How to Buy Clients and Get Rich
Have you been buying your customers?
If not, then what are you waiting for?
That’s the goal of your “small business advertising” – purchasing customers…
Then they turn around and pay you more…
So it counts as an investment…
So we know that’s true, now how much do your clients cost?
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…
Most small business owners can’t answer these questions with hard data-based answers…
But they’re still in business right?
So it’s probably no big deal, right?
It depends on where you want your business to go…
Some large and medium businesses pay more to their mid-level management than a small business owner makes.
And they end up working a lot more…
Few have even made it into the 6-figure income range…
Even less have achieved true wealth…
It’s these latter few who I consider financial successes… Business successes…
Because even if you love what you do – why work 80 hours for 40 hour pay??
Didn’t we all start out trying to better our lives with our business?
If you did, then maybe we should go over how we spend our funds on our 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 back up for a second…
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…
The first thing you need to know is the break even point…
You’ll end up with issues in your cash flow if you don’t find this out…
If your get an ROI of 1 within 7 days, and you know your break even point, then you can plan ahead…
Unless it takes you 7 weeks to reach to break even, then you need to plan accordingly…
You get the point…
Once you’ve compared your ROI to your customer-gaining costs within a various time frames, then we’ll begin to improve on your ROI…
Improving your ROI on your marketing takes two steps…
The only two ways to increase your business profits is to either lower costs or raise income…
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…
Lowering costs will improve 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?
Well what matters to us as small business owners, is what do I get to keep at the end of the day?
So don’t focus on your ROI or net profits.
By taking the second step to improve your ROI, you’ll nail both goals – improved ROI and better net profit…
Second being increased income from individual clients…
You’ll accomplish this using these 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…
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!!!