How Much Are You Willing To Spend?
I hope you are enjoying your family time and your last minute shopping frenzy. I know it can be a little stressful, but it can be a lot of fun too.
Before I begin the top of this special newsletter, did you send
out special gifts to your clients as described in a previous
newsletter? If so congratulations, you deserve a good pat on the back.
Free Holiday Promotion From SBI<=====
QUESTION: How much are you willing to spend to get a new client?
Smart business people know that each new client is worth a lot of money to
their business over their lifetime, and they make exceptional efforts to maximize
the value of this client.
They know the answer to this question because they want to know how much they
need to spend on every advertising and marketing campaign in order to capture
a new client.
In order to figure this out you need to go back and estimate what it costs
you in your advertising and marketing efforts to create a lead and then convert
this lead to a client. And you should break it down into each campaign.
The results will surprise you, and more importantly it will help you.
You may find out that you are not spending enough to get a new client with a
currently successful promotion (happens all the time). So now you can spend
more on this campaign and make it even more effective.
You may find out that a campaign you have been running for a long time is actually
not very productive and you can stop the bleeding and focus in on something
else (never spend money on advertising just for the sake of it. Make sure it's
producing the best results possible).
SIDE BAR: The least expensive campaign is not always the answer. So
don't let that fool you (this is also the reason a lot of agents and planners
resort to cold calling because it costs next to nothing to pick up the phone
or pound the pavement. However the efficiency is extremely low. Why cold call
when you can let prospecting letters do the prospecting for you?)
If you have nothing to go by then you should come up with a number. Are you
willing to spend $500 to get a new client? $2,000?
If a new client is worth $2,000 in commissions to you (on average) for the
year, are you willing to spend that much? Half?
The answer is up to you. In direct marketing if you are breaking even
you are doing well. Because all the money is made in the back end. And if you
are making money on the front end you are doing exceptionally well.
Internet Marketing: Capitalizing On Your Local
As you may have read already (article on internet
life insurance leads), I revealed to you the secrets to tapping into the profits hidden in your local
market using a content driven, direct response website.
My favorite tool for accomplishing this is called SBI, and they are doing a
2 for 1 deal.
Buy one for yourself and give one to a friend, family member, or client.
Use them as incentives in a contest or to drive subscriptions to your newsletter
that I know you are going to be sending out monthly to your clients and prospects
starting next year (if you are not doing this now, or planning on it, shame
Hurry! The Buy-1-Get-1 Free
ends midnight Dec. 25, at the stroke of Christmas!
My Very Best