June 22, 2000
Every niche deserves a fan club, so start yours today
Dr. Lynda Falkenstein
A: As always, I love to share ideas on marketing strategies that I can say, without reservation, work. That's right. I'm not about to waffle on this subject, because it's pretty clear that some strategies work really well and others are sheer bombs. But you didn't ask about the bombs.
One of my very favorite, sure-fire marketing-strategy winners is starting your own fan-club. You read it right! Start your own fan-club. Each of us, regardless of the size of our companies, can and should consider nourishing legions of cheerleaders who love what we do enough to be our super salespeople. Best thing is, they make instead of costing us money.
"So," you're saying, "Give me an example." Ok. Think about Harley-Davidson, a company that rescued itself from the brink of extinction by, among other things, capitalizing on its customers. By promoting major biking events and other related activities, it created a powerful fan-club filled with devoted customers, each spreading the legend of Harley.
And then there's FAST Company, a magazine that has created a following that can only be described as passionate.
No mention of fan-club marketing is complete, of course, without reference to the ultimate success; that is, the Macintosh Computer. Even when the tide appeared totally against it and red ink threatened to kill it, Mac users didn't just stay the course. They would and will not let it die. It's pretty obvious why fan-club marketing is so important. By harassing the energies of your customers, you create more than repeat business, you generate powerful energies for new ones. You have an army of unpaid devoted salespeople on your team.
Every niche deserves a fan-club. Start yours today.
Q: Dear Dr. Falkenstein: I follow your column regularly and was especially interested in your recent comments on how to get paid by the Federal Government. I offer the following for your consideration:
I spent 25 years of my life with the Department of Interior as a frustrated manager. Very early in my career, I encountered vendors who refused to work for us due to the pay problems, to the point that the only vehicle-repair facility in a remote mountain town in northern California refused to fix our vehicles. At about the same time I went through an intense training session on how procurement worked from the government side and how much trouble we would be in if we caused a procurement official to miss a discount for prompt payment. Putting two and two together, I had the vendor add 1% to his prices and discount payment 1% if paid in 20 days. He never had a problem thereafter. There are regulations that the procurement officials can be held liable for missing discounts, and even worse, they have to go back to the buyer and ask for more money -- never a good move! This process has held up for me for over thirty years, both in and out of the government. The government will still figure out how to make you lose money, but it should not be due to late payments.
A: Thanks so much for your excellent and very helpful response. One of the best things about writing a column like this is hearing and learning from people such as yourself. Your discount strategy makes tremendous sense. Thanks again for sharing your wisdom with me and my readers.
Q: I opened my own marketing and communications company last year and have been struggling with getting people to pay what I'm worth. I find myself even avoiding the subject of fees because I sense they hesitate, balk, or flat out reject me after I tell them what I cost. The real problem, I think, is that I don't have a defensible explanation why my hourly fee can be so much. Any help you can offer will be much appreciated.
A: Several things seem to be in play here. First of all, I doubt that you have really looked at what it costs for you not to just be in business but to GROW your business. The costs of that growth must go into your professional fee. If they don't, don't plan on renewing your lease because you won't be around or in business, that is. Secondly, and of extreme importance in this case, I suspect you don't really understand the value of your knowledge to your clients. If that's the case, you can't expect your clients to appreciate it. The following story may help you the next time the subject of fees comes up:
The situation took place at a nuclear power plant downwind approximately 200 miles from a major metropolitan area of a heavily populated state. Workers discovered a potentially serious malfunction in the brains of the entire system but were unable to correct the problem themselves. Realizing the potential damage looming if the issue were not resolved expeditiously they called in an expert. Fortunately the expert was able to address the problem in less than an hour. Everyone breathed a sigh of relief. And then the expert's bill arrived. The company officials were shocked: $25,250 for one hour! Ridiculous, shameful, unconscionable, they exclaimed with reproach for their expert's audacity. "How," they asked could anyone's time possibly be worth $25,250?" Their expert explained the bill accordingly: Fifteen minutes travel time, $50. One hour on-site consult, $200. Knowing exactly where the malfunction was located, $12,500. Knowing how to fix the malfunction, $12,500! You guessed it. The bill was paid promptly.
While you may not be shoring up failing nuclear power plants, the problems you solve are every bit as important to your clients, and they pay for the same basic skill and knowledge; that is, knowing where the hole is and how to fix it!