And for you to figure that out, you’ll want to decide who your ideal client is and what their lifetime value is to your business. I even have a nifty customer lifetime value calculator here to help you sort it all out.
This might seem hard to believe, but I can point you to some ads that cost $10,000 or more to produce a single ideal client.
If that made your knees weak, consider this. I could compel you to spend $10K to attract ideal clients too, provided I could reliably prove that you would earn at least $10K in profits from them over the period of time that you serve them.
And, if you did just that – spend 10K and earn 10K back – that my friend is a 1/1 ROI, which makes that form of media a winner.
I’m going to suggest you read that a few times and let it sink in. If you understand what I’m saying, then you’ve purchased insurance against every advertising rep that will call you or walk through your door from now to forever.
Tattoo it on your arm if you must, but never, ever again buy advertising unless you’re clear on the ROI. Which, by the way, does not mean you have to break even on the first sale. And we’ll get into why some other time.
Until then, questions – comments (leave them below) – or hate mail are welcome. And if you completely do not relate to either of the two personas (David or Debra) above, you may decide to unsubscribe too; I won’t mind.
Image courtesy of: birgerking