How to Have an Unlimited Marketing Budget – Thats the question.
When spending money on marketing one of the following three things will occur:
- Your marketing fails (you make less money than you spend).
- You do not know if your marketing is good or bad, because you do not mesure it.
- Your marketing succeeds (you earn more money than you spend)
For each of these scenarios there’s a simple course of action:
- If your marketing fails all the time. Stop and change what you are doing.
- If you don’t measure your marketing results thats just stupid, because in todays modern teknology you can messure the return on investment (ROI) in al kind of ways.
- If your marketing is working and consistently giving you a positive ROI, then throw in the next gear.
WHY YOUR MARKETING BUDGET SHOULD BE UNLIMITED
The craziest thing a small business owner can do is seting a “marketing budget”.
By setting a marketing budget you are showing that either your marketing isn’t working and hence it’s a pure expense (i.e. a waste of money). Or you have no idea if its working, and just trowing money at it because you think it is wirking.
If it is the first one you need to set a budget, becaurs you cant have the marketing runing away with your money, but on the other hand. WHY THE HELL ARE YOU SPENDING MONEY ON SOMETHING THAT DOS NOT WORK?
If it is the second one you ned to cange things fast. you cant run around spending money on something and you dont know what happens with it. Why spend money on something and dont mesure the result?
If you’re marketing is working and its giving you a positive return on investment, why would you limit your budget? Then it is if you put in mor money, you get even more in return.
This is called money at a discount. If i sel $100 bills for $80 a peace. Would you trow all the money you have at it, or would you say that you have only a limited budget for that?
Thats why everyone should say that they have an unlimited marketing budget.
On concern many have is that they ar worried about being able to meet th demand.
Thats frankly a quite plessent problem to have.
From another point of view, if you have mor demand than product, you have the prfect oppotunity to rize the prices and get higher quality customers.
THE ONLY TIME YOU SHOULD SET A MARKETING BUDGET
In the testing phase is the only time you should set a marketing budget. In the testing phase you need to get the opportunity to fail cheap, and fail often to get data for your future campaigns.
Test your headline, your offer, your ad positioning and other variables. Then take away the loosers and bring in the winners for the perfect avertizing campaign.
The post office charges the same for a direct mail campaign that fails, as a direct mail campaigns tha pulls in milions in revenue.
When you have a winner you put the pedal to the floor and then you have the $100 for $80 going in full speed.
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