If you a starting a new business you will want to get generating cash as quickly as possible. One way to do this quickly and cheaply is to use the ‘host-beneficiary- technique. Whilst traditional marketing methods, such as networking, email newsletters etc are all good, the host-beneficiary method can prove successful very quickly.
What is a host-beneficiary I hear you ask? A host-beneficiary partnership is where you form a relationship with businesses that target a similar audience to yourself. Once you have formed the relationship, you then market yourself to their database with a special offer that is presented as a ‘gift’ from the established business.
The great thing about a partnership of this sort is that as a business start up (the beneficiary) you can instantly reach large numbers of highly qualified prospects with the endorsement of the established business (the host) and keep your start up costs low. The benefit for the host taking part is that they can reward their loyal client base without incurring any costs.
To start a host-beneficiary marketing campaign is relatively simple, providing you follow a few simple rules:
What is a host-beneficiary I hear you ask? A host-beneficiary partnership is where you form a relationship with businesses that target a similar audience to yourself. Once you have formed the relationship, you then market yourself to their database with a special offer that is presented as a ‘gift’ from the established business.
The great thing about a partnership of this sort is that as a business start up (the beneficiary) you can instantly reach large numbers of highly qualified prospects with the endorsement of the established business (the host) and keep your start up costs low. The benefit for the host taking part is that they can reward their loyal client base without incurring any costs.
To start a host-beneficiary marketing campaign is relatively simple, providing you follow a few simple rules:
- Know exactly it is who you are targeting. “Mums aged between 25 and 50 are not precise enough. Produce a detailed profile of your ‘ideal’ customer. The more details you can provide about your potential customers, the more businesses you can approach.
- Identify local businesses which target the same audience as you and approach them. By identifying potential host partners you will have a better chance of creating repeat customers.
- Create an ‘unbeatable’ offer for each of your host partners. Your offer must be a free or highly discounted offer that has a high perceived value with a low supply cost.
- Pitch your plan to your list of host businesses. Make sure you highlight the benefits to the host business and that it is a way for the established business to reward their client base with no cost and very little effort.
- Supply the host business with a draft offer that can be sent to their database. This will demonstrate that there is very little effort required on their part.