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What is the lifetime value of the customer?

"Your customers are worth more than you think!"

In this post I am going to share some rather remarkable things that are happening right now. And I mean people who are making real money in their niche today that still do not truly know the lifetime value of the customer!

I will also make reference to my book too but there are many examples to share other than me.

The image is an icon of a person at a computer with a large Dollar Sign and a question mark, meant to represent the question of what the lifetime value of the customer is

What is common with most of the people who are winning online?

They are vloggers, meaning they are on YouTube and about all they know is Patreon, video sponsorship and YouTube’s built-in monetization feature.

Some are bloggers. Some do podcasts. But all provide value to followers and they need to realize what value they can get back to make decisions.

I am taking you on the journey of understanding that social media and traditional online profit centers are only a portion of the financial rewards that are possible. And even those who you would consider to be ‘pros’ don’t get the true lifetime value of a customer!

That is what this blog addresses, showing the one main reason why they (the pros) are leaving a huge piece of the pie on the table!

However, before giving you examples and showing you what they don’t seem to get, I have to do some maintenance. And, by that I mean, explain why the lifetime value of a customer is important in a lot of marketing decisions, then get on with showing you why it is greater than even the pros in this article might think.

Why the lifetime value of a customer is critical.

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Justin Rhodes

Take Justin Rhodes, the “apron wearing permaculture chicken ninja” for an example.

He has 895K subscribers to his YouTube channel. The guy is doing something right, AND; I for sure can’t teach Justin Rhodes much about getting followers but how far down the rabbit hole has he gone with understanding the lifetime value of the customer?

I should add, that we can modify that phrase so it applies to followers — just replace “customer” with “follower” and essential is means the same thing, just with a different noun.

Justin Rhodes studied permaculture but he seems to taken more inspiration from Joel Salatin of Polyface Farms rather than Geoff Lawton of Permaculture fame.

I bring this up because Justin just recently marketed Joel Salatin’s new book to his followers. And I believe he sold over 1,000 copies of that book!

This is a remarkable example of direct marketing.

Clearly, Justin gets more about the value of his customers and followers than most, because he sells his own training course and because he is smart enough to know that he can also make money selling Joel’s educational products too.

Now, obviously this blog post & my website are not about regenerative farming or permaculture, though they interest me as they should everyone. But they are Justin and Joel’s niches, not mine.

However, both Justin and Joel get the first concept of marketing:

“Do it first, then teach others how to do it!”

Do it because you have now proven that you can AND people will believe what you say to the pint of buying your information to discover what you are doing.

After all, it is better for those who want to follow in someone else’s footsteps to avoid the pitfalls that their mentors can help them avoid so they save serious time!

Interestingly, many followers who become buyers (customers) crave almost everything you can create, which is why Justin Rhodes has a very successful YouTube channel. It is also why he has several course for sale and converted an old barn to a place to hold talks.

Do it first, then create a product to teach people to do what you did. But is that all in regards to the lifetime value of the customer?

Nope. Not even close.

The real winning formula for marketing includes not only making money for referring others to buy related informational and educational products but in understanding that everyone buys stuff.

Justin refers people to buying his apron from this small or micro manufacturer, same with some of the tools he uses. But these things are related to Justin’s lifestyle vlog and what he teaches. What about unrelated stuff?

In this category there is a key to success. For instance, if Justin told his followers about fabrics like Toile he would not pick up much in the way of affiliate payments.

Stephanie Jarvis

When Stephanie Jarvis of The Chateau Diaries tells he audience about toile, it is a different story. In fact, so successful is she with her channel and all things about design & taste that she has become a Tastemaker for Christie’s Collaboration. Now this is a big deal:

In no way, however, is the Tastemaker honors she received a bigger deal than Joel asking Justin to sell 1,000 copies of his new book Polyface Designs:

What is the key to other types of back-ends? To referring your followers, fans, patients, prospects and customers to non related products? Great question.

Just as almost every follower of Justin is likely to be interested in a high quality durable apron and the same high percentage of followers of Stephanie would be interested in Toile or Spode (plates) in her vlogs, the key is your follower mostly have to be interested in what you offer.

It is unlikely that either of these content creators (vloggers) could refer many buyers to a competitor of Rolex, for example.

Sailing La Vagabonde

Now look at the YouTube channel called; Sailing LaVagabonde. Like Spephanie and Justin, the owners of this channel, Riley Whitelum and Elayna Carausa have extremely loyal following (1.62 million subscribers). But they are more likely to be able to sell a sailing boat to their followers than Toile, right?

Okay, but what do the followers of all three of these YouTube creators have in common?

Well, do they wash their clothes? Do they polish their wood furniture? Do they bath or shave or put on makeup?

It might not be sexy to talk about hand sanitizer and washing around toilets — no comparison to talking about Toile and permaculture style aprons — but everyone does it.

Can we refer followers to changing where they shop for stuff that is non related to our niche? The answer is a big time yes!!

There just has to be a benefit to our followers and there is; a safer healthier home. 

Unlike shopping for stuff at high end stores, like Whole Foods —  purchased by Amazon for $13 billion in 2017 — there are manufacturers that sell chemical free cleaning products that don’t cost more.

The sexy bit is; your lungs won’t get damaged by breathing in fumes, like they can be by using from bleach (sodium hypochlorite). AND: these products do not cost a premium, like stuff in Whole Foods.

It is important that these content creators have a strategic alliance with a team of people who are like minded who will process requests for setting up an account to buy direct so that all Riley & Elanya or Justin or Stephanie need to do is mention this option and put a special link in the notes below this video containing that mention. 

This should help you understand the lifetime value of the customer. What is crazy is “lifetime value of the customer” only gets a average of 6,600 searches a month on Google. That is only a fraction of the number of content creators that vlog, blog and post on Instagram!

The other bit that is exciting and important is; this type of referral generates regular income, not a one-time affiliate commission! 

Lifetime Value of the Customer video

I will add a video to this soon so that any content creator can get a better understanding of how my team can help them get a regular income for just mentioning these products and putting a link in their video.

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