We're unlike other advertising and marketing agencies. Most agencies love to talk about building your identity, the percentage of your bounce rates, click-through-rates, etc.
To the average business owner, none of this matters. At the end of the day, what matters is the return on advertising spend. Our approach with clients is purely ROI driven. We want to show you the numbers and have it all make sense. For example, if you're a roofing contractor and want to bring in more revenue, all you need is to understand the numbers. What is your average roofing job? $12,000? Cool. What percentage are you willing to allocate towards advertising and marketing? 5% of your gross revenue? 10% of your gross revenue? As a rule of thumb (depending on the industry) you should feel comfortable as a business owner allocating 10% of the job towards your advertising and/or marketing. Now, if you know on average your closing rate is 25%, then it will take 4 appointments to close a roofing deal. If we run a campaign and can get appointments for $150 a piece, it effectively costs you $600 (or 5% of total job) to score a $12,000 job. This is great ROI! When you know your numbers, you can scale as big as you want to (as long as there is enough demand). At this point, you know if you want to hit $120k in revenue a month, all you need to do is land 10 jobs, which will cost you around $6,000 in advertising costs. Do you want to make $1.2 million a month? Scale your campaign even further and spend around $60k a month on advertising. The great thing about advertising is the scalability. If there is enough demand for your product or service, you can scale infinitely. It is great scaling advertising campaigns, but make sure you have the resources (usually human capital) so that you're not creating an imbalance. |
Adrian Boysel of Adrian.
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