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Copywriting Secret #6: LVC Formula

Article Description:
====================

One of the most powerful offers you can use in your advertising
is the word Free. But, you may well ask, how can I make a profit
giving my products and services away without charging for them?


Additional Article Information:
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435 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2007-11-30 10:00:00

Written By:     Scott Bywater
Copyright:      2007
Contact Email:  mailto:[EMAIL PROTECTED]


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Copywriting Secret #6: LVC Formula
Copyright (c) 2007 Scott Bywater
Copywriting That SELLS
http://www.copywritingthatsells.com.au



One of the most powerful offers you can use in your advertising
is the word Free.

But, you may well ask, how can I make a profit giving my products
and services away without charging for them?

Which is the exact reason why you need to understand the "LVC
Formula" which stands for the "Lifetime Value of a Client"!

Here's how it works. Let's imagine for a moment you own a
beauty salon. Now if you get a new customer, they may pay you $80
for their first treatment.

But how much is this $80 client really worth?

After all, most clients will continue to buy off you for many
years to come.

For instance, let's imagine your average client returns for a
beauty treatment 8 times a year, and remains a client for 2
years.

$80 (price of consultation) x 8 (purchases a year) x 2 (number of
years)

Now if you have a calculator handy, you'll work out the value of
this client as $1280.00.

And if your profit margin is 40% this calculates to a $512 profit
per client.

Now, let's imagine we sent a letter to all the nearby businesses
offering women a free manicure valued at $30.00 (I'm not a
beauty therapist, so please forgive me if all these figures are
way out).

And imagine the manicure costs you $7 in products and 30 minutes
of your time (which if you're not busy, you'd just be sitting
on your butt anyway!)

So, effectively the $7 investment could have just made you $512
in profit.

And how easy is it to give away a free manicure?

Or for other industries.

 * A free car service

 * A free dancing lesson

 * A free consultation

 * A free ice cream

 * A free report of some sort

The secret lies in giving away something which has a high
perceived value, but actually costs you very little to produce.

Why does it work so well?

Using the word Free in your advertising STOPS inertia. You see,
people are happy with their current hairdresser, or their
mechanic.

But when they get an opportunity to trial a product or service
for FREE - there's something irresistible and risk-free about
it, isn't there?

A word of warning though. Make sure you offer the best possible
service, otherwise people will not come back, and you'll get a
bad name very quickly.

And of course, where possible, make sure you collect a database,
and measure your results.

What could you offer for FREE? Write down a few ideas now, and
start implementing this stuff.

It could have an almost overnight effect on your sales.




---------------------------------------------------------------------
Scott Bywater is well known for getting results as a 
professional direct mail copywriter. And also the author of 
Cash-Flow Advertising. To get a free subscription to his 
"Copywriting Selling Secrets" newsletter where you'll discover 
the truth about why most ads and sales letters don't work 
(And how to make yours different) scamper over to his 
web site at: http://www.copywritingthatsells.com.au


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