Grow Rich Buying Clients

Are you buying your clients?

If not, you should be…

That’s the goal of your “small business advertising” – purchasing customers…

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

So it’s an investment…

We all agree on that, so how much are you really spending on your customers?

And are you tracking your ROI (Return on Investment) from your 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… That depends – on what you want to get out of your business??

Some large and medium businesses pay more to their mid-level management than a small business owner makes.

And many end up working a lot longer hours…

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

And some have even achieved actual wealth…

I consider true wealth as financial and business success…

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

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…

Get an answer to how much it costs you to get a customer, because if you knew you could double your money every time…. How much would you spend??

Well, that’s the name of the game in small biz advertising…

A bird in the hand is worth two in the bush…

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 side-tracked now…

We have questions to answer…

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

There’s a couple points in your business where you need to measure your ROI…

First is your break even point…

You could hurt your businesses cash flow if you don’t find this out…

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 it takes you 7 weeks to get to that break even point, then you need to plan in a different direction…

You get it…

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…

Improving your ROI on your marketing takes two steps…

Incidentally, the two steps towards growing your businesses profits is to either lower costs or increase income…

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

But who cares if you’re gaining an ROI of 1,000% on every dollar?

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…

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

Raising prices, new or upgraded products, or cross-sells of loosely associated items with your original product purchase.  Any of these can increase transaction size…

To increase the frequency of buys, you can throw in subscriptions or memberships with your business, make new products to pitch to your clients, or use other company’s products through a joint venture…

Using just one of these steps within the next month you’ll see an immediate increase in profits…

Don’t forget, there’s a differences between having a good plan, and executing a good plan, either of which decides success or failure for a small business…

Many failing small businesses are run by business owners with brilliant ideas, who fail 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!!!