How to Buy Clients and Get Rich
Have you been buying your customers?
If you haven’t, you should be…
That’s the goal of your “small business advertising” – purchasing customers…
And they in turn pay you more than you paid for them…
Then it’s 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 the answer to any of these, then you’re just one of many…
A lot of small business owners think they know, but have no actual hard data-based answers…
But they’re still in business right?
Sounds like it’s not that important then 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 many end up working a lot 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…
Would you work 80 hour weeks for only 40 hours worth of pay just because you love what you do?
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 back up for a second…
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…
You need to know your businesses 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…
Got 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, eventually you’ll reach zero if you keep going down on costs…
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…
By going the second way towards improving your ROI, you’ll succeed in two areas – a better ROI, and improved net profit…
Increasing income from every new customer…
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…
Utilizing just one of these methods within the next month will show an immediate increase in profits…
Remember, the difference between success being a simple dream or a reality is all about 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…
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.
