Hi Brad, Can you tell me what a Host/Beneficiary strategy is?
Brad Sugars answers
A host/beneficiary strategy means partnering up with another business and offering something that is free or discounted to that business to gain access to their database of customers.
This strategy is advantageous to both businesses because while the first business has the opportunity to “buy” new customers at a cheaper acquisition cost than advertising, the other business gives the impression to its customers that they have gone out of their way to provide extra value and something special.
For a more detailed explanation, you can read my book, Instant Leads.
But before you go and buy the book, let me offer a bit of clarification. You can profit from being either the Host (introducing new things to your existing customers) or the Beneficiary (offering your services or products to someone else’s database) but there are two questions to ask yourself before you embark on this strategy.
First, what do people need just before or after my service? This can help you find other companies who offer those items, making the relationship more effective.
Next, ask yourself what other business, that isn’t competing with me, is already selling to the customers I want? When you get your answers to those two questions, approach those businesses with the idea of being the beneficiary of their customer loyalty.