Stretch Your Dollar With Horizontal Marketing

Written by Sarah Pierce of Entrepreneur.com

It's not an offer you see every day: "Buy a House, Get a Free Electric Car." But that's exactly why Chris Schneider, owner of Honda Motorwerks, in La Crosse, Wis., decided to use such an attention-grabbing sales tactic.

Schneider, 51, has been selling environmentally friendly cars for 30 years, but it hasn't been easy to persuade people to make the switch to alternative-fueled vehicles. Over the years, Schneider has tried many tactics to woo more people into buying energy-efficient cars, but it was teaming up with the real estate agent for his "free car" stunt in July that made the biggest impact.

"It certainly gained a great deal of attention. We did this on a Friday morning, and by Friday afternoon I had already received three messages from people interested in the car," he says. So far, no one has purchased the house, but foot traffic at Schneider's dealership has noticeably increased.

Schneider has learned what many business owners have: Horizontal marketing -- two businesses with different products but similar clientele join marketing efforts -- is a smart way to increase your customer base without increasing your marketing budget.

"Horizontal marketing is easier and cheaper than just about any other form of marketing," says Shel Horowitz, author of Principled Profit. According to Horowitz, competitors can become some of your best allies.

"In the case of horizontal marketing, a competitor might be someone who overlaps with you but doesn't duplicate your offering exactly," Horowitz says. "Both of you benefit by being able to offer a wider range of services and by pleasing clients who might otherwise have felt a need to go elsewhere."