Marketing on a Budget

Most business owners try to keep their marketing costs to a minimum by watching their up front costs of marketing closely, or just plain not spending on marketing by finding low cost or no cost ways ofmarketing. The usual result of that is not getting many, or not getting any clients. That’s NOT cheap, marketing on a budget. It becomes extremely expensive to not have enough clients.

Here’s the secret to “Marketing on a Budget that actually works. . .

Marketing on a budget” that works is when you are focused not on the upfront immediate cost of marketing, but on what it costs to acquire a client.

Let’s take a look at some examples.

Example #1

A client of mine, John, was spending $1 for pay per click click thrus.

At first he almost panicked when he had a thought . . . that he just might get a couple of thousand clicks within his first 24 hours. 

When he asked me about that my response was, “Wasn’t that what you wanted, getting in front of a lot of people?”

His fear was rooted in his perspective, a fear of spending money on his marketing, not on what that marketing should be bringing him. Let’s run some numbers to put this in perspective.

What’s important is

  • How many clients that would bring to you
  • What it costs you to acquire that client.

For the sake of this example, let’s say that when those people land on his website that 10% of them actually call him, then he closes 50% of those that call, and a sale is worth $1,000.

It is costing him $1 for every person that lands on his website. One of out 10 call him, that means that 10 people at $1 each must go to the website to get a call. That means it costs $10 for every lead. And if he closes 50%, then it costs him $20 to acquire a client. That client spends $1,000 with John.

$20 to acquire a $1,000 sale!!! Why is John worried anyway?

For John’s example, he shouldn’t be afraid of how much he spends up front as long as the time it takes for him to get the $1,000 is short. In fact, John should be asking this simple question:

“How many clients do I want to buy?”

Every time he spends $20 on pay per clicks he acquires a $1,000 sale.  Wouldn’t you want to be buying a lot of those clients.

Example #2

But, now, let’s look at another client, Doug.

He also spends $1 for a click thru, but his website started out more like most of the websites with a conversion rate of incoming traffic into a call or sign up of around 0.1%. It’s likely that his “marketing message” on the landing page just isn’t GRABBING enough people.

In this case, it takes 1,000 people landing on the website before one would contact Doug. At $1 per click, that’s $1,000 for a lead. If Doug also closes 50% of his sales, then it costs Doug $2,000 to acquire a client that would spend $1,000 with him.

This time it’s $2,000 for his marketing to get $1,000 in sales. It costs him $1,000 more than he makes.

So, does Doug walk away saying “I’ll never do that again” as most business owners do? At least I don’t recommend it.  

Marketing is not a choice, only how effective you make it is a choice. Marketing is one of those “critical” necessities of being in business. Some way, some how, you HAVE to get clients if you intend to have a positive cash flow. It isn’t a choice to go get new clients, only how we do it, and how effective we make our marketing.

Far too many business owners stop marketing when cash flow gets low or negative. They justify it by saying “I can’t afford it right now.” Frankly they can’t afford NOT to market.

When your cash flow drops to low, or negative, isn’t NOW the time when you should be cranking up marketing to get more clients?

I’ve never understood the mentality of “cutting costs” to save on money when spending $1 on marketing generates $10 or more. But, over 90% of all small businesses focus their management style on “cutting expenses” rather than what investment generates the largest return. When the focus is on cutting back, it’s a self limiting mindset that kills business.

The result of cutting back on marketing in good times or bad is “no clients” or “not many clients” which can be extremely expensive as well. If the number of paying, profitable, clients drops below what it takes to pay the overhead, then “keeping the marketing costs down” can be extremely expensive.

The ONLY thing that brings marketing costs down are two things

  • Developing a marketing message that converts a high percentage of those you do get in front of whether we are talking pay per click internet marketing, direct marketing, or any kind of marketing. The principles are the same.
  • You MUST know how many clients you MUST have to just barely pay the overhead, that’s called break even. And then drive the number of clients to the level that will put the amount of money into your pocket that you want there after the overhead is paid.

How do you get the marketing message that produces many times more than what marketing costs?

The difference between John, Example 1 was that his client cost him only $20 to acquire, but Doug, Example 2, is that it cost Doug $2,000 for each client. The difference between the two was an effective marketing message, John was saying the right things in his marketing, Doug was not. John’s marketing message was connecting to his clients at a rate of 2,000/20 = 100 times better. John was actually getting 100 times more clients . . . and more dollars . . .  than Doug.

They were both spending $1 for his suspect that landed on their site, but Doug’s site was throwing 1,999 of them away at $1 each. The marketing message is the culprit, not the cost of marketing. 

This is no joke. Changing your marketing message can make a difference of 100 times more clients than you are currently getting. What would 100 times more clients than you are getting now do for your business?

Whether it’s 100 times more, 50 times more, or only 10 times more . . . any of those is a significant change in your business results, right? Would you be happy with a 10 times increase in number of clients?

Check out “30 Seconds to Prospects CHASING You” which will show you how to develop the marketing message that can be used in any marketing to multiplying the number of clients you get, while reducing your cost to acquire a client.

Keep in mind

It isn’t what your marketing costs up front that counts . . . What counts is what it costs to acuire a client.


Alan Boyer

The $100K Small Business Coach

Shortcuts to your first $100K (or many times more) within a couple of months

4 Responses to Marketing on a Budget

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Marketing Formula

A SIMPLE Formula to Add Thousands of Dollars a month to Your Income within Weeks

Free report reveals the secrets to getting clients and profits faster and easier than you've been able to do it before.

small business coach Discover the Secret Marketing Formula .

A scientific step by step process to acquire exactly the number of clients you WANT, and more VALUABLE clients . . . FASTER

$99 value, yours free



I don't like spam either, and will never rent, sell or share your information with anyone. You can remove your name any time you wish.