Grow Rich Buying Clients
Are you buying your clients?
If not, you should be…
That’s the whole point of your “small business advertising” - to buy your clients…
And then they pay you back more than they cost…
That makes it an investment…
So we both agree on that, now how much are you paying for your clients?
And what have you gained on your investment, or ROI (Return on Investment)?
If you shrugged at any of these questions, then no worries, you’re not alone…
Most small business owners can’t answer these questions with hard data-based answers…
But hey, they’ve still got their company to run…
So it’s probably not too crucial to small businesses, right?
Well… That depends – on what you want to get out of 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…
Few have even made it into the 6-figure income range…
And a few more have made it to true wealth…
Personally, I view the latter group as financial and business successes…
Even if you love what you do - why spend 80 hours working and only making 40 hours worth of pay?
Isn’t our businesses supposed 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 I’m getting ahead of myself…
Let’s answer those questions from earlier…
Like your ROI on client acquisition costs.
There’s a couple points in your business where you need to measure your ROI…
You need to know your businesses 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…
Unless it takes you 7 weeks to reach to break even, then you need to plan accordingly…
Got it?
So once you’ve figured out the amount of time between your client gaining costs and your ROI, then we’ll begin to improve your ROI…
Improving your ROI on your marketing takes two steps…
Lowering costs or increasing income… those are the two step towards growing your businesses profits…
Lower costs can be done by getting cheaper client acquisition costs by doing things like getting better rates on advertising, moving to lower cost media, etc.
It could lead to improving your ROI, but not by much…
Because eventually you’re going to get to zero if you lower your costs for too long…
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?
All this boils down to is this - don’t focus on your ROI and throw out your worry about net profit…
By taking the second step to improve your ROI, you’ll nail both goals - improved ROI and better net profit…
Increasing income from every new customer…
There’s 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…
By joint venturing to provide some added new products or services, or by adding continuity to your business (memberships, subscriptions, etc.) you can quickly increase the frequecy of your client’s purchases…
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…
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!!!
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