I previously mentioned a great book on small business marketing called Duct Tape Marketing by John Jantsch. In it, he introduces a great concept called the marketing hourglass. In marketing, we often hear about the marketing funnel. where businesses “attempt to generate leads on a broad scale and then funnel them toward becoming a client with increased contact and content”. Though useful, it leaves out a critical part, namely, what to do with clients once they have made a purchase.
What many new businesses don’t realize is that the majority of their growth will most likely come from: (1) selling premium products and services to existing clients and (2) the referrals generated by theses same clients. 
I was talking to my programmer recently and asked him about how he markets his business and generates leads. He told me he doesn’t do any marketing. All his business comes from word of mouth or referrals. I asked another friend of mine who operates a successful translation company with several employees. He told me the exact same thing. In both instances, I was expecting to hear about marketing strategies related to advertising, cold calling, B2B marketing, or today’s catch word, social networking.To take into account the power of repeat business and referrals, the author of DTM introduces the concept of themarketing hourglass. Similar to the marketing funnel, it exposes your potential clients or suspects to your marketing program. In addition, it offers additional products and services once they become clients (i.e. make a purchase), thus the idea of the hourglass.
For example, lets say you have have a flower shop. To new clients, flowers for personal use may be your only product offering. To repeat clients, however (with whom you have established rapport and trust), you can start offering premium products (e.g. premium priced flowers, decorations for wedding, special events, etc.). This is where the bulk of your profits will be generated in the future. Not only does it diversify your product lines, it also employs what I like to call the ‘poker mentality’. Poker players will often show strength (by being cocky or trying to intimidate others) when in fact, they have a very weak hand. Likewise, they will pretend to have a weak hand when in fact, they have cards that will send everyone home early. The lesson here is deception and it can be used to your advantage. To your competitors, you’re just a ‘mom and pop’ flower shop selling pots of flowers. In reality, however, you have an arsenal of products and services up your sleeve that you mostly market to your repeat clients.
Start employing an ‘hourglass marketing strategy’ rather a ‘funnel marketing strategy’. The latter is a short term model used to generate quick profits. The former is a long term model that ensures the continued profitability of your business.
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