Posted by: Daniel Levis
February 11, 2009
Issue #609

Continuity Income Secrets …

Dear Web Business-Builder,

Back in the Pleistocene era … when I was selling subscription-based data networks — where my customers were spending up to $100,000 a month (sometimes more) with the companies I represented — losing a customer was a HUGE deal.

I had the most profitable portfolio of business, largely because I kept customers longer than anyone else. My employers found me annoying and troublesome … but they tolerated me for this reason.

I was also adept at acquiring new customers …

The average tenure of an Information Technology decision maker at any one company was about 18 months. When my contacts packed up and left for a new assignment, they often took me with them.

What few people in my industry realized was that these “changing of the guards” were when accounts became vulnerable. I seemed to be the only one who had made a point of becoming exceptionally skilled at managing these critical transitions.

And the increased retention, profitability, and net revenue growth I was able to achieve, by doing so, was impressive.

Another key element of my retention strategy was a customer newsletter that I personally wrote each month and had sent by mail to each and every one of my contacts.

To my knowledge, no one else in my industry did this.

Some companies had fancy tools that allowed their customers to hop online and check usage and trouble tickets and stuff like that. But none of them kept their customers jazzed with new ideas and opportunities the way I did.

And none of them built the same kind of personal bond as a result.

Why am I telling you this in
an article about continuity income?

The reason is simple …

If you want to build longevity into your continuity programs, the personal connection fostered through your newsletter should be your central focus. Sure you can create all kinds of cool content and throw it up in an impressive looking membership site.

But it’s the personal relationship you cultivate through that newsletter that bonds your members to you like super glue. If you’re looking to create quick, easy continuity income, my advice is to skip the techno mumbo jumbo, and focus on that newsletter.

Sure there are people making a killing with whiz-bang membership sites. But there are many more wasting a lot of time, money and effort creating them.

When I explained how I was doing my latest continuity program at a recent Mastermind, Ben Settle (amazing copywriter and all around great guy) said it reminded him of the story of how American astronauts used a million-dollar space pen to write upside down while the Soviets used a pencil.

You see, I was all geared up to spend a whole lot of time, effort and money piecing together a membership site (the million-dollar pen) when I realized I could get coins from my project much faster and easier with a proverbial pencil.

Instead of wasting a lot of cycles on something I scarcely understand, I decided to use a lowly autoresponder to deliver my new Persuasion Mastery Club continuity content.

And a couple of days later I welcomed my first members …

48 hours from concept to cash!

Here are the steps I took to do it:

1. I wrote a quick Day 0 autoresponder message that confirmed the details of my continuity program with a link to a single pre-recorded MP3 interview and PDF transcript, and some teaser copy promising my newsletter would be arriving in a couple of weeks.
2. I drew up a short blurb (just 286 words) that pitched a 30-day free trial of my program as a free bonus, and slapped it up on the sales page of one of my existing products.
3. I set up my shopping cart (added another 73 words of copy here as well) to send out the welcome message and auto-bill customers for the continuity — 30 days delayed.

That’s all it took.

After the sales started coming in I wrote an 8-page newsletter. And then I created a Day 15 autoresponder message with a link to a PDF file of my newsletter.

And each month since, I just rinse and repeat. That’s the extent of it.

They get an audio interview and transcript at the beginning of the month. Then mid-month, they get my newsletter.

Actually, everyone who signs up is on a different cycle and the autoresponder handles all of the scheduling.

Can you say easy to manage?

When somebody wants to quit, they e-mail us and my assistant just goes into our shopping cart and cancels the auto-bill and removes the customer from the autoresponder.

… No cumbersome content management.

… No forum brats to baby sit.

… No worries about trying to impress people with a lot of glitzy looking content — like you seem to have to do with a membership site.

I know people who have been pulling their hair out for months trying to get one up and running.

And you avoid the all-too-often situation where people sign up, download everything, and then cancel. Don’t you just hate the thought of it?

I wish I could take credit for this blinding flash of the obvious (using an autoresponder to run a continuity program), but I can’t. It came to me in an e-mail from Jimmy D. Brown. Thanks Jimmy.

Now that you’ve taken the hassle out of
creating your continuity program, here are
a couple of tried and true ideas for marketing it …

While not written in stone, it’s generally not a good idea to pitch a continuity program directly. Why?

Because by definition, you don’t know exactly what’s going to be in there from month-to-month. Remember, this is an ongoing saga, where you and your prospects are taking a journey together through time.

If you’re selling a course with a beginning and an end, that’s not a continuity program. It’s a correspondence course … different story.  

A true continuity program is best sold indirectly, as a bonus, or with a bribe of some other highly-prized problem-solving information.

You saw a quick synopsis of the first method above.

Simply integrate your continuity program pitch into your existing products wherever possible. Create new niche front end products with this in mind.

Your continuity program tagged onto these new products supercharges their profitability, giving you more dollars for promotion. You can now pay much more for a new customer. And that’s HUGE!

You can also create new, low-cost front-end products with content from inside your continuity program. Each month I address something specific in my interview and newsletter. The best of that content I’ll be dressing up as new products. When people buy those new products they’ll also be signing on to my continuity program.

The other tried and true method is to bribe your prospects to sign on to your continuity program by offering them a high-value info-product for free.

Create a highly targeted, in-demand product. Pitch the hell out of it. And offer it for free if your prospect will just sign on to your continuity program.

Or go one step further and give them the product if they sign on for a $1 dollar, 30-day trial of your continuity program. Instead of the regular monthly rate, the first month’s a measly buck. How can they resist? Be sure to test to see what your stick rate and stick duration is before rolling out.

Are there other great ways
to market continuity programs?

I bet there are. Tell us about what works for you in the comment box below.

Come to think of it, tell us about your experience as a consumer too. Do you subscribe to continuity programs? How many? What kinds of programs do you like?

Go ahead. Give us your thoughts.

Until next time, Good Selling!

Daniel Levis
Editor, The Web Marketing Advisor
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12 Comments »

1. Comment by Dave Doolin — February 11, 2009 @ 11:36 am

   I think I give away far too much material for anyone to take me seriously.

2. Comment by Ruby — February 11, 2009 @ 12:38 pm

   What a great idea! I have two membership site programs that I’ve been trying to figure out for months now. One of them is really just a fancier version of what you’re talking about.

   I think I might give the autoresponder option you’re suggesting a try.

3. Comment by Michel Fortin — February 11, 2009 @ 1:46 pm

   Daniel, your article is awesome. However, the only stickler I have about this is the ethics of it, and the issue of transparency and clarity. (Or the lack thereof.)

   You failed to mention that you must be clear and upfront, on the sales page (not inexistent or tucked away in tiny print on the check out page) that they are 1) it’s truly a free bonus (that is, they can cancel without cancelling the entire order), and 2) that they can easily optout — either after they bought (better) or on the order page BEFORE they checkout (best).

   My wife and I talk a lot about this, because it’s something near and dear to our hearts. As service providers, we’ve seen many a marketer try to craftily and sneakily squeeze in the continuity program on the backend, without being seen.

   When the client gets their first bill, they freak out. They either cancel or, if they like you and keep your product, they will stay on — but they will become skeptical of every other continuity offer out there, let alone marketer (including legitimate marketers).

   As my friend Armand Morin says, “Sure, it can make you a lot of money, but AT WHAT COST? Don’t try to hide it as a bonus, sell the damn continuity program!”

   Now, it bears being said…

   Forced continuity is time, true, and tested. I don’t mind it. But what we have a problem with is hidden continuity — or what my wife dubs, in her report at InternetMarketingSins.com, as “Sleight of Hand Continuity.”

   Your tactic is OK, but the problem is, if marketers are not properly taught on how to do this the right way, they go off and mangle it, doing it wrong or unethically — and then killing it for the rest of us.

   Something to think about.

4. Comment by Jim Labadie — February 11, 2009 @ 2:27 pm

   We have a monthly coaching program with personal trainers that run fitness boot camps. The best thing we’ve done for retention is pick up the phone once a quarter and personally CALL THEM. Yes, good old fashioned relationship building.

   The calls go a million miles. It’s just something that nobody else takes the time to do.

   Keep up the great work!!

5. Comment by Susan Connors — February 11, 2009 @ 3:44 pm

   Hi there Daniel

   CUSTOMER SERVICE = GOOD RELATIONSHIP WITH CLIENTS = EXCELLENT COMMUNICATION

   The kind of service we had as kids - you could walk into a business and the person behind the counter would remember you.

   Often have a chat with your mom or dad, and give you kids some time as well.

   You remember the store you always went back too. Even if the price was a little higher - the service was more important to you.

   By giving your clients that extra attention, you are forging lasting relationships. They feel like they are not just a number on a computer database. They feel you care and show this by coming back to you and not your competitors.

   Yes, the almighty dollar has a large consideration in business dealings, that more important factor is SERVICE!

   Consider this - you as a client have a choice.You have three finance policies to consider - say investment bonds. Three companies are after your business.

   All have similar products, similar prices. You ring up the help lines and one one are not answered after extensive wait. You hang up and say forget that one - you want to be able to talk to someone. The second company talks to you and doesn’t answer your questions that make sense. The third company answer your phone promptly, with a person who speaks clearly, they don’t know the answers to your questions, take your details and the company ring you back personally and explain your answers. Which are you inclined to go for? NUMBER THREE…

   Time comes for the policy to be renewed twelve months later.
   Same companies contact you. You have received newsletters and regular contact from the company you are already with..
   Who would you stay with?

   Sometimes it does come to the dollar deals - its service that makes a person/company stand out.

   Everyone is important - they want what they want now! Always the person is wondering “Whats In This For me?”
   Its not about you - its all about them.

   By good service, you build trust and desire. These are very important.

   For me, I am reviewing my website material. I have put up a quick survey to see what my readers want..its not about me.
   I want to know what they want, need etc to see how I can make the site better for them. Lets face it, no-one is going to come back to a site that is useless to them. Another words they get nothing from it - not even a laugh:)

   Clayton and Wendy put one up recently which is a great idea.
   So thanks folks for the inspiration and ideas.

   A person is important - we are not a herd of cattle. Even cattle are different!

   You watch cattle enough (yes I live on a farm ) and they are all different.You see some are slow, some are ornery (mischievous) and some just don’t care. They are happy to play and graze most of the day. Get them annoyed or angry and watch out. You get stomped on by angry momma’s when its time to separate calves. Poor dogs and horses, get chased when its time to round up . Really would you like to be chased and screamed at? Something to think about..

   Thanks again for a wonderful article ..I look forward to reading more..

   Susan Connors
   http://www.marketingforlife.com.au

6. Comment by Kyle Tully — February 11, 2009 @ 7:08 pm

   Nice article Daniel. I’ve been teaching how simple membership sites (and continuity income) really can be to anyone who’ll listen.

   Unless you’ve got a REALLY good reason for it, the typical membership site with articles, forums, reports, ebooks, software etc is just complete overkill.

   A big reason people drop out is information overload — too much “stuff”.

   Just pair it down to exactly what your customers actually WANT, then deliver it in the simplest way possible.

   Your case study is a perfect example of how to do it.

   Cheers
   Kyle

7. Comment by Solomon — February 12, 2009 @ 9:03 am

   Hi Daniel,

   Thanks for the great article. I’m for your newsletter -now for this amazing total package- as it has a lot to learn from. Indeed, a great job by all of you!
   I like newsletters which give me lot of new insights!
   Solomon

8. Comment by Dean Kennedy — February 12, 2009 @ 6:19 pm

   Another great article! I was speaking at a mastermind meeting yesterday in Sydney about the importance of relationships through newsletters — just the point you’re making here — it’s great that your story describes the personal bond it creates. It’s a shame that approach is not used more often, but it makes it an easy way to stand apart when noone else is doing it.

   I love the simplicity of your membership program — what a great concept.

   Your articles are always worth reading … thank you.

9. Comment by Tian Yan — February 13, 2009 @ 3:57 am

   Dear Daniel,

   I used the same business model before. In the past, I
   had the experience of getting non-customers in the
   continuity autoresponder and I have no idea how they
   got there.

   Have you personally had this experience before?

   Be Well,
   - Tian Yan

10. Comment by Daniel — February 13, 2009 @ 6:01 pm

    Michel, I agree with you 100%. No point getting a customer who doesn’t want to buy again. I haven’t had a single complaint, so I guess 286 words of twelve point text on the sales page and another 73 on the order form is a pretty good benchmark.

    Tian, most autoresponder systems have a function that allows someone to subscribe simply by sending an email to an email address that’s associated with an autoresponder list. If you have this feature turned on, for sure you’re going to get garbage in your autoresponder. I always turn the damn thing off, even on my free lists.

    Cheers!
    Daniel

11. Comment by Roger Willcocks — February 22, 2009 @ 3:34 am

    Great idea. Simple and easy and obvious, like most great ideas.

    But there’s that stupid space pen story AGAIN.
    It’s not true.

    http://www.snopes.com/business/genius/spacepen.asp

    The Russians used a electrically conductive dust (pencil lead AKA graphite) in zero gee, and a highly flamable substance (pencil shavings) in an oxygen enriched atmosphere (the capsule) because they had no choice.

    And NASA didn’t even create the pen.

    Ah well, human mythology in action I guess.

12. Comment by Steve Pohlit — February 23, 2009 @ 7:04 am

    We follow Daniel’s advise with our continuity program and found the $1 offer to work. We also found that if a person does not subscribe by day 15 or so in our autoresponder sequence some convert with a bargain offer.

    Good Article