Brand Takes Time but Is Extremely Valuable

Building a Strong Brand

Branding takes a long time to build, but it's one of the most valuable assets your business can have. A strong brand allows you to achieve:

• Insane returns on advertising.
• Prices far above the market.
• Loyal customers who only buy from you.

Understanding Branding

Branding is simply the association people make between something they know and your business. The goal is to align your business with something they already like. Over time, positive associations rub off on your brand, making it stronger.

How to Build a Brand

There are three ways people form associations with your brand:

1. What You Say or Show (Advertising)

   • This is the most controllable aspect. Your marketing and advertising efforts create initial associations.

2. What Others Say About You

   • This includes word-of-mouth from people who have interacted with your advertising or product. Their feedback can influence potential customers' decisions.

3. Customer Experience

   • The actual experience customers have with your product or service is the strongest influencer. Positive experiences lead to strong, lasting brand associations.

Importance of Consistency

To build a strong brand, consistently deliver on your promises. Make big promises and fulfill them consistently. Over time, people will trust that you are what you say you are.

The Power of Price

Price is a significant lever in business. A strong brand allows you to charge a premium price above the market. The strength of your brand is evident in how much more you can charge compared to generic competitors.

Branding as a Long-Term Investment

Think of direct response advertising as your paycheck - money goes in, money comes out. Branding, however, is a long-term investment. Initially, you invest in building associations without immediate returns. Over time, this compounding effect becomes a powerful force, leading to significant returns on your advertising efforts.

Measuring Branding ROI

Measure the return on investment (ROI) of branding by evaluating how much it costs to create positive associations and the resulting increase in price you can charge. For example, if you spend $300,000 on branding and it allows you to charge$3 more per unit on a million units, you get a 10:1 ROI.

The Branding Loop

Branding creates a loop:

1. Positive Associations: Through advertising and customer experiences.
2. Repeat Purchases: Satisfied customers buy again, even at a premium.
3. Referrals: Customers refer others, risking their relational capital for a potential return.

Direct Response and Branding

Direct response strategies often approximate branding. They use lead magnets, value delivery, and nurture sequences to build trust quickly. While effective, these strategies are condensed versions of long-term brand building.

Long-Term Branding

To build a big brand, you want to create trust and positive associations across millions of people over time. This widespread trust leads to mass action when you launch new products.

Conclusion

Building a brand takes time, but it is worth the effort. A strong brand allows you to achieve higher returns on advertising, charge premium prices, and cultivate loyal customers. Focus on delivering consistent, positive experiences and creating strong associations to build a brand that stands the test of time.