How to Buy Clients and Get Rich
Are you paying for customers?
If not, then what are you waiting for?
That’s the purpose of your “small business advertising” – to buy clients…
And they in turn pay you more than you paid for them…
Then it’s an investment…
So, since we agree that’s true… How much do your clients cost?
And do you know your ROI (Return on Investment) gained from that investment?
If you don’t know the answer to any of these, then you’re just one of many…
Many small business owners don’t know the answers to these questions using actual hard data…
But they’re still in business right?
So it must not be that big of a 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 they end up working a lot more…
Few have even made it into the 6-figure income range…
And some have even achieved actual wealth…
Personally, I view the latter group as financial and business successes…
Because even if you love what you do – why work 80 hours for 40 hour pay??
Didn’t we all start businesses to enrich our lives??
Well then maybe we should review how we’re spending our 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…
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 get back on track…
Back to the earlier questions…
Like how’s your ROI compared to your client acquisition costs??
There’s a couple ways to track your ROI…
The first thing you need to know is the break even point…
You could hurt your businesses cash flow if you don’t find this out…
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 frame, then we’ll begin to improve on your ROI…
There’s two ways in make your ROI better…
Incidentally, the two steps towards growing your businesses profits is to either lower costs or increase income…
Lower your client acquisition costs by finding better deals on advertising, or trying different and cheaper forms of advertising…
That’s one step towards improving your ROI… but one you should take lightly…
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?
Ultimately at the end of the day, we as small business owners have the same question – how much do I get to keep?
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…
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…
Using just one of these steps within the next month you’ll see an immediate increase in profits…
Remember, the difference between success being a simple dream or a reality is all about implementation of good ideas…
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!!!
Learn more about small business advertising. Stop by Michael Hearne’s site where you can find out all about small business advertising and what it can do for you.
