It’s said often within entrepreneurship that you are expected to wear many hats as a business owner. You’re not only the CEO/CFO/CMO, you’re also the sales director, mechanic, and HR manager. Your time is precious and you don’t have much to spare.
With so many demands on your time, how do you decide what to work on? Here’s my suggestion for something you should focus on during slower months.
In most markets, the yellow pages is dead, and it’s been replaced by AdWords. In fact, we’ve even developed a formula that will help you to determine how much you’d need to spend on PPC to get however many new customers you want in a month. Here’s what I mean:
- Say you want to add 1 new job every weekday for the month. That’s about 21 jobs. If you’re able to book 60% of the phone calls you get, you’ll need about 35 phone calls (21 jobs/60%).
- We find that, on average, about 25% of all clicks turn into a qualified phone call. That means you’ll need to have about 140 clicks (35 calls/25%).
- At an average cost per click of, say $8.00 (real cost will vary by market), you can safely say that you’ll need to budget about $1,120 for your click budget. Add to that a vendor management fee (if you choose to hire it out) of around $300 per month and you’ve arrived at a total cost of $1,420.
Sounds like a LOT of money, right? It may be, until you see the result.
So you’ve just paid nearly $1,500 in advertising money. What did you get for it?
Remember those 21 new customers? If you multiply each of those jobs by the network job average of around $250 you get a total revenue of $5,250.
$5,250 of revenue compared to a $1,500 cost is a 3.5 to 1 return on ad cost.
AND, if you do some good follow-up, you’ll not only have a great shot at bringing those customers back within a year or so at a much lower cost per job, but you may be able to get even more customers through referrals.
How Do I Start?
Advertising through PPC doesn’t have to be hard. You can start simple with an AdWords Express account from Google, or you can go all out and hire a vendor to optimize campaigns for your specific territory.
It’s up to you, but I would go as far as to say that PPC is no longer a luxury for your business. It’s a necessity – at least, if you still want to be competitive in the next 5 years. As my friend, the Governator would say, “Do eeet NAO!”
Schedule an appointment with me to discuss what you want to do this winter. If we put our heads together, we can come up with a game plan to add PPC to your business so you can really grow this year.
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