Cost Of Advertising Online: How To Combat Rising Online Advertising Costs
Some practical, common sense advice here from Dean on how to overcome the rising cost of advertising online in your business, right now and in the future…
“Oh my gosh, I do not know whether to laugh or cry. What a morning! Can’t believe this happened.
Good morning! Dean here of course. Welcome to another episode of The Drive. En route to Internet Profits HQ, much later than normal – 10:50 am!
Was at the office doing a webinar with our Certified Partners – unleashing some exciting news to our partners. I was at the office till pretty early in the morning.
So only managed to grab about five or six hours sleep today, and was awoken by some delivery men delivering a new washing machine. And so we installed this thing and they took the old one away.
And the position in which our washing machine goes, in our small utility room – it goes in a position where it’s near the door. So it slots into its little area – it’s slot that it goes into, under the units. And then you close the door.
Well, we put the thing on – my fiance did, Robyn – and we go to open the door afterwards, and it had rattled its way out and blocked the door! And like literally, there’s no other way in.
And We Stood There, Like, “What Do We Do?”
The door would only open a quarter of an inch. You could just see through, to see that it’s come out. So we went outside the house to look through the window, and we could see that it had come out by, like, 20 inches or so, and at an angle.
And it was just stuck. Like, there was no way we were getting through there. We tried everything. I tried with a golf club – pushing it – trying to wedge it back round. Could only just get it through the gap. But wouldn’t do anything.
We tried with our hands, but we couldn’t get enough leverage on it. And at this point we’re like, “What do we do?” My work clothes are in that room. I could not leave the house. I needed to get to my trousers, to my jacket. Everything I needed was in that room.
And I’m Like, “We’re Screwed!”
Honestly at a point where I didn’t know whether to laugh or cry! I’m like, “What on earth do we do!?”
After 60 to 90 minutes of trying everything, and deliberating every possible idea. There was really only one choice that we’d been avoiding. We had to grab a hammer and literally smash a hole through the door, so we could climb through.
So this morning has been insane!
But aside from giving you a good laugh at my expense, here on today’s Drive I want to tell you something that we discussed on our webinar with our Partners. And why we’re doing certain things, and making certain moves in the company over the next 12 weeks and beyond.
One thing is factually correct: That with supply and demand, and with inflation…
The Cost Of Advertising
…the cost of traffic, the cost of a click, the cost of acquiring a visitor, acquiring a lead, acquiring a customer… typically continues to rise, right? Because there are more advertisers competing to get their message in front of the audience.
And we’ve noticed that the advertising costs of acquiring customer, at least in our internet marketing company, have continued to rise.
So we are doing a few things. Like raising our prices on certain core products. And introducing additional programs, like, back end products that we sell to our existing customers.
Because really, when the cost of acquiring a customer goes up, you’re left with only a select few options of combating that.
One is to obviously master your craft with advertising. Or seek the help of a professional who can potentially reduce costs by acquiring customers and leads at a lower cost of advertising.
But that in itself is still only going to be marginally different. Like, you’re not going to achieve phenomenal differences, unless you were just doing it completely wrong in the first place. So…
The Main Options That You’re Left With Are These Two Things…
One: Raise your prices. If it’s costing you more to acquire that customer, it stands to reason that if you raise the price of the products you’re selling, that’s obviously going to counteract the increased online advertising costs.
Two: Sell more products and services to your customers. Either at the point of sale, to make that customer immediately more valuable, and/or sell more to that customer after you’ve acquired them – so bring that customer back.
They are the key areas, right? Sell more to your customer at the time of purchase and/or definitely, the key one, is to bring your customer back and sell more to them in the back end.
Ultimately, you have to increase the value of that customer.
If it’s costing you more… If it used to cost you 50 bucks to acquire a customer, and now it costs you $75… that customer has to become 50% more valuable to your business for the ratio to stay the same, right? So…
How Do You Combat Rising Advertising Costs?
You make your customers more valuable to your business. On the front end and/or on the back end.
So hope that advice helps. I’m not heading directly to Internet Profits HQ. I’ve just got to do a quick stop off at the store. So with that said, hope that advice helps.
Hope you had a good laugh at my expense. Yes we got a new washing machine delivered. Yes I had to smash through the door because it blocked the door. Have a good old laugh! This morning has been crazy. Do I laugh, cry, joke about it? Who knows. But I sure hope it puts a smile on your face today.
So thanks for watching. Hit that like button. Share this message with others. Take care. Bye, bye for now, until “How To Increase Email Response Rates From Your Email Marketing Campaigns” – the next episode of The Drive.