There are literally thousands of books out there on business.
Millions of articles online that are business-related.
But if you just understand this one concept that I’m going to introduce to you today, I guarantee it will transform your business.
I’m going to save you time and your sanity of reading thousands of business books and countless business articles.
Your business will grow if you simply adopt this paradigm.
There is no ifs or buts.
It is just a matter of when.
It’s so simple, many people think they get it.
But it’s only head knowledge.
Head knowledge as you know, is good for nothing if you don’t practice it.
Those who truly grasps it and practice it, tend to have flourishing businesses.
Those who don’t tend to have struggling businesses…almost without exception.
So what is this one big idea that I hope you can grasp today?
Here it is:
“Marketing is an investment that grows your business. You gotta spend money to acquire customers.”
Told you. It’s simple.
Yet so many business owners never quite get it.
I see even multi-millionaire business owners not fully getting it.
They have relied for years on personal relationships and referrals (which in itself, is also marketing).
Yet they wonder why their business has stagnated for the past 5, 10 years.
Let me ask you, apart from your investment in marketing and sales, is there anything else in your business can actually generate a positive ROI?
So why aren’t you spending more on marketing?
Fear of the economic slowdown?
Fear that you won’t get a positive return on your marketing?
But here’s the deal.
Recently, I spent about $750 in ads, just to get one customer.
Yep, that’s a lot right?
But this customer is going to pay me $1500, month after month as long as I keep him happy.
Say I only end up working with him for 6 months.
That’s still $9,000.
Would you trade $750 for $9,000?
In fact, you will buy as many customers as you can for $750 right?
You ought to get your head examined if you don’t!
And here’s the real beauty of compounding:
If I reinvested my whole $9,000 to buy more customers, what can I turn my ROI into?
Let’s call it 12 customers (around $750 per customer).
Assuming they will each pay me $1,500 for 6 months on average.
Now we are starting to talk some serious dollars: $81,000
Imagine, if I then reinvested that $81,000 into getting more customers…
That is where the power of compounding happens!
It’s what Einstein called. “The Eight Wonder of the World”
So here’s the big thing I hope you get:
Compounding doesn’t just happen with investments…it can happen to your business, with marketing.
That’s how big businesses are grown.
It’s no wonder the likes of Google, Amazon and Apple spend hundreds of millions each year.
Check out the growth in their revenues and you can see the effects it has!
Google actually spends over a billion dollars on advertising each year (and yet, it also derives its revenues from ads).
“So how much should I spend on marketing?” I hear you ask.
My answer will be: “Depends on how much you want your business to grow”
For me, I will scrounge and save every penny like Warren Buffet so I can invest and enjoy the compounding effects on marketing on my business.
Hope you start doing so too.