Too many marketers focus on the initial sale, when the real profits are often generated by repeat business over the lifetime of the customer, says marketing expert Jay Abraham.
For Icy Hot, a balm, he got $10 million worth of advertising without paying for a single spot. In exchange for running the ads at no cost, the station or publication could keep the $3 customers paid for each jar bought from the ads. One million people tried Icy Hot on that basis.
Approximately one-third of these buyers came back at least 6 times a year at an average order of $10, generating $21 million a year in sales.
Icy Hot became so successful that a major pharmaceutical company bought out its original manufacturer for many millions of dollars.
Source: The Abraham Files