Competitors are Our Friends — Clients Our Enemies

[Black_Dragon43]

“Competitors are Our Friends — Clients Our Enemies”​

Thus spoke James Randall President of ADM before some ADM officials got arrested for 24 months for violations of antitrust law.

U.S. v. Andreas, 216 F.3d 645 | Casetext Search + Citator

Read U.S. v. Andreas, 216 F.3d 645, see flags on bad law, and search Casetext’s comprehensive legal database

casetext.com

Most of you see your competitors as the reason why you’re a brokie.

But let me tell you a little secret. Your competitors aren’t the reason why you’re broke.

In fact, thank the Lord that you have competitors, because that means a marketing infrastructure exists, which you can leverage for your own growth.

The biggest reason why you’re a brokie is INERTIA.

Customers can’t be F*cked to buy, either from you or from your competitors.

What did Gary Halbert always say… give me a list of buyers who bought the exact same kinda thing as I’m trying to sell, right?

Because if someone buys from your competition… rest assured they’ll buy from you too sooner or later. It’s just a matter of time!

Recently one of my bigger competitors promoted us on their podcast. We got many good sales as a result. Amazing!

Because here’s the truth:

1. If your competitor does a shitty job, the client is more aware then ever of the problem, and is in the PERFECT place to try you out. Why not?!

2. If your competitor does a GREAT job, then the client has more money as a result, and therefore is more than happy to explore additional options — the grass is always greener on the other side, isn’t it?

Do you really think this big ecommerce brand of big hitters pulling in millions and doubling every other year will just work with your marketing agency forever?! LOL!

You can do the best job ever — they’ll still want to change you and get new creatives juices flowing.

So the truth is simple: bad job or good job, as long as they buy from your competitors, they will buy from you too. The biggest hurdle is getting them to buy from SOMEONE to begin with.

Therefore it’s not your competitors that are losing you sales. If you can partner with your direct competitors, you should do it. Exploit the same marketing infrastructure, and print cash.

Remember who your friends are!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Kevin88660]

“Competitors are Our Friends — Clients Our Enemies”​

Thus spoke James Randall President of ADM before some ADM officials got arrested for 24 months for violations of antitrust law.

U.S. v. Andreas, 216 F.3d 645 | Casetext Search + Citator

Read U.S. v. Andreas, 216 F.3d 645, see flags on bad law, and search Casetext’s comprehensive legal database

casetext.com

Most of you see your competitors as the reason why you’re a brokie.

But let me tell you a little secret. Your competitors aren’t the reason why you’re broke.

In fact, thank the Lord that you have competitors, because that means a marketing infrastructure exists, which you can leverage for your own growth.

The biggest reason why you’re a brokie is INERTIA.

Customers can’t be F*cked to buy, either from you or from your competitors.

What did Gary Halbert always say… give me a list of buyers who bought the exact same kinda thing as I’m trying to sell, right?

Because if someone buys from your competition… rest assured they’ll buy from you too sooner or later. It’s just a matter of time!

Recently one of my bigger competitors promoted us on their podcast. We got many good sales as a result. Amazing!

Because here’s the truth:

1. If your competitor does a shitty job, the client is more aware then ever of the problem, and is in the PERFECT place to try you out. Why not?!

2. If your competitor does a GREAT job, then the client has more money as a result, and therefore is more than happy to explore additional options — the grass is always greener on the other side, isn’t it?

Do you really think this big ecommerce brand of big hitters pulling in millions and doubling every other year will just work with your marketing agency forever?! LOL!

You can do the best job ever — they’ll still want to change you and get new creatives juices flowing.

So the truth is simple: bad job or good job, as long as they buy from your competitors, they will buy from you too. The biggest hurdle is getting them to buy from SOMEONE to begin with.

Therefore it’s not your competitors that are losing you sales. If you can partner with your direct competitors, you should do it. Exploit the same marketing infrastructure, and print cash.

Remember who your friends are!

All of them are neither your enemies nor your friends imo.

It is a multi-players long term strategy game.

If you engaged in war with attrition with your competitors, your clients win.

Your competitors are cards of your clients that are used to play against you.

If you have no recurring revenue and have persistent huge customer acquisition cost the advertisers win. You are working for the advertisers.

Most solopreneurs or young small business owners love to attrit each other fighting for high gross margin non-recurring revenue and eventually bleed to death, on a long term basis eventually exit the market realizing they make more money hourly at an office job with much less stress and hustle.

If you focus on low margin recurring revenue of high needs, there is almost no competition and you can grow forever. But most people don’t have patience for more than 3 months, much less patience to see results after 2-3 years.

Most young hustlers judge businesses return by how fast it resembles an income working for a stable wages, instead of key indicators sustainability of the need in long term basis, and organic growth and referal without advertisers.

You also won’t see the online hustle culture talking about anything other than high ticket sales in business choices, because otherwise there isn’t a margin high enough to support other B2B advertiser/lead gen services around them.

 

[Black_Dragon43]

You also won’t see the online hustle culture talking about anything other than high ticket sales in business choices, because otherwise there isn’t a margin high enough to support other B2B advertiser/lead gen services around them.

Well, as a new business, you do need high margins, right? Otherwise how are you going to make it? You don't have outside resources, so you need to make up for it through your margin. A high margin is an indication that your clients are financing your development and growth.

Low margin is an indication of the opposite – clients barely need you.

 

[Kevin88660]

Well, as a new business, you do need high margins, right? Otherwise how are you going to make it? You don't have outside resources, so you need to make up for it through your margin. A high margin is an indication that your clients are financing your development and growth.

Low margin is an indication of the opposite – clients barely need you.

Just personal observations based on theorizing without too specific examples, high ticket sales are often based on hight gross margin, not even high net margin, come with no repeated purchases and have a lot of competition.

Recurring revenues that comes with smaller revenue upfront, offers lower profitability at the start, but greater long term potential due to organic growth (in a high need industry).

It’s not even pricing strategy. You are fundamentally doing different businesses. High ticket sales is more like a realtor while recurring revenue business is more like a car insurance broker.

High ticket sales business is like a gladiator contest. Only the five percent make it because they manage to snatch their customers away from the 95 percent. Mathew effect rules here.

Car insurance broker is a last man standing contest, because the upfront revenue is too small to feed the family, many drop out and those who didn’t quit make it.

I see the online hustle culture and young small businesses owners/solopreneurs focusing too much in fields that resembling “gladiator contest” making other fields thats resembles more like “last man standing contest” underrated.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Kevin88660]

But to go back to be more relevant to your original post, don’t get upset about competition. Because anything is worth doing attracts competition. You would rather be digging gold together with other gold prospectors than being along in a desert trying to find water. Competition always exits in a proven market with persistent need.

Don’t get too upset by industry changes and government regulations that increases cost. They hit your competitors too.

Don’t get too upset losing a customer who got a better offer and walks away from you. You know that it’s not sustainable to do such deals consistantly.

It’s long term multi-players games with your clients/potential clients, competitors, government regulatory bodies, advertisers.

Your competitors are not your enemies because if you try to collide head on with them in this multi-players game, your clients and potential clients will be laughing their way to the bank while two of your bleed.

The way I try to avoid head on collisions is in products and services that pay me tomorrow rather than pay me now.

 

[insight_space_kz]

Very catching thesis. And your topic is a good food for thought. Changing my attitude to the competition is a relevant thing for me. Thanks for your opinion!

 

[amp0193]

2. If your competitor does a GREAT job, then the client has more money as a result, and therefore is more than happy to explore additional options — the grass is always greener on the other side, isn’t it?

This makes no sense to me.

If someone (supplier / service provider) does a great outstanding job for me, at a good value to the price I am paying them, the last thing I want to do as a customer is look elsewhere.

I'm busy as shit, and going through a search process, than an on-boarding process for anything that has a core impact on the business is a nightmare best avoided.

I only switch when the quality goes down, or the price goes up beyond what I feel is the value that is being delivered to me.



I generally agree with the point you are making in this thread though. At least when it comes to growing markets/pies. Awareness is the biggest challenge in an emerging category, and whether it's my product or a competitor, any product out in the world raises awareness for the category and helps us all out.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.