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Why you NEED to be concerned about marketing
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Dear Reader,
Businesses are failing at an astounding
rate. It's not a scare tactic to think that yours could be next. This is why marketing is
so important, so vital. Marketing is the lifeblood of a
business. It's the difference between success and failure. The truth is most companies have
been riding high for so long that they have virtually left marketing alone. You need to be
concerned about marketing your business now more than ever before - or you might lose
everything.
Let's look at the numbers....
If you know you have to talk to 10 prospects to get 1 client
how many prospects do you have to talk with to get 10 clients?
"Simple," you say, "100 prospects."
If you know that a client will bring you $1,000 in income in the next
year, then how many clients do you need to make $10,000?
"Simple," you say, "10 clients".
And so how many prospects did you have to talk with to get 10 clients
to get that $10,000?
"Simple," you say, "100
prospects."
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SEE? ...
You ALREADY know the
answers!
You already know you need to be marketing your
business.
This example is a very simple and basic marketing example that
illustrates the simple effectiveness of marketing. These are the real reasons why you need
to be marketing. Consulting a marketing professional isn't a gimmick - this is the survival and
the success of your business. A Marketing Professional has insights into driving sales and
enhancing business that most business owners don't know - they haven't had to know.
Marketing is not magic. It's not a miracle. Marketing
is having the right systems in place to gauge your efforts, knowing and using many different marketing avenues
and how to take advantage of them, and knowing how to constantly improve upon what you are doing in your
business so that you can sustain continual business growth - even in a down economy.
The powerful end result of marketing is that it
WILL effectually grow your
business.
Let’s say you want to make $100,000 net
income this year. Sound impossible? By doing a little math you can figure out exactly how
to do it. You just need to know how many prospects you need to reach.
Take your desired net income and ADD your fixed business costs like rent and
overhead. I'll just say it's $20,000 for this example.
Now, calculate your average income per customer and your average estimated
variable costs. This gives you your COGS.
If each client will bring you $2,000 with an estimated 20% COGS per client,
each client is worth an average of $1,600 after COGS.
With a goal of $100,000 per year and fixed expenses of $20,000 per year, you need
to have $120,000 in sales after COGS to reach your goal.
Divide $120,000 (sales after COGS) by $1,600 (average sale per client) and you
discover you need 75 clients to reach the $100,000 goal.
This is where you need to know your conversion rate. (A
conversion rate is the frequency a prospect becomes a paying client and is something every marketing plan should be
tracking.) If you have a 30% conversion rate then you need to talk to an estimated 250 prospects to get 75
paying clients. With an estimated 20 working days per month this means you need to talk with 1 (1.0416 to
be exact) or more new prospects every day to reach your goal.
This is why you need to be marketing. True marketing is far more than just advertising.
Marketing is using quantifiable results to drive
business, not just some simple advertising campaign. This takes "guessing" out of the
equation and makes success almost
guaranteed.
You should be asking yourself the following questions:
If you don't already know the answers to questions like these then your
business may be in for a world of hurt. If you don't have a marketing plan in place you owe it to
yourself to start.
Most business owners are saying right now that they don't have the time to market
their business. The real question is "Do you have the time NOT to market your business?" If you don't have
an effective marketing strategy in place you aren't moving forward. And If you aren't moving forward, then
your competition will pass you by... which means you will soon be out of a job.
Success is waiting for you. Why make it wait? Start
marketing today and reap the benefits.
...Back to the Marketing Articles
...Back to the Marketing Articles
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