What % of gross does your advertising run at? | TruckMount Forums #1 Carpet Cleaning Forums

What % of gross does your advertising run at?

Ryankettering

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Agreed. I had to give it a year though to prove it. If I just cut it last year, I might have thought I made a mistake.
YP is like a dog chasing it's tail. It seems like you are always close to making it work... Until you look at the numbers, which is why you dropped it. You made the right call.
 

aloha one

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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?
MY WEED!
 

Bexiesbruv

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This is what I think I have found out.
I have gone onto my google Analytics page and checked where my referrers are coming from. It appears 87 of them are via yellowpages. This is the same number (as a percentage) that yp gives as "web site interactions" All it means (I think) is folks searched Google for carpet cleaners and clicked the yellow pages organic listing and after that they clicked through to my site. After that there is no telling if they called me or not. I ask, but as most folks say "Google" and I dont want to annoy them by drilling down to what they actually did, thats where it ends. Its not there fault if a person does not call me once they get to my site, at least they got them there.
So 87 is one number.
From the mobile interactions I got average of 2 calls per month. from the same number of (presumably) ad viewings. So that is working but not by any where near enough.
Total then for a year is 9.25 calls/interaction per month or about $87 per enquiry. of course that cost per enquiry goes way up if the 87 left my site without calling.
Someone tell me I am wrong please, and explain why.
I dont think I am wrong so I have to decide if I want to do a better ad campaign with them or just get out and spend the money elsewhere.
 

shane deubell

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And locked in for 12 months as well.
That really socks.
Guess all you can do is keep working it and trying to get most out of it.

Make sure you read the agreement and cancel before it renews.
 

Spazznout

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And locked in for 12 months as well.
Ouch
For 700 dollar per month I can get 55,000 print ad our per month.
Or 660,000 print ad per year for the same contract you have with YP.

We will get more than 24 jobs per year for that investment.

Look. The advice above is cool if you have already achieved the size company you want to be at. 10% is a number that simply will replace people you loose due to death, moving, lost your card info, found a better deal, etc

Also understand that a lot of the info being presented was developed back in the 2000's when the economy was roaring and advertising results were a lot better now per dollar spent. Customers with disposable cash are a lot harder to come by today than they were 5 or 10 years ago. 109 million people are on income based government assistance now in the US. This is the reality of the marketplace. This makes spending money on advertising all the more important as it becomes more difficult to find new customers.

If you are looking for growth you will need to spend more. Realize the numbers are going to be different for every market. Also realize the more you invest in marketing the quicker you can drive your growth.

So is it wrong to run near a 30% marketing budget if you are achieving massive growth. NO. If it is part of your business and marketing plan.

I do not quite understand this idea of trying to go at it without spending much money. It does NOT make sense. Do you want to grow a bizz and make money? If so you are gonna have to spend and invest your money to do so.
 
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Bexiesbruv

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That really socks.
Guess all you can do is keep working it and trying to get most out of it.

Make sure you read the agreement and cancel before it renews.
Yeah my meeting and renewal is next week. Its one of the reasons I joined the forum last year. The buddy I used to bounce ideas and information with died and I am kind of missing that.
 

Bexiesbruv

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Ouch
For 700 dollar per month I can get 55,000 print ad our per month.
Or 660,000 print ad per year for the same contract you have with YP.

We will get more than 24 jobs per year for that investment.

Look. The advice above is cool if you have already achieved the size company you want to be at. 10% is a number that simply will replace people you loose due to death, moving, lost your card info, found a better deal, etc

Also understand that a lot of the info being presented was developed back in the 2000's when the economy was roaring and advertising results were a lot better now per dollar spent. Customers with disposable cash are a lot harder to come by today than they were 5 or 10 years ago. 109 million people are on income based government assistance now in the US. This is the reality of the marketplace. This makes spending money on advertising all the more important as it becomes more difficult to find new customers.

If you are looking for growth you will need to spend more. Realize the numbers are going to be different for every market. Also realize the more you invest in marketing the quicker you can drive your growth.

So is it wrong to run near a 30% marketing budget if you are achieving massive growth. NO. If it is part of your business and marketing plan.

I do not quite understand this idea of trying to go at it without spending much money. It does NOT make sense. Do you want to grow a bizz and make money? If so you are gonna have to spend and invest your money to do so.
I figure dropping it now will cost me (at worst) $1500 a month or as little as $430 (not allowing for the actual cost of ads). I would feel a lot better being responsible for my own advertising program, be it flyers, more Adwords or something else. I might even pay myself that sum to walk door to door again.
My YP rep will have to have a very compelling arguement for me to stay, assuming I read the statistics correctly, and I think I did.
 

Spazznout

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I figure dropping it now will cost me (at worst) $1500 a month or as little as $430 (not allowing for the actual cost of ads). I would feel a lot better being responsible for my own advertising program, be it flyers, more Adwords or something else. I might even pay myself that sum to walk door to door again.
My YP rep will have to have a very compelling arguement for me to stay, assuming I read the statistics correctly, and I think I did.
bros,

Save yourself the headache.
Call and cancel the meeting with rep.
He is a pros sales guy and knows your weakness. YOU want your phone to ring.
Very bad position for you.

Just call and cancel. Finish your commitment and move on to new forms of marketing. You will now have 700 dollars per month to invest in new ads/marketing plan. You should be able to turn that 700 into 21-26 customers per month.
 
Nov 24, 2012
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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?
Realize this; that you have an infinite amount of $ to spend on marketing as long as its profitable.

Look at it from an ROI standpoint and not a % of this, that or the other.

Being busy is good. Being profitable is better.

If I offered to give you $1 for every .25cents you exchanged with me, how many of those deals would you take?

Marketing is no different. You are essentially buying money at a discount... That is as long as the source is keeping you profitable and not just busy.
 

Prowler

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In a different business I gave up the yellow pages a few years ago when my budget was tight. I was spending about $6k or so a year just on YP. Now that I have stopped the YP ads my business has gotten better. So I don't think the YP did anything for me.