How would you like just 2 more client per month? How about just 2 more clients per week? Per day? Per hour? How would that affect your bottom line? Your life?
Too many business owners, when they consider taking their business online, can only think about costs and risks. They ask for detailed quotes and specific explanations of how each piece of work will be done.
What they normally fail to see are the benefits.
But realizing the benefits of an online business is really easy and, once you know what’s in it for you, it’s also easy to justify any cost that will leave you enough of a margin.
So how can you tell what good will come out of your new website or social networking campaign or paid ads?
The first thing you need to work out is how much money you make from an average client. This may seem like a simple question, but for most of the business owners I meet, it’s really hard, especially when their business is new.
Basically, you need to take all your business profits and divide them by the number of clients who have generated that profit for you. If you have more than one line of business or group of products/services, you will probably separate them online, so work out each one of them separately. This will also help you decide what is most likely to be profitable online, so you’ll do that first.
If your business is fairly young, use conservative estimates based on what’s going during the past year of a few months, because that’s the closest you’ve got to the future.
It’s important to take into account any additional value brought to you by your clients, such as joint ventures, referrals, barters, etc, because those are worth money too, although they may be indirect. However, if you want to stay conservative, you can just count cash.
Now you know your client lifetime value.
With this figure, most businesses can quickly see that getting just 2 clients – not per hour, not per day, not per week and not per month, just 2 clients – pays for a lot of Internet marketing. The implication of this is huge:
By taking your business online and getting just a small number of new clients that would otherwise not find you, your Internet-based business pays for itself over and over again!
Of course, every business is different, which is why I encourage you to do the math for your own business and see for yourself, but even if it takes 5 clients to pay for your Internet marketing and even if it takes 2 months to get them, you are going to earn back all your investment in 2 months and then again and again and again every 2 months afterward.
What would this do to your life? Could you take some time off? Could you relax? Could you take the family out to a nice place? Could you fix the deck or upgrade your car?
Come on, what are you waiting for? Contact me