How You Know When To Increase Your Advertising Spending?
Figuring out when you should increase your advertising spending may seem difficult, but it's not. Actually determining when to increase your spending is refreshingly easy.
I'll show you my simple two step process for determining when to increase your advertising spending in this short two-minute video.
Read The Transcript Below:
You know, one of the greatest things that I learned really, really early on in my career was at a company I was at in the 1990's called Maxim. And the founder and the CEO of the company, his name was Jack Gifford.
He really, really believed in advertising, in the power of advertising in a business that usually didn't advertise heavily. And through heavy advertising and heavy promotion, this company became a billion dollar company with over 40 percent margins in a hardware business. Unheard of! It was an incredible story.
And that learning stuck with me so that when I started my own company years later I remembered the model.
And even though advertising back then in the nineties was not internet based, you know, it was through trade publications and the like and that's how you advertised.
In today's world you use Google Ad Words, you use Facebook, etc. But I remembered the model, and because I remembered the model, I used it from day one.
And it worked. For our first product we started advertising and suddenly customers came. We understood how to make it work.
And then when our follow on products came later that year, we really turned up the heat and we started advertising like crazy and spending money like crazy. And then suddenly our ROI on advertising went from being negative to positive quite quIckly.
And we started making more money with advertising.
And the thing with marketing is once you start making money with it, you have to look at it like a cash machine.
Because if you put in a dollar into something and get a return of $2 or $3 or whatever, why wouldn't you just keep putting more and more dollars in? That was our thought process and I think it's exactly the same thought process for you. So the steps are pretty simple.
Get something to work. Try it out. Don't spend a huge amount of money.
At the beginning we didn't. But once we got the model right, start spending more and more money because If you can get the advertising model to work, it is a true cash machine for your business.
And that's a very rare thing. Especially if you have a recurring revenue business, it's a wonderful thing. Learn it, use it, do it. Get good at it because it'll pay you back in multiples. I'm Brett at www.brettjfox.com. Have a great, great day. Thank you.