Grow Rich Buying Clients
Feb/100
Are you buying clients?
If you haven’t, you should be…
That’s why you buy small business advertising – to “purchase” customers…
Then they pay out more than the cost to get them…
So 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 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…
And hey, they’re still in business…
So it must not be that big of a deal, right??
Well… That depends – on what you want to get out of 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…
Some even have made it up into 6-figure net incomes…
And some have even achieved actual 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 out trying to better our lives with our business?
If so, then maybe it’s about time for us to think again on how we’re spending on advertising…
Find out how much each customer is costing you, because if you could greatly increase your profit, how much would you put into them?
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 let’s get back on track…
Let’s answer those questions from earlier…
Like how’s your ROI compared to your client acquisition costs??
There’s a couple ways to track your ROI…
First is your break even point…
You’ll have cash flow problems if you don’t know this…
But if you know that you break even – and get that ROI of 1 – within 7 days then you can 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 understand…
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…
There’s two ways in make your ROI better…
The only two ways to increase your business profits is to either lower costs or raise income…
Lower your client acquisition costs by finding better deals on advertising, or trying different and cheaper forms of advertising…
It could lead to improving your ROI, but not by much…
Because if you continue to go down on your costs long enough, you’ll end up at zero…
But if your ROI is 1,000% on every dollar, then who cares right?
Well what matters to us as small business owners, is what do I get to keep at the end of the day?
I say all that to tell you – don’t focus on ROI and forget about net profit…
By going the second way towards improving your ROI, you’ll succeed in two areas – a better ROI, and improved net profit…
The second method being to increase income from each new client…
The second method has two ways:
# Increase the transaction size for each client
# Increase the frequency of client purchases
You can raise prices, cross-sell items that loosely are associated with your product, upsell premium versions of your product or service, or sell add-ons at the point of sale in order to raise your transaction size…
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…
Using just one of these steps within the next month you’ll see an immediate increase in profits…
The difference between the successful small business and the failure is implementation of good ideas…
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!!!
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