| It's done all the time - at trade shows, in your mail | | | | $2400, would it be worth giving a prospect $100 to |
| box, over the web, and in a thousand other ways. | | | | become a client? You bet it would. |
| Here's a few real life examples: | | | | Premiums help convert. Offering a premium increases |
| -In walking through an audiologist trade conference, | | | | the value of your offer and the ease in which it is |
| visitors are offered a free DVD player (a value of | | | | fulfilled increases the prospect's trust and confidence |
| $125!). | | | | in you. When a prospect has accepted a premium |
| -A bank offers a free vacuum clean for new savings | | | | from you - you have created a relationship with |
| account clients. | | | | them! |
| -A wireless phone company offers a $50 coupon to | | | | If you're considering offering a premium keep in mind |
| be used on a cell phone for a family member. | | | | a few simple guidelines. First, offer a premium that's |
| -A web publisher offers a free ebook for registering | | | | relevant to your desired audience. Second, ensure |
| for their newsletter. | | | | that premium is of a value consistent with that of |
| "How can they do that?" you're asking yourself. It's | | | | your customer - i.e. don't offer a free pencil when |
| like this: premiums increase conversions and the value | | | | your typical customer is buys $10,000 from you! |
| of the premium is directly related to the lifetime value | | | | Third, make sure the full retail value of the premium |
| of a customer. | | | | is visible (even if you paid less for it). Four, test |
| For example, if I know that one of my customers, or | | | | different premiums - you'll be surprised at how |
| a member of my list, will buy $4000 from me over | | | | differently some premiums will work. |
| the next two years and giving me a margin of | | | | |