to make it worth both of your time.

R: Right off the top. Not to mention the fact that now you’ve got someone who’s potentially a new customer for whatever other products you’re offering. You’ve now potentially got a lifetime customer that you’ve gotten just through a simple JV where you didn’t even have to spend anything. All you had to do was offer pure profit to one of your competitors.

K: Yeah. And your competitors don’t even have to...I mean, obviously, it’s better if you get some kind of endorsement from them in the mailing that you do, like, “We know these guys and we think that their conference is going to be very good.” But even if you don’t get a straight up endorsement, even if you just get a, “Hey, I wanted to let you know about.” That’s still great.

R: Absolutely. Now, the final thing that I think is a massive fill that they’re not taking advantage of is the fact that they’re not trying to sell anything at this conference. I mean, I don’t even think that there’s anything available to be bought if you wanted to buy something.

K: I think maybe they take orders, but they certainly don’t push it. They definitely...I’d never hear...if it’s been announced, it’s been nothing more than a cursory announcement.

R: Yeah. It’s one thing to not want to have a pitch fest. Obviously, nobody wants to come back to a pitch fest that they feel like they spent all this money to come to your conference and then all you try to do is sell them more stuff and you didn’t really give them the value that they were looking for.

But, in this case, you’ve got somebody who is...that you’re offering. It just seems like that they’re honestly shooting themselves in the foot by not even presenting the fact that they have other stuff that’s out there for people to take advantage of.

K: Yeah. This is a company that has, I believe, like 6 or 7 or 10 info products that are all at a couple hundred bucks each. And they could...it’s a 6-day conference.

*audio jumps*

R: “...hey thanks for attending our conference and as a thank you for attending our conference, we’re offering you this new product that only you will get

*audio jumps*

R: thank you for coming.” I mean, that’s just a no-brainer.

K: Yeah. I think that if they did all these things, they would really make a lot more money.

And the other thing I want to mention too is that when you’re mailing both to your own list and the other list that you joint venture with, you shouldn’t do one mailing. You should try, if you can, to do a series of 6 mailings. Send out the mailing. Be like, “Hey the conference.” Then it’s like, “Oh, you haven’t registered for the conference. You must’ve forgotten. It’s about to fill up.” And if you still don’t get them, then maybe you throw in some kind of up the annie. “If you register right now, we’ll give you an extra lunch in or something.”

R: Yeah. Or we send you a free cassette tape that’s got some advice on it. Or maybe we give you a 5% discount because last minute, it just so happened that a couple seats opened up. Whether that’s true or not. It’s probably not.

K: By the way, we still advocate using cassette tapes as much as possible.

R: Actually, that was a real Dan Kennedy throw back there. That was just straight from his mouth. Anyway, cassette tapes. Sorry. Yeah.

K: We’ll send you a free USB stick.

R: Yeah. You’ll get an 8-Track and a scroll.

K: Alright. Well, so anyway, we hope that you take these observations in to your own account when you’re running your own events. And we hope that you do because they’re really profitable.

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