One of the most frequently asked questions I encounter is:
How much does it cost to advertise?
The short version, it’s different for every business. That’s why you need a custom solution, and a professional to help make it happen.
Now, let’s answer the question directly. We can tell you EXACTLY what it costs to earn one new client using the tools that really work. Once you know what it costs to earn one client, you can make an intelligent decision about setting your budget to be in order to reach your goals.
Here’s an example:
Let’s say a local handyman, Bob, earns an average of $375 per service call. When Bob can earn one new client by investing $50 in advertising, that’s a win. Now, we find the balance between Bob’s available budget, and the total number of service calls he can make before his quality of service drops. That’s the sweet spot. If Bob wants to add ten new service calls per week at $50 per new client, we need to set his budget at $500 per week. When he grows his business by 10 new service calls, he just increased his net revenue by $3750 per week. That’s a BIG win for Bob.
If you are selling big ticket items, such as swimming pools or services that cost more, it may cost you more to earn one client. If you are selling tacos for $3, you need each new opportunity to cost you less.
Advertising is not rocket science, but it does require continuous effort to deliver results.
Ask yourself these three questions:
What is one new client worth to me?
What am I willing to invest to get one new client?
How many new clients can my business acquire before quality suffers?
Now, you have the beginnings of a budget. If you don’t know the answers to those questions, you could be wasting your advertising budget on media that is less effective. Branding Iron Management can help you define both your cost of acquisition for a new client, and set reasonable expectations for goals you can actually achieve within your ad budget.