Acquisition Aggression

Understanding Your Level Of Acquisition Aggression

We’ll be discussing acquisition aggression in this chapter. Acquisition aggression refers to how aggressive you will be in generating a single customer.

This is the most important idea I can get into your head. This is a very important topic for me. When I reflect on the past 20 years of direct response and think back to the times when I was asked what I would do differently, I always answer with acquisition aggression.

Understanding Your Level Of Acquisition Aggression
Understanding Your Level Of Acquisition Aggression

My answer is always the same: knowing what I know today, what I’m about share with you in this section, and knowing what you have already learned and what you will discover if you decide join me on E5 Acquisition Accelerator. If I had the chance to do things differently, I would have spent more money in the acquisition and retention of customers.

This does not mean that I would have spent more marketing money.

This means that I would be willing to spend more money in order to acquire one new customer. You need to know what acquisition aggression means. Understanding the three levels is key. Then I will show you where you should start or what level to go to. Keep this in perspective. It all comes down to how much you are willing and able to spend on acquiring one new customer.

It’s not your entire marketing budget. I don’t mean whether you are willing to spend a thousand per month, $5,000 or $100,000. What is the amount you are willing to invest to get a single customer?

Level one is the first.

These are the typical entrepreneurs, typical business owners, and typical business owners when it comes down to how much they are willing to invest.

They spend enough to still make a profit on every sale.

Mom and pop are trying to make a profit. Because they want to make a profit on every sale, front and back, mom and pop realize that there is no end to their quest.

Marketing is not about making a profit. If a mom and her family sell a product at $100 and want a 50% margin, then the mom-pop business owner will only spend $50 to acquire a customer. They spend $50 to acquire a customer and the customer spends $100. While they get their 50% margin, they leave with $50.

We have level 2, which is where you will see new direct-response entrepreneurs and direct response marketers.

Level 2 is about breaking even. Break-even is when these people spend exactly the same amount as a customer today.

They are spending $1 to get a dollar back in the form of a sale or a new customer. They don’t want to make a profit at the front end. Their goal is to get as many new customers as possible.

They will spend as much money as possible to get a customer. At level 2, the maximum amount spent is equal to today’s customer value.

In this example, the business owner sells a $100 product. If they win a new customer worth $100, then you would invest $100 to acquire a customer at level 2.

One customer is worth 100. You would be willing invest $100. Once you have a customer, you make a profit, and your bank account is the same as it was yesterday. Now you have the opportunity to acquire the single most valuable asset of your business. That customer is the most valuable asset in your business. Profiting in the future is the game. This is because you know that the first sale, third and fourth sales are the most profitable.

We know that the profit is at the back end. This means that we need to make as many sales as possible.

We can bring in more customers by being willing to break-even. This means that we will spend $100 to acquire a single customer.

This is the difference between mom and pop and break-even marketers or entrepreneurs. Break-even entrepreneurs will spend more to acquire customers, but they will also be able to pump more customers into their back end, where all the profit is.

We then have the third level acquisition aggression. This is the third level, which I refer to as the investor. It’s sometimes referred to as going Negative.

This level means that you are willing to spend more money today to acquire customers than the customer is worth today. This is the third level. Using the $100 benchmark, an entrepreneur or marketer would spend more than $100 today to acquire a new customer who will then spend $100.

This person might be willing to spend $110 for a single customer or $120 to acquire a single customer at level 3. At level three they are spending a percentage of the customer’s current value and the average lifetime of their patronage.

Why would a business owner, entrepreneur, or marketer spend more to acquire a new client than they spent with them today?

Because at level three, the marketer or entrepreneur thinks like an investor and realizes they are investing in assets. Assets with a future value.

Customers are one of those assets. Customers have a value today. It is the average amount of money they spend with you each day. They also have a future value. This is the backend of the customer’s spending over the lifetime of their patronage.

Some customers may spend $1000 or more in the next three-months. Others might spend nothing on average. Maybe they all spend on average $400

Would you pay 50 cents to get back a dollar today? What if you were told that you would be paid $4 over the next 30 day?

Would you give 50 cents to get back a dollar today, if you had another $4 in 30 days?

You would. That’s what you do every day. You do it as often as possible.

Because you are aware that you are investing in an asset with a high value today. You pay 50 cents for it today. But, you get back $4 within 30 days. This means that you will make a profit of $3 and 50cs. You will make $3 and 50cs of profit if you subtract your 50c out-of-pocket.

With my Growth and Scale clients and TOP ONE Mastermind clients, I am focused on scaling to level three acquisition aggression.

You should be operating at break-even for now. No direct response marketer should operate at level one.

Only exception to this rule is if you have only one product. You don’t have any back end. Since you are just starting your business, you will need to make money now to finance the growth of your company. If you have only one product and no back end, you will need to have margins on your front end.

If you have more than one product, or offer, then you should operate at level 2.

Because it is break-even, this is extremely safe. The money can be resold over and over again. Spend a hundred dollars and you get a hundred back. You can then take the same hundred dollars and spend it again, or invest it into traffic. That’s a hundred dollars back.

You keep doing it, with a plus or minus, plus or minus. But you’re acquiring customers and building your customer base.

You also know that the more you bring customers into your backend, the more you will make more profit. This business is about making a profit and being able to break even.