How to Spend Your Way to Wealth by Buying Clients
Have you been buying your customers?
If you haven\’t, you should be…
That\’s the purpose of your \”small business advertising\” – to buy clients…
And they in turn pay you more than you paid for them…
That makes it 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 these answers, you\’re in great company…
Many small business owners don\’t know the answers to these questions using actual hard data…
But they\’re still in business right?
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…
Few have even made it into the 6-figure income range…
And some have even achieved actual wealth…
Business and financial success make up the second group…
Would you work 80 hour weeks for only 40 hours worth of pay just because you love what you do?
Didn\’t we all start businesses to enrich our lives??
If so, then maybe we should rethink how we spend money on advertising…
Discover your costs per customer, because if you found out that you could double your money each time…how much more would you be willing to spend?
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 get tired of an ad before it stops working… Just keep using it and measuring response until it stops making a profit…
But let\’s get back on track…
Let\’s answer those questions from earlier…
Like how\’s your ROI compared to your client acquisition costs??
There\’s a couple ways to track your ROI…
The first thing you need to know is the break even point…
You\’ll have cash flow problems if you don\’t know this…
But if you know that you break even – and get that ROI of 1 – within 7 days then you can plan ahead…
If it takes you 7 weeks to get to that break even point, then you need to plan in a different direction…
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…
Lower your client acquisition costs by finding better deals on advertising, or trying different and cheaper forms of advertising…
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?
Ultimately at the end of the day, we as small business owners have the same question – how much do I get to keep?
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…
And that\’s increased income out of every new client…
You\’ll accomplish this using these two ways:
# 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…
Adding continuity to your business such as subscriptions or memberships, or joint venturing to offer existing clients new products or services are a couple ways to increase the frequency of your purchases…
Within the next month you\’ll see immediate increase in profit if your implement just one of these methods…
Remember, success and failure for small business depends solely on the implementation of a good plan…
Most falling or soon to fail businesses are ran by owners that have the dream, but no will to execute it…
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!!!
Want a free small business advertising course, then visit www.highyieldadvertising.com and grab your free small business advertising course today.