Today we will talk about how we made $5 Million dollars in revenue for a startup business that had a disgusting website, but was still able to leverage their competitor brands… and they generated over $5 Million dollars from scratch within 6 months.
Sounds pretty crazy, it is, but once you learn their strategy you’ll be surprised at how easy it really was.
How to “steal” customers and get away with it
There’s a tremendous amount of opportunity to basically hi-jack your competitor’s customers. Why would you want to hi-jack your competitor’s customers?Because when you are trying to compete on generic terms and you’re a PPC Management Company and you’re trying to compete against all the other PPC management companies that, as of now, have a bigger, more well-known brand to the people that are searching for online. It’s very hard to make search work when you have that disadvantage. When people don’t know your brand, your conversion rates are lower than your competitors, so it’s hard to compete and it’s very aggressive.
So, here’s a little itsy bitsy trick that we’ve successfully used for many of our clients, but this specific client – the strategy, the acquisition strategy, was based around us, they had a terrible site, they had very aggressive competition and we basically just flipped it around and leveraged the competition to get their prospects.
When you do generic searches you’re getting prospects that are qualified and prospects that aren’t qualified. However, if you’re targeting the right ones of your competitors you’re getting people who are in marketing lingo problem aware and solution aware, they’re just not product aware, they don’t know who you are, but they do have an edge they’re actively looking to fill it and now it’s just a matter of you hi-jacking them right into your sales funnel right from your competitors.
Sneaky, awesome, and completely legal.
3 strategies to nab prospects from your competition
So, basically the strategy is as follows: If you wanted to grab your competitor’s prospect, how do you do that? We’ll bring up 3 specific strategies that you can use, 2 of them within Adwords, Adwords and Bing, the other one within Facebook or Facebook/Twitter.
So, pick just one of these and run with it
1. Let the prospects searching for them find you instead (with a unique twist)
People search your competitor’s brand, right? So you have all these competitors that people Google, because they don’t know exactly the domain name, etc. it’s just a way of navigating to your competitor. The thing is, bidding on your competitor’s brands is super cheap often times the cost per click is a quarter of the cost. The thing that we tend to use. So what do you do with that? You just show up instead of your competitors. Typically, when you show up instead of your competitors, people tend to show up sometimes just by mistake they don’t even realize it, but because that prospect is in the mind that they’re planning on searching for your competitor a regular ad won’t work. You need to be able to work with our flow.
So, somebody searches for Global SEM Partners as an example and you’re a competing PPC company -and this is a secret, literally nobody does this- but we use a very direct messaging that goes with our flow that’s basically “don’t buy from competitor, don’t invest, don’t engage,” etc… and then you tell them “why is your offer better and you make your unique offer (but you’ve got to have a powerful USP)… something that shakes them up and makes them go “Oh my gosh! Wow! I was looking for this, but I saw his really interesting offer I got to go check it out.”
Basically, you have this very unique offer that sets you apart from your competition. That’s synced and you’re able to hi-jack your competitors’ prospects into your own sales funnel.
A couple of caveats, so first off again this is very powerful, a lot of people do this strategy, but they don’t do their messaging or landing page right and that has very big negative impact on the performance.
They don’t realize this is actually a go-to market strategy for mature markets. Again we’ve done this in the financial space where the competition is very aggressive, they already have people that are doing a competition strategy, it’s not like their brand competitors aren’t bidding on the competitors brands, but this was an opportunity to create some very unique messaging, share unique offers and that was able to drive a tremendous amount of qualified leads and ultimately turn into over $5 Million dollars.
2. Steal straight from their newsletter with GSP
The next thing is using Google ads with what they call Gmail Sponsored Promotions. One of the unique things about it is that you’re actually able to target prospects by what domain they receive emails from. Sound familiar? Similar theme? Somebody’s looking for your competition or there’s somebody that your competition has reached out to and has them on their e-mail list… and you have that opportunity to go and grab those prospects with your offer. Again, key is you have to have a compelling offer.
If you’ve heard my previous podcast episodes, you’ll know that Gmail has a little bit of its own unique process…
It’s somewhat native, meaning that it’s not a consistent format. So you can’t just slam the same people with the same ads a million times and expect it to work. But there’s still quite a bit of opportunity to hit those people, build a big list, roll around multiple offers on Gmail and that should get you quiet far in terms of siphoning customers off of your competitors.
This strategy has is the easiest to achieve a quick win with it, but only if you set it up right. If you want to know every detail on how to set up your GSP campaigns and start stealing paying customers from your competitors’ newsletter, I’ve got a gift for you. In my free Winning With Gmail Sponsored Promotions whitepaper, I guide you through the exact process we use.
3. Get their friends and fans off of social media
And then the last thing… a little bit less powerful and a lot more funky is same process as targeting people who received emails from your competition in Gmail… but instead, you’re doing it on social media.
With this strategy, you target people who have liked or have engaged with your competitors’ Facebook brands. It’s a little bit different, Facebook is different game so I won’t get extensively here, but I can say we’ve generated leads for ourselves and for clients through that very effectively.
But again the bigger thing to keep in mind to achieve your converion goal is to generate leads out of profitable CPA. Don’t over-spend, hitting the same quotes, same prospects over and over again. But at the same time, have a unique and compelling offer that differentiates you from your competition that you can talk about directly in your ads.
Is stealing traffic from your competition legal?
Let’s talk about the legal side for a moment. So what are your legal risks? Legally, you are able to say whatever the heck you want as long as you don’t damage your competitors’ brands.
So, no, you can’t s**t talk them on ads, you can’t say anything negative, you can however highlight your own benefits, so they don’t buy from brand X.
“Buy from me, because I blah blah blah… I get you sales on the first week, boom!” very powerful, “I guarantee X”, or whatever it is that your unique proposition X is… put in that, highlight it and if your competition hasn’t effectively branded themselves that way, that’s something that you can interrupt the prospect with.
So, the thing is at the end of the day it’s legal. But I’m not a lawyer so don’t take this as legal advice. And if your competitors are bigger and they have the legal teams, they might just decide to go sue you.
I can’t tell you they won’t, I’ve seen it happen before. Often times you can go say “Ooops! I’m sorry, that was my SEM team or whatever, will have that changed immediately.” Sometimes they might go further…
Again I haven’t seen it go further really and there’s really no legal basis, but that doesn’t mean they can’t lock you up in court with a law suit.
Typically it doesn’t happen, but you will have to evaluate how aggressive you want to be when you go for a competitor strategy.
It just depends on what your relationship is, what your gumption is for risk, etc., but other than that this is a really really powerful process to generate leads.
Let’s get you started with a kick-ass competitor strategy
So if this is something you’re interested in, pick one of the 3 strategies I described above and start implementing today.
Want to choose the best one to start out with?
I suggest you give the second strategy a try and grab your competitors’ customers straight from their newsletter with Gmail Sponsored Promotions. Now before you start, I created a whitepaper on GSP and I want to give it to you for free.
It describes everything you need to know about Gmail Sponsored Promotions and it also goes into details about this very strategy we talked about.
With this whitepaper in your possession you have no excuse not to get started today and get a slice of your top competitors’ cake by tomorrow.
Alright! That’s it for now, have a great day and make lots of money.