I was always taught that for any type of business advertising is both necessary and low in return. I have always believed and promoted that a 1% return on your advertising dollars is considered good.
So if we do the math, a pay per click campaign that averages a cost of .40 per click will return to you .004 cents in new business. That’s a pretty small return on your money, but you did only spend .40 cents to get there, that’s less than a pack of gum. Not bad.
Let’s step it up notch and think in real-world terms. When working with Ad Words or dealing in PPM your going to need to set a budget. If your budget is too low you could burn through it with good ad placement in a matter of hours or days depending on if you set a daily or monthly budget.
So for example, a $300/month advertising budget with AdWords should return $ 3.00. Bumping up the numbers to $1,000 per month budget and an incredible 10% return can bring you $100 in new business. Is that realistic? Honestly, I can’t tell you.
What I can tell you is that for a few cents less than your 10% return on a $1000 investment, I can bring you a much greater return. I can’t provide an exact number, since that depends on your products or services, but I can show you what I mean.
I am a web designer and developer dealing with mainly small businesses. My website development packages start at $350 for a simple facelift, and generally average $750. Using the average sale price if $750, and an advertising cost of $99.99 I am getting a return of an unbelievable 750% on my advertising dollars.
How do I do it? Ah the whole reason why you are still reading this, to find out how I do it. I won’t tell you everything now, but I will tell you that you don’t need to advertise in the local media, you won’t be paying per anything, only once. And I will tell you that you will need a computer, and have the ability to work from home or outside the office.
If you want to learn how to advertise in a simple, inexpensive and residual manner, then subscribe to my monthly newsletter (you can unsubscribe at anytime) and I will send you the information. Just submit your information here and I will add you to my newsletter and send you the full story.