One of the most under appreciated principles in marketing
is the power of marketing leverage.
In my estimation there is no where else you can create as
much leverage than in your marketing.
When you purchase a piece of real estate you can use
leverage. You can put a small amount of your own money
down, borrow the rest and create a reasonably good
return on investment.
Let’s say, for example, you put $5,000 down and sell
the property a year later for a $10,000 profit.
(Of course, that’s a lot harder to do these days)
That’s a 200% return on investment.
Not bad.
But let’s take a look at the leverage we can create
with marketing. Let’s say you are running an
advertisement that is costing you $800 resulting in
10 leads which turns into one closed deal with the
average income of $3200. (Just to keep the math simple)
That’s a 4X or 400% return on investment in a matter
of a month or two.
But here is where the real leverage can occur…
By simply testing different copy you should be able
to improve the results of that ad over time. That
means, you can get more leads and more deals without
spending a single extra dollar.
So for instance, with better copy or a better offer
let’s say you increase the response rate of your ad
to 18 leads and 1.5 closed deals.
You are still spending the same $800 but now your
income is $4800 or a 600% return on investment.
Where else can you get that kind of leverage on your
money? As far as I’m concerned, good marketing is the
best investment of them all.
P.S. Have you watched the Extreme Business Makeovers
we did at our last live event? You can watch them at:
http://www.massleadattraction.com/busmak-vid2.php
Plus we will be adding another one real soon.
