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5 Steps to grow a business fast without wasted marketing expenses

It’s a tough year for business owners and entrepreneurs. There is a need to revive, to get new clients, to increase profitability and to accelerate business growth again.

The challenge for many is that cash flow were severely affected this year and the available cash flow must be used wisely between serving current customers, current business expenses and growth. It’s difficult to find the optimal balance.
The temptation can be to freeze marketing spend and only focus on maintaining the current status quo.

This often happens with businesses who did not experience a positive return on investment on their marketing expenses in past. Marketing hence feels like an “expense”, a cash outflow, instead of an investment with positive return on that investment. Hence it feels like there’s no spare cash flow for that at moment.

But it doesn’t have to be that way. Marketing shouldn’t be a net negative cash outflow.
Every $1 spent on marketing should generate more than $1 profit, if structured correctly.

So how can a business grow without wasted marketing expenses?

1)  Understand which digital marketing channels provide measurable, positive ROI and which traditional marketing channels don’t.
Those who don’t: TV Ads, Magazines Ads, Billboards etc is typically less effective since you cannot target the exact type of client you want. You can’t laser focus and only put the ad where you ideal customers hangs out. Further, you cannot track and measure new conversions – i.e. which new clients  became clients because of that billboard expense? They also tend to be expensive. 

A Website, and Social media posts: They are easier to track and leads to brand building but typically  don’t have a high conversion rate. Websites can be very expensive and have low conversion rates around 1.8%.
Social media and organic marketing works well over time but you have to build up content, followers  and it’s a slow process. 

What works well:
Paid Facebook, LinkedIn, Google Advertising: Benefit: You can target your ideal customer in terms of their location, interests, spending habits, age, gender etc. You can build audiences who looks similar to those who purchased in the past or who visited your website and hence target ideal customer much more accurately. You can track ad spend vs conversions very accurately.
If used correctly they are lower in cost and provide very healthy positive ROI
2) Build a profitable value ladder

Before simply driving more traffic to your current products / services, make sure you have built or  redesigned your value ladder to allow for maximum profitability first.
This will entail:
             o Lower upfront offers to lower the barrier of entry and get new customers through the door  faster. 
             o Higher profit margin offers so that you can move clients up your value ladder over time as  they build trust in
                your brand
The secret to fast growth is to have low front-end offers (i.e. below $100). Any business can create these. These typically beak even on your ad spend and is the engine to get lots of new clients. Once you get predictable breakeven on that level you can increase your ad spend as high you want since you know you will breakeven and get more and more clients in the process. Your higher profit offers up the value ladder then drives profit from all these clients. This process is called client-financed acquisition and the key to grow fast without wasted marketing expenses.
3) Create OFFERS. Don’t sell individual products

Bundle different products / service to increase the value of what you offer. Then make a lower priced  offer to make the offer irresistible. Ie Bundle solutions together which has value to your customer of $1 000 and then sell it at $100,  then it’s a no-brainer for new clients to buy. Don’t focus on the “lost profit” or the difference of $900  which feels like you are giving it away. The goal is to get new clients fast and then upsell them to your higher end offers over time – that is where you will make the profit.  If you do this, customers will gladly buy from you and not your competitors since you provide so much more value at the same price.
4) Use Sales Funnels, not just a website.  They have a 20% conversion rate compared to 1.8% of a websites and you can guide customers through the buying process much better.
5) Use the paid ad channels mentioned earlier: Paid Facebook, Linkedin, Google Advertising.  If used correctly, you will attract your ideal type of client at a highly positive ROI
If you implement these steps correctly you will be able to:
                      - Break even on ad spend with your front end offers
                      - Thus increase your ad spend and at the same pace get new clients
                      - Upsell those clients in future into highly profitable offers higher up your value ladder
                      - Have higher conversions with offers which customers cannot resist
                      - Have higher conversion rate from your sales funnel than website
                      - Drive plenty of quality traffic to your offers with paid online advertising channels

May your business grow fast, without wasted marketing expenses!

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