More threads by Practic

Practic

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Nov 29, 2022
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For a sale to happen the following three necessary conditions must be met:

1) exposure condition (people should know about a product or service);

2) need/want condition (people need/want the product/service to solve their problems);

3) ability to pay condition (people need to have money to pay for the product/service).


All three conditions must be met for a sale to happen. If at lest one condition is not met then a sale will not happen. Here are some examples.

Example 1

Suppose you placed advertisement and this resulted in 10,000 visitors to your website, but none of those visitor has a need for your product/service. There will not be any sales in this case.

Example 2

Suppose that among 10,000 visitors to your website 100 have a need/want for your product/service but they have no ability to pay. There will not be any sales in this case.

All traditional advertising and marketing methods (including SEO, GoogleAds, web traffic generation, etc.) can only increase exposure (condition 1). They can not create a need or increase ability to pay by a customer.

Ability to pay of consumers is strongly correlated with economical conditions. For example, when there is a recession and companies laid off workers, purchasing powers of consumers diminish. They spend less and prioritize products/services they buy. The similar situation occurs when there is an inflation.

To increase purchasing powers of consumers (condition 3) the following methods can be used by businesses:

a) refer a friend programs;

b) revenue sharing programs;

c) income sharing programs.

For the reason that it is a big topic, I will make separate posts for each program in the near future.



For the reason that it is a big topic, I will make separate posts for each program in the near future.
 
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