What % of gross does your advertising run at?

[Bexiesbruv]

Just checking my adwords status and getting ready for my meeting with the YP rep. Can't believe it that time again.
My month to date for adwords is running at 6% of gross sales for August. Of course some of the jobs booked came from referrals, previous clients etc but as I cannot be completely accurate with my numbers of each I figured next best thing is to do each advertising method individually as a % of gross sales.
As this is my first year of adwords and I only recently ramped it up (last 3 months) I wonder if I am too low, too high or just about on the button. Certainly I am as busy as I want to be right now and I am sure several of my calls have come from adwords and been wasted because either I couldnt help right away or my price was too high.

Thoughts anyone?

 

[aloha one]

Bex, We alaways ran between 13-15%.

 

[Bexiesbruv]

Bex, We alaways ran between 13-15%.

And I am inclined to think thats exactly where I will be when I pull out the jobs I know didnt come from adwords. Doing this right now and will post it.

 

[Bexiesbruv]

Yeah,its 12%
Add in the cost of other forms of ads I currently run I I will be right in there at 12-15 I think.

 

[Steve Toburen]

Yeah,its 12%
Add in the cost of other forms of ads I currently run I I will be right in there at 12-15 I think.

Everyone needs to make their own decision on this, Stephen. If you've been in business awhile the 12% (much less15%) may be a bit high. Chuck Violand at SFS recommends 8-10% for residential cleaners. Here are some thoughts on getting it down over the long term...

1. The ultimate no-cost way to break into a new market? Door-to-door and HERE is the efficient and very profitable way to do it.

2. If you want real estate agent referrals do this trick. Even better it is free!!

3. Set up "marketing hubs" with other non-competing businesses.

4. Consider implementing a pre-paid residential maintenance program. (You basically don't need to market to these people since you are taking money out of their account every month.)

Best wishes and let us know how these ideas work.

Steve

PS Remember that whatever marketing to do you must first a) track it and b) constantly be testing new ideas. And oh- I almost forgot- if you are referring to phone book advertising when you mention YP above most consider the phone book almost dead.

 

[Blacktiedetailing]

0.05%. Cost of my business cards.

 

[Bexiesbruv]

Everyone needs to make their own decision on this, Stephen. If you've been in business awhile the 12% (much less15%) may be a bit high. Chuck Violand at SFS recommends 8-10% for residential cleaners. Here are some thoughts on getting it down over the long term...

1. The ultimate no-cost way to break into a new market? Door-to-door and HERE is the efficient and very profitable way to do it.

2. If you want real estate agent referrals do this trick. Even better it is free!!

3. Set up "marketing hubs" with other non-competing businesses.

4. Consider implementing a pre-paid residential maintenance program. (You basically don't need to market to these people since you are taking money out of their account every month.)

Best wishes and let us know how these ideas work.

Steve

PS Remember that whatever marketing to do you must first a) track it and b) constantly be testing new ideas. And oh- I almost forgot- if you are referring to phone book advertising when you mention YP above most consider the phone book almost dead.

Stopped doing door to door a few years ago. Anyone pay a sales person for that?
I have a few realtors that I do work for, and thats about as much as I want to do. Many are just looking for cheap price but class "A+" cleaning. The ones I currently work for understand.
I am referring to YP online only. I will retain a basic block print listing only for the book for the older folks in one particular town.
I would like to hear from anyone thats actually successfully implementing #4

 

[aloha one]

0.05%. Cost of my business cards.

Not everyone is as GREAT as you Are bro..I call BULLSHIT on that! Is it your life Dream to Intimidate Noobs? Making them think everthing they are doing is Futil? Stop the BRAGGING & Start Helping! .05 is the Biggest line of Shit I have EVER HEARD!

 

[Bexiesbruv]

Not everyone is as GREAT as you Are bro..I call BULLSHIT on that! Is it your life Dream to Intimidate Noobs? Making them think everthing they are doing is Futil? Stop the BRAGGING & Start Helping! .05 is the Biggest line of Shit I have EVER HEARD!

HA Ha Ha
But wait, lets do the math.
250 business cards cost say, $50.00? So thats a $100k gross sales if my math is correct.
Maybe needs to invest in some advertising?
Or maybe thats 250 cards PER MONTH. Now we're talking!

 

[aloha one]

Dudes a GIRL LYING bit! Eh Bex!

 

[shane deubell]

Depends if i am in growth mode or milkman mode.

In growth mode yes of course its going to be 20% or something. When your aggressive you make mistakes, plus like most investments it does take some time to mature.

What investment do you know of that produces a great return EVERY month immediately?

 

[Bexiesbruv]

Dudes a GIRL LYING bit! Eh Bex!

Who knows Dave?
But its not a particularly helpful reply thats for sure. I'm just trying to figure out what might be an industry "standard" as it were. If indeed all he/she spends out for is business cards then I salute him/her. There is also a cost to signing up your vehicle, having a web site, doing SEO etc. If you do it yourself you need to factor in your own cost. Well, I do anyway. That way, if I know it costs me X to do Y and I can be more productive doing something else and paying for that service then thats what I would consider. But of course, as usual, I am rambling.
I will* figure anything between 10%-18% of gross is acceptable.
*edit (added)

 

[aloha one]

I give UP!....Stephen "Who Knows Dave"..Not me for Sure! And that is 'BABBLING' Bex.Lol...Far from Rambling!!
,Seriously Tho..Jeff Talks (always had like this biz is a Friggin' Walk in the Park) it's NOT! Not want I choose to see as solid advise to Noobs.After all..this is the main drive behind a forum is to HELP....NOT BRAG!
Shoe fits..wear it Big Boy Jeff!

 

[rob allen]

10%

 

[rob allen]

Not everyone is as GREAT as you Are bro..I call BULLSHIT on that! Is it your life Dream to Intimidate Noobs? Making them think everthing they are doing is Futil? Stop the BRAGGING & Start Helping! .05 is the Biggest line of Shit I have EVER HEARD!

Dave my 2 brothers have been in business for 10 years each and only rely on business cards plus referrers and repeats. It can be done esp if you stay simple and one truck part time.

 

[Bexiesbruv]

I give UP!....Stephen "Who Knows Dave"..Not me for Sure! And that is 'BABBLING' Bex.Lol...Far from Rambling!!
,Seriously Tho..Jeff Talks (always had like this biz is a Friggin' Walk in the Park) it's NOT! Not want I choose to see as solid advise to Noobs.After all..this is the main drive behind a forum is to HELP....NOT BRAG!
Shoe fits..wear it Big Boy Jeff!

Yeah, should have had a comma there Dave? Oops.
Who knows,..... Dave?
In the past, advertising was on auto pilot. Pay and forget. It worked. Not now though. Guilty of wasting a lot of money putting YP on auto. I won't do that again either.
Now I have some history with adwords I can see a patter emerging as to when I get the most calls and how the costs fluctuate as well. Now I need to hone in on that and create some scheduling for my ads to run. I really dont think I want them running when I am not available to answer the phone or when I am too busy to get someone booked in. Thats just adwords though. There is a whole slew of stuff I need to get a better handle on but much of my new business is currently coming from there. Nice to see that just over 50% is coming from repeats, referrals and continuing (rentals) customers.

 

[mikedsmith]

Has anybody or everybody dropped their yellow page ad ? Or is it producing results for you ?

 

[Bexiesbruv]

Has anybody or everybody dropped their yellow page ad ? Or is it producing results for you ?

I looked at my YP analysis report for the online stuff. Long and short is I get 6 calls a month for 700 bucks.

 

[mikedsmith]

6 calls or 6 booked jobs?

 

[rob allen]

6 calls or 6 booked jobs?

Either one thats a poor ROI. Yellow Pages are almost dead.