The First Salesmanship Principle: Dollarization

In this day and age everyone is a salesman. If you are a blogger or web publisher, you need to sell your content to your visitors and banner placements to advertisers. If you work in the marketing department of a company, you need to sell your work and ideas to your boss. If you are a freelancer, you need to sell your services to customers. So one and so forth.

If this is the case, learning about salesmanship couldn’t hurt, right? What about the first salesmanship principle, do you know it? It’s called dollarization, and in this article I’ll explain how it works.

Dollarization means to put a dollar value on your offer. It means to explain to your customers (or readers, or boss, or whoever you are trying to sell to) how much what they are buying will be worth to them. Not worth in terms of satisfaction, feelings or any of these abstract things. In terms of dollars!

If you master this principle, you will be selling the easiest thing to sell on Earth: money.

That is right, you’ll be selling money. What if I told you that by paying $99 today you could get $300 within a couple of months? Provided I could back it up and show credibility, you would take my offer on the spot. That is what dollarization is all about.

Want to see a real example? Check the video on the Blog Profit Camp homepage. You’ll notice that John is using the dollarization principle throughout it. He basically explains that, by joining the training program, you’ll learn the system he uses to make as much as $40,000 per month blogging. The coaching program costs $397, yet I am pretty sure John will sell the 150 spots out pretty soon. How come? Because people won’t perceive the $397 as a cost, but rather as an investment. Members will invest that amount of money in order to make an even greater amount in the coming months and years.

And don’t get the wrong idea. You don’t need to be selling an online marketing program or a stock investing guide to be able to dollarize your offer. Let’s pick something as far from that as possible. Say tailor made suits. How would you dollarize that offer? It is simple: tell your prospects how they will be able to get a raise or a promotion by looking sharper and more confident at work. Better yet, find or commission a market research to find out the connection between wearing high quality and tailor made suits with the success that managers get on their careers. You could even launch an advertising campaign based on the results.

Let’s pick a more practical example now. What if you have a blog and are trying to sell advertising space? You could dollarize your offer by using case studies to illustrate the dollar value of your advertising spots to potential sponsors. First of all you would need to track how many clicks and sales each of your banner spots generate, on average. Let’s suppose that a 728×90 leaderboard generates on average 1000 clicks and 15 sales per month (a 1,5% conversion rate) and a 125×125 button on the sidebar generates on average 300 clicks and 5 sales per month (a 1,6% conversion rate). If you were then approached by a company selling a $50 product, you could send them your case study and conclude:

My 728×90 spot will make you $500 per month ($750 in revenues minus $250, which is the monthly cost of the banner) and my 125×125 spot will make you $150 ($250 in revenues minus $100, which is the monthly cost of the banner). So how much money do you want to make by advertising on my blog?

If you can dollarize your offer, your job as a salesman is half done.

Daniel is the owner of DailyBlogTips.com. Recently he launched a new project to help those who want to build their first site, called HowToMakeAWebsite.net. There is a free eBook available there, so check it out.


86 thoughts on “The First Salesmanship Principle: Dollarization”

  1. Great post man. Too many people just throw up an arbitrary number for their advertising and are either missing out on potential advertisers, or leaving tons of cash on the table.

    1. Yes, if you can back things up and show you did your homework, advertisers will take you much more seriously.

      1. Salesfist says:

        It is good to have a reader profile. Quantcast is a good company to get this type of information.

      2. Proof is a strong asset. No point in advertising on a blog or website that doesn’t provide enough page-views.

        1. d3so says:

          Screenshots are a necessity and they need to be updated frequently.

          1. Indeed. Screenshots are very important on a website and you have to update them frequently 🙂

          2. Are you d3so ‘s echo? SY

          3. His or her blog is in Turkish if I’m not mistaken and the comments they give here are pretty lip service ones.

            Almost like copy and paste of what the previous commenter says and throwing in one or two extra words.

            Out here to just get a link I suppose without even reading the posts I suspect.

          4. True, I checked his blog also and came to the same conclusion. I wonder why? I mean, s/he will be lucky if there is another Turkish reader of Johns blog that clicks through to his / hers. And comment links are nofollow here… I wonder why some people waste their time. SY

          5. d3so says:

            When will they learn that the links are no-follow. 😉

          6. I think that no follow links have a value too but the point is that if someone comments in English their blog should be in English too.

            Why link to a blog in another language? Perhaps it might be marginally OK if he
            or she put a note in the comments that would make it clear.

            Otherwise anyone who clicks on his link to find out more will leave right away which does their blog more harm than good plus it will tick the visitor off.

          7. You’re right there. Having screenshots would be better if you want to increase your credibility. Always show some proof to your customers.

            Regards,

            Gary

        2. Darn right it’s nice to have proof. Nobody with education and knowledge in advertising would take a risk to advertise on a site with no stability or proof.

      3. I agree as well that if you come to the table fully prepared you will be respected fully as well.

        1. One more important thing is people should be aware about your knowledge and you should know the art of speaking to be more effective.

  2. Dino Vedo says:

    Dollarize? Sounds like a new catchy marketing term!

    1. PPC Ian says:

      That’s for sure! I’m used to all kinds of jargon in this industry, but have never heard this one before!

      1. I still prefer monetize and monetization because it is currency neetral.

        Dollarization is a twist on that and it catches attention.

        Aside from the term the principles brought up in the post are great.

        Daniel has it right.
        Thanks Daniel.

        1. Haha. I didn’t even think about dollarization being biased towards Americans. I guess that just shows how American I am.

          1. Yes, people are aware of a very few other currencies and the real money is still considered the dollar.

            A good example of the dollar meaning money is in the way how many people still refer to the euro as eurodollar even though it is called euro,

            Sometimes people say “their dollars” when referring to a countrie’s currency even if the currency is kwacha or whatever.

            Perhaps it stems from the fact the Australians, the Kiwis and Canadians all have their own dollars. Even Hong Kong used to have their dollar and perhaps they still do.

          2. Certainly whenever you heard the word Dollar … that light green and off white lights come to my mind with 100 printing on that.

      2. Lakhyajyoti says:

        I also heard for the first time.

    2. Yeah indeed! That’s the first time i’ve heard that term 🙂

        1. d3so says:

          I haven’t heard before either.
          It has potential to catch on.
          What about moneytize?

          1. dollarization sounds better imho 😛

  3. Kent Chow says:

    Daniel, it’s a great post with specific sample. Dollarization is a great tip every Internet Marketer should know. They key is to make your ads spot measurable. The advertisers care how much they make more than how much it costs.

  4. PPC Ian says:

    Well done! I’m in the corporate PPC world and it’s critical to always quantify projects to effectively prioritize and gain resources. Great post!

  5. d3so says:

    Awesome post Daniel! You never fail to deliver.
    I always see the investment in every online product purchase I make.

    1. PPC Ian says:

      D3so,
      I noticed your blog is redirecting to blog profit camp. Is this intentional? If so, how’s that working for you as an affiliate strategy?
      Best,
      Ian

      1. It doesn’t (anymore), but if he did it, I am sure he redirected via his affi link. A bit short sighted in my opinion, as this can greatly affect his blogs rankings in the SERPentines and / or really p..s his readers off. SY

      2. Lakhyajyoti says:

        I also noticed that.

      3. Definitely not a good idea. One Google spider could mess up your rankings.

        1. PPC Ian says:

          I definitely agree that it’s not good for search rankings. D3so, was it a bug or intentional strategy? Just curious if this strategy drove affiliate sales for you.

          1. d3so says:

            Unfortunately it didn’t work.
            I’m trying unorothodox ways of promoting products.
            Yes, it was intentional but I also had to sort a few things out with my blog.
            Seo & serps aren’t a priority for me right now.

          2. “Seo & serps aren’t a priority for me right now.” That is very, very shortsighted, the greed for the quick buck can ruin your bog / site long time, sorry for sounding harsh, SY

          3. Typo, wanted to say blog, not bog, SY

          4. d3so says:

            How is it short-sighted???
            I do plan on doing seo, it’s not that I’m putting it out completely.
            I’m in no haste to make quick money.
            I’m simply testing new strategies.

          5. You are most definitely correct!

          6. PPC Ian says:

            D3so,
            Thanks for sharing! In my opinion, it’s a really interesting test. Yes, I’m all about the longer term and search rankings, but must commend you for trying something new! It’s those of us that sometimes take calculated risks that end up winning.
            All the best,
            Ian

          7. d3so says:

            I’ve always been the type of person to revolutionize something or create/discover something new. Doing the same thing everyone is doing is boring ,but yes mother I will do (blackhat) seo just to shoot up the serps. 😉

          8. Or to get a slap from Google? SY

  6. Awesome principle. I really like your example of the tailor made suits.

    I never thought that Dollarization could be applied to non-online marketing program or a non-stock investing guide.

    Kindest,
    Nabeel

    1. The principle is awsome but it’s as old as trading and selling and goods and services have been sold for a very long time, thousands of years.

      The term, however is a clever creation to catch attention.

    2. Yeah the tailor made suits reference just hits the spot 🙂

      1. Yes like Modernisation its called dollarization.

        Everything should be convert to money … awesome term.

  7. Excellent article, Daniel, it explains very nicely one of the principles all A-list bloggers follow, selling the dream of making money 😉 SY

    1. Indeed mate it was a lovely article 🙂

  8. Salesfist says:

    Now you are speaking my language.

    1. Lakhyajyoti says:

      I do not think so.

      1. Salesfist says:

        What makes you say something like that?

        Do we know each other?

        1. I think he might be a troll or just teasing you 😛

          1. First rules when encountering a troll is not to feed it 😉 SY

  9. Exposed SEO says:

    Dollarization is all good as long as the client doesn’t make your put your dollars where your mouth is by guaranteeing certain minimum sales. Then again, a good salesperson can make the buyer believe in things without proof.

    Also Dollarize sounds like a rapper nickname.

    1. lolol it does sound like a rapper name 😀

      1. Lakhyajyoti says:

        A killer marketing term.

    2. That is what the earnings disclaimer in the fine print is for 😉 But seriously, you should have some hard facts to back up your claims, instead just conjuring numbers out of thin air when you go down the dollarization route. SY

    3. Bidet says:

      Haha I agree it does sound like a rappers name, I never thought of that before. Most buyers will want proof and evidence before they actually buy something.

  10. I live my life by this principle.

    1. Well you must be doing pretty well then 🙂

  11. I agree that people see high ticket products as an investment. Selling that aspect is much easier than say selling another “ebook” or “guide.

    1. Unfortunatelly people get too easily impressed by the number next to the dollar sign.

      The truth is that some low priced ebooks or even some free ones provide more real value when the information is implemented than courses with thousands of dollars price tag attached to them.

      1. I agree, but what I meant by my initial comment was that if you sell the customer as the product being an “investment” (as opposed to being a guide or ebook), you’ll see an increase in sells.

        1. Most people can see through the language of a smooth salesperson. When they do they get turned off even more.

          But it really depends on what you’re selling and whether they are already looking to buy something similar to what you offer.

          If they are you have it half made. If they aren’t no amout of smooth talk and the right words will help.

          1. I think when it comes to selling adspace on your blog / site, you have to give some information about what the buyer can expect in return (daily unique visitors, average click through rate etc) At least that would be the kind of information I would like to see, the dollar signs I can add myself 😉 SY

  12. I get really frustrated when people won’t put a price on things. They want you to name a price you are willing to pay. I guess we’ve worked away from that bartering system huh?
    Great post though. You definitely have to show companies that they’ll be making a profit by investing with you. Otherwise why would they choose to buy whatever you’re offering?

  13. Lakhyajyoti says:

    Another great article from you.I like the word Dollarize

    1. Yeah! Dollarize sounds pretty cool 🙂

    2. Daniel tends to write great articles, I do agree.

      As for the word dollarize, is it the ending of the word that you like which would also make you like words like scrutinize, summarize, realize, privatize, memorize, and many more words with the ending that may
      hypnotize or is it the root of the word dollar as in almighty dollar? Perhaps you may like the song “If I had a million dollars” too, he, he.

  14. Hi Daniel
    I’m glad I started to read John Chow’s blog when I did. Your article will be a big help with a domain I just bought. Thanks.

    1. Lakhyajyoti says:

      May I know the name of the domain?

      1. If you click on the title of his name, that’s probably the domain he is referring to.

  15. Ari says:

    It’s been long time I have not visited this blog, all I can say is just getting better every time I came back.And this topic inspire me as well of the dollarizations motive

  16. Ary says:

    Great post, I believe that dollarization is the way to go. No one can get money from blogging for example, if they won’t invest in it. You give some cash, you earn some. Of course, it’s preferable to earn more money than you had invested. That’s called profit right?

  17. Thanks for the post. Don’t think my blog is quite ready for selling advertising space yet but I have always been interested in the proper language to use to sell people products.

    1. Lakhyajyoti says:

      Mine also a new blog.After six months I’ll think about selling advertisements.

  18. You definitely need to know how much money is worth in comparison with your time nowadays because if you don’t, then your profit margins will decrease

  19. Your profit margins will decrease if you do not know how much money is worth in your advertising campaign. Great post by the way John.

  20. Thnaks for sharing about the dollarization principle. I will start applying that as well. I agree with you on this. Letting people know that the money will be an investment and if we show the potential income that they can earn with their investment is a good thing.

    Kind regards,

    Gary

  21. luggage says:

    If you want to make it in the blogging or entrepreneurial world, you gotta be able to convert eyeballs to dollars!

  22. Earl says:

    I actually had a source for tailor made suits. But the problem was in scaling the measurements part accurately without leaning on local tailor outfits… I then thought about monetizing it via an info product that first gave the reasons a custom suit would be good, but then realized what if someone made a mistake, ordered a suit and then wanted a refund? If anyone has any ideas to make this work, I’d be willing to jv.

  23. The most important concept to keep in mind when it comes to advertising is conversion. You must always make more money than what you spend on advertising.

  24. Bidet says:

    Thanks for sharing this. I never thought of giving the profits they would make when selling something. Im sure it would help me advertise better.

  25. I think there is a better term than Dollarization that can be used for this concept…great ideas and post, just can work on the name 🙂

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