What is the best way to market a low cost product online when factoring in the cost of customer acquisition?

Here's an evernote file of things I've found and liked around the internet re: 2 sided marketplaces. All digital, although not sure exactly how "successful" they are - but more for reference. Quality / Copywriting https://www.yourmechanic.com/works#mechanics https://www.airbnb.ca/?locale=en http://powhow.com/ Community Engagement http://www.houzz.com/ideabooks https://www.healthtap.com/ https://www.airbnb.ca/wishlists/popular https://www.wello.com/class/set/Yoga/ Categories / Search http://www.etsy.com/ http://fiverr.com/ https://www.airbnb.ca/s/moncton?source=hdr http://takelessons.com/search?q=4gq30T Deliver of Service www.hotelstonight.com www.uber.com https://www.medicast.co/ www.wello.com www.takelessons.com www.taskrabbit.com How it works https://www.taskrabbit.com/how-it-works https://www.zaarly.com/howzaarlyworks http://takelessons.com/students/how-it-works https://www.wello.com/how-it-works/ https://www.medicast.co/how-it-works https://www.healthtap.com/#how_it_works https://www.wello.com/how-it-works/ https://www.odesk.com/info/howitworks/client/ http://www.guru.com/emp/takeTour.aspx The Why http://nest.com/smoke-co-alarm/why-we-made-it/#nobody-ever-looks-up Supply Side https://www.elance.com/q/find-work http://www.guru.com/pro/index.aspx https://www.odesk.com/info/howitworks/contractor/ http://takelessons.com/teachers https://www.zaarly.com/selling http://www.skillshare.com/teach https://www.udemy.com/teach/ www.powhow.com/open-your-own-studio https://www.airbnb.ca/rooms/new Conversions http://www.justanswer.com/ http://www.skillshare.com/ Referals http://www.powhow.com/open-your-own-studio uber.com/invite/rjif2 Subscriptions http://www.powhow.com/open-your-own-studio http://premium.docstoc.com/subscribe/plans http://www.rocketlawyer.com/plans-pricing.rl Help Center http://help.zaarly.com/ https://www.airbnb.ca/help Pricing http://www.rocketlawyer.com/plans-pricing.rl http://www.powhow.com/open-your-own-studio http://premium.docstoc.com/ http://mixergy.com/premium/ http://wistia.com/pricing https://teamtreehouse.com/subscribe/plans

I don't even know how to answer this. Do you know what the difference between McDonalds and the local burger joint that is filing for bankruptcy is? It's marketing. McDonalds is worth billions of dollars not because of the quality of their food, but because of their marketing. Marketing is not an expense. A janitor is an expense. Your computer is an expense. Marketing is an INVESTMENT. Would you shop around for the cheapest heart surgeon? Of course not. Because you would likely end up dead. Why, then, do you shop around for a marketing expert? Are you ok with your company going bankrupt? Is that worth the small savings to you? No. Of course not. Hire someone who is good at marketing. Hire someone who knows what they are doing. Buy yourself a Lamborghini with your profit the first quarter. Get a beach house in hawaii. Grab a yacht. Or, try to find your business the cheapest heart surgeon you can and then spend the next five years wondering why such a solid business idea failed in the first 6 months. I'm passionate about this exact topic because all those statistics you read about "70% of businesses failing in two years" are solely because of horrible marketing.

Start with creating your USP (aka Message). This message will be the statement that sums up the reasons for doing business with you from THEIR perspective based on what THEY want (versus why YOU think they should do business with you). It may feature a unique ability your company can provide - some feature or benefit or experience that they either can't get anywhere else or that you do better than anyone else - and I'd strongly suggest it NOT be based on your low pricing. To do this - get very clear about what pain (or problem) your business gets rid of (or solves) and what promise you make to your market. For example: When you say "excellent quality" and "affordable"... what exactly does that mean and why should your market care? -How will they KNOW it's "excellent" (according to them)? And do they want excellent? Maybe they want fast... -What does "quality" mean and how will they know? If you fix my cellphone and it works... How is that qualitatively different from anyone else fixing my phone? Isn't fixed the same as fixed? -What is "affordable"? And affordable for whom? Lastly - When you say "specialize" - and then say cellphone and tablet repair... Does that mean you specialize in ALL cellphones and tablets? Because when you say "cellphones and tablets" it sounds more like you generalize in a type of handheld electronic product. A specialist is an expert in a small area of products or services. Think deep and narrow. For example - You can specialize in repairing a certain brand - Such as "we specialize exclusively in the repair of Samsung cellphones and tablets"... Or you can specialize in the repair of devices running on the Android platform.... (you get the idea) Once you find your USP - use it in all of your inbound and outbound marketing platforms. I wish you the best of luck in your marketing efforts! -David

The best way to work around something like this is to map out the long-term strategy in phases. Build out a brief project map that outlines what they will receive within the 1-3 month period, the 4-7 month and the 8-12 month period. Set micro objectives for each period and this will give the client a bit more confidence in the short-term plans as well as the long. The key thing to remember here is that the client will often be worried about being tied into a contract that doesn't deliver results. As a result, you need to show why you need the time that you do. One thing that I often throw in is an extra incentive for longer contract lengths - for example, an extra PR/content campaign or some paid advertising extras. Try to assure them of some shorter term results that you can obtain as 'quick wins' and build their confidence this way - the major targets will always be longer term but if you can demonstrate that there will be progress between then they will be a lot more receptive.

I provide conversion optimisation services on a price per day on a rolling monthly basis. I did it this way, because my background is in software development consultancy and everything was estimated and billed out on a daily basis. I also provide one off services which is normally priced based on how long it would take to complete. I prefer to work with customers on a rolling monthly basis because I can have an impact on many aspects of their digital marketing and business processes. It means I'm also not tied to only creating split tests but have the freedom to advise and have a positive impact on multiple areas of a business.