Let me tell you a little secret, as a Marketing Expert:
There’s no such thing as a Marketing Budget.
The number of times I’ve talked to new entrepreneurs—pre-six-figures—and heard them say “it’s not in my marketing budget,” or “I don’t have the marketing budget for that,” is just crazy. It seems like every new entrepreneur has this preconceived notion that you need a marketing budget in business. You really, really don’t. And here’s why;
Your number one problem, as a business owner, is to create a predictable flow of business, new leads, and new sales. The common misconception is that this will all stem from your marketing, of which you should have a predetermined “budget.” It’ll stem from your marketing, yes, but you don’t need a budget—because that’s starting off with the wrong kind of mindset.
If you could put $1 into a machine and have it return $5 to you, why would you limit the number of $1bills you would put inside?
THE RIGHT MARKETING MINDSET
Instead of thinking in terms of a limit (which is, essentially, what a budget is), you need to think in terms of creating. You need to understand how much you need to outweigh to create a predictable machine. You need to understand how much money you should put in one end to get leads out the other, turn those leads into phone calls, and then turn those phone calls back into money. This is the simple flow:
Money → Leads → Phone Calls → Money
The problem is, again, mindset. People don’t trust themselves enough to believe that they have the ability to turn those phone calls back into money. People don’t think they have a good enough grasp of the concept of lead generation and lead conversion to be able to seamlessly follow the flow. But it honestly isn’t that difficult!
Here’s what a Predictable Machine looks like, broken down:
Let’s say you have a product worth $1,000: it could be paid over a year ($83/month) or it could be paid one-time ($1,000 immediately).
Let’s say you sit down with 10 people who have a problem that your product can fix. How many of them will actually buy the product? Let’s put it at 3 out of 10. 3/10 is a believable ratio. So out of 10 possible customers, you get 3 actual purchases. That means that 3 phone calls are worth $1,000 to you.
How much did you spend per phone call (i.e., how you got those 10 people to listen to you)? Since out of 10 people, you’d make $1,000, that means that each phone call is worth $100.
From there, it’s just a question of asking how many leads you need to get to reach your goal. And you can just reverse-engineer the whole process to figure it out! Most people aren’t willing to do the work and spend the money to figure it out, but you need to. Because once you figure it out, you’re going to get an unlimited supply of income.
Let’s go back to our example: you need at least 10 phone calls to get 3 people to buy your $1,000 product. Let’s say 1 out every 10 leads gets on a phone call with you. That’s 1/10. If each phone call is $100, you’re essentially spending $10 on a lead. Let’s look at it broken down:
- 1/10 leads will get on a phone call
- $100/phone call
- 3/10 phone calls end in $1000 sales
This is a predictable, measurable system, guaranteed to give you results! And yet people still say that they have a marketing budget, and something like this isn’t in it. You can’t afford to think this way , or else you’ve already lost!
BUDGET OR INVESTMENT?
Rather than say, “Marketing Budget,” why not call it a “Testing Budget?” Because you need to test and measure before you can build a predictable marketing machine. So how much are you willing to spend to test your system? Honestly speaking, if you put in $5 or $10 a day, you won’t be able to test your machine very fast. It comes down to how much you’re willing to spend for speed.
And instead of using the word “budget,” why don’t you change it to “investment?”
Again, my problem with the word “budget” is that it connotes a limit, and you should never limit yourself. So rather than thinking, “this is the limit of how much I want to spend testing this machine,” reframe your mindset so that you start thinking, “this is my investment into a machine that’s going to give me unlimited income.” Even if it’s $5,000, $10,000, or $20,000—there is no average amount. You’re going to spend however much you need to spend to get the machine working.
So stop thinking in terms of limits. Put that money aside and tell yourself that it isn’t a budget; it’s an INVESTMENT for a machine that’s going to create unlimited income and predictable success.
If you’re interested, I’ve put together a free 19-Point Checklist on how to get high-paying leads by just using Facebook. This is something I’ve been doing for a long time now, and it never fails to give me results. I’ve also introduced it to many of clients — I believe all of them still implement it, too! You can click here to check it out and see for yourself. Again, it’s completely free!