This past week, I was doing a little contingency consulting with a client and friend. Contingency consulting is when I offer an idea, explain how to implement it, and, when it works, receive a percentage of the profit. Some people hate this method of payment, because they cannot resist the temptation to take me up on the offer. However, when it works, they hate paying the fee, because it seems too easy for me to earn it. There is clearly something wrong with that kind of thinking, but that is a lesson for another day. The advice I gave them is the lesson for the day.
The client is in the info-marketing business and is doing an infomercial on a new product which is delivering great numbers. If you know anything about the info-marketing business, which uses a 30-minute infomercial to bring people to a seminar, then you know that the key to success is based on the numbers. What is the cost to get a person to your live event, and is your conversion ratio high enough to cover the cost of your marketing and hopefully make a little money on the front-end sale? Nowadays, most don