Are you paying for customers?
Shouldn’t you be?
That’s the whole point of your “small business advertising” – to buy your clients…
Then they pay out more than the cost to get them…
That makes it an investment…
So we know that’s true, now how much do your clients cost?
And are you tracking your ROI (Return on Investment) from your investment?
If you don’t know these answers, you’re in great company…
The majority of small business owners can’t confidently answer these questions with data based proof…
And hey, they’re still in business…
Sounds like it’s not that important then right?
Well, it depends on how far you want to take your business…
The majority of small business owners earn less money than mid-level management in large businesses…
And they end up working a lot more…
Some even have made it up into 6-figure net incomes…
And some have actually reached true wealth…
It’s these latter few who I consider financial successes… Business successes…
Because even if you love what you do – why work 80 hours for 40 hour pay??
Didn’t we all start businesses to enrich our lives??
If so, then maybe we should rethink how we spend money on advertising…
Get an answer to how much it costs you to get a customer, because if you knew you could double your money every time…. How much would you spend??
Well, that’s the name of the game in small biz advertising…
Spend a buck this week and get back two next…
Rinse and repeat… and repeat… and repeat…
Until it stops working… Don’t quit while you’re ahead with your advertisement… Keep on using it while it works and measuring its response…
But let’s back up for a second…
Let’s answer those questions from earlier…
Like how’s your ROI compared to your client acquisition costs??
There’s a couple things you need to track to measure your ROI…
First is your break even point…
You’ll end up with issues in your cash flow if you don’t find this out…
But if you learn where you break even, and within 7 days get that ROI of 1, then you can start to plan ahead…
If you break even at 7 weeks – then you need to plan differently…
You get it…
So, once you know your client-getting cost and your ROI at various points in time, let’s talk about how to improve your ROI…
There’s two steps towards making your ROI better in your marketing…
The only two ways to increase your business profits is to either lower costs or raise income…
Finding better rates on advertising, or alternative and cheaper forms of media in order to have lower client acquisition costs are some ways to lower your costs…
It could lead to improving your ROI, but not by much…
Because if you continue to go down on your costs long enough, you’ll end up at zero…
But who cares if you’re gaining an ROI of 1,000% on every dollar?
What matters to you and I – as small business owners – is, at the end of the day, how much do I get to keep?
So don’t focus on your ROI or net profits.
By pursuing the second method for improving ROI, you’ll accomplish both objectives – a better ROI and more net profit…
Second being increased income from individual clients…
The second method has two ways:
# Increase the transaction size for each client
# Increase the frequency of client purchases
Raising prices, new or upgraded products, or cross-sells of loosely associated items with your original product purchase. Any of these can increase transaction size…
To increase the frequency of buys, you can throw in subscriptions or memberships with your business, make new products to pitch to your clients, or use other company’s products through a joint venture…
Within the next month you’ll see immediate increase in profit if your implement just one of these methods…
Remember, the difference between success being a simple dream or a reality is all about implementation of good ideas…
Many failing small businesses are run by business owners with brilliant ideas, who fail to implement them…
Don’t be that business owner…
Take what you are learning here and implement it – then share your success story with me so I can publish it on the blog…
Feel free to leave any questions or comments as always…
Here’s to always improving small business advertising!!!
Tags: email marketing, online email marketing, email marketing tips