Small Business Talk
The Podcast to Grow your Business Faster
Should You Be Paying For Marketing?
Show Notes
When you’re in business, whether you like it or not you are in competition with every other business like you. Your competition can be local, in the next town/state or in many cases global. If your content isn’t being seen by your ideal audience, it is hard to make sales.
All dollars that you spend on marketing should give you a positive return in either dollars, brand awareness or sometimes exposure. If one of all of these are not happening, then you need to STOP!
The biggest question most business owners ask themselves is:
Should I pay for marketing?
Why Does Use Paid Marketing?
When you think of marketing, no doubt you think about how much it’s going to cost. Marketing can be expensive, but it doesn’t have to break the bank to be effective.
What every small business needs, is a marketing strategy that makes them money. What if you could get all the money you spent on marketing back and more?
There are many factors to consider when asking why marketing costs so much.
You are asking the wrong question. It is not the cost that you should be asking about it, is the return.
Whether you spend $5, $50, $5,000 or more, the question you should be asking is what the ROI (return on investment) will be.
Often there is costs involved in setting up marketing campaigns, however the projections need to cover that and more.
Having someone from the outside who can offer a different perspective on your business can be extremely valuable. Sometimes if you are too close to something you aren’t able to get the whole view.
You need to know who your target audience is.
You need to have a content strategy plan (what does your audience want to see?)
Is Marketing Worth it?
The question “Is it worth it?” that depends on your goals, timeframe and expectations.
Marketing can often be a slow burn. Having said that you need to see what is working and what is not and modify as the data comes in.
I have heard way too many horror stories of people leaving blind faith in their so called marketing professional only to find themselves 3 months down the track with a $10k whole in their pocket and little to show for it. Marketing doesn’t happen overnight but please make sure you are getting regular reports with actual realistic data and monitor the sales that are coming in.
There is no point getting a ton of traffic and leads if they are not your customers or the cost of acquisition is costing more than the value of the customer.
Lifetime Value of a Customer
When you are considering your marketing budget make sure you have clear objectives.
- What is the lifetime value of a customer?
- What is your breakeven cost for acquisition?
- What is your timeframe and budget?
- What are you trying to achieve?
Can You do Your Own Marketing?
Do you have the time?
Would you rather be spending this time on marketing or working in or on your business?
Do you have a content strategy plan?
When you choose to a hire marketing professional, it allows you to spend more time doing what you’re good at. You can put that energy back into the business, instead of worrying about advertising or posting schedules. What is your time worth, and can you get a professional to do it for you, so you don’t end up down a rabbit hole?
Many business owners try to do their own marketing only to find that it is costing them more money, time, and energy than they are getting back. Saving money by doing things that you are not good at, or don’t understand all the changing algorithms is often false economy. What plans do you have if you are not getting any interaction or engagement? If there is no engagement, then you aren’t going to get the most out of your marketing strategies and you will fall sort of you mark.
Is all Marketing Good Marketing?
No, not all marketing works for all businesses, that is why it so important to do the type of marketing that works for you and your business.
I once had a client that wanted to do Instagram.
That is great, their clients were there it would work for their business. Ok let see what photos we can use and whether we need to get others done. “Oh no I don’t have any photos; I don’t want to get any done”. Instagram without photos? Video – Nup not that either.
Do your customers use the platform that you what to market on?
Don’t just pick your favourite platform think about your customers and their preference.
Paying for marketing!
Pick the type of marketing that suits you, your business and most of all your customers.
Paying for marketing is how many businesses grow year after year. Successful marketing done well can be a very good business strategy.
Ask lots of questions and go with a provider that has a very good track record. Test, measure, tweak, test again. Make sure that you provide is testing and will allow for changes as you go along. Don’t over change you have to give things time to work however is our fast society we can often get results way quicker that we used to. Go with your gut and keep an eye on your marketing.
Should You Be Paying For Marketing?
Listen to Episode 175 of Small Business Talk for the full details.
Check out Small Business Talk on YouTube for videos and more.
