Are you paying for customers?
If not, then what are you waiting for?
That\’s the whole point of your \”small business advertising\” – to buy your clients…
And they in turn pay you more than you paid for them…
Then it\’s an investment…
So we both agree on that, now how much are you paying for your clients?
And do you know your ROI (Return on Investment) gained from that investment?
If you don\’t know the answer to any of these, then you\’re just one of many…
A lot of small business owners think they know, but have no actual hard data-based answers…
But hey, they\’ve still got their company to run…
So it must not be that big of a deal, right??
It depends, how much do you want to gain from your business?
Most small business owners make less than mid-level management at medium and large businesses…
And they end up working a lot more…
Few have even made it into the 6-figure income range…
And some have actually reached true wealth…
I consider true wealth as financial and business success…
Would you work 80 hour weeks for only 40 hours worth of pay just because you love what you do?
Don\’t most of us launch our businesses with the hopes of enriching our lives?
Well then maybe we should review how we\’re spending our money on advertising…
Find out how much each customer is costing you, because if you could greatly increase your profit, how much would you put into them?
Well, that\’s the name of the game in small biz advertising…
Give them a cookie now, get two back later…
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 I\’m getting ahead of myself…
Back to the earlier questions…
Like how\’s your ROI compared to your client acquisition costs??
There\’s a couple ways to track your ROI…
You need to know your businesses break even point…
You could hurt your businesses cash flow if you don\’t find this out…
If your get an ROI of 1 within 7 days, and you know your break even point, then you can plan ahead…
If you break even at 7 weeks – then you need to plan differently…
Got it?
Once you\’ve compared your ROI to your customer-gaining costs within a various time frame, then we\’ll begin to improve on your ROI…
There are only two way to improve the ROI on your marketing…
Incidentally, the two steps towards growing your businesses profits is to either lower costs or increase 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…
Lowering costs will improve your ROI, but not by much…
Because, eventually you\’ll reach zero if you keep going down on costs…
But if you\’re gaining 1,000% on every dollar spent, then your ROI must be great right?
Well what matters to us as small business owners, is what do I get to keep at the end of the day?
All this boils down to is this – don\’t focus on your ROI and throw out your worry about net profit…
If you go the second route towards improving your ROI, then you kill two birds with one stone – improved ROI and increased net profit…
Increasing income from every new customer…
There are two ways to do this:
# Increase the transaction size for each client
# Increase the frequency of client purchases
You can increase the transaction size by raising prices….selling add-ons at the point of sale….upsells to premium versions of your product/service…. or cross-sells of items only loosely associated with the original purchase…
You can increase the frequency of purchases by adding continuity to your business (subscriptions, membership, etc.), creating new products and services to pitch to existing clients, or offering another company\’s product or service through joint ventures…
Utilizing just one of these methods within the next month will show an immediate increase in profits…
Remember, success and failure for small business depends solely on the implementation of a good plan…
The majority of businesses that fail are run by owners with incredible ideas, but no will 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…
As always, feel free to leave any comments or questions…
Here\’s to always improving small business advertising!!!
Want a free small business advertising course, then visit www.highyieldadvertising.com and grab your free small business advertising course today.