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…

Then they pay out more than the cost to get them…

Then it’s an investment…

So we both agree on that, now how much are you paying for your clients?

And what’s your Return on Investment (ROI) on that investment??

If you don’t know any of the answers, then trust me, many are in the same boat…

Most small business owners can’t answer these questions with hard data-based answers…

And hey, they’re still in business…

So it’s probably no big deal, right?

Well, it depends on how far you want to take 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…

A few have risen into the 6-figure net income arena…

Even less have achieved true wealth…

It’s these latter few who I consider financial successes… Business successes…

Why would you work 80 hour weeks for 40 hour pay…because you love what you do?

Didn’t we all start businesses to enrich our lives??

If so, then maybe it’s about time for us to think again on how we’re spending 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… If an ad works, stay with it until it doesn’t anymore… All the while tracking and measuring the profit it brings in…

But I’m getting ahead of myself…

Back to the earlier questions…

Like: What’s the ROI on your client acquisition cost??

There’s a couple things you need to track to measure your ROI…

You need to know your businesses break even point…

Because if you don’t know this, you’ll have cash flow problems…

If your get an ROI of 1 within 7 days, and you know your break even point, then you can plan ahead…

You need to plan differently however if it takes you 7 weeks to reach that break even point…

Got 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…

Improving your ROI on your marketing takes two steps…

Lowering costs or increasing income… those are the two step towards growing your businesses profits…

To lower costs you could acquire customers cheaper by finding better deals on your advertising, or trying a different and cheaper way to advertise…

It’s one way to improve ROI, but nothing exciting…

Because at some point along lowering your front end costs, you’re going to reach zero…

But if you are getting a 1,000% return on one dollar – whooptie-doo – who cares, right??

What matters to you and I – as small business owners – is, at the end of the day, how much do I get to keep?

I say all that to tell you – don’t focus on ROI and forget 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…

The second method has 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…

Implement just one of these ideas in the next month and you’ll immediately see an 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…

Feel free to leave any questions or comments as always…

Here’s to always improving small business advertising!!!

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