How big is your marketing budget?

Luscious84

10 years ago

maybe a couple of hundred dollards a year for online marketing only!

Thanks
1 reply

{{ DiscussionBoard.errors[8814396].message }}

ewenmack

10 years ago

You can have an unlimited advertising budget when
you know for every dollar you put in you'll get
more back quickly.

Then the smart question becomes, "how much money
do I won't to take out of this money machine?"

Best,
Ewen

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[8814449].message }}

Claude Whitacre

10 years ago

Originally Posted by ewenmack

You can have an unlimited advertising budget when
you know for every dollar you put in you'll get
more back quickly.

Then the smart question becomes, "how much money
do I won't to take out of this money machine?"

Best,
Ewen

Yup. I agree...again..with Ewen.

The idea of a marketing budget is sooo wrong.

Your marketing is either profitable or it's not. If it's profitable, you keep doing more of it until it stops being profitable. If it's not profitable, why do it at all?

And all of this can be tracked and documented. Your marketing should be self funding from the profits it creates.

If you hand me a dollar, and I hand you back a five dollar bill....what will your budget be for handing me one dollar bills? that answer is "as many times as I can, as fast as I can."

Tracking and testing your advertising and marketing results virtually guarantees that your marketing will be profitable...after a few attempts.

Now, when I selling to a business owner? I never bring this up. It confuses them, and takes too long for it to get through to them. I just go with whatever figure they give me.

Usually, it never comes up.

[ 2 ] Thanks
1 reply

Signature

One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

What if they're not stars? What if they are holes poked in the top of a container so we can breath?

{{ DiscussionBoard.errors[8814463].message }}

ewenmack

10 years ago

Originally Posted by Claude Whitacre

Yup. I agree...again..with Ewen.

Look at us Claude, we'd rather talk about sales and marketing
than talking with family over Christmas.

Anyway, you may of heard of the story of the numbers at Guthy Renker,
the Informercial giant.

They know their numbers so well that they are prepared to take a loss
for 6 months to get their profit.

And yet their competitors could go to the same manufacturer to fill up
their tubes of the same facial gunk.

They could rent a celeb.

They could hire the same studio and film crew.

They could hire the same script writer.

And in the end go out of business because they don't
have the funding to sustain a loss as long as Guthy Renker.

I believe they get investors to fund it.

In the end it's knowing the numbers and the brute force of lots of money
which beats out competitors.

Best,
Ewen

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[8814499].message }}

Claude Whitacre

10 years ago

Originally Posted by ewenmack

Look at us Claude, we'd rather talk about sales and marketing
than talking with family over Christmas.

Anyway, you may of heard of the story of the numbers at Guthy Renker,
the Informercial giant.

They know their numbers so well that they are prepared to take a loss
for 6 months to get their profit.

Best,
Ewen

The secret though, is that they know their numbers. Life insurance companies regularly pay out the entire first year's premium in commissions...because they know they will get it back the second year....and every year after that.

But most of us (certainly not me) can market so that we make money on the first marketing message. Or, at worst, break even.

Heck, now I'm happy with a break even on my first transaction. Then that new customer...who is used to giving me money....came to me for free.

Speaking of Christmas, my wife just called me to go back to the living room to talk to her relatives. Joy to the world.

Claude

Thanks
1 reply

Signature

One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

What if they're not stars? What if they are holes poked in the top of a container so we can breath?

{{ DiscussionBoard.errors[8814533].message }}

ewenmack 10 years ago

Originally Posted by Claude Whitacre

Heck, now I'm happy with a break even on my first transaction. Then that new customer...who is used to giving me money....came to me for free.

See you back shortly.

Jay Abraham tells a story of 2 copywriters who went into the fake diamond business.

They advertised in the same paper.

One had slightly better copy
which gave him about break even.

The other copywriter took a slight loss.

The quick buck guy who didn't use his head closed his operation down.

The guy who took a slight loss put in place an upsell
for a more expensive fake diamond.

Some bought and now he was in profit.

He didn't stop there.

He added more expensive offers and more bought.

Now he had a real business
compared to the guy who was going for the one hit,
and if he didn't get it, he was moving on.

He knew the name of the game is buying customers.

And he knew when he got his money back and would
continue to grow that investment in each customer.

Best,
Ewen
- [ 1 ] Thanks
{{ DiscussionBoard.errors[8814555].message }}

KingOfContentMarketing

10 years ago

Most local businesses I work with budget a certain amount for advertising and marketing. The problem is they mostly do it wrong. They'll go by their direct competitors ("Every dealer around here spends X per new car for advertising") or from some study or report in their industry ("The ABCXYZ Industry Council says to budget 2 percent of gross sales").

This is bad because they get stuck with the results these methods produce.

It varies by industry--I have an art store client with expensive items who spends as high as 25 percent of gross sales--and buying season-i.e., jewelers will spend the majority of their budget at Christmas, while water parks advertise in the summer. The range I suggest is to spend 5-10 percent of gross sales on marketing and advertising.

Thanks
1 reply

Signature

Marketing is not a battle of products. It is a battle of perceptions.
- Jack Trout

{{ DiscussionBoard.errors[8814583].message }}

ewenmack

10 years ago

Originally Posted by KingOfContentMarketing

It varies by industry and buying season-i.e., jewelers will spend the majority of their budget at Christmas, while water parks advertise in the summer--but the range I suggest is to spend 5-10 percent of gross sales on marketing and advertising.

Franchise organizations typically take those percentages from their franchisees.

I left a franchise organization because I was getting a much better return on the advertising budget by creating my own ads and taking my own calls. Yet they were/are the largest in the world for their services.

Best,
Ewen

Thanks

{{ DiscussionBoard.errors[8814598].message }}

KingOfContentMarketing

10 years ago

The bigger challenge I have with one of them is not so much the budget, but to get them to be consistent month in and month out with a variety of methods. You think IMers suffer from shiny object syndrome!

Thanks
1 reply

Signature

Marketing is not a battle of products. It is a battle of perceptions.
- Jack Trout

{{ DiscussionBoard.errors[8814609].message }}

ewenmack 10 years ago

Originally Posted by KingOfContentMarketing

You think IMers suffer from shiny object syndrome!

Maybe because they are infected by the SOS from IM'S!

Best,
Ewen
- Thanks
- 1 reply
{{ DiscussionBoard.errors[8814611].message }}
- savidge4 10 years ago
  
  From my own personal experience offline business' use more capital in advertising than online business. I am a satellite installer for a major satellite internet company. Between signs and cards and door hangers and the like it adds up. Not to say its not worth it in the end though.
  
  I do as much in house as I can to keep my costs down. Such as vinyl lettering yard signs. Printing out my own package drops, and other stuff. Business cards, j cards and door hangers I send out for.
  
  I do spend a lot on printed materials every year due to the fact I cross advertise my online business with my online business' thru assorted printed materials, and visa - versa. IE I advertise my satellite business with every etsy and ebay package that goes out the door. and I advertise my etsy and ebay business with my satellite business.
  
  As the others have said I really don't look at it as a budgeted item. It is more a matter of how much am I willing to spend, knowing the return.
  
  Thanks
  
  Signature
  
  Success is an ACT not an idea
  
  {{ DiscussionBoard.errors[8815014].message }}