I typically don’t scrutinize my credit card statement.
I’ll usually glance over it. But I never sit down, bust out my calculator, and pour over every single transaction.
So when I scanned last month’s statement, however, I had to do a double-take.
I noticed some weird, small charges—all from the same company.
- Sept 3rd: $0.99
- Sept 3rd: $0.99
- Sept 3rd: $1.99
- Sept 4th: $0.99
- Sept 4th: $2.99
And on and on throughout the month.
Grand total of these teeny-tiny charges for one month: $58.64.
Now, that’s not put-you-in-the-poorhouse spending. But it’s not chump change, either. (I could put that money toward a nice dinner with the wife. Or, even better, this Rush bobblehead set.)
I looked at my three previous statements. It was the same thing: Dozens of microscopic charges that added up to big totals.
I didn’t understand what was happening. I didn’t even recognize the company making these charges.
Was my credit card compromised? Did that Nigerian prince who keeps emailing me about a cash advance steal my credit card number?
I asked my wife about the charges. Upon looking at the statement, her cheeks reddened. (That’s how you tell when she’s embarrassed.)
“Oh, yeah… I recognize these,” she said feebly. “I bought some extra lives and stuff on Candy Crush.”
Mystery solved: My wife had a serious sweet tooth for a free-to-play mobile videogame.
Actually, “addiction” is the better term. And not necessarily to playing the game… but spending money on it.
If you’re unfamiliar with free-to-play mobile games, here’s how they work…
When you start the game, it sucks you in with simple yet highly addictive gameplay. It lets you progress through the levels just enough to make you crave more, more, MORE.
And just as the game has you hook, line, and sinker, one of a few incredible things happens.
The game suddenly no longer allows you to advance any further. Or the levels become almost impossible. Or you get stuck and need some sort of special power to progress.
By this point, you’re too addicted to the game NOT to play. You’ve got to get to the next level. No. Matter. What.
And that’s when the game hits you with “premium” features to help you advance.
It could be more lives.
Or better powers.
Or access to the next set of levels.
All for the low, low price of $1.99 a pop… which adds up to a big, big charge on your monthly credit card statement.
“Free-to-play” my butt.
Some people pay tens of thousands of dollars PER YEAR on mobile game premiums. As a result, the mobile-videogame industry is set to make $41.6 billion in 2017.
So… how did some nerds who make super-simple games with dumb names like Candy Crush Soda Saga and Angry Birds become billionaires?
Simple. These game developers stole marketing strategies from the gambling industry.
Mobile-videogame developers discovered years ago that cribbing ideas from casinos can get players to part ways with piles of cash. Here are a few ways they do it…
Progress gates: If you sit down at a poker table, you have to pay money to play. As soon as you lose, you’re done… unless you pay more money. This is a “progress gate”—you can’t proceed in the game until you pony up more cash. Free-to-play videogames have implemented this technique. In Candy Crush, you can advance through 10 levels at a time. Once you beat the 10th level, you can either wait three days for the next 10 levels to unlock, or you can pay $1.99 to bypass the wait and gain immediate access to the levels. (Remember—by this time, you’re hooked to the game. That three-day wait seems like an eternity.)
Fake currency: Candy Crush lets players purchase “gold bars,” which is the game’s currency. It’s similar to how casinos allow you to buy poker chips, rather than laying down real cash at a gambling table. The psychology behind this is that it creates a disassociation effect in the player. Since it doesn’t really feel like you’re spending actual money to unlock levels or gain new powers, you’ll be more inclined to spend more.
In-game “ATMs”: Like casinos, free-to-play games do not want you leaving once you enter. While, casinos have ATMs, free-to-play games allow you to purchase fake currency directly from the game itself. When you buy more of the in-game currency, the game automatically charges the credit card you have on file on your mobile device’s app store. You can rack up big charges without ever exiting the game.
So… how can YOU crib from other industries?
Here are a few industries and their tactics you can “borrow”…
Car Dealers – Monthly Pricing
Do you know why car dealerships advertise vehicle prices in monthly payments? Because “$399 per month” sounds a heck of a lot more pleasant to buyers than “$35,000 total.”
Try advertising YOUR prices in monthly payments with financing. After all, $179 per month for triple pane windows is easier for your customers to swallow than playing $12,000 all at once.
Gyms – Memberships
Having a membership program is an easy way to collect passive income. It’s why gyms do it. Instead of aggressively looking for new customers all the time, a gym makes the majority of its money on a constant stream of existing customer memberships. This tactic works best if you are in a service-based industry in which the products require regular attention. Examples are plumbing, roofing, and HVAC.
MYM client Service Champions does this to resoundingly great effect. It’s a big reason they are largest HVAC company in California. Here’s their Rewards Membership webpage: https://servicechampions.com/champ-rewards/
Infomercials – Demonstration
A picture is worth a thousand words, right? Well, a video demonstration is worth about two million.
Can your entry doors withstand 57 hits with a battering ram? Does your siding remain unfazed after being smacked with an aluminum ball bat by a Minor League baseball player? If so, do the “Billy Mays,” and prove it in a video.
Seeing is believing. And there are few stronger forms of social proof than a demonstration video. (For a brief tutorial on how to make compelling videos on a minimal budget, read this blog post.)
These are just a few ideas to get your gray matter moving…
There are hundreds of industries that use methods you can borrow to boost your own business. Take a few minutes now and jot down some successful industries and companies outside of home improvement. Then think about what METHODS they use to achieve success.
The restaurant industry makes heavy use of mailed coupons. Apple plays up “cool factor.” Amazon provides premium services like Prime for a yearly fee. And so on.
After you make your list, email me your ideas. I’d love to hear them.
And if you need help with ANY of your marketing, get in touch with us on our website: https://www.mymonline.com/.
Thanks!
-Rich
© 2018, Rich Harshaw. All rights reserved.
