“We need more leads! and quality leads.” Everyday business owners say this again and again.
Then we get asked about Facebook, Google Adwords, Email Marketing, along with other buzz words in online marketing.
Here’s the thing
Not all businesses are the same.
Google Adwords may be fantastic for one business but Facebook may save the day for another;
And how many times have you been called up by some digital agency telling you “spending $1000 a week will get you on top of Google”?
Be careful, one size does not fit all for online marketing.
Understanding your business is more crucial than running Ads itself.
Paying $20 a click sounds crazy?
Almost every customer wowed when they heard the idea of paying Google Adwords for clicks regardless whether people bought the product/service or not.
This sounds familiar to attending trade shows?
Remember in the old days when people paid more than $5,000 for a booth at a trade show?
Business owners had to keep a record of the leads collected from the trade show, AKA the spreadsheet.
Then you do some math: if you collected 100 business cards from the trade show and 20 of them are converted to leads.
Now let’s say that you are currently converting half (50%) of your leads into customers, which means 10 sales out of 20 leads. Each of the sale is worth $1000, so the total sales are worth 10 x $1,000 = $10,000. After you take out the $5,000 trade show expense, still made a profit of $5,000.
Hence you decide to attend this trade show again next year.
Google Adwords operates in a similar fashion for you, except it’s not once a year, it’s 24 x 7.
Let’s break it down
Using the same conversion rate as above, out of the 100 visitors you’re getting to your website from Google Adwords, you’re turning 20 of them into a lead.
Then you could have made 10 sales out of the 20 leads, which equals to $10,000 sales.
How much did you say the cost per click was on Google?
$20 per click?
It means you would have paid $20 x 100 clicks = $2,000 to Google.
$10,000 – $2,000 = $8,000 is your profit from running Adwords.
Now imagine if you can do this 24 x 7.
Let’s talk about a growth strategy for your business.