So what is a successful advertising campaign?
You want to make money and that is why you started your business. Obviously, without any advertising you will not make any sales. (As much as we would like to say, “Build it and they will come” business is nothing like the Kevin Costner movie, Field of Dreams).
It is, however, important to remember that you don’t have to get all your advertising investments back immediately. You could make a one off purchase for lifetime advertising or you could continue to be paid monthly commissions from one sale, such as with membership programs.
Let’s assume you’re selling a $30/month service and you earn $15/month for each sale. If you spent $50 on advertising and you only got one sale, would you consider that a success? Most people would not think so.
But entrepreneurs think differently to most, looking beyond the first sale and multiply out months into the future. This is how you build your business. Think long term, as advertising in your business is an investment and investments can take time.
If you’re making $15 per sale and the advertising cost you $50, it would take 4 months for you to be in profit if you only make one sale every month. We simply multiply the $15 times the 4 months which equals $60. Since you spent $50 on the ad, you have now made a profit of $10.
What do you do with that $10 profit? If you’re focused on the long term success of your business, you’ll invest it back into your business in the form of more advertising. You know you can make money with this type of advertising, so you can tweak the ad and see if you can get that one sale increased to 2 or 3 sales. This is all part of advertising testing and every successful company does this. Some do it on a grander scale, but testing your advertising is one of the most important things you can do.
Also before you ever do any advertising, make absolutely sure you are using an ad tracker so you know what ads are working and which ads are not. You can then focus more attention on the ads that work and toss out the ads that don’t work.
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