"We never spent money on advertising, ever." - The World's Most Successful Man

21 replies
What do you guys make of Elon Musk's approach of pumping all money into improving his products (I know nowadays his very presence is advertising but this has seemingly always been his mantra) and letting his customers do the selling.

Personally I'd be a nervous wreck if I started out without an advertising budget, have any of you guys ever tried? What do you think of this approach? This may be a dumb question to ask the 'Internet Marketing Forum' but I'm interested lol. And I don't just mean PPC, either nowadays even Social Media is so extensive that its an investment unto itself.

I could see why it would give you a leg up on your competitors, though, to be spending serious money on advertising while your product/service becomes slowly better than theirs...
#man #no marketing #successful #world
  • Profile picture of the author agmccall
    there are lots of multi=million dollar companies that do not advertise, but do you know what they have? They have a sales force and sometimes good sales people are better than any advertising. The same is true for internet marketers and their affiliates

    al
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  • Profile picture of the author mikefashen
    Musk is being exceedingly disingenuous with this. While he may not spend money on advertising technically he spends a FORTUNE on PR people doing PR which really is just another form of advertising.
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    Stop trying and start DOING

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  • Sometimes, it's not always about advertising. Word of mouth alone in the corporate world can make a world of difference. Quality over quantity is another thing to remember.

    Think about In N' Out Burger for example. I don't remember seeing a commercial from them, but they have achieved nothing but long lines at every location. Why? Word of mouth.
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    • Profile picture of the author dizzydiz
      Originally Posted by internetmarketer1 View Post

      Sometimes, it's not always about advertising. Word of mouth alone in the corporate world can make a world of difference. Quality over quantity is another thing to remember.

      Think about In N' Out Burger for example. I don't remember seeing a commercial from them, but they have achieved nothing but long lines at every location. Why? Word of mouth.
      True, but they've got physical presence which is advertising unto itself... Google (and social media) seems to be the window through which almost everyone views the internet and unless your viral game is mad strong I'm of the impression some $ needs to go into the pot to turn a few heads - I agree though after that it would be brilliant to have your customers be your salespeople
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  • Profile picture of the author Matthew Trujillo
    You don't need an advertising budget to be successful, you need the right mindset to be successful.
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  • Profile picture of the author talfighel
    A lot of people, when they get started, have no money for advertising.

    Some of them FIND a way to get the money so that they can advertise. When that happens, they start to get the ball rolling (leads to sales).

    Those who take their excuse and never spend a dime for ads, never make it in this business. They keep trying free marketing over and over again and one day when nothing seems to be moving in their business, then QUIT.
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    • Profile picture of the author DianaLensbury
      Paid advertising is a great tool for quickly testing and improving your setup - squeeze page/funnel/whatever... before you go through the arduous task of working on free traffic. So it can have a short-term purpose.

      As much as I try, I'm not sure that my products are THAT good that I can rely on my customers getting me more customers.

      Traffic is a bit like sex, it doesn't seem quite the same when you pay for it as when you get it for free! (apparently)
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  • Profile picture of the author yukon
    Banned
    Since when is investing millions of dollars all over the US to establish storefronts not advertising?

    Also factor in the millions of dollars Tesla spends on lawyers fighting individual states to establish stores (turn on the news).




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    • Profile picture of the author Steve B
      Dizzydiz,

      Don't assume anything from the fact that a profitable company has no advertising budget. Every company is different, every niche is different, and how you do business will be different from all others.

      A good friend of mine owns a company that has just six clients. He has no time or ability to serve any more than that. He does no marketing or advertising of any kind and has not for 30+ years. He barely keeps up with the demand of his six current clients and he doesn't want to grow his business because he will soon retire.

      But don't assume that you can be like the exception. If you are an Internet marketer, you should always be marketing yourself, your business, and your brand. To not do so is to adopt a "hope and wish" promotion strategy which almost always fails miserably.

      Steve
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      Steve Browne, online business strategies, tips, guidance, and resources
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    • Profile picture of the author Tsnyder
      Originally Posted by yukon View Post

      Since when is investing millions of dollars all over the US to establish storefronts not advertising?
      Since forever.
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      If you knew what I know you'd be doing what I do...
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      • Profile picture of the author yukon
        Banned
        Originally Posted by Tsnyder View Post

        Since forever.
        Since never.

        Like buyers are magically delivered to Tesla at zero cost.

        Tesla has millions invested in driving traffic, zoom out on the US map.








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        • Profile picture of the author Tsnyder
          Originally Posted by yukon View Post

          Since never.

          Like buyers are magically delivered to Tesla at zero cost.
          If you want to have a serious discussion about business
          it's useful to know what words mean. Acquiring real estate
          and erecting buildings is not advertising by any generally accepted
          definition of the word.

          Yes... the sign outside the dealership is a form of advertising
          but it does not drive traffic. It captures traffic that is already driving
          past the store.
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          If you knew what I know you'd be doing what I do...
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          • Profile picture of the author yukon
            Banned
            Originally Posted by Tsnyder View Post

            If you want to have a serious discussion about business
            it's useful to know what words mean. Acquiring real estate
            and erecting buildings is not advertising by any generally accepted
            definition of the word.

            Yes... the sign outside the dealership is a form of advertising
            but it does not drive traffic. It captures traffic that is already driving
            past the store.
            Good luck with that.
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            • Profile picture of the author Tsnyder
              Originally Posted by yukon View Post

              Good luck with that.
              I don't need any luck, son. I've been doing this
              a long time and have sold tens of millions of dollars
              worth of goods and services.

              I know the difference between advertising and construction.
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              If you knew what I know you'd be doing what I do...
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          • Profile picture of the author AntonioSeegars1
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            • Profile picture of the author Tsnyder
              Originally Posted by AntonioSeegars1 View Post

              Ray Kroc, the Mcdonald's King, would strongly disagree with you. He considered every Mcdonald's franchise to be an advertisement for Mcdonald's as a whole. If you read his book, Grinding It Out, he talks about this extensively.
              I don't care what he considered it. Words have meaning.

              As I said... yes... the sign is advertising. Buying land
              and erecting buildings is not advertising which is what
              the other guy is trying to have us believe.

              This is so simple...
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              If you knew what I know you'd be doing what I do...
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  • Profile picture of the author kilgore
    We've been very successful so far without investing in advertising, but honestly I think of that less as something to be proud of than something to remedy in the future. It's not that I would necessarily change anything that we've done in the past -- resources are limited and so you do have to pick your battles strategically, and so I've think we've done well to prioritize building our site using free (though admittedly work intensive) traffic sources. But I also recognize that as our business matures, we need to be utilizing as many sources of traffic as possible and if getting an extra user costs us $1, but makes us $2 over the long term, that's an opportunity I don't want to pass up.

    Maybe the ROI in advertising for Elon Musk's businesses don't make financial sense, or maybe he's willing to forgo the added profit for being able to brag about not ever using advertising. But I find that it rarely pays to be absolutist when it comes to which tactics and techniques you use when building your business; I'd rather have a full set of tools at my disposal as my company evolves, as my competition responds and as my users' needs change.
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  • Profile picture of the author thedark
    When I first started to sell my product, I tried to advertise it but got very few sales spending a lot of money. I stopped promoting, gave a version of the product for free and got many sales on the premium version from the users of the free one. Still trying to figure my way into advertising so I can increase earnings.
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  • Profile picture of the author goindeep
    Elon smells like a real man, soooo musky.
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  • Profile picture of the author Riccur
    I think it depends on how you define advertising. If you look at advertising as just put up signs or sending out flyers than okay. But if you created your business from word-of-mouth than do you charge yourself for the cost of your time to create the wordflow?
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  • If you have affiliates it's no necessary advertising
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