How to Spend Your Way to Wealth by Buying Clients
Are you paying for customers?
If not, you should be…
That’s the purpose of your “small business advertising” – to buy clients…
Then they pay out more than the cost to get them…
Then it’s an investment…
So we know that’s true, now how much do your clients cost?
And what have you gained on your investment, or ROI (Return on Investment)?
If you don’t know the answer to any of these, then you’re just one of many…
The majority of small business owners can’t confidently answer these questions with data based proof…
But hey, they’ve still got their company to run…
So it’s probably no big deal, right?
It depends, how much do you want to gain from your business?
A lot of small business owners are making less than mid-level management at medium to large businesses…
And they end up working a lot more…
Some have made it to 6-figure incomes…
And some have even achieved actual wealth…
Business and financial success make up the second group…
Even if you love what you do - why spend 80 hours working and only making 40 hours worth of pay?
Didn’t we all start out trying to better our lives with our business?
If so, then maybe we should rethink how we spend money on advertising…
Learn your costs for each customer, because if you know that they could double your profits… how much more would you pay out?
Well, that’s the name of the game in small biz advertising…
Spend a little now, to get a lot 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: What’s the ROI on your client acquisition cost??
There’s a couple ways to track your ROI…
You need to know your businesses break even point…
Because if you don’t know this, you’ll have cash flow problems…
But if you get that ROI of 1 after learning your break even point within 7 days, then you can begin to plan ahead…
If you break even at 7 weeks – then you need to plan differently…
You understand…
So let’s start to improve on your ROI once you’ve learned of the time between your getting-client costs, and your current ROI…
There’s two ways in make your ROI better…
Lowering costs or increasing income… those are the two step towards growing your businesses profits…
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’s one way to improve ROI, but nothing exciting…
Because, eventually you’ll reach zero if you keep going down on costs…
But who cares if you’re gaining an ROI of 1,000% on every dollar?
Ultimately at the end of the day, we as small business owners have the same question - how much do I get to keep?
I say all that to tell you – don’t focus on ROI and forget about net profit…
By taking the second step to improve your ROI, you’ll nail both goals - improved ROI and better net profit…
And that’s increased income out of every new client…
There’s two ways:
# Increase the transaction size for each client
# Increase the frequency of client purchases
To raise your transaction size, you could raise your prices, sell add-ons along with your product, or offer premium versions of your product or service…
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, the difference between success being a simple dream or a reality is all about implementation of good ideas…
Most small businesses that fall were ran by business owners with genius ideas, but no drive 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!!!
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