Cost of Marketing and Five Mistakes made by New and Growing Businesses
Think of all the famous Entrepreneurs. Now name one of them who just sells one thing to a customer once and never has anything to do with that customer ever again.
1. Trying to Sell something that People don't Want
It sounds obvious but you would be surprised…..
Choosing a good product or service to sell is easy. You just choose something that large numbers of people are currently spending money on – and market it better than anyone else. But that’s far too easy for many would-be Entrepreneurs who feel they have to invent something new. Ever watched Dragons’ Den? If not, do - your product may be ‘great.’ It may be something we all ‘need.’ Just make sure it’s also something that people want. That's the key distinction.
2. Costs of Marketing - Wasting Money on Ineffective Advertising
Most small business advertising does not work. So you must be ruthless and immediately stop any advertising that is not producing profits for you. When you’re growing a business, finances can obviously be tight. However, with wasted advertising, its not just about the financial loss.
Businesses end up in a loop where they feel pressured to throw more at the advertising. This not only creates more financial pressure but also frustration that the ads themselves are not producing customers. This cycle of advertising despondency is demoralising and therefore expensive in terms of employee motivation, as well as the financial implications to your business. So, if you’re advertising is not working, stop what your doing and rethink your current strategy.
3. A Website that's the World's best-kept Secret
Whilst business owners may spend weeks, months and in some cases years building their website, many of them have probably spent little or no time at all thinking about how to generate traffic to the site.
Unfortunately, the quality of your website has virtually nothing to do with the number of people who will visit it. The analogy of the internet as a massive shopping mall is just plain wrong. Actually, the opposite is true. Take all the shops in the mall, spread them out over a radius of 100 miles and make people drive to them and you have a closer analogy of what it takes to get people to your site.
6 methods to focus on in order to get traffic to your site and generate business are listed below:
- Pay per Click Advertising (PPC)
- Search Engine Optimisation (SEO)
- Viral Marketing
- Email Marketing
- Online Articles
- Offline / Traditional Advertising
Get good at one or two of these and you’ll see big increases in your online traffic. Do all of them and you’re set to become a true online success story.
4. Creating Unrealistic Time/Money Pressures
Most new and growing businesses seriously underestimate how long it’s going to take them to be successful. It’s certainly possible to create remarkable shifts in your business performance faster than most people think possible however it’s also true that masterpieces take time.
It’s a real shame when you see Entrepreneurs with really good, solid business ideas suffer because they haven’t given themselves enough time. You need to have access to enough cash to keep you going, probably for twice as long as you originally planned. You have to do what it takes and you have to give yourself enough time.
5. Just Selling One Thing - Not creating a 'back end' of Products and Services
Think of all the famous Entrepreneurs. Now name one of them who just sells one thing to a customer once and never has anything to do with that customer ever again. There are a couple out there if you search long enough but it’s very, very rare. The real profits in most businesses are in the long term relationships with customers. The costs of marketing to new customers are very high.
The costs of marketing to existing customers are very low – with the internet and email, close to nothing. So you simply must build up a ‘back end’ of products or services to offer your customers. If you do not have anything obvious to offer them, find someone who does, team up with them and offer their stuff to your customers.