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Myspace Marketing For Dealerships - What I Did For A Living.

Discussion in 'Myspace' started by simplybebop, Nov 9, 2008.

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  1. simplybebop

    simplybebop Regular Member

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    I wanted to give something back, since BHW has helped me so much. So I decided to show everyone my sales proposal from the Myspace Marketing business I used to run. I plan on continuing this business once the automotive sector picks back up. But till then , its very hard to get any dealership general manager to commit to a advertising program that costs 5 figures.

    I just wanted to show everyone this, because I know some people here are very experienced internet marketers. I know if you some of you guys get some sales experience behind your belt, you can make some GREAT coin putting your skills into real world use. Dealerships are prime candidates , because they sell high ticket items.

    So here is the proposal I used to make close to 6 figures a year with, outsourcing all of my work. Using Myspace, to help dealerships sell cars (yes it actually works, case and success stories inside)

    Note: A large part of this is BS, but the hardcore numbers are real. I had to amp it up to a certain extent to sell it to dealership general managers, which are mostly pricks.

    Also our technique to get people to come in to the dealership is my company had a raffle for a $1,000 gift card.



    EXECUTIVE OVERVIEW

    Key points on how your dealership can benefit from Myspace Marketing
    Understanding The Issues And The Solution

    RECOMMENDATION
    (my company's) Solution Designed to Increase Sales
    Demographic Marketing
    Ad Examples

    CASE STUDIES
    Why We Know Myspace And Email Marketing Works

    YOUR DEALERSHIP?S INVESTMENT

    Cost of the Solution Recommended by (my company)

    Return on Investment
    Value Analysis 1 and 2

    OUR SERVICES VS. THE INDUSTRY
    The Costs Associate With Selling Each Car
    Average Dealership Costs
    Cost Associated With Our Service

    BREAK EVEN ANALYSIS
    Determining The Financial Attractiveness

    Success stories & Quotes
    How Myspace Has Helped Other Organizations
    And What People Are Saying About It

    _____________________________________________________


    EXECUTIVE OVERVIEW
    How your dealership can benefit from our Myspace Marketing services

    Automatic Advertisement Delivery
    Distribute promotions , and change them at a moments notice.
    Guaranteed advertisement delivery.
    Response rate of E-Mail, with TV like repetition.

    Increase Brand Awareness Of Your Dealership
    Everyone in the area will have your dealership at the top of their mind..
    More customer interaction than any other type of marketing
    Dealership info on the largest network of people in the world.

    Powerful Target Media List Builder
    List of over 100,000 local people to display promotions.
    Keep the list when your done with your service
    Communicate only to people close to your dealership.
    Harvest traditional E-Mail's for internet sales to follow up with.

    Affordable Pricing
    Lowest price per ad placed than any other company in the world
    Most ads placed per campaign than any other company in the world
    Largest ROI than any other company in the world.

    Demographic Analysis
    Target people based on the type of car they are most likely to buy.
    Sort people by age, race, sex, income
    Target low income groups for dealership financing

    Creativity
    Share dealership created content with users
    Ability to distribute pictures , recordings or video of you, and your staff
    Large subscribers list becomes your own personal TV station.


    Understanding the Issues


    Television Marketing - Live Tv viewing which is falling 10% year-over-year among the four major broadcast networks.

    Newspaper Ads - Fewer daily newspapers are sold today than in 1960 despite a 50 percent increase in the U.S. population

    Radio Ads - Radio listeners down to 12.5%, from 13.2% in 2004.

    Print Ads - Overall revenue generated from print advertising fell 9.4% last year




    The Solution

    Myspace - 20% growth yearly , generating $550,000,000 in outside sales in 2007

    E-Mail Marketing - Medium sized businesses reported the best results with a 59.8 percent increase in sales
    Large enterprises saw a 47.1 percent increase in sales
    Small companies saw a 42.6 percent increase in sales
    66 percent of companies indicated that email increased their sales.
    63 percent of respondents said that email marketing was their most effective customer retention tool
    37 percent said that it was an effective customer acquisition tool
    Of the companies polled, 15 percent of their total sales came from email-based promotions


    [​IMG]

    ___________________________________________________________



    RECOMMENDATION
    (my company?s) Solution Designed to Address Your Needs

    Myspace Building - Includes links to your website, inventory list, and LIVE CHAT ROOM

    100,000 Request Subscriptions , with a advert from your dealership sent with each one

    72,000 Targeted E-Mail Messages About Cars In Your Inventory - See demographic example

    72,000 Direct E-Mail Messages About Special Sales Or Promotions You Have
    Running

    478,000,000 Advertisements About Special Sales Or Promotions.

    56,000 Targeted Personal Messages To Increase Customer To Dealership Relationships

    Unlimited Content Updates On Your Page


    ___________________________________________________________


    CASE STUDIES
    Dealership Email Marketing Success​

    e-mail ?noun 1. A system for sending messages from one individual to another via telecommunications links between computers or terminals.


    Honda
    Dealership Location: Georgia
    Date of E-Mail Campaign: 2006/10/03
    E-Mail Campaign Type: Fall Special
    Length of E-Mail Campaign: 30
    Total E-Mail Emails Sent: 7265
    Customer Visits within 30 Days: 957
    E-Mail Campaign Response Rate: 13.17%
    Total Gross: $225,560.46




    Ford
    Dealership Location: Virginia
    Date of E-Mail Campaign: 2006/09/28
    E-Mail Campaign Type: Pre Winter Special
    Length of E-Mail Campaign: 30
    Total E-mails Sent: 12580
    Customer Visits within 30 Days: 563
    E-Mail Campaign Response Rate: 4.48%
    Total Gross: $213,799.68


    Subaru
    Dealership Location: Oregon
    Date of E-Mail Campaign: 2006/11/30
    E-Mail Campaign Type: Winter Value Package
    Length Of E-Mail Campaign: 30
    Total Emails Sent 4617
    Total E-Mail Customer Visits within 30 Days: 435
    E-Mail Campaign Response Rate: 9.42%
    Total Gross: $116,325.64



    __________________________________________________________




    YOUR DEALERSHIP?S INVESTMENT
    Cost of the Solution Recommended by (my company)


    Cost information relative to the recommendation (my company) is making to your dealership:


    Product
    Myspace Marketing
    Myspace Building - Includes links to your website, and a complete inventory list.
    100,000 Friend Request Subscriptions , with a advert
    72,000 Targeted Messages About Your Inventory
    72,000 Messages About Special Sales Or Promotions You Have Running
    56,000 Targeted Personal Messages
    300,000,000+ Mass Messages About Sales or Promotions
    Unlimited Content Updates On Your Page
    Giveaway Promotion



    $15,000 Total (that's how much I charged, 97% net profit)
    $625 A Month
    For 24 Months

    _____________________________________________________________


    BHW NOTE: This is my favorite part, all figures are based on the NADA average price per new car sold, and NADA reports on gross profit vs sales. Also the % who purchase numbers come from the dealership sales associates closing rate.

    Return On Investment

    Value Analysis 1​



    "B2C promotional emails often range from about 2% to 12% conversion".
    LYRIS Email Labs

    Over A 2 Year Period


    Myspace Marketing Dealership Traffic Increase Total New Customers
    Advertising to 100,000 potential clients X 1% Conversion rate (make appointment or come to the dealership) = 1000


    TOTAL INCREASE

    Marketing Return On Investment

    Percent Who Purchase: 10% Number Of Buyers: 100
    Total Sales: $2,879,700
    Sales ROI: 19,098% Total Gross: $383,000 Gross ROI: 2,453 %
    ________________________________________________________________
    Percent Who Purchase: 20% Number Of Buyers: 200
    Total Sales: $5,759,400
    Sales ROI: 38,296% Total Gross: $766,000 Gross ROI: 5,006 %
    _________________________________________________________________
    Percent Who Purchase: 30% Number Of Buyers: 300
    Total Sales: $8,639,100
    Sales ROI: 57,494% Total Gross: $1,149,000 Gross ROI: 7,559 %
    ________________________________________________________________
    Percent Who Purchase: 40% Number Of Buyers: 400
    Total Sales: $11,518,800
    Sales ROI: 76,692 % Total Gross: $1,532,000 Gross ROI: 10,113 %
    _______________________________________________________________
    Percent Who Purchase: 50% Number Of Buyers: 500
    Total Sales: $14,398,500
    Sales ROI: 95,890 % Total Gross: $1,915,000 Gross ROI: 12,670 %
    ______________________________________________________________
    Percent Who Purchase: 60% Number Of Buyers: 600
    Total Sales: $17,278,200
    Sales ROI: 115,088 % Total Gross: $2,298,000 Gross ROI: 15,219 %
    ____________________________________________________________
    Percent Who Purchase: 70% Number Of Buyers: 700
    Total Sales: $20,157,900
    Sales ROI: 134,286 % Total Gross: $2,681,000 Gross ROI: 17,773 %
    ______________________________________________________________
    Percent Who Purchase: 80% Number Of Buyers: 800
    Total Sales: $23,037,600
    Sales ROI: 153,484 % Total Gross: $3,064,000 Gross ROI: 20,326 %
    ______________________________________________________________
    Percent Who Purchase: 90% Number Of Buyers: 900
    Total Sales: $25,917,300
    Sales ROI: 172,682% Total Gross: $3,447,000 Gross ROI: 22,880 %
    _______________________________________________________________
    Percent Who Purchase: 100% Number Of Buyers: 1000
    Total Sales: $28,797,000
    Sales ROI: 191,880 % Total Gross: $3,830,001 Gross ROI: 25,433 %
    _______________________________________________________________



    Value Analysis 2
    Over A 2 Year Period

    BHW NOTE: Same as above , but projecting a terrible .01% conversion rate.


    Marketing Return On Investment

    Percent Who Purchase: 10% Number Of Buyers: 10 Total Sales: $287,970
    Sales ROI: 1,819 % Total Gross: $38,300 Gross ROI: 155 %
    _________________________________________________________________
    Percent Who Purchase: 20% Number Of Buyers: 20 Total Sales: $575,940
    Sales ROI: 3,739 % Total Gross: $76,600 Gross ROI: 410 %
    _________________________________________________________________
    Percent Who Purchase: 30% Number Of Buyers: 30 Total Sales: $863,910
    Sales ROI: 5,659 % Total Gross: $114,900 Gross ROI: 670 %
    _________________________________________________________________
    Percent Who Purchase: 40% Number Of Buyers: 40 Total Sales: $1,151,880
    Sales ROI: 7,579 % Total Gross: $153,200 Gross ROI: 921 %
    _________________________________________________________________
    Percent Who Purchase: 50% Number Of Buyers: 50 Total Sales: $1,439,850
    Sales ROI: 9,499 % Total Gross: $191,500 Gross ROI: 1,176 %
    _________________________________________________________________
    Percent Who Purchase: 60% Number Of Buyers: 60 Total Sales: $1,727,820
    Sales ROI: 11,148 % Total Gross: $229,800 Gross ROI: 1,432 %
    _________________________________________________________________
    Percent Who Purchase: 70% Number Of Buyers: 70 Total Sales: $2,015,790
    Sales ROI: 13,338 % Total Gross: $268,100 Gross ROI: 1,687 %
    _________________________________________________________________
    Percent Who Purchase: 80% Number Of Buyers: 80 Total Sales: $2,303,760
    Sales ROI: 15,258 % Total Gross: $306,400 Gross ROI: 1,942 %
    ________________________________________________________________
    Percent Who Purchase: 90% Number Of Buyers: 90 Total Sales: $2,591,730
    Sales ROI: 17,178 % Total Gross: $344,700 Gross ROI: 2,198 %
    ________________________________________________________________
    Percent Who Purchase: 100% Number Of Buyers: 100 Total Sales: $2,879,700
    Sales ROI: 19,098 % Total Gross: $383,000 Gross ROI: 2,453 %



    OUR SERVICES VS. THE INDUSTRY
    The Costs Associate With Selling Each Car​


    Average Dealership Cost​


    [​IMG]

    [​IMG]

    Cost Associated With Our Service​


    Sales A Month: 1 Total Cars Sold: 24 Cost Per New Vehicle Sold: $625

    Sales A Month: 2 Total Cars Sold: 48 Cost Per New Vehicle Sold: $312

    Sales A Month: 3 Total Cars Sold: 72 Cost Per New Vehicle Sold: $208

    Sales A Month: 4 Total Cars Sold: 96 Cost Per New Vehicle Sold: $156

    Sales A Month: 5 Total Cars Sold: 120 Cost Per New Vehicle Sold: $125

    Sales A Month: 6 Total Cars Sold: 144 Cost Per New Vehicle Sold: $104

    Sales A Month: 7 Total Cars Sold: 168 Cost Per New Vehicle Sold: $89

    Sales A Month: 8 Total Cars Sold: 192 Cost Per New Vehicle Sold: $78

    Sales A Month: 9 Total Cars Sold: 216 Cost Per New Vehicle Sold: $69

    Sales A Month: 10 Total Cars Sold: 240 Cost Per New Vehicle Sold: $62

    _______________________________________________________________


    BREAK EVEN ANALYSIS
    Determining The Financial Attractiveness

    [​IMG]

    First Month

    Units Sold Fixed Costs Revenue Profit

    0 $15,000 $0 - $15,000

    1 $15,000 $3,830 - $11,170

    2 $15,000 $7,660 - $7,340

    3 $15,000 $11,490 - $3,510

    4 $15,000 $15,320 $320

    5 $15,000 $19,150 $4150


    _________________________________________________________________


    Success stories & QUOTES
    How Myspace And E-Mail Marketing Has Helped Other Dealerships
    And What People Are Saying About It


    BHW NOTE: I left alot of these out, the real proposal has two pages.


    " This has worked well. It has given the dealership an oportunity to appeal to the 18-30 yr old market in our area, whish is mainly small town/rural. This has been very successful for us. Especially for bringing in business into the service department. We have also had at least 1 sale a month from our myspace page."
    Susie-Internet Manager at Rainbow CDJ of McComb, MS




    "There are a lot of people to be reached and a lot of impressionable minds on MySpace. Surprisingly enough, these people want to be 'friends' with car dealers."
    Craig Hoffman, KEA ADVERTISING CEO




    *The new frontier of dealership marketing"
    J.D. Power and Associates , when asked about social networks


    ________________________________________________________________



    BHW SUMMARY: A plan using Myspace and incentives to help car dealerships sell cars. They break even at 4 units sold, and with only 2 sales a month through my service, they have a cost per vehicle sold that is as low as autotrader.

    I have worked with quite a few dealerships, and every one has surpassed my expectations, showing that this plan really works.

    Also, I left out the part of the proposal that show's ad and message examples.

    I hope you guys enjoyed and that it didn't bore you too much. If you have any questions about any of it, just ask.

    Remember the thanks button.
     
    • Thanks Thanks x 28
  2. bizcredit

    bizcredit Power Member

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    Good idea, thanks. Lot of money turning blackhat into local business plans
     
  3. unlimitedpostings

    unlimitedpostings BANNED BANNED

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    Thanks for putting so much time into this. It is spelled out very well and I'm sure someone could take this and make money with it if they enjoy sales.
     
  4. simplybebop

    simplybebop Regular Member

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    Thanks guys, I really put alot of time into perfecting the system. Someone could really make alot of money doing this. But with fords sales down 34%, GM shutting down their lending departments, Honda doing bad, and Toyota focusing on China sales, the market is really flat at the moment. When it picks back up this is gold.
     
  5. rudyvise

    rudyvise Jr. VIP Jr. VIP

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    Hi,

    I wanted to say that i really enjoyed reading through your model simplybebop. I wanted to know if you are thinking about running the same kind of myspace advertising model for a different aspect of business, other than vehicle sales?

    Are you based in the U.S? I think so.

    best,

    Rudy
     
  6. simplybebop

    simplybebop Regular Member

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    Hi Rudy,

    Thanks, I am glad you enjoyed reading through it. As for the rest...

    Yes I am based in the US.

    And as for running the same model for other aspects of business, it is very possible. It would work well for any business, as long as we change the pricing vs. price of product to match the same ROI, I think it would work well.
     
  7. cparainmaker

    cparainmaker BANNED BANNED

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    You totally laid it out, very effective and well presented thread.
     
  8. simplybebop

    simplybebop Regular Member

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    Thanks, it means alot for Jr.Vip's to compliment my work, being as I am so new here.
     
  9. simplybebop

    simplybebop Regular Member

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    Bump, any other feedback from you guys?
     
  10. Steeky

    Steeky Regular Member

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    lol, wow. grab me some tea and read this. thanks
     
  11. simplybebop

    simplybebop Regular Member

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    Yeah, its kind of long, but well worth it if your in sales and know a little about myspace.


    Also I forgot to mention, the messages we send to each profile also get displayed in their inbox at around a 60% success rate, so it double. And alot of metrics are available for dealership email marketing.
     
  12. rudyvise

    rudyvise Jr. VIP Jr. VIP

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    Yes, i am looking at selling a different product using Simplybebop's sales model here. First step, identify dealers and their payment and fulfillment terms. Sales lead flipping.

    Will be in touch Simplybebop...

    best,

    Rudy
     
  13. simplybebop

    simplybebop Regular Member

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    A proven 6 figure system, I would figure this thread would be exploding, lol

    I guess alot of people here don't like traditional business and face to face sales
     
  14. rudyvise

    rudyvise Jr. VIP Jr. VIP

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    This may not be your audience Simplybebop. But there are a lot of people out there that do speak your language and they will want your help.

    I don't believe that Black Hats are averse to this approach. Just doesn't necessarily fit into their paradigm for making money.

    Simple, fast and low key methods for making money are best in this camp.
    :)
     
  15. evilkarma

    evilkarma Newbie

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    I think you're exactly right, especially blackhat peeps :).
     
  16. unknown101

    unknown101 Junior Member

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    wow very nice work bebob, that was amazing; great post will think about trying this soon
     
  17. terkat

    terkat Newbie

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    Kudos Bebob.
    Very nice presentation, well presented..
    Gives for lots of Ideas!
     
  18. simplybebop

    simplybebop Regular Member

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    Its bebop guys, with a P at the end. But otherwise thanks, I really appreciate it. I have a new system I am about to put into place, that is gonna make 4X the money this one did. So you guys can have this and do with it what you want.
     
  19. itsovathen

    itsovathen Newbie

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    My Question is with any service how did you go about presenting this. Did you just waltz in and head straight toward the sales manager or marketing team. Im trying to understand how to solicit a proposal
     
  20. simplybebop

    simplybebop Regular Member

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    Internet sales managers are the best to start with. If not the General Manager or Sales Manager are the ones you want to see. Call and make a appointment , go in , hand them their copy of the proposal and talk with them about it.


    If they like it, ask to meet with the dealer (owner) and have whoever you talked to at first be present as well to "help understand the objectives for the marketing plan"
     
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