Is Your Marketing Budget Ratio Accurate?

I’ve recently been working with a client who hired me to fix their overall marketing plan. She asked me for my help because they were only advertising in phonebooks, and while she new it was wrong, she just couldn’t stop herself from continuing.

So, in my first few months with the client we addressed her options, the costs associated with those options, and then spent a lot of time rehashing the same conversations. During this time I spent a lot of hours meeting with phonebook reps and discussing with them at length my plans to reduce or remove phonebooks from our overall budget plan. Even they admitted that they new this discussion was coming, and being the good sales people they are, tried to sell me on their online advertising products and services.

First of all let me tell you why I won’t be using them:
1. Print companies and digital companies don’t mix
2. They want huge commissions on your money, FOREVER
3. Their turnover is horrendous, and so is their support
4. I knew I could do it myself for less and save my client money

Within the first 6 months I convinced my client to try Facebook ads, Google AdWords, Bing ads, a few lead generation networks, and a couple odd-ball tactics. We set a budget of $3,000 per month and we knew what we had and what we wanted.

We were looking something likes this before our tests began:
1. $7,000 spent per month on phonebook ads for an average of 16 new clients per month
2. $0 spent online per month with organic reach bringing an average of 12 new clients per month

I am happy to report that a couple months in to our test runs, I have convinced my client to reduce phonebook advertising to $3,000 per month or less as a result of the 200% increase in online new customer signups at the muc lower $3,000 per month initial budget bringing her online leads to an average of 36 per month currently. If the ratio holds true (which it should) then if we invest that $4,000 per month savings from phonebooks into additional online advertising, we should see a 400%-500% total increase in new customers per month at ultimately the same budget we started with.

The lesson learned… put your money online and where your potential customers are looking if you want to see the ROI from your marketing dollars that you expect.

By | 2017-04-30T04:57:48+00:00 April 30th, 2017|Marketing Tips|

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