Some people expect something for nothing in their businesses.
Others realise that success comes from investment in appropriate resources.
Let me elaborate…
There are some coaches and consultants who struggle to earn £30,000 (US$47,000) a year, and can’t get enough clients willing to pay their hourly rate, don’t use a coach or consultant themselves.
And if they did use a coach, they sometimes aren’t willing to pay a coach that charges more per hour than they do themselves.
There are many business owners that want to succeed but baulk at paying to promote their businesses.
After making a lot of mistakes, I’ve found what works for me…
1. I have paid well for good advice.
There’s a marketing consultant in the States called Dan Kennedy.
Several years ago he was charging $7,500 for a day’s consulting in his home.
I contacted him to book a day with him.
He couldn’t fit me in for 3 months.
I asked if I could pay the $7,500, get an hour with him on the phone in the coming weeks, then spend an hour less when I came to meet with him.
The advice he gave me in that first hour was so helpful that I felt I had got $7,800 of value already.
The (almost) full day later with him would simply be a bonus.
Here’s a photo of me with Dan…
I have told this story to many people.
A number of them said they’d never pay $7,800 for consulting.
It was too much money.
But I wasn’t concerned with the amount.
I was only concerned with the impact on my bottom line.
(Dan now charges $18,000 a day, and smart business owners continue to pay him.)
2. I have paid well for advertising and promotion.
When I started my mail order business, LifeTools – which sold personal development products – I started by spending £50 ($75) for small display ads.
Here’s one of my first ads, top left…
Over the next several years moved to bigger and bigger ads.
Each ad was coded so I could work out how many enquiries and how much profit I was making from each ad. For every £ or $ I invested I was getting 2-10 times this back in gross profit within a month or 2.
So I happily moved to full-page colour ads, then multiple full-page colour ads in the same publication. I happily paid thousands of pounds/dollars for an ad in Men’s Health, like this one for a ‘speed reading’-type course called PhotoReading. It looks like an article, it’s heavy on text – and it worked like gangbusters…
When I started the business I had some direct competitors.
While my ads got bigger, the size of their ads stayed the same.
Perhaps they were stuck as a result of a limiting mindset.
Eventually they disappeared completely.
I was happy to pay thousands of pounds/dollars for a page because my core sales spreadsheet showed that the risk of me losing money on it was very low.
It was an almost surefire investment.
Other people just saw the amount I was paying for one ad and freaked out.
Getting paid-for advice
- Work out how much you are spending on coaches/consultants/mentors
- Determine the Return On Investment on each of them in terms of money and time invested by you
- If you can’t work out an ROI, create systems to help you create an POI over time, or get rid of these consultants and use ones who can help you show their worth to you and your business
- Spend more on consultants that give you the most bang per buck
Advertising and promotion
- Find out what is working
- Do more of what works
- Stop doing what doesn’t!
- See where you are limiting yourself and your business and thinking small – and consider thinking bigger and being more ambitious with your vision and how you’ll get there
Let me know how you get on!