By Melina Abbott
Consider this...
You can put your money in the bank, in shares or buy some real estate. You'll get a return on investment of 10%, 20%, perhaps up to 40%.
On the other hand, money invested in marketing of your business will without doubt give you your biggest single return on investment - greater than any other form of financial investment.
How come? Well, simply because a single advertisement, properly targeted, with the right headline and offer, costing say £300, can bring returns of perhaps 1,000% or more within days.
Calculate that increase over a year. Can you see why marketing is the easiest way to make money in your business?
Let us say you are already running an advertisement and getting 5 calls a week from it. You change a headline and now you get 8 calls a week. What if you raise your number of sales from 2 out of the 5 people who call, by just one more sale? That is 52 more sales in one year. Plus the extra sales from the other three calls and now you have 104 more sales over a year. How much profit did you just make with the same cash outlay?
That's leverage and you can do it in your business...
All you have to do is experiment, test different offers, headlines and target the right groups of people.
A restaurant on the Gold Coast in Australia sent their customers a letter with the offer of a free dessert. Only three people out of one hundred came in on that offer.
The next month they sent another letter offering new customers $10 credit for the next month only. The response... 18.8% at an average sale of $52.20. That's $9,991 for every 100 letters sent.
Better than leaving your money in the bank isn't it?
Peter Sun - Australia's highest paid marketing consultant - once placed an advert with the headline, “Spa Bath under the For Sale column in the classifieds”. The result was 2 calls and no sale. The next week he tried the headline, “Sex is Free”, and described the fun of having a spa with the ending, “...and what you do in it is your business”. The result - 11 calls the same day and it sold at 8am the morning it ran. That's a 550% increase in response.
I am not suggesting you use ‘sex is free’ in your advertising; it's just an example of what a difference in results you can get with one approach over another.
Another advertiser running an advert for a home perm headlined, “New Home Perm - Conditions As It Curls”, and received 100 replies. The second headline was titled, “Girls... Want a Fast Perm?” This one received nearly 300 replies. That's almost 200% more. This advertisement ran every month for years. By changing the headline the business received 2400 more replies in a year.
And that was just in one magazine!
Can you use leverage in your business? Of course you can. It works for every kind of product or service. All you have to do is keep testing, experimenting, leveraging...
...And, banking more money every day.
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