In one form or another, you’ve probably heard of the Gillette principle:
Give ’em the razor, sell ’em the blades”
This idea is also called the razor-and-blades strategy, and it’s often attributed to King Gillette, the guy who invented Gillette razors.
Only the story doesn’t really appear to be true. Gillette originally priced his razors at $5, a princely sum — a third of a workman’s weekly wages at the time, and roughly equivalent to about $150 in today’s money.
It was only after the patents on Gillette’s safety razors expired, and the competition swooped in offering cheap imitations, that Gillette the adopted its now-famous model.
But where is he gonna get the blades???
However it originated, the razor-and-blades model was a good idea. It increased Gillette’s profits back then, and it’s been a mainstay of a bunch of other industries — printers-and-toners, consoles-and-games, Kindles-and-ebooks.
And that’s not all. In a slightly different form, razor-and-blades is also a part of the information publishing world.
For example, when companies like Agora are selling their financial advisory newsletters, they don’t focus their marketing on the newsletter itself. Instead, they focus it on a sexy bonus — which is given away for free — when you subscribe to the newsletter. Typically, even if you unsubscribe from the newsletter, you get to keep the bonus.
As an example, look at the End of America. This was a massive promotion for Stansberry Research, an Agora subsidiary. After spending an hour convincing you how American society is about to collapse because the dollar will soon be devalued, this promotion offered several related bonuses.
The End of America promotion keeps changing to adapt the bonuses to current needs and fears. The version I saw offered ones like “The Four Investment Assets You Do Not Have To Report To The U.S. Government” and “The Gold Investor’s Bible”. You got these intriguing titles free, once you subscribed to Porter Stansberry’s investment newsletter.
I thought of this today because I’m working on a sales letter for a crypto investing membership program. The essence of this membership program is tried-and-true wisdom about investing, culled from books written by the likes of Warren Buffet, along with a review of the current state of the crypto market. Good stuff, but not too stirring.
So I recommended a razors-and-blades model to the guy behind the course. In his case, I think something along the lines of “Top 3 Crypto Investment Opportunities For Q4 of 2018” could work well.
This doesn’t have to involve a lot of work. For example, for this membership program, the current market reviews this guy does already have this “Top 3” information. It simply needs to be pulled out, labeled with a sexy title, and given away to anyone who’s interested in trying the membership course.