Unlocking Profits: Master Perry Marshall’s Tactical Triangle 

 August 8, 2023

By  Joe Habscheid

Summary: Let’s delve into the fundamentals of the Tactical Triangle by Perry Marshall. This exceptional framework can remarkably enhance your marketing strategies by focusing on Traffic, Conversion, and Economics. Incorporating the 80/20 principle and employing a ‘Thinking Backwards’ approach, this tool can give you an upper hand in your quest for profitability and business growth.

The Tactical Triangle

At its core, the Tactical Triangle is composed of three crucial elements, which together form the backbone of any marketing strategy. These components are Traffic, referring to the audience you intend to reach, Conversion, which deals with convincing your audience to make a purchase, and Economics, which focuses on generating profits from the sales made. To ensure sustained success, the triangle suggests an ongoing reinvestment of profits to attract more traffic, thereby enhancing conversion rates and improving overall economics.

The 80/20 Principle

At the heart of the Tactical Triangle lies the universally applicable 80/20 principle, also known as the Pareto Principle. This principle insinuates that 80% of your outcomes come from 20% of your inputs. In terms of the Tactical Triangle, it guides you to concentrate your resources and effort on the most effective aspects of Traffic, Conversion, and Economics.

Thinking Backwards

A successful implementation of the Tactical Triangle necessitates a ‘Thinking Backwards’ strategy. In other words, start with your ultimate goal and reverse engineer your path to the start. If you are selling a product, determining your potential customers (Traffic), figuring out how to reach them at minimal cost (Economics), and deciding how to convince them to purchase (Conversion), is the way to go.

The Fractal Nature of the Tactical Triangle

A unique feature of the Tactical Triangle is its fractal nature. This means that it is infinitely scalable. For instance, if your Traffic source is Google Ads, your Conversion method is a webpage for sales, and your Economics strategy is selling shoes, you can identify another Tactical Triangle within each of these aspects.

Let’s Now Address the Questions

Why structure the framework as a triangle? By forming these fundamental elements into a triangle, we create a clear yet potent model that streamlines marketing approaches and pinpoints areas for enhancement.

Moving on to the primary components of the Tactical Triangle, they can be summed as Traffic (who would potentially buy your product), Conversion (how you can convince them to purchase), and Economics (how to generate a profit from these sales). The 80/20 principle is like a compass, guiding you to the most effective sections of each of these components.

As for the strategic question each triangle aims to resolve, each side of the triangle poses a crucial question: Who could be the customers for your product (Traffic), how can they be convinced to buy it (Conversion), and how to draw profits from these transactions (Economics). Answering these will pave the way for creating a robust marketing strategy.

Looking beyond these questions, the Tactical Triangle is fractal, meaning its principles can be scaled up or down for different levels of business operation. This scalability is what separates successful businesses from the rest.

I hope this explanation shines a light on the Tactical Triangle’s mechanics and its efficacy in guiding marketing efforts. Stay tuned for more discussions on practical marketing tools and techniques that can propel your business to greater heights.

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We’ve just scratched the surface of Tactical Triangle. We will delve deeper into each component and explore how to leverage them for different industries in our upcoming posts. Always remember, your journey to business growth is supported by these proven principles and our community of professionals.

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Joe Habscheid

Joe Habscheid is the founder of midmichiganai.com. A trilingual speaker fluent in Luxemburgese, German, and English, he grew up in Germany near Luxembourg. After obtaining a Master's in Physics in Germany, he moved to the U.S. and built a successful electronics manufacturing office. With an MBA and over 20 years of expertise transforming several small businesses into multi-seven-figure successes, Joe believes in using time wisely. His approach to consulting helps clients increase revenue and execute growth strategies. Joe's writings offer valuable insights into AI, marketing, politics, and general interests.

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