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How to increase your earnings by measuring your marketing? Small Business Financing Solutions

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A Publication of:

A Publication of:

How To Increase Your

Earnings By

Measuring Your

Marketing

Boosting Your Earnings

By: Gil Zapata

A Publication of:

Increase Your Earnings By

Measuring Your

Marketing

Measuring the success of your marketing is a

vital task. Many businesses decide to engage

in a marketing campaign based on the wrong

reasons rather than the right ones. Measuring

your return on investment (ROI), showing you

what works and, crucially, how worthwhile it

has been to spend the money you have.

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Also, to have an effective marketing strategy

you can combine it with financing. Business

financing can be an effective tool when

implementing your marketing campaign.

Most marketing efforts may take 3 months to

6 months to see results.

In addition, marketing is only effective when

you are consistent at it. Not every marketing

campaign will result in business even if you

are consistent at it, without utilizing the

following techniques. In this guide, we

expand the use of capital and how to utilize in

your favor to increase in your earnings.

We evaluate a sample marketing campaign in

very simple terms to understand how to assess

each marketing campaign you engage in. The

objective is for you to increase your earnings.

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Measurements help you develop and refine

your marketing strategy. This guide introduces

to:

1. Setting objectives

2. Measuring success

3. Techniques to help measure success

4. Short-term financing as a marketing

tool

1) Setting objectives Setting objectives will show you further down

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the line how effectively your marketing has

met them, giving you the basis of an

ROI metric. Create marketing plans that tie

marketing activities into the company's

bottom line. Your marketing plan should

focus on the delivery of results aligned to

business goals, not just on spending. Most

businesses are eager to invest the company’s

earnings or obtain financing to implement

their marketing. First, you need to set the

objectives. This will help you focus on things

that count to the business. Make sure you

account for any extra processes needed to

measure ROI in terms of time and money.

Your objectives should connect the level

of investment to the achievement of

quantitative results

Don't forget to allocate budget and time to

setting up the processes you'll use to

capture data to measure your success

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2) Measuring success

What you measure will depend on what you

were trying to achieve. What gets measured,

gets managed. You might measure, for

instance, the number of new customers/leads

generated (keeping an eye on any you lose as

well), number of new products bought by

existing customers (which helps identify the

most strategically useful clients), brand

awareness, market share or customer

satisfaction levels. If you track leads,

remember to track conversion rate to actual

orders as well.

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At our company we utilize different

measuring tools for different campaigns. For

instance, on our outbound call marketing

campaign; we measure

the number of dials,

number of contacts,

time per call, etc. We

do this for a number of

reasons to detect if the

the list we are utilizing

is good or bad or to

determine skill weaknesses and strength in our

outbound agents.

For instance, many people place

advertisements on newspapers, the internet,

etc. A month goes by and you spent

thousands of dollars and there are no calls.

First, you may need to assess the content of

the advertisement. Once the content is right

and your phone begins to ring you may want

to assess the time that new customers call, the

days that they call, etc.

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What you measure depends on your objectives

3) Techniques to help

measure success Put sales enquiry forms or allocate a different

sales phone number to each of your

advertisements so you can identify where the

enquiry came from. Many businesses run

different marketing campaigns and use the

same phone line. After several months you

begin to gain traction, but you lose track of

where the customers are coming from.

Utilizing different numbers, surveys, or other

measuring tools to track where the customers

are coming from will help you determine what

campaigns to continue and discontinue. Also,

it will help you allocate your funds or

funding into the appropriate marketing

channels which will increase the Return on

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Investment on your marketing campaign.

Use web metrics and keep an eye on the most

popular search terms customers use on your

site. Online pay per click advertising gives

you an immediate feedback mechanism. Carry

out regular written and verbal client surveys.

Use sales enquiries forms or different

phone numbers

Make the most of web metrics

Carry out client service surveys regularly

4) Short-Term Financing

Can Be a Powerful Tool in

Marketing Most marketing campaigns can take 3 months

to 9 months to see

results. Let’s

assume you have

$50,000 in your

company bank

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account or $50,000 of new revenues came in.

You take the $50,000 and you will not see a

return on your marketing campaign until 3, 6,

or 9 months into the future. You just depleted

$50,000 from your company’s bank account.

Instead, you can obtain a loan for $50,000.

Even if the payment was $10,000 for the next

5 months and you took $10,000 from the

$50,000 in your bank account to cover the

first month’s payment; you would still have

$40,000 in reserves.

Also, you need to prepare a projected profit to

loss analysis on your marketing campaign and

take into consideration the cost of capital.

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You need to take into consideration all of the

above factors.

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Very simple example:

Cost of Marketing Campaign: $10,000

Projected Earnings: $14,000

Return on Investment: 40%

Time Frame: 6 Months

Black Out Period: 3 Months

Loan: $10,000

Rate: 10%

Term: 6 Months

Monthly Payment: $1833

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Now, you are ready to make your money work

for you.

You have a black out period for 3 months.

This means that for the first 3 months you will

not see money from the marketing campaign.

Month 1: You may need to implement the

campaign and this consumes time and will

require a certain amount of money.

Month 2: You begin to measure some of the

results from both month 1 and 2. Here you

begin to make some adjustments. What works

and what does not work. You begin to

analyze your metrics and customer feedback.

Month 3: You have now the consistency

factor working in your favor. By this time

you begin to see some revenues.

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Month 4: You begin to see revenues. If you

projected that you will make back $14,000 in

6 months; in month 4 you need to make close

to $4500 to assure that you reach that target

and assure that you can yield a 40% overall

return.

In this example that we utilized; you are using

a loan to launch this campaign. The cost of

capital is 10%.

YOUR PROJECTED OVERALL RETURN:

40%

YOUR COST OF CAPITAL:

10%

YOUR NET OVDERALL RETURN:

30%

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Since most marketing campaigns can take 3 to

6 months, in this example we said there would

be a black out period of 3 months.

The Black Out

Under this scenario you need to have

sufficient revenues from your existing

operation to assure that you can cover 3

months of the loan payment.

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The loan payment is $1833. Every month, for

the first 3 months you need to make sure that

can cover this payment.

It’s better to pay $1833 per month; than to lay

out $10,000 from your reserves or from your

existing revenues.

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Let’s assume you had an extra $10,000 for

this campaign and you have two choices:

Choice 1: Take out the $10,000 and place it

into the marketing campaign.

Choice 2: Pay $1833 and stay with $8,167 in

reserves in your company’s bank account.

WHICH OF THE TWO WOULD YOU

CHOOSE?

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It’s most obvious that retaining capital in your

company’s bank account and having reserves

is a better choice.

You project your results and your earnings.

However, if anything goes wrong at least you

have some reserves to keep the campaign

running and make adjustments until it works.

Our company has consulted and has assisted

many clients in obtaining capital for numerous

purposes.

This is what most clients say:

“I have $40,000 in contracts out due in 30

days”

“If the $20,000 come in I’ll resolve this issue”

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When we ask them the following questions,

they don’t have an answer?

1) How is it possible that you are generating

$150,000 per month and at the end of the

month there is only $1,000 left over in the

bank accounts?

2) When was the last time you worked on a

budget and a projected profit to loss

statement?

3) If you are projecting revenues on your

marketing; did you prepare a project to loss

statement that is specific to this campaign?

4) What are your metrics for this campaign?

5) Do you have an Action Plan for this

campaign with actions steps, goals, and

deadlines?

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There are more questions. You would be

surprise the answers that we obtain.

You guessed it. Most companies begin to

spend without thinking.

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Most entrepreneurs are ambitious, positive,

and project great results. These are all good

traits to have.

It’s better to make a right decision, rather than

making a fast one.

However, when running a marketing

campaign you need to be more analytic to

assure that you achieve your financial

objectives.

SUMMARY In summary, there are many strategies and

planning methods you can utilize to assure

that you boost your earnings when

implementing your marketing campaigns. In

this guide we shared some of them.

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A Publication of:

By: Gil Zapata,

About Gil Zapata

Gil Zapata is a business consultant,

speaker, and writer. He has written

for several publication, appeared in

radio shows, and has been booked for

several speaking engagements. He has

assisted in excess of 400 business owners in

numerous ways. As an entrepreneur he

founded two start-ups with no capital. The

first company generated in excess of $1

Million in gross earnings within 4 years. The

second company he started with only $500

dollars and grew earnings in excess of 200%

within 2 years. He holds numerous

professional licenses and college degrees

including post-graduate studies from Harvard

Business School.

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www.lendinero.com

Fast & Simple Business Funding

888-505-5835

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