Wednesday, July 15, 2009

Seth Godin's 3:1 and 1:5 Principles

Excerpted from Seth Godin's Blog "Gotcha" (7/15/2009)

"There are lots of things you can do to make the sale. They often are precisely the opposite of what you should do to generate word of mouth. I know, you can't have word of mouth unless you have a sale, but a sale that leads to pain is hardly worth it.

"My rule of thumb is this: every person you turn away because your product or service isn't right for them turns into three great customers down the road. Every bad sale costs you five."

My Take

Acquiring the right customers is the key to your profitability.

Success breeds success. Happy customers result in more happy customers.

So stop spending your time hunting for bad customers via expensive, traditional advertising. Use your network of satisfied customers and friends as a "Connection Engine"(tm) to find - and be found by a better clientele that provides a recurring source of qualified referrals.

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