How to Buy Clients and Get Rich
Are you buying your clients?
If you haven’t, you should be…
That’s the purpose of your “small business advertising” – to buy clients…
Then they turn around and pay you more…
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 shrugged at any of these questions, then no worries, you’re not alone…
Many small business owners don’t know the answers to these questions using actual hard data…
But hey, they’ve still got their company to run…
So it’s probably no big deal, right?
Well, it depends on how far you want to take 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 actually reached true wealth…
I consider true wealth as financial and business success…
Even if you love what you do – why spend 80 hours working and only making 40 hours worth of pay?
Isn’t our businesses supposed to enrich our lives?
If so, then maybe we should rethink how we spend money 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…
Give them a cookie now, get two back later…
Rinse and repeat… and repeat… and repeat…
Until it stops working… Don’t quit on your ad before it’s done working… Measure and track its response and profit until it’s no longer gaining any…
But let’s back up for a second…
Let’s answer those questions from earlier…
Like your ROI on client acquisition costs.
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 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…
You need to plan differently however if it takes you 7 weeks to reach that break even point…
You get it…
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…
There’s two steps towards making your ROI better in your marketing…
Lowering costs or increasing income… those are the two step towards growing your businesses profits…
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 at some point along lowering your front end costs, you’re going to reach zero…
But if you’re gaining 1,000% on every dollar spent, then your ROI must be great right?
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…
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
You can increase the transaction size by raising prices….selling add-ons at the point of sale….upsells to premium versions of your product/service…. or cross-sells of items only loosely associated with the original purchase…
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…
Within the next month you’ll see immediate increase in profit if your implement just one of these methods…
Remember, the difference between success being a simple dream or a reality is all about 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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