How Does Your Budget Affect Your Revenue?
So one more piece that we have here which is how does your budget affect your revenue so I want to do a little share because I'm curious where everybody is and we will start with our in studio audience and I love it if you guys in the chat rooms and following along online if you could share a cz well you can use the chat rooms or create to maytag do you set a monthly or yearly marketing budget it's kind of real quick yes. Now see one yes her bales is it now all right so this is something else that you want to start to think about in your business is what is actually your budget for marketing so this is the amount that you can spend to directly connect with your customer seventy what do you count in your advertising budget or your marketing budget? I mean not advertising marketing what I use it you are what you use it for yeah any of my paid advertising so facebook advertising google adwords awesome yeah so that is a big thing that your marketing budget covers your marketing budget also...
covers both fees it covers mailings and promotions to your stores so desert air you haven't said a budget right. Okay, so you're gonna want to set that because you're gonna be really want to be intentional about that because those things are not free if you're sending out real mailers um any advertising if you're doing product placements, maybe it's a sponsored poster gift bag those are things that you could spend your marketing budget on are people sharing in the chat? Are we seeing if they actually have set marketing budgets in the past? So far, the people who have answered have said no okay and that's kind of what I was expecting to see now here's the thing you don't have to set a marketing budget I say everyone frantically writing somalia you don't have to set a marketing budget you can certainly do plenty of marketing for free but I gotta tell you, man free take expert ever if you're sick of not reaching people, having a little bit of budget can make a big difference, especially if you're investing money in the right marketing activities. Now I am pretty particular is you guys have noticed I've got some opinions and one of the things that I see people doing wrong with their marketing budget is that in the beginning you should really be focusing on list growth or audience growth over promotion, especially if your price point is higher. So I see this a lot with people who tell me all the time facebook ads they're useless? Well, yes, if you sell a two hundred dollars product and your facebook ad is running to get them to click over to your store facebook ads are useless because they're not going to buy the first time and you just spent money to send traffic that's going to fall away I don't believe that facebook ads are useless I actually invest a pretty decent amount of money and then it's part of my marketing budget but I invested mostly in lead generation I do it through two ways one as I actually and use paid ads to build likes so people like my page and then I boost posts to my page getting those people to sign up for my email list during a launch. But now facebook has this magic lead adds thing where I can say I want to know about this new product launch join my list they click a button and it goes in there that to me is way more valuable than sending traffic to my site that falls away that's also why very strategically used trade shows to grow my business in the beginning because that was putting me directly in front of my ideal customer and for me that's the most bang for my buck I've ever got in my business is spending money to do those trade shows you don't have teo you can sit down at your computer every morning and you can email twenty stores and you can hear back from zero to two of them every week or so I don't know I've never done it because I'm impatient and free takes forever so you can certainly do things for free, but if you couldn't look at where you can spend a little bit of money, it can accelerate your growth and get you a little closer. So I like to focus my money on list growth and then focus my time and energy on promotion, so I'm spending money to bring people to me, and once I've got them, either because they are on my email list or there are lead that I met at a trade show, now, I can focus my energy on creating my marketing calendar, launching great products to them, e mailing those warm prospects and saying, hey, following up with you instead of e mailing cold prospects that I've never talked to. So if you've never done this before, I want you to set your marketing budget think about how much you can afford to spend, and I know that we've got some people who have been spending a lot of time making product and little to no time marketing that product, right, which also means that you're spending a lot of money making product, and not a lot of money on marketing, right? I see I know a couple of weeks and had not here, so if you're saying meghan, I don't have the money for two set of marketing budget remember that if you've been spending all of your time making and none of your time marketing we're going to cut down on the amount of time that you spend making, which means we're going to cut down on the amount of money that you're spending to buy materials to produce your product and some of that money can now be funneled into your marketing budget. So how much money are you going to spend on marketing this year and there's? No wrong answer, but think about what makes sense for your business and then how are you going to spend it? And then I literally like to budget out so that I know what my spend is, so it might be something like and I like to do annual, but if it's a monthly expense, I want to break it out, so I d'oh you know I'm going to use to trade shows I'm gonna set an annual budget for that let's say it's, not a monthly fee, but I've got it on my budget. If you don't know how much a trade show costs it's really easy go to the show, you find the fees you add in the cost to stay in a hotel a little bit travel expenses it's not hard to budget for a trade show, then I might say I'm going to allocate two thousand dollars for printing and postage and I'm going to mail my catalog tio one hundred stores. One of the things that I'm doing this year because of the place, my businesses, that I'm cutting back on trade shows I was doing anywhere between three to five, a year. I really want to be at one or two a year on. And so one of the ways that I'm doing that I have a really great existing list. Now, I don't need that list grew wth growth. I need to make better offers to make wholesale stores, so I'm gonna print better catalogs and mail them out and that's, we're going to spend some money in my marketing budget, and then I might say, you know what? I'm going to spend six thousand dollars this year on facebook ads going to spend five hundred dollars a month targeting people to sign up for my list. So not just setting your budget, but thinking about what you're using your budget for.