Everyone wants to get more clients, right? Whether you are trying to launch a whole new business, expand your product line, or simply increase brand awareness, host-beneficiary relationships are a great strategy to use. These valuable connections are a low-cost way of acquiring more customers, and you NEED to hear how this strategy can encourage more conversions within your business. On this episode of Marketing For eCommerce, I explain what a host-beneficiary relationship is and why they’re so successful. I will also share two pitfalls to avoid before diving into this marketing strategy. Are you ready? – listen now!
Building rapport will lead to loyal, repeat customers
All eCommerce businesses have 2 types of visitors to their Shopify page or website: prospects and customers. Since most sites have a first-time visitor conversion rate of less than 10%, are prospect visitors wasted, simply because they didn’t make a purchase? Not at all! Every single time a prospect views your brand online, you’re building a goodwill relationship with that prospect. Prospects can evolve into customers in time, and host-beneficiary relationships encourage that conversion.
Why are host-beneficiary relationships so powerful?
A host-beneficiary eCommerce relationship is comprised of two parties: the host and the beneficiary. The host is typically further along in their business lifecycle and has a more established customer base. The beneficiary serves a related customer base and seeks to market to the host’s audience through a specially-designed irresistible offer.
These types of relationships are so successful for 2 reasons. First, it’s a low-cost way of acquiring new customers, avoiding the largest expense in eCommerce. Secondly, both businesses add value to their customers' experience and mutually benefit from the connections. All the details behind why this marketing method works are on this episode, be sure to give it your full attention.
There are two common pitfalls people make when considering a host-beneficiary relationship
Host-beneficiary relationships for your eCommerce business may sound too good to be true. But they are massively successful, as long as you avoid these two pitfalls. First, don’t be fooled by the simplicity. The idea may seem simple, but when done well it brings in countless new customers. Secondly, understand that your eCommerce business is NOT unique – and that’s a good thing! There are plenty of endorsement opportunities out there, even for very specific niche markets.
Create the irresistible offer
The first step in building host-beneficiary relationships is brainstorming a list of indirect competitors. These businesses should be within your industry and sell products that supplement yours. If you’re the beneficiary, you need to create a killer irresistible offer that allows the host to keep the front-end profit, while you retain the back-end profit. If you’re the host, you should ask your connection to keep a portion of the back-end profit.
It may take some negotiating, but striking a fair balance between your two businesses will encourage growth and success for both of you! I walk you through this process on this episode, so be sure to listen for all the details!
Outline of This Episode
- [0:34] Avoid these two pitfalls before using this successful eCommerce strategy
- [3:04] Don’t stress the conversions, focus on building rapport
- [4:20] The host-beneficiary relationship works through mutually beneficial endorsements
- [6:09] Here’s how to make host-beneficiary relationships work for YOU
Connect With Bryan Bowman
- On Facebook
Subscribe to Marketing For eCommerce on iTunes