This report is designed to be a quick read. I want you to get all the necessary information and take action right away.
By the end of this series you will better understand online marketing, be able to build a measurable marketing system, and know about the 5 mistakes your competition are making online.
Once you are exposed to the 5 assumptions, you’ll never look at advertising the same way again. It is my hope that you use this information as a catalyst to do more profitable and accountable advertising.
A Change in Paradigm
I’m going to show you how to generate a consistent flow of new clients, and avoid the mistakes almost every small business owner makes when choosing to spend money online.
Before we get into the meat of this report I need you to understand two concepts.
The first is “Direct Response Marketing”. Direct response marketing is designed to get a measurable response from advertising efforts. You run an ad designed to elicit a specific result, and you measure the result… then do some math to see if the advertising is profitable.
The second concept has to do with the sales funnel for bringing in a new client. If you go to Google and look at your competitor’s Google ads you will notice the biggest mistake everyone in the market is currently making.
They are “Sending targeted traffic to the homepage.”
The act of sending targeted (i.e. paid) visitors to the homepage ignores the context of the situation.
The person behind the computer has taken the time to specifically search for what you are offering; and, at the end of the search, they saw your ad.
We can assume, they are trying to solve a specific problem, and by clicking on your ad they think you have the answer.
Based on the search term they use we can easily make a guess about what they want. In the case of asbestos removal they may be looking for a quote, information, or just someone to talk to. If you’re a towing company they may be on their cell phone looking for immediate help after an accident.
If you provide a service where the customer is aware of their problems, and knows the obvious solution then you want to put your business in front of them while they are searching for providers. This is the power of search.
Business categories that match this criteria include dentists, roofers, towing companies, plumbers, and many more.
Google categorizes each search under three categories
KNOW; DO; GO
Every searching wants to either know more about something; do something; or go somewhere. When you apply Google’s framework you can begin to build a strategy around your customers intent and be the provider who assuages their need.
The question you need to ask yourself is…
How can I make a sales process where prospects don’t have to work hard to give me money?
The Five Dangerous Assumptions
Now, Let’s look at the assumptions many business owners are making when it comes to marketing.
- Marketing cannot be measured (or it doesn’t need to be measured)
- It’s normal not to know what amount of money my marketing dollar brought in this week, month, or year
- Getting my name in front of people is enough to generate new business
- The more people who see my advertising the better
- If people call in and tell me they saw my ad then it must be working and I should keep doing it
If you look a little deeper, you’ll see the mistake in each assumption.
Let’s jump right in and break each one down…
#1 Marketing can’t or doesn’t have to be measured
Advertisers have been tracking ROI from marketing spend since the 1900s where you had to send a direct mail letter and wait a few weeks to hear back and then tabulate the information on paper to evaluate the results.
Now, it’s over a thousand times easier to measure results using technology and the internet. So there’s no reason not to hold your money accountable. The days of the Yellow Pages where you put in an ad and waited a long time for feedback are over.
Here is a list of four areas you can start collecting data to make better decisions
- You can use free tools like Google Analytics and search console to see how your website is performing on search and what .
- You can even use Google Surveys to get voice of the customer information that may guide website redesigns.
- You can also hack together a more manual means of tracking your funnels through codes in your point of sale systems.
- If you have all that handled you can look at the traffic/sales generated from each channel (easiest example being email)
#2 it’s normal not to know my ROI
This one is dangerous because it’s been the status quo for decades and many business owners don’t get exposed to the training I’m sharing with you here today.
If you don’t know your numbers, then you’re back in hope marketing land where you don’t have control of your business. The best way to begin knowing your numbers is to map out your sales process and begin collecting data at each stage of the funnel.
In the quality control space it’s common knowledge you can not improve a system unless you map out the system; and, yes! your business is a system.
To help you get started here are three stages in the buying cycle you need to keep in mind. They outline how your company turns people who have never heard of you before into paying customers who continue to do business with you for years..
Awareness -> Evaluation -> Conversion
Your customer needs to recognize they have a problem they want to solve; then they evaluate their options; and, once they feel comfortable they make a purchase decision.
Break down your funnel into these stages and you’ll be on your way to measuring ROI and giving credit to the appropriate sources
#3 Getting my name out there is enough
This may be true and it may not be true… If you don’t measure the results, then you’re left wondering if it’s profitable
And there’s nothing more I hate then not knowing if I’m on the right track.
We need to take the few extra steps to put tracking in place and get clarity on where we need to focus our time and money.
This is the assumption your competition may be depending on today. I see it all over the internet when people choose to post on social media without a clear strategy or end goal. Yes, social media can be powerful when you understand your funnel and what you want people to do. However, without this clarity it seems many people are wasting time just posting cute animal pictures, and quotes.
#4 The more people who see my advertising the better
This is a half-truth because the correct statement needs to be
“The more of my ideal prospects who see my advertising the better”
If you’re selling asbestos removal, but the only people who see your ads don’t even own the property they live in or work out of then…
Your ad dollars are being wasted.
Same goes if your selling childcare services to people who don’t have children
You need to be specific about who you want to reach in order to maximize the ROI of your marketing investment. So don’t go for mass appeal in your advertising, it’s better to talk to a specific person.
And finally the 5th assumption
“If people call in and say they saw my ad then it must be working”
This all depends on your definition of “working”
If I spend $5,000 on a local newspaper ad and get 3 calls, and of those 3 calls 2 people actually buy something worth $1,000 to me then I’ve made $2,000 in sales but I’m still $3,000 in the hole…
If I did this over and over again, eventually I would be out of business
The only way to know if something is working is to measure the response, and the dollar amount you invested to generate that response and then look at the final Revenue numbers to decide what to do next
Here’s a quick Break down of what you could see…
Suppose we spend $10,000 and bring in $15,000 in new business…
To keep it simple we’ll say it’s $15,000 profit after expenses. We then deduct the $10,000 for advertising and end up with a bottom line profit of $5,000 not bad, 50% ROI on advertising spend
Now let’s look at a different scenario where we spend the same amount of money on advertising but get a different result..
So we spend $10,000 on advertising, but this time we bring in $100,000 in new business… again, that’s profit just to keep the numbers simple…
That would give us a 10 to 1 ROI on the advertising investment or 1000% ROI.
If you could only choose one scenario to repeat over and over again, which one would you pick?
I hope you said – Scenario B…
Now if we were working together and you had the manpower to continue using both channels, I would recommend you continue using both…
Any advertising that can bring in a new client at a profit needs to be optimized, scaled, and used until it stops working.
The problem is, if you don’t measure your advertising you won’t have enough information to make the right decision. You would have to give equal credit for the increased profit to both scenarios and when times get hard you may end up cutting the goose that lays the golden eggs without even knowing it.
All your marketing dollars need to be accountable for results like sales people.
You wouldn’t manage a sales team without keeping track of the numbers, so you shouldn’t send out your marketing material without holding it to the same standards.
Action Steps for Quick Results
There are four concepts I need you to reference in order to increase the amount of new business you get from Google Adwords.
The List includes:
- Adwords System
- Scientific Marketing
- The Arithmetic Business
- The “No Budget” Philosophy
Today I will only break down the Adwords system for contractors.
This is what you need to do in order to capture more leads.
First: Make sure your keywords inside Adwords make sense.
Think – If I typed this into Google, what would I be looking for?
When you find something that doesn’t make sense, get rid of it. The words you identify as useless keywords, you will need to add to your negative keyword list.
Second: Create a landing page where you can send your paid traffic. Make sure the landing page has a form where people can either ask for a quote or signup for an information kit. There should be nothing else on this page. The only option the visitor has is to say “yes” or “no.” This is called a squeeze page.
As you capture contact information you can have an email follow up system in place to keep them active while they do research on what to do next.
If you prefer to get calls then add a phone number and use a call tracking service to record calls and gain clarity on what Adwords campaigns are working.
Three: Track conversions and follow prospects all the way to the point where you have money in the bank. Once you understand your numbers, you’ll be able to make better decisions.
You have just been introduced to the most important advertising methodology for busineses. The direct response way of looking at things will help you structure everything you do so there is a measurable response.
In the case of the Adwords system, we are measuring the amount of people who fill out the form for a quote (or whatever you use as bait). Now, go and implement what I’ve shared with you.
I will be creating more training material in a few days to help you with the specific steps.
Send me an email if you have questions.