Showing posts with label Advertising. Show all posts
Showing posts with label Advertising. Show all posts

Monday, January 4, 2010

The Danger Of Spending Money On Advertising

You can promote your web site in many ways for free on the internet and off the internet.  You can give out business cards, put a sign in your yard or on your car, put an ad in the free classifieds, get listed on search engines, and so forth.  Advertising for free has one thing in common no matter how you do it: Any business you get from your effort is free from expense.  And by expense I mean actual outlays of cash.  Advertising always has a cost and for free advertising, the cost is usually your time.  Still, you can spend gobs of time advertising for free and you won't worry about paying your mortgage payment, you just won't get to watch as much TV or do things outside of your business as much.

When you start spending money on advertising one thing will be perfectly clear: You will get business but there is a cost that you will feel.  And sometimes your paid advertising will get you less business than your free advertising.  Yes that's right, often you will get business that will not match what you were able to generate for free.  So why spend money on advertising?  Because eventually you will want to do things bigger than you are able to do with free advertising.

Paid advertising is not cheap.  Some advertising is more effective than other advertising though.  For instance, I can spend 25 to 50 cents per click through for google advertising, but I notice that visitors from google will spend more time on the site than visitors from stumbleupon.  Still, I pay only 5 cents per click from stumbleupon so I can get 5 - 10 more click throughs with them than google.  I am still evaluating the actual results, but I believe that stumbleupon is actually more effective because some people that visit will link to the site by giving it a thumbs up.

I tried advertising on ebay by selling a domain name.  Now I did have a high reserve on it so there was no danger of actually selling it, but several people did visit the site because of it.  I would say I got about 21 clicks for $10, or around 50 cents per click.  That is not too impressive but it was a good test becaue I thought it might do better.

It is always good to test advertising, both media and format, before going larger with it.  Usually I'll spend $100 - $200 on a test to see what kind of results I get.  If the test works well, the sky is the limit on how much you can spend.  I used to have a contract with Excite to spend $3000 per month on banner advertising.  You can go much larger than this though.  You usually spend this kind of money after you start making at least this much money with your business by the way, because advertising will not give you an immediate return on your investment.

In fact, it is probably a good idea to plan out your advertising, to see what your return on investment probably will be and how long it will take you to make money from your efforts.  You can usually figure this out based on your current marketing results if you can gather the right kind of data.  Mainly you want to know what an average customer spends over what period of time, and what kind of dropout rate you have.

In our past business, we tried advertising in many different ways.  I used card decks, small display advertising in magazines, a full-page ad, banner advertising, and several other forms.  Magazines have good hang times, as they stick around for long periods of time.  Banner advertisements are better over time but die quickly.  So there are different advertising strategies that can be used with different effects.  Overall we found that our best advertising was what we could get for free, it just took a lot of time to get it.

Friday, December 18, 2009

Linking To Your New Website

We discussed how your website is your sales presentation and much more, but that you must advertise to get visitors, warm leads, and or prospects to your website (i.e sales presentation). The way you do this for a website is to have advertisements that link into your website. Advertisements can be long winded or a little blurb that quickly describes what your website is. Sometimes your advertisement is actually built from your website. This is the case when a search engine indexes your web pages.

Nobody will know about your website until you start getting links to your website from other sites. Typically the way this is done is by telling the other website about your site, or submitting your site. You can submit your site to directories and search engines. And there are a ton of them! I would start with Google and Bing, then do a search for search engines and directories from Google for more places to submit your site for free.

Another possibility is to exchange links with other similar websites. You would typically contact the other site by email and ask if they would like to exchange links with you. Then you put a link to them on your site and they put a link to you on theirs. Many web owners will gladly exchange links but others may not reply, but keep trying.

If you have a blog, there are a ton of RSS search engines and other ways to promote your blog. Do a search for "How do I promote my blog" for more ideas. Many websites provide this kind of information to you. Additionally, you may want to post thoughtful comments on other blogs in response to their articles. Most comment forms include your name and website name so people can see what your site looks like. You might also try this with non-blog websites, I'm sure you would get a few visitors.

There are places on the internet where you can submit classified advertisements that include a link to your website. Many are free. I am not sure how effective advertising this way is, but you might get a visitor or two. One last way to advertise your website for free is social networking sites. I have talked about these before but they do often allow you to link directly to your site. Up and coming social networking sites such as twitter.com are often very effective.

There are tons of other ways to advertise links to your site, just do a search for "How do I promote my website". Many will submit your site for cost, but you really want to try to promote your website for free. Stick to free. I say this because some of the best ways to advertise your website on the internet are free. If you can, I would measure the most effective ways to advertise for free, which website
statistics often provide.

Ultimately we are more concerned with sales than visitors, so the more targeted your visitors are the better. In other words, when your advertisement is presented to your demographic and they visit, they are most likely to buy.

The way that I promote my website is to spend a little time each day on promotion activities. Set aside an hour or two, research, and post requests for links. It is not hard work and it will produce results in the long run. I often switch from method to method, for instance today I will post responses to blogs and tomorrow I will submit my site to directories.

For those of us doing multi-level marketing, you can assume that the same concepts are generally true of recruiting.

Sunday, December 13, 2009

How To Get Free Effective Advertising

As you can tell from my previous post, having warm prospects is the gasoline for your business engine. Too little gas and the engine stalls, too much and you can have a fire or explosion. However, too much is usually better than too little. So how do we go about getting warm prospects without spending money?

One way we talked about is networking. Networking can be done step by step using the telephone. First you write down everyone you know and their telephone number. Then you call each person and ask them if they know anybody that fits into your demographic profile (don't literally say this, say "Do you know anybody who cooks?" etc.). Then you get the name(s) and phone number(s) and add them to your list. Then you repeat. If you are unclear what I mean by demographic profile then go back and read my previous blog posts on demographics.

Networking can also be done by meeting new people at the bar, gas station, golf course, grocery store, etc. and exchanging contact information with them. You want their contact information and you want to give them yours. Then you socialize with them. You can add them to your contact list at any time and do what we talked about above, but just like your normal family and friends, you want to continue being close to them and socialize with them. For most people, this kind of networking comes naturally but for introverts like me, this can be difficult.

Other than networking, our option for finding warm prospects is to advertise. You can advertise for cost in many different ways. In addition, you can advertise for free in many different ways, some more effective than others. The most effective advertising you can get is when lots of people in your demographic profile see your ad. However, if you are advertising for free, lots of eyeballs seeing your ad can be a good thing, even if they are not part of your profile. They can filter themselves, you just want to get noticed. The best way to get noticed is to be featured in an article. An article that mentions what you sell and how to contact you is the best. Often companies write their own articles and submit them to newspapers or news outlets, and try to get published. It really is possible to get published and this is one thing you may want to consider attempting.

There are many outlets on the internet to advertise for free and there are websites devoted to telling you where to advertise for free. Just do a google search. Personally, I like the social networking sites but I have also found that responding to blog posts is a good way to publicize your company.

Off line, you can put a big sign in your front yard or a magnetic sign on your car as a couple of ideas. But if you really think about it, there are tons of ways to advertise your business. I often put business cards on bulletin boards at grocery stores for instance.

Use your imagination to see if you can come up with more free ways to advertise. Did you read about the 911 call about the balloon carrying the little boy? DON'T DO THAT. There are limits to what you should do to drum up publicity.

Be ready for when people start to contact you. How are you going to do your sales presentation?

Friday, December 4, 2009

Demographics, Metrics, and Advertising on the Internet

We are going to do a little review today since we have talked about so much so far. We have talked about selling products and recruiting, and I often mix the two because doing both is similar in a lot of ways. For this article, we are going to talk about the effort to recruit or sponsor a new distributor for your company. If we choose a random person out of the population, we learned that perhaps 1 in 100 will eventually join. And of those that you sponsor, only 1 in 100 will sell and or recruit. In other words, to get three producing distributors, you must contact about 30,000 people.

We learned that we can improve the odds of sponsoring, or reduce the number of people we contact, by contacting the right people. We do this by devising a demographic profile for a person who would sign up as a distributor. For instance, the person might be interested in business. They might be your best customers who want to buy at a discount. They might be top sales people. There are many answers to who might be someone who wants to be your distributor and you may start with one picture and change it later. But the more specific and accurate your picture is, and the more you can find people who match it, the fewer people you will have to contact before somebody signs up.

A metric is simply a measurement and we can use it in the following way: you must contact 100 people per distributor signed; that is a ratio of 100:1. As we improve our method of finding and qualifying people, hopefully our ratio falls to 10:1. Note that these are sample figures and only to be used for illustration. It might be that it takes 1000 random people to find 1 distributor, it really depends on many factors. But the point is that it takes much more random people contacted to find a distributor then if we only contact people that fit our demographic profile. And by continuing to improve our profile, we can improve our ratio.

Advertising on the internet can be great because you can be really, really specific about your demographic profile and actually find people that match it. In addition, you can do all kinds of metrics through tools provided to you or tools that you create yourself. For instance, if you do search advertising with Google Adwords, you can have Google display an advertisement when a particular search is done. For instance, when somebody searches "home business ideas", it will pop up your ad. If the searcher likes your ad, they will click on the link and go to your site. A Google Adwords ad is sort of like a classified advertisement so you can also filter your prospects by wording your ad just right.

Google Adwords provides business people with all kinds of tools to measure the effectiveness of their advertisement. It shows how many times your advertisment was shown, for which search terms, and how many times searchers went to your site. The click-through ratio is a measurement of displays to clicks. You can also measure warm leads to clicks pretty easy by seeing how many visitors request information. Web space providers often provide data on unique visitors and much much more.

Google Adwords is just one example within a virtual universe of endless possibilities. Please feel free to do research on internet advertising by doing a search and see what you can come up with.

Thursday, December 3, 2009

Advertising on the Internet

When you think of advertising on the internet, you may think of a web site. In my opinion a web site is not advertising but is your full sales presentation. You can build a website but that does not get you prospects. You must advertise your web site in order to get visitors, which could be prospects if they came to the website via a marketing message. Visitors may also be many other things such as spies or accidental tourists.

So you have built your web site but have no visitors, hence no prospects. What can you do to get prospects? Yet again you must advertise, somehow, to get prospects. Advertising for a web site can be done offline but this article is about advertising on the internet. Online advertising can be done in a variety of ways, some free and some for cost. Free advertising might be done by submitting your website to a search engine, posting a link to a free-for-all links site, or posting a classified advertisement. It can also be done via a social networking site like Twitter, Myspace, or Facebook.

Pay advertising can be done through various website. When you pay for advertising you should be guaranteed to get visitors to your site. Google has adwords which will post your advertisement in various places and charge you only when somebody clicks on your link.

One thing I had mentioned before is that you can advertise on the internet without having a web site. For instance, you can place a classified advertisement that has a prospect call you on the telephone for further information.

There is advertising galore available on the internet and you can do a google search to find more information or examples. If you want free advertising, search for free advertising. Regardless of how you advertise, your objective is to get prospects so you can give your presentation to them, whether on your web site, over the phone, in the mail, or in person. Not everyone will become a customer or distributor so we are seeking a constant inflow of prospects.

Advertising is a way that we can clone ourselves and not personally give a marketing message to each potential prospect. In other words, our objective with advertising, free or otherwise, is to save ourselves time. If it costs us more time to advertise than if we contacted people personally, we are doing the wrong thing.

I will post information soon about building a web site.

Advertising in the MLM World

There are legal issues involved with advertising opportunities that you need to be aware of. There are often issues involved with using a company’s name, product name, and product likeness that you also need to be aware of. At this point, I am not going to go into detail about what you can and cannot do or can and cannot say, but I will say that your company probably has published rules or approved advertising. Bigger upline organizations will also be well aware of company rules and can help you out when and if you want to advertise.

You can choose to promote your product or opportunity in advertising by avoiding the company name (i.e. Amway) and such, but you do have to be aware of the laws involved with advertising. I personally feel comfortable with an advertisement if I am telling the truth and am giving the reader realistic expectations. I have seen bigger business people fail the second test and get in trouble. I mean, sure you can make $1 million a month, but nearly all distributors will fall short of this amount. Even using possible, i.e. $1 million a month possible, does not let you off the hook for setting high expectations. Even if you quote your own commissions, you may still be setting unreasonable expectations so be careful.

For an advertisement to be successful, there has to be something delivered or desired in return for the effort to respond to the advertisement. Free information is ok to use, but free information about what? Free information containing secrets about multi-level marketing. That is more substantial. But do you actually have secrets about MLM that others do not know? Again, we do not want to create unfulfilled expectations.

An important part of advertising is filtering. We not only want to attract people interested in the opportunity, we also want to filter out people who will waste our time, sign up and do nothing, or generally be a problem for us. Setting reasonable expectations helps, but we need to craft our advertisement to attract good people while avoiding others. For instance: “Easy money in MLM. Make money while watching TV.” This would not be good. Try this instead: “Hard work in MLM is rewarded. Free report.”

Your follow up information must fulfill your advertisement and generally should be a presentation for your product or opportunity. You could use a two step approach, giving a bigger advertisement on the first mailing, then delivering the presentation on the second. You could also do a one step or two step with a personal presentation at the end. Because the presentation is going to be specific to the company or the company’s product, you should use the company’s materials or have your materials approved by the company. A cover letter on letterhead is generally ok, but anything that goes into detail should be company approved.

I am going a little long with this blog and there is so much more I want to say about advertising. I guess we will have to continue tomorrow.

Free Advertising

A cynic would say that there is nothing free in life, that everything has a cost. Free advertising does have a cost and that cost is your time. Sure there is no monetary cost, but advertising for free will eat up a lot of time for the result you get. Still, when you are starting out, you have more time than money so spending time to advertise is a better choice than spending money.

Before I get too deep into where you can get free advertising, we need to define what advertising is. Advertising is a way to sell your product or opportunity without you personally making a sales call or presentation. It is your marketing message given out in your absence.

Advertising is meant to do one of two things or both: Gather leads for your product or opportunity and or create an image for your company. Good display advertising should do both. In classified advertising we are probably just asking for leads. These are two ends of the spectrum and there are many possibilities in between.

Print advertising is not the only game in town either. You can advertise on television or on youtube. You can also advertise virtually on line, which can be similar to display advertising or can do much much more. Media advertising is not the end of the road either, because you can deliver your advertisement directly to your prospect. For instance, putting a business card on the bulletin board in the grocery store or hanging flyers on the front door of homes.

So you can start to see how advertising can be either truly free or kinda free. You will have to spend money to print flyers or business cards but there is no cost beyond that. There are also many free classified sites online that you can make use of. You probably will get very few leads this way but the leads will be free.

Let’s talk for a bit about what makes a successful advertising. I had talked about demographics and asking for what you want in another blog. You can apply these to advertising also. To get the best response to an advertisement, you need to advertise where the viewers are interested in what you are advertising. For instance, if you sell children’s books, you may look into advertising in Parents magazine. This is an example and advertising in Parents would have a cost, but you can see what I mean.

Your advertisement must also be carefully crafted so that you are asking for what you truly want. For instance: “Sell household products for profit. Free information: SM, Box 5432, Chicago, Illinois 60652”. The responses to this advertisement will be people who consider themselves sales people, and who are not put off by the idea of selling household products.

These days, you can also create a web space for free or very little money and direct people to visit. Many people use twitter or facebook to get out a marketing message, which are both free. Do a google search on free website for more possibilities. I will write more about advertising in future blog entries.