Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9 pm ET. This is excerpted from my recent interview with @YvonneBynoe. Yvonne Bynoe, J.D. started her first company, a direct order book business, in the early 1990s, pre-Amazon.com. After law school, she went on to co-found and led what became a nationally recognized think tank focusing on youth and civic participation. Her goal is to change the way that women think about success, power, money and inspired living and to help women entrepreneurs to position themselves as experts in their fields so that they can profit from their knowledge, skills and talents and grow 6 figure businesses in any economy. For more information, visit www.soulfulaffluence.com.
SmallBizLady: What is considered a small list?
Yvonne Bynoe: It’s generally agreed that a small mailing list or customer database is under 5,000 people. Most small business owners have a list of 0-1000 people.
SmallBizLady: What is the biggest mistake that people with small lists make?
Yvonne Bynoe: They believe that they can create passive income with inexpensive information products such as $47 ebooks. If you have a small list, it’s not financially feasible, especially since everyone will not buy from you. In comparison, people with large lists can provide low cost items and be profitable.
SmallBizLady: How does a business owner with a small list make big profits?
Yvonne Bynoe: The small business owner has to focus on high-end VIP or Platinum style programs. These are programs that are priced from $2,000-$20,000 per client. A person who only has 10 clients each paying $10,000 for a year-long program has earned $100,000.
SmallBizLady: What should someone with a small list focus on?
Yvonne Bynoe: Growing a quality list rather than a large one. A large list is useless if people are not really interested in your products, program or services. It’s more beneficial to cultivate people who want the type of “solution” that you’re offering for their urgent or very important health, money or relationship problem.
SmallBizLady: What is a VIP or Platinum style program?
Yvonne Bynoe: A VIP or Platinum-style is a high level coaching, consulting or service program. The program can be 1 on 1 or a small exclusive group for an extended period of time. A one day intensive is also applicable to this format.
SmallBizLady: What separates VIP or Platinum-style programs from regular programs?
Yvonne Bynoe: Clients who participate in high-end programs want speed and convenience. This means aside from the coaching or consulting, offering “done for your services” in your VIP and Platinum-style programs such as templates, scripts, ebooks and audio recordings. It also means providing great customer service and special touches such as car service, catered lunch or a welcome gift.
SmallBizLady: What does someone with a small list need to begin marketing a VIP or Platinum-style program?
Yvonne Bynoe: You simply need to have a clear sense of who your ideal client is and the specific problem that you are solving within the program. Then, you just have to start having conversations online and in person with people who may be able to benefit from the program.
SmallBizLady: How important is customer service to someone with a small list?
Yvonne Bynoe: It’s extremely important people. If a business is very large, people don’t expect personalized service. However, many people prefer smaller businesses because they want to receive individual attention. Moreover, most people like feeling as if they are part of a special, elite group. Great customer service is also key to retaining clients and having them to continue to work with you.
SmallBizLady: Why would a person pay for a VIP or Platinum-style programs?
Yvonne Bynoe: In each field or industry there are people who are willing to pay premium prices to have more direct access to a coach or consultant. Moreover, there are clients who are willing to pay for the rapid results that these programs generally provide because of the personalized attention.
SmallBizLady: Can businesses that sell products also add VIP or Platinum-style programs?
Yvonne Bynoe: Yes! People are often willing to pay extra to be part of an exclusive group that receives advance information on products or sales; members-only invitations; access to a private forum or a higher level of customer service than the norm (i.e. free shipping).
SmallBizLady: What is the main thing that hinders small business owners and solo professionals from adding VIP or Platinum-style programs?
Yvonne Bynoe: Fear. Many small business owners automatically assume that their clients will not pay the fees associated with high-end programs. Secondly, some small business owners are afraid to implement these programs because they aren’t confident enough in the value of their product or service to market them at high price points.
SmallBizLady: What advice would you give a small business owner with a small list who wants to get started with VIP or Platinum-style programs?
Yvonne Bynoe: I consistently tell people that before they offer a VIP or Platinum-style program they must first invest in one themselves. You shouldn’t expect your clients to invest in you beyond the level that you’re willing to invest in yourself and/or your business. Also the small business owner will get first-hand experience that he/she can use as a model for their own business.
If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter. Here’s how to participate in #SmallBizChat: http://bit.ly/S797e
For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.
Melinda,
The title of this interview is an attention-grabber. The content fulfilled my expectations. Thank you so much for sharing this information. Have an exceptional week and keep blessing small business owners in the unique way that you do.
~Kellie
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