When analyzing your marketing dollars, here are a few tips to follow.
1) Define your audience.
Differentiate the people you know and the people you don’t know. Separate those two groups, because your marketing tactics should be different for each one.
2) Review your marketing tools.
What channels are you using, or put another way, what do you spend money on?
3) Once you know where your money is going, define whether your strategy is aimed at the right audience.
For example, a bus bench/shelter ad would be aimed at group #2, your mass audience. You don’t know them and they don’t know you.
4) Determine which group delivers the bulk of your income.
The people you know, or the people you don’t know.
5) Determine your marketing budget.
After all the staple items you need to spend on each month, such as a mortgage, insurance, gas and food…and then after all the wants you spend on, such as tickets to a show or a new pair of shoes, what is left over? What can you spend on marketing?
Saying, “Well, I’ll try it and see if it works” does not work. Consistency is vital. Can you spend $50/month, can you spend $500/month, can you spend $5,000 a month? How much extra money do you have for marketing?
6) Are you using that budget effectively?
Now that you know who your audience is, what marketing you spend on, which group you are spending more money on and what your budget is, ask yourself if you’re spending too much money on the wrong group, or if you are spending enough money on the right group.
7) Determine how much hustle you are actually putting in every day.
Are you calling people, seeing people, marketing to your people consistently?
It’s a fact (I’ve asked thousands of agents this question) that 70 to 90 per cent of your annual income will be produced through word of mouth referrals, and/or repeat business.
If you feel you are spending too many marketing dollars; if you feel that things seem too expensive; if you feel that you’re not getting enough value, follow the above steps to review your audience, your marketing and your hustle.
Seventy to 90 per cent of your business comes from people you know, and that means that you should be spending 70 to 90 per cent of your marketing dollars on the people you know.