How to Buy Clients and Get Rich
Are you paying for customers?
If not, then what are you waiting for?
That’s why you buy small business advertising – to “purchase” customers…
And they in turn pay you more than you paid for them…
That makes it an investment…
So we both agree on that, now how much are you paying for your clients?
And are you tracking your ROI (Return on Investment) from your 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…
And hey, they’re still in business…
So it’s probably not too crucial to small businesses, 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 work longer hours…
A few have risen into the 6-figure net income arena…
And some have even achieved actual wealth…
Personally, I view the latter group as financial and business successes…
Why would you work 80 hour weeks for 40 hour pay…because you love what you do?
Isn’t our businesses supposed to enrich our lives?
Well then maybe we should review how we’re spending our money 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…
Spend a buck this week and get back two next…
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…
Back to the earlier questions…
Like your ROI on client acquisition costs.
There’s a couple things you need to track to measure your ROI…
Your break even point comes first…
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…
You need to plan differently however if it takes you 7 weeks to reach that break even point…
Got 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…
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’s one way to improve ROI, but nothing exciting…
Because if you continue to go down on your costs long enough, you’ll end up at zero…
But who cares if you’re gaining an ROI of 1,000% on every dollar?
Well at the end of the day we’re all as small business owners asking the same question, how much can I put in my pocket?
All this adds up to is this – don’t strictly worry about your ROI and net profit…
By pursuing the second method for improving ROI, you’ll accomplish both objectives – a better ROI and more net profit…
Second being increased income from individual clients…
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…
Adding continuity to your business such as subscriptions or memberships, or joint venturing to offer existing clients new products or services are a couple ways to increase the frequency of your purchases…
Utilizing just one of these methods within the next month will show an immediate increase in profits…
The difference between the successful small business and the failure is implementation of good ideas…
Most falling or soon to fail businesses are ran by owners that have the dream, but no will to execute it…
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!!!