Part 2 Having Other Businesses Help Sell for Your Contracting Business. Episode 64.

April 16, 2015

Host Beneficiary Relationships

I know last week’s creating strategic partners could have been a little daunting for some contractors. Contractor Marketing is a lot of work, but so is pushing a car from a dead stop. But, once you get it rolling, you can keep it going with minimal effort.

However the host beneficiary model is a little easier for your contractor business.

Any marketing campaign you do that pays for itself can be considered successful. Before getting started, there are a few things you need to think about in depth.

Testing & Measuring

Again without drawing it out:

1. Work out your costs
2. Know your margins

Lifetime Value of a Customer

Don’t view each new customer that your campaign brings in as a once-off-sale. If you know your costs, margins and lifetime value of a customer you can give something away of perceived value to the potential customer as a way to get them as a lifelong customer.

Remember, profit right now is nice, but future profits build longevity in your company.

Your valuable gift can be a multiple purchase like buy 3 get 1 free. It’s your business!

As long as you know your numbers, you just need to be creative and test which offers give the highest results. And keep testing different offers with different host beneficiaries.

Guaranteed you will need to know what type of clientele you are making an offer to what are their wants, needs, desires in the arena you service.

Again, you will need a host beneficiary that has the right attitude, has a targeted list and could his list benefit you and could your list of client benefit him?

Support from the host if they have the right attitude to begin with this should easy. But it all needs to be laid out in the plan.

The 7 Steps to Creating Host Beneficiary Strategies

First you will have to come to a conclusion, is this model even for you.

Host beneficiary is ideal when you have a specific group of people you want to advertise to, and there are other noncompetitive businesses already dealing with them.

Here’s a perfect example – a plumber who does a lot of new kitchens and baths can use a painter to refer his clients to for touchups and remodeling.

Basically, he refer you to his clients by sending out a letter of introduction (you will write and input the offer) something like this.

Dear Mary,

Thanks so much for doing business with our company. It was our pleasure helping you beautify your home with your new plumbing fixtures. I know we had to make changes to your walls and sometimes you want to or need to paint after we leave. I would like to give you this gift voucher of $100.00.

This can be applied to any painting you want to complete the beautification for your home. We have purchased this for you from our favorite painter, Dave. We have known and trusted Dave and his company for years.

The customer thinks the plumber is giving up 100.00 as a gift to help one of his favorite clients.

If you wash windows you can use a painting company the same way. If you are a roofer you can work something out with an insurance agent and offer a free roof inspection valued at $199.00.

The customer thinks the host plumber has purchased as a gift to help one of his favorite clients.

Remember, host benefits work best because the potential customer thinks the offer is a gift from the other business. They believe the business has gone out of its way to find this offer, and pass it on. Because of that, they feel some obligation to take it up.

You need to find businesses who are willing to get behind the idea 100%, or else forget it. That brings us to the other consideration – are there any businesses out there who are willing to open their minds enough to run with the idea?

Of course, it depends how you bring up the idea. If you say ‘listen, I want to use your database and sap it for all it’s worth’, you’ll have a bit of a battle closing the ‘sale’ from there. On the other hand, you could try an approach like…

‘Hi there, I’ve got a way we can help each other – I’ll get some new customers, and your current customers will think you are the greatest most generous person on the planet. Then, later down the track, we’ll swap’

…it’s certain you’ll get a better response from this method.

Who Is Your Target Market?

It goes back to finding a host beneficiary that has a similar target or one that you are looking to connect with.

By now you should know how to pinpoint your target if not go episode 9 and 10 and 25.

Who is going to make a good Host Beneficiary?

They are non-competitive (they don’t sell what you sell) but have the same type target.

This is an important one: THEY HAVE A DATA BASE of names and addresses. In order for this to work you are going to need one also, that is a data base of customers. If they just have it on paper, offer to put it into an excel spread sheet for them for the future.

Same as last week, their customers have to like and trust them. If they don’t it’s a waste of your time. Ultimately this has to be set up as a win, win.

What do you want to say to the host business customers?

We went over that a little before but here is another example.

The letter could come from their painter and say,

Hi there, I know a great window washer called Bob. As a special gift from me, I’ve arranged for you to have the windows on the front of your home for FREE. Really, call Bob at xxxxxxxx to take him up on his offer.

It’s really that simple. It’s not brain surgery. You write have the host sign it and mail it.

I know of carpet cleaning companies that still offer 1 free room of carpet cleaning with a healthy home audit. Average sale is like $305.00.

You don’t have to be afraid of free but as I’ve talked about in earlier podcasts, there is the law of reciprocity. You cannot take something for nothing you have to give back by buying, or referring.

Its weird.

The purpose of your letter has to be clear: A, B, and 2 things

A is your headline
B is your point

Just make sure you know who you are writing to – you do not have to be a great writer to make this happen.

Great Offer

I mean really great offer – think about what would move you. People are not going to remember how well you articulated the offer they are only going to remember the great offer.

As long as your message is clear, quick and targeted well, your letter will work.

Make it easy to read. I like Courier font (typewriter font)… for us old folks it’s easier to read.

If you, as a business owner can see the benefit in this, then remember that when you approach the host businesses. If you want to start sending your own customers gifts, you have to go out and find someone who will offer a free gift. It’s harder than you think.

You’re making it easy – you’re fronting up with a free gift the host businesses can present to its customers. You’re the one putting yourself out.

In order for this to work affectively you may have to pay for the postage, in fact you may have to do everything. Stuff the envelopes, print the material. I do it all because I want to make sure that my potential new customers are contacted correctly.

When Do You Mail These Out?

When I mail these out I try to make sure they get them Tuesday Wednesday or Thursday.

If you are seasonal or your offer is seasonal that’s when you mail it out. I know that sounds like an easy one, believe me it has happened a pool company sends out a mailer in the winter!

Writing ‘Killer’ Headlines

The best headlines do 3 things – identify the right target market, provide benefits and generate enough interest to get them to start reading.

Go to google and put in “killer headlines”. Really go do it.

What Kind of Offers Are REALLY GREAT Offers?

Time limited offers, guarantee offers, And the magic word FREE offers.

Here is the over view…

Find a host beneficiary that has same market as you are one you want to move into
Make sure they have a customer base that likes them and respects them
Make sure they have a great attitude and see the potential
Later offer to teach them to do this themselves

They could really like the idea and watch and learn from you to find a host for themselves.

Create the offer, a Really Great Offer. Write up the letter, have the host sign the letter and you mail them out mail them out.

Check out this episode!


contractor-marketing-pushing-a-car-1024x683Part 2 Having Other Businesses Help Sell for Your Contracting Business. Episode 64.

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