Have you ever given thought to the idea of giving free gifts to your customer? How can this help your business? We aren’t talking about just any other gift, but gifts that are of real value to your customer. For example, what if you give your customers a complimentary iPod? Let’s se how this will work for you:

As everyone knows, the iPod is probably the hottest consumer product of the last few years. They are just cool to have. And because they are relatively expensive, they become an even more valuable item. It’s not like getting something that costs Kshs 100 – this is a pretty nice item that you’re not going to get every day.

You could give any product away but when you give an iPod away, you’re taking advantage of the product’s marketing power.

You could just give away Kshs 5,000, but that’s not as special to someone. If you giveKshs 5,000 back, it feels to them like they’re saving money, which is good, but not as fun. But if you give away an iPod, that person feels like they’re getting your product AND an iPod. They’re getting an iPod for free.

If you had given them Kshs 5,000 back, they’re not going to spend that Kshs 5,000 on something fun or anything that they’ll remember in a couple of months. But if you give away an iPod, it’s something that they’ll remember for the years that they have it.

The Gift that Keeps on Giving
There’s one more indirect advantage of giving away an iPod – you’ll get some free marketing. When someone gets an iPod it’s usually a story. A Dad tells his friend that he’s now just as cool as his kids because he has an iPod just like them. And now that story is going to include your company. When someone asks Dad why he finally got around to getting an iPod, he’ll brag how he got it for free… from your company.

So that’s good and it might help bring you some new clients but there’s a way to really help your clients, who will become your biggest advocates.

Let’s say that you sold some sort of marketing service to dentists. For every new client that your service brings in for the dentist, you will give that dentist an iPod to give to the patient.

Now the kid who got braces from your dentist is bragging to his friends at school how Dr. X gives away iPods to his new patients. All of a sudden, you created a brand new marketing and sales program for your client. You only had to give away that one iPod to his client and he can continue to give away other iPods. But you created a real incentive for that dentist so that kids who wouldn’t normally want to get braces, would be excited because Dr. X gives away iPods.

Just Give Something Away

While iPods are one of the best products to give away, you can use this type of strategy with a lot of different products or services. If you’re worried about the price, you’ll probably make up the difference with increased sales. If that still doesn’t satisfy you, just increase your prices a bit to cover it.

Sometimes you have to give to receive and giving away iPods is a great way to receive a lot more clients.

Maybe you’ve heard the story of 1000 restaurant owners who rejected Colonel Sanders’ Fried Chicken proposal,and Prospect #1001 who finally said “yes.”

BUT… did you ever hear the story behind the story?

This is a good one. An old photocopier salesman, who called on Colonel Sanders back in the 60’s, passed this along to me.

The real story is:
The Colonel had a restaurant in Corbin, Kentucky, which had been doing very well. A new interstate highway was planned to bypass the town of Corbin. Seeing that his business was about to dry up, the Colonel auctioned off his operations. After paying his bills, he had nothing to live on except his $105 Social Security checks.

In 1952, confident of his chicken recipe, he began crisscrossing the country in his car, making an offer to restaurant owners: He would walk into a restaurant, announce to the owner,”I bet my chicken recipe is better than yours” and propose a cook-off.

(The chicken provided by the restaurants he visited, using his recipe, was part of his plan for feeding himself during those lean days.)

If the owner was favorable, he would “franchise” his chicken recipe to them at 5 cents per chicken.

In all, just over 1000 restaurants turned him down, without one successful deal.

Then one day he was having his daily cooking duel with a bar owner, who said to him, “Sir, I’m trying to sell beer, not chicken. This stuff needs to be a whole lot saltier so customers will get thirsty and buy beer!”

So he grabbed the salt shaker, poured some salt on, and took another bite. “Now THIS is GREAT,” he said. “If you’ll add salt to this recipe, I’m a taker!”

The Colonel took a bite and spit it out! it was terrible!

But Colonel Sanders had been on a NO SALT DIET for 30 years, so his tastes were obviously different than everyone else’s.

The Colonel wasn’t stupid! He might not like the salt, but it was better than poverty. Thus began the Colonel’s enormously successful Kentucky Fried Chicken legacy.

Here’s the kicker: At one time, if you bought a box of Kentucky Fried Chicken, here’s what it said on the side: “When Colonel Sanders added the 11th spice, he instantly knew it was the best chicken he’d ever had.”

Of course they didn’t tell you what spice it was.

This is so instructive.

First of all, Colonel Sanders could have made 1000 MORE presentations, driven his car until the transmission fell out, spent every dime of those $105 Social Security checks, prayed for success and recited positive affirmations every morning in front of the mirror. But he still would have come up empty handed, had he not been willing to change his recipe!

Secondly, although the recipe he so passionately believed in was the best recipe for HIS taste buds, it was not the recipe that his customers really wanted. Without a recipe that the customers wanted, no amount of effort or persistence would make it work.

With the right recipe, he was unstoppable.

Third, the recipe he had before he added salt was ALMOST right. It was VERY, VERY CLOSE to what it needed to be. Adding salt to a lousy recipe wouldn’t have helped much. So all the effort he expended developing the original recipe was worthwhile.

Fourth: Persistence DID pay off, but not the way we might expect it to. Sometimes we’re looking for the magical day when our persistence, and the sheer number of people we talk to, leads us to the RIGHT person who will say “Yes” and open wide the doors to success.

But for Colonel Sanders, playing the “Numbers Game” was not the key. The real key was bumping into someone with the audacity to suggest something different, and for the Colonel to be eager enough for a breakthrough to change his recipe.

Fifth, the magical ingredient was ordinary table salt. Salt, all by itself, is worthless as a food item. Chicken, all by itself, is pretty bland, and may not even do the trick with 10 other perfectly good spices. Put them together, though, and you’ve got a real winner!

Never overlook the possibility of combining very ordinary things to create something “entirely new.”

Finally, motivation and hard work alone are rarely (if ever) enough to accomplish a challenging goal. Innovation, flexibility, careful listening, endless experimentation, and the setting aside of egos and old paradigms are all equally important.

In my own case, I worked for several years in both corporate and direct selling. I had essentially two priorities in mind: motivation and people skills. I was enamored with these two virtues, and spent the majority of my working time pounding the phone, making cold calls, working very hard to get in front of anyone who could fog a mirror, and all that other drudgery that entry-level salespeople normally deal with.

Despite all of the effort, the motivational tapes and the people skills books, there were still too many days of heroic effort and no reward. My wallet was still, inexplicably, full of hungry moths.

But then things started to dramatically turn around. It was the result of two things:

1. I started to learn how to use marketing, low cost advertising and the web to assist my sales efforts;
2. I found some people who were more able and willing to support my efforts from a “customer service” point of view, than the group I was working for previously.

Great marketing almost always includes the addition of some 11th spice. An ordinary ingredient that makes everything come together.

It’s right under your nose, waiting to be discovered and shared with the world.

The whole of this article is based on an email received from Perry Marshal.

The secret to a successful business is the law of supply and demand. Never, ever, forget that.

As a business person, your job is to supply something that is in demand. That is, your job is to find something that people want and to give it to them, and then take their money. This is the heart of every business, whether it is simple or complex.

Btw, this is Part 2 of How to Start An Online Business in Kenya.

Now, I know you can get generic business advice absolutely everywhere so since I do not want to just repeat stuff and because I cannot even begin to cover this topic in totality, I will keep this article short and simple. Basically, I want to speak to that person who is very new to business in an attempt to show the reality of things while not shattering your self belief.

So as I said, doing business means supplying people with something that they need or want and then charging them. I will be straight and point out what I consider to be your biggest weakness: you! The biggest challenge that a new business faces is its founders/owners. Most new business people that I encounter can’t even see how poor of an entrepreneur they are (if you can even begin calling them that – a person with just an idea and some attempt is hardly an entrepreneur). They don’t realize what they lack or that their internal biases and opinions are creating problems in why they can or can’t succeed. My advice to you as a new business owner is try and get the most knowledge possible about running a business and about your chosen industry. Do not be complacent. Keep in mind that most new businesses fail. From Day 1 it is a full out war to make sure that your business succeeds.

Secondly, a new business is usually very short on resources. You often do not have enough money or enough time. You need more money than you have – you see all the places your business can go and you want to try and go in all directions at the same time…

Which leads to focus. New businesses usually have more time constraints than any other business – the new business needs to get its products to the market to prove its worth after all. Unfortunately, new business owners typically fail to focus on what, exactly, they want to sell and thus they therefore take the business in many directions at once – which leads to more time constraints…

Do you know that focusing on a particular niche of an industry has been proven to be more successful, on average, than trying to attack the whole market all at once? The best advice I can give you is to focus on one small part of the industry you want to do business in. You can always grow to all the rest later. This has several advantages:

• It is cheaper
• It is easier
• You face less competition from other businesses
• You have higher chances of success

Remember how Facebook started? There were already many social networks back then, including the then giant MySpace. Facebook started by focusing only on university students – there was a time you simply could not get a Facebook account unless you were in university/college. By doing this they were able to craft an niche in a huge market while at the same time sowing the seeds that would later lead them to becoming the biggest social network on the Internet.

Think big. But Start small.

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