Transcription of the Marketing Plans episode of the podcast Doers Shakers Makers with Sierra Bailey.
[00:11] Do you know what CTA, ROI, and COA stand for? Are you spending too much money on advertising? Well, today we’ll find out the answers to all of these questions. My name is Sierra Bailey. Welcome to Doers Shakers Makers, a podcast for go-getters to inspire you in your business and life. All right, let’s dive into one of my favorite topics. Marketing. Marketing is of course huge. These podcasts are about 20 minutes. We’re going to cover a very small part of marketing today, but its part of marketing that I find comes up a lot when I’m either talking to clients or out and about and chatting with my fellow small business owners. All right, so let’s break it down as simply as possible. Everyone who wants to be number one in their industry or profession should do these seven things that I’m about to talk about.
[01:00] However, I would say that these seven traditional ways of marketing are for large companies and by large I mean 50 plus employees. I really think that if you are a small company, three at the very least, the most impact for the least amount of money is really what you’re going to want to go to. And we’ll get to why that is later. I also want to give a reminder that whatever way you choose to pick from this list that you should make sure that you’re stacking your marketing. And that means that if you are basically doing one effort, it should align with the second effort which, should align with the third effort. So a lot of that is branding and making sure you have a consistent message and that you are explaining yourself as a company, professional, side-hustler, whatever, consistently across the things.
[01:53] But it also means that, and we’ll get to this a little bit more if you’re creating content for one area of your marketing to use that throughout so that your messages are seen repeatedly. All right, so the first is probably what most people think of with marketing and that is advertising. That’s from Google ads to retargeting to print ads. And as you can probably assume this one can cost a lot, it’s really easy to get very expensive and start spending a lot of money in this area, especially with online ads. If you’re not familiar with the format and if you are doing them yourself, that’s great. That’s fine. I love DIY. No problem with that. Just the thing is to educate yourself a little bit so to make sure that you’re, even if it means reading a lot of articles on how to set your ads and making sure that when you’re doing these ads that you are not wasting money.
[02:46] Now, you should always in advertising, have a screaming headline and a CTA. Here’s your first definition, which stands for call to action and you should have one call to action. What is a call to action? That is saying, come to my website and buy this item or call for a free consultation or put my name on a mailing list and you get this free download. That is one single call to action when you start to confuse people is when you start to either have no call to action; so they look at your ad and they have no idea what they’re supposed to do next or you have too many and they can’t make a decision up. I’m definitely one of those people that tends to go with all or nothing. So I know it is sometimes a little bit tricky to remember to do it the right way.
[03:27] But it is key if you want people to actually respond the way you want them to. All right, the next is something that a lot of people look at me like I’m crazy when I tell them this, but direct mail is not dead and in fact, so many people think that it’s dead, that it’s a pretty open space and not that competitive or expensive to be involved in direct mail. And if you know people that are realtors, they usually are the ones who are killing it at this game. But I am not telling you what they do, because they are doing it so well that I don’t want to take away from them. But I get some very adorable handwritten little notes from them and I say this in that I own a house, but they are sending them to me so that I can send them referrals.
[04:06] So if you have a service-based business, think of things like that. I live in Austin Texas, Blue Bonnets are a big deal here. And I received from one of them a little packet of blue bonnet seeds with the little cute note that had to do with this. It was great. It was wonderful. I giggled, I kept the note. It was definitely an effective way to do direct mail for the cost of some seeds, some stationary and the stamp. And if you are in real estate and selling a house, you know what the cost of getting a customer can be quite great. So that’s a really low-cost way of reaching your ideal client or at least somebody that can give referrals. Also postcards, there are beautiful postcards done. You can use services like MailChimp that will, you can buy a list and this is, I don’t want to get too big, but you want to make sure you’re targeted to your demographic and have it even sent by the company so that you don’t even have to touch anything.
[04:59] But think about these things. Think about how you can use the space on envelopes and through color. Get people to notice it. Think about if somebody gets the mail, what are the things that make them want to keep that piece of mail instead of moving on? Education-based is always best because it gives them a reason to want to read it and to want to hold on to it. The next is corporate or company literature. So these are like the brochures and promotional pieces like those postcards, reports and white papers. And again, these also draw from education. You know, so much of what you’re doing like I said, should stack upon each other and we’re going to get to education. That’s actually number six in a minute. Okay. The next is public relations. So this will depend on what field you’re in.
[05:39] For example, when I was in the jewelry industry, it was a lot of like fashion magazines and blogs and things like that that had to do with fashion and shopping and things like that. If you are a lawyer, it is going to look completely different of what your PR is. It’s going to be probably more press release oriented and trade publication articles about and by you. So that’s not only blogging, because blogging really would be more in the education. But it’s about reaching out to other publications, writing articles for them. And then of course doing your usual reach out for people to write about you in the press using something like Haro, help a reporter out or things like that. Press releases, of course, trade publications, TV, all of that that you traditionally think of with PR. The next is personal contact; sales people and customer service.
[06:25] This one has the greatest impact. However, if you are a really small business, that’s you. So just remember that. I’ve worked with sales people on multiple levels. I’ve had sales reps, I’ve had showrooms and things like that and it still was always, as you’re growing, you’re going to be your best salesperson. So just remember that. And then as you grow, of course, you would bring on salespeople and customer service and that sort. So for you, tiny businesses out there, don’t freak out. That just means you are doing the sales and customer service. Okay. The next one I’ve alluded to, market and customer education. So this is trade shows, speaking engagements, being a guest on podcasts or having your own podcast. Education-based marketing is the one where you can have it to add on in your other areas the easiest.
[07:13] So by creating this marketing, then that can lead to white papers and it can lead to you guest posting and it can lead to you sending direct mail and all of that. So probably, the most important, I think is the education-based marketing only because it gives you so much to share. It’s really hard to constantly be thinking of ways to reach out for people without feeling like you’re kind of slimy or sleazy and just selling all the time. So the education-based marketing is really your chance to be sharing things about your product or the APP or service without it being about your product and service. So keep that in mind. All right. And then the last one is the probably one that people think is all marketing, most of the time. That’s the internet! Your website, your email efforts, affiliates, social media, although not ads.
[07:57] All of that falls into this one category. You’re aiming to capture leads, build relationships. This can be done through these things. Also webinars. Another great thing to think of with Internet marketing. So I want you to remember that when you’re thinking about your marketing efforts, it shouldn’t just be all the things that are in internet marketing and you should also not completely dismiss all the Internet marketing. Facebook may be a horrible place for you, but you should have a website, think about it that way. So now that we’ve talked about some of the things you can be doing, and like I said, if you’re a tiny or small business, pick three of those, try to build them on each other, stack them. So how much should you spend? That’s the second biggest question that I get all the time after: what should you be doing?
[08:39] All right, so if you’re a new business, one to five years, I would also say if you’re a small business, 12% to 20% of your gross income. If you are established, and by that I mean, do people already know who you are? And this again is kind of the rule of thumb for the big companies. So, if you’re a tiny startup and nobody knows you, you’re in the 12% to 20% but small businesses are usually in that category. Just because we don’t have as big of a reach. So established is 6% to 12% of gross income, small, tiny and unknown businesses, startups, all of that are 12% to 20% so I think you should probably aim to be in, at least the 12% to 15% unless you’re a huge name. And in case you don’t know what is gross? Well, gross is the total revenue with nothing taken out.
[09:29] So your total revenue before taxes, before expenses, before your salary, before everything comes out, that’s the gross. So that’s all money coming in. Take, we’ll say 6% to 20% of that. How do you figure that out? Quick math lesson here to find out. You take your gross, let’s say it’s, we’re going to go round easy numbers. Let’s say it’s $100,000 a year. While you would multiply that by your percentage, let’s go for 15% so you would multiply by 0.15 and it would come up to $15,000 for the year. Now this is for all of your marketing. That’s for your advertising, your PR, your social media, your sponsorship, your products that you give out. Again, because I had a product based business for so long, I’m very careful to remind you that one, you should be giving away a lot of your stuff. That is the easiest and cheapest way to get it into somebody’s hands, especially if your margins are good.
[10:19] That’s a conversation for a later time, but you want to for sure be giving away your products. And just a side note, if you’re doing PR, if you sign up with a publicist, you immediately should have an entire product set or two product sets. Same goes for if you’re signing up with a rep or with a showroom and you are just giving them those products. Your products are not precious. If they’re so precious that you can’t afford to give out a set, you’re probably not going to be in the category where you’re doing this kind of marketing anyway. You’re probably in a real like, one of a kind situation. So think about that as you want to grow your business. You need to be prepared to be giving away a lot of stuff. If you have a product and if you are a service, you’ll probably end up giving away time in ways of, perhaps a consultation, but more in the writing education things are speaking or doing things of getting yourself out there through your expertise, which takes time to share that.
[11:12] So just think about this as you’re wrapping your head around marketing efforts, especially if you’re little and you don’t have a lot of money, if you are making, if your gross is, if you have a lifestyle business and your gross is, let’s say $60,000 to $100,000 a year, your marketing budget is not going to compete with a lot of the larger companies, so your time in the early stages can really help offset that. All right, now here’s another thing for you. The cost of acquisition, that is COA. Your marketing dollars, so we have our $15,000 divided by the client’s generated. To make it easy, let’s say that that $15,000 generated 15 clients, so then your cost of acquisition is $1,000 per client. There’s such a trend in these huge startup businesses for them be spending $2 to get a $1 customer because they’re going for aggressive growth and numbers and that is why companies like Uber can have that kind…
[12:03] I mean I don’t, there’s a lot of argument about if they’re even building profitable companies, they do go public and the point is to show that they have accelerated growth. Not that they’re necessarily bringing in a lot of money, but that they are proving that they have the potential to do so. You, I’m assuming if you have a tiny or small business need to bring in an income, you should definitely not be spending $2 to get a $1 client that puts you in the red to that is not what we’re aiming for here. I don’t want people to think that as long as you are getting anybody in the door that it is working with your marketing. The golden rule of marketing is to always be trying new things. Always. And this is because sometimes when to start trying something, let’s say you’ve been doing Facebook ads and then you start losing the numbers and your return on investment goes down.
[12:51] I’m going to get to that in one second, but I want to just make sure it is clear that your understanding that the best part about being a really small business and the worst part is that you probably have to change a lot because you don’t have as big of a budget. So you’re always trying the new things. Bigger companies have a really hard time moving fast. So you have that on them and that is kind of your time to shine by saying, oh, nobody’s doing, you know this thing anymore. So I’m not going to try that, but I’m going to jump on this new thing because why not? I have 20 minutes to figure this out. Let’s go do it! Instead of having to ask seven levels of your superiors if it’s allowed to be done. Okay. So what is ROI stands for? Stand for return on investment.
[13:27] It is your sales growth minus your marketing costs divided by your marketing costs. So if your sales grew by $1,000 from an ad and the ad was $100 your ROI would be 900% which, ps would be phenomenal and that is not really normal. Most basic good ROI is that for every dollar you invest, you get $1 back. So let’s say the average conversion rate for Google Adwords is 2.45% so think about that. That’s like a normal ROI. Also, another interesting thing is that while you’re thinking about all of these things, while I’m throwing ROI and COA and all of these things at you, the whole idea is that you’re going to have three things that you’re going to focus on. You’re going to have your three areas of marketing out of those first seven and I’m going to have a blog post on mssierrabailey.com this week that will cover all of this if you want to be able to look into it a little bit more, but remember that when you are thinking about marketing and you want to be mapping out about three months at a time, you want to have a plan at the minimum for your quarterly marketing.
[14:26] A lot of this is so it stays stacked together and it makes sense all is one. A lot of it has to do with never feeling the overwhelmedness of not knowing what to do and not doing anything. If you create your plan three months out, you just know what to do for those three months and then the three months after that. I like to have a kind of brief overview of the year, so when I was product based around the holidays, obviously the focus was releasing quarterly collections and on holiday sales. So there was a lot of timelines that were done around that, very specifically. Now that I’m in more of a service and content company, it’s a little bit different, but I still like to plan out those three months so I know it’s coming. A lot of times it will go around like if I know I have a mastermind or workshop coming up or things like that.
[15:12] So, even if it’s not obvious like a product based company, you still can plan out those quarters around things that you’re doing and also around holidays or times of year and things like that to have relevant materials. Just like that realtor that I spoke of who had the bluebonnet seeds. You know, that was very timely. If she had not planned that out ahead of time, it would have been weird to get the bluebonnet seeds in the middle of the summer when you’re not planting them, nor are you seeing them. So you see if you plan ahead of time, you can do cooler things like that and get more bang for your buck as we’re trying to do with you tiny little businesses. I feel like I’ve overwhelmed you and given you a lot of information, but I don’t want you to leave this conversation to feel like your head is spinning, that you’re not doing enough and that you are overwhelmed with what you have to get done.
[15:57] Remember that if you look at what you are doing, you’re probably doing more than you think because we do always underestimate what we are capable of in the long term and overestimate what we can do in the short term, but you’re probably doing a lot of these. You just haven’t put it out there and that much of a concrete plan. The first step is to always assess what you’re doing. Take a week, look at the stuff that you’re already naturally putting out there and then you can build on it, organize it, make it cohesive. You, of course, can always contact me. We can have a conversation about that. You also can always use your best friend, Google and you can start by putting in things from this conversation to build upon. If you want to learn more about ROI, there’s so much out there. If you want to learn more about anything marketing in general, there is so much out there.
[16:41] I do find it very interesting that for many, many, many years it was said that there was, it was the rule of seven in marketing and if you Google, “marketing how many times you have to be seen” or “rule of seven” or something, you’ll notice that all of the articles are a little bit older. Sometimes when I am doing marketing things, I do make sure that in my search I’m putting the time to be the last year because they’re now saying whereas it used to take seven times for somebody to hear your message before they took action. That now it can be up to 20. That is because there is just so much noise on the Internet. There’s so much out there that people are hearing and seeing constantly that you can now, oh goodness, be overwhelmed within like three minutes of being on Facebook.
[17:23] So 20 times people have to see your messages. The less consistent you are really, the more times they have to see it. The more consistent you are, their brains will recognize the patterns and you’ll stand out a little bit better. Again, I don’t want to overwhelm you with anything. I just want to start to help you get a grasp on the basis of marketing and the things that you can be doing to grow your tiny or small business more. But thank you for joining me today. My name is Sierra Bailey. This is Doers Shakers Makers, a podcast for go-getters. If you enjoyed today, please subscribe. If you’re listening on apple, please review. And of course, always throws some stars in there, it helps me get found. I’ll be back next Monday to keep you inspired and get you doing shaking and making.
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