Avoid This Entrepreneurial Mistake: 5 Biggest Wastes of Marketing Money
I remember when we first met...
You were the classic entrepreneur, passionate about your business, an expert in your field but decidedly NOT a business development expert, and certainly NOT a salesperson. Right?
Unfortunately, I wasn't the first business advisor you met. Prior to our meeting one another some marketing "experts" told you that you don't need to "sell" anything you simply need to market your business. This sounded great to you because you're not really comfortable with the idea of selling.
So, as we discussed some of the issues that were holding your business back you shared with me what so many others have also shared with me... what I have come to call:
The 5 Biggest Wastes of Marketing Money
Biggest Waste # 1: The Yellow Book
Want to spend a lot of money on a dying medium that ensures that you are not differentiated from all of your competitors? Look no further! This medium is totally passive and relies entirely upon a prospect stumbling upon your name amongst all the other suckers who have also spent their precious cash. Chances are you've spent thousands for this priviledge and received next to nothing in return. The one positive? If the prospect happens to find you more than likely they are in need of your product or service.
Biggest Waste #2: Newspaper Advertising
Again, another dying medium. Funny thing though, as circulation and relevance fall, print advertising rates have remained stable or even gone up! Such a deal! Some other considerations include:
* You're never sure who sees the Ad
* You're never sure if it is reaching your target audience
* Not a bad way to build brand awareness...if your a multi-billion dollar corporation
* How do you know if it's consistently reaching your target?
* How compelling is your ad? Are you giving something away?
The one positive? IF someone is looking for your product or service AND they see your ad, you might just get a call.
Biggest Waste #3: Poorly Targeted Direct Mail
Most people, including a lot of the self proclaimed "marketing experts" (who are really nothing more than graphic artists) approach direct mail completely wrong:
Here's how that process typically flows
1. You're desparate for sales
2. Someone sells you on the need to do direct mail
3. They tell you how they can make it look really cool
4. Message? What message? Call to action? What call to action?
5. How many names do you want to send this to? You know, it only costs a little bit more to print a few thousand more...
Hello 0.05% response rate!
The correct way to approach direct mail is:
1. Who is my target audience? What niche within this broader target do I want to reach?
2. Can I build/buy a list to reach this niche effectively?
3. What is my message? What are my prospects' pain points?
4. What do I want the piece to look like?
Most of your time and energy should be spent on building your list and crafting your message.
If done correctly, direct mail can deliver targeted results but it remains a passive activity.
Biggest Waste #4: Radio Advertising
By now all of you can probably tell me what the disadvantages of radio are, right?
* Expensive
* Is it reaching your target audience?
* Is your message/business one that is suited to radio? For example, if you are a Lean Manufacturing consultant do you really think the average listener to the radio is going to be compelled to pick up the phone and call you?
* Totally passive
One Positive: Radio can provide some mindshare and brand awareness, but is this what you want to spend your precious money on?
5th biggest waste: Complicated, beautiful brochures
Here's a wake-up call for you ...brochures don't sell business!!
Exception: if you are a restaurant, oil change shop or some other B to C business that is offering coupons as part of your brouchure in order to get people to take action.
Before you waste your money on a brochure:
Think, How am I going to use this brochure?
Mail it to prospects? We've already talked about the deficiencies of direct mail? Do you want to throw good money after bad?
As a leave behind? Why not save the money and create a decent website for a few hundred dollars or a good website for a couple of thousand dollars?
Your expensive brochure will be likely be innaccurate, forgotten in a file drawer or buried in landfill while your website is working for you 24X7.
Understand that these days people go to the internet to gather information about your business your credibility, experience, professionalism etc.
Take Away: If you feel you must have a brochure, keep it simple and inexpensive and use it to drive prospects to your website.
Avoid these biggest wastes and you will save an estimated $20,000 - $30,000 that you can invest in more productive areas of your business development process. One area for investment that I highly recommend is training in a comprehensive sales process that covers both prospecting and selling. Why? Because despite what the "marketing experts" tell you, you cannot grow your business only through marketing.
The relationship between marketing and selling is explained clearly in "Selling & Marketing - The Secret to Developing a Thriving Business by Linking Strategy to Selling" an article that you will want to review.
Join our Monthly Free Teleseminar series to continuously learn more ways to develop a thriving business and don't forget to sign-up for our Free enewsletter to keep an eye on innovative tips that will have you selling more and growing faster than ever. Scott is the founder of Empire Consulting, Inc. of St. Charles, Illinois. Scott can be reached at (630)762-1650.
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