It’s the ROI, Stupid!
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Cost is not important.
Let me repeat that: Cost is not important. What is important is ROI (Return on Investment).
When spending any money on a marketing campaign, you should consider the following:
- How much money you can you afford to spend?
- How soon will you see the return from that money?
- How much will that return be?
If you can spend the money (1), not go broke while you’re waiting for the return (2) and the result will be enough of a profit to make it worthwhile (3) then the overall cost of the campaign is not important.
If I could turn $100,000 into $500,000 worth ofgrowth in the space of a few years, I’d find a way to come up with the $100,000 to invest.
With SEO and a good business model, a seemingly sizable cost will often multiply itself into a considerable profit, in just a few years, if not sooner.
Don’t look at the costs involved, look at the return that your investment will bring.
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Tags: Business Principles, Search & Marketing
Posted in Business Principles, Search & Marketing
Stoney, it’s funny how many business owners don’t get it. I see those that still say … I only care about how much I have to pay to get a customer. OK, good, this metric is important, but would you refuse to spend $80 per customer and get 8000 customers (customer lifetime value = $500) when compared to spending $60 per customer and getting 2000 customers? Bottom line comes to mind.
July 5th, 2006 at 8:34 am