Effectively Using Social Media In Your Business: Part 5- Have systems in place to receive compensation.

by | May 30, 2014

Paypal-logoLet’s look at the bottom line of business one last time.

You must get your products and services into the hands of your customers.  In exchange for your products and services, your customers will give you some sort of compensation.  There are 5 critical things that you need to do in order to make this happen.

You must:

  1. Find your customers or make it easy for them to find you.
  2. Find out what your customers need.
  3. Inform, educate and convince your customers that you can meet their needs.
  4. Deliver your product/service in way that suits your customer.
  5. Have systems in place to receive compensation.

One would think that number 5, having systems in place to receive compensation, would be the easiest thing in the world.  But it isn’t and you know this from experience.  Have you ever attempted to make purchase all to find out that the business does not accept the type of currency that you have available to you at that moment?  It is frustrating and, unfortunately, it is the death of many sales.  Remember, we must not only be able to deliver the product/service into our customer’s hands, we must be able to receive some type of compensation for it.

Old Money/New Money, Green Money/Blue Money

In the good old days, cash was king.  Although credit cards were accepted in most places, your cash was always welcome.  That is what I like to refer to as the new “old money.”   However, in the new era of online shopping, your cash is not very useful.  If you want to make a purchase on Amazon or other online store, you must be able to pay with some other type of currency.

I refer to the “other” type of currency as “blue money.”  When we think of the color of money, we typically think green because paper money was green (I am not quite sure what color it is now).  However, the icons for most online currency systems seem to all have the color blue in them (Look at the icons for Paypal, Chase Bank or PNC Bank).  Not only must you have access to some type of online banking service (“blue” money) in order to purchase on the internet, you must be able to accept “blue” money from your customers.

At a minimum, you must have a system like Paypal or something similar in order to accept payments from customers.  You must be able to securely accept credit cards payments.  There are many shopping cart services that will allow you to offer convenient and safe payment processing for your customers.  Do your homework.

Other Forms of “Payment”

But remember, currency is not the only compensation that you need.  Sometimes you need to expand your mailing list and generate leads.  You may do this with what is known as a “lead magnet.”  A lead magnet is a product or service that your customer is interested in enough to give you their email address.  It could be a short pdf report, an audio, a free book or any number of things.  The old “sign up for my newsletter” generally will not attract people to join your list.

Although this is a “free” piece of content, it must be good and you must keep our business principles in mind.  You must advertise your lead magnet where your customers will see it.  You must know what your customer is looking for.  You must convince your customer that your lead magnet will answer their need.  You must deliver the lead magnet in a way that best suits your customer and you must have a system in place to accept their compensation, which in this case is an email address.  There are many great email management services out there.  Again, do your homework.  Make sure that you are ready to accept all forms of compensation.