Here at the 6 Figure Academy, we focus heavily on the “inner game” or mindset for you to be successful in business and life.
Today, we’re going to talk more about “outer game”: How to choose your Marketing budget.
One of the first things I asked people when they’re struggling with generating new nothing needs or customers are these questions:
- What does your marketing look like?
- What does your campaign look like?
- What’s your budget?
- What is your client lifetime value?
See, what I want to share with you today are the main components of what something that you really should know to make sure that you have a consistent campaign are consistent marketing plan in place so that you will always have new business for new potential business coming in even if you have a full practice or full book of clients. That way you have new business and new energy coming in so that your business continues to grow
First and foremost, to start with developing a marketing campaign, you need to be able to answer the question what is your budget. Your monthly budget for your marketing could be a dollar figure or it could be a percentage of revenues. A lot of people like to start with 5% 10% 15%.
Then you want to figure out client lifetime value. What that means is how much a potential a brand new customer will spend over their lifetime and being working with you or being connected with you in your business.
So for example if you are say a nail salon and your prices for a brand new customers $15 for to do your nails. If you do a good job they come back, and as returning customers, they come back at least twice a month.
Now we’re at $15 x 2 so $30/month.
And you know over the lifespan of the client they usually stay with you for about two years.
So we have $30/month for 24 months and $720 in the next two years.
So if a brand new customer comes into your nail salon and you know over the client lifetime that as long as you do a good job they’ll be probably spend $720 with you, what then are you willing to spend to get this new client?
