7th June, 2018
From: Sydney, Australia.
The numbers quickly start to stack up.
When you can spend one hundred dollars in advertising, and you know that will get you (on average) 8 customers wanting “more info”.
And then you call these 8 customers, to give them more info and to answer the questions they have.
You’ve done this before, so you know that on average 3 of these 8 customers are going to become paying customers within 24 hours (some on the spot, some the next day).
And finally, you know that 3 paying customers equals three hundred dollars. And that 3 might be a 2 sometimes, and sometimes it’s a 4! But you know the average works out at 3.
When you go through the steps to work this all out (and your numbers will vary of course as every business does), the only question you will have is: “well how many one hundred dollar advertising spots can I find and buy !?”.
Now it’s just time to get excited.
But this is where 97% of business owners shoot themselves in the bank account, they get to the excited part, before they do the homework part!
They don’t spend the hour or less it takes to work out:• $100 in advertising costs. Equals:
- 8 enquiries / requests for quotes / whatever.
- And sometimes I get 1, sometimes I get 4, but based on the last few times I did this, the average I get is really 3 paying customers.
- And I know that 3 customers = $300.
- So I spent $100 to make $300, with some work and follow ups in between.
The new (but old) buzz word around the business marketing world lately is “scaling up”, “scaling your business”, etc, etc.
True scaling and growing can be done when you know these numbers in your business.
It might take a few or 22 attempts to find the winning combination, but what will it mean when you do find it !?