Andrew Reynolds and his Cash on Demand Principle for High Profits

The last live seminar I went to where Andrew Reynolds was talking, he covered some very good points on the mechanics of a Cash on Demand business before leading into a great principle that results in high profits.

Although he does cover everything and a lot more besides in the course modules, it was good to hear these points made by him, as a sort of grounding to make sure I’d grasped everything and understood some of these important basics.

According to Andrew Reynolds, the number one aspect is to find a hungry market of people with relatively high disposable income.

Andrew decided to talk about this because he had a student asking him about e-books. What Andrew Reynolds told us about e-books is that they tend to target people with not much money. You know you sell these e-books for four or five quid. As he told us, we need to target somebody that, if you go out with a £15,000 product, you won’t feel too nervous about asking them for the money. You know that they’re not going to have to sell their house or re-mortgage just to pay. You need somebody that’s got a credit card facility for a large amount of money. As Andrew Reynolds explained, unlike the Microsoft companies of this world you don’t want to take a few pounds off trillions of customers. You want to make a small number of sales at higher amounts down at the bottom of the funnel.

Andrew Reynolds asked if it made sense to us and then continued to explain further…

He said this is what he does…Andrew takes the top of the funnel, and puts all of that section on autopilot by using a fulfillment company. Then he just has to take care of the firing of the starting pistol two or three times a year for the back ends. As Andrew Reynolds told us all, that starts to make some good commercial sense. And we can do the same.

The first thing you do, according to Andrew Reynolds teachings, is once you’ve found a hungry market…and Andrew teaches how to do this in full…you first offer a low-cost product. The reason for this is to develop customer confidence in your product and your company.

The thing is, as Andrew Reynolds explained during one of his live seminars, is that Jackie here, could go out tomorrow and decide to start a Cash on Demand business calling it Jackie’s Marketing Limited. And she could offer me this great set of CD’s. But if I got the paperwork sent to me, I’d say, “Who is this Jackie’s Marketing Limited? I’ve never heard of you.”

And as Andrew continued to explain to us, if she put on the market, let’s say, a £3,000 set of DVDs for example, she’s never going to get a sale. But, if she went out with a £67 product, a certain number of people…and I’ll give you the specs on those numbers in a minute as Andrew gave them to me…a certain number of people will come into her funnel and give it a go.

When Andrew Reynolds explained this it all made so much sense. All you’re trying to do initially is to build customer confidence. They send in an order and you send them the stuff as promised. Let’s face it people are very nervous about spending money with people they don’t know, somebody they’ve never met. But if you offer a money-back guarantee…incidentally, as Andrew told me to at this point, jot that down…a 30-day money back guarantee on a low-cost product, always offer a minimum of a 30-day money back guarantee.

So, all you’re aiming to do at this time, is to get that customer on board to test your system out. As Andrew Reynolds teaches, you’ve got to send them a package which is going to be the best thing they’ve ever received. And you’re going to send it the same day you get their order. That way they have the product very quickly in their hands. And so if you do all of that you give them a bit of a wow experience. You can imagine it, as Andrew said, it would be something on the lines of, “Strewth, I sent this order into Jackie, and I’ve got my product three days later! I’ll have a look at it. It’s got a money back guarantee, I’ve got nothing to lose.”

And I could see what Andrew was talking about when he told us that if you do that you’ve developed a sort of relationship with that customer immediately. This is what you do with a front end product. This is what Jackie Ltd would send to somebody, maybe a three DVD set, or a three CD set. That’s all it is. And it probably costs £5 or £6 to package and yet it sells for £67.

So, as Andrew Reynolds pointed out, you don’t need to be a genius to make money in a Cash on Demand business.

Really all you’re doing with a front end product is saying, “Look, you don’t know me from Adam. I’m just an ordinary bloke, I live in wherever and I’ve got this product which can do (whatever it is) for you. The cost is £67 plus p&p – so £69.95. I’m offering a 30 -day money back guarantee.

This next bit is important and it surprised me at first, when Andrew told me, but as ever, once I’d put his methods into practice I understood it perfectly. Andrew Reynolds explained that if someone sends it back you don’t get on the phone and give them an ear blasting. Remember, you’re trying to build a relationship with your customers.

Andrew shows you the numbers that normal people in this business will get in terms of returns…but as he instructs it is important that you realize that all you’re doing at this stage is developing your business. You’re putting people into a position where they’re standing behind that start line ready for you to fire the starting pistol. So, okay, as Andrew Reynolds told me, what you do then is you do fire that staring pistol and you do that by offering a back end high margin product. And this is where the money is, this is when you start making real money.

Once I got this, a lot of other things fell into place for me, so you get it as well, just remember what Andrew teaches…

The money is in the back end product.

That’s the box of products, say CDs, DVD’s books and manuals that sell for £697 plus VAT…ten times as much as your front end product.

As Andrew Reynolds explained about the back end products…the information on these CDs, DVS or inside manuals or courses is priceless. You can’t get this information in any other way. You can’t go to a store and find this information. You can’t get a multi, multi-millionaire guy who’s retired and lives in Switzerland and has years and years in this business to teach you this stuff personally. What you can do is get him on DVD for £697. But it’s costing maybe all of £50 to get that box to a customer. But the selling price tag is just under £700.

So, that’s a back end product as told to me by Andrew Reynolds who is the Multi-Millionaire Author of the Cash on Demand course.

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