Acquisition Cost

Imagine having to work out how much your business should spend on sales and marketing. Setting a budget is as hard as finding a needle in a haystack.

Let me show you how you can have an unlimited marketing budget, and buy-that's right, buy-as many customers as you want. It's like turning on the tap to business profits.

Instead of spending a fixed amount, when you take on the idea of investing in sales and marketing you've got to understand that every investment has a purchase price. In business most people think that you just invest in the stock you sell, but the same is true of customers.

In fact, from a marketing point of view, the only thing you've got to buy are new customers. The question is, how much are you paying for them?

If you've put $1000 into advertising and had 100 phone calls, then you're paying $10 for a lead. Then if you only sell to 1 in 5 of those leads, you're paying $50 (5X$10) for a sale.

Now, here's where this all gets exciting.

Imagine that you knew you could create a marketing plan that buys a customer for $50 and on average they'd spend $500 with you, of which $100 was profit. Then how many times could you invest that $50?

As many times as you want. Spend $50, make $100.

Sounds too good to be true, doesn't it? But it really is that simple! Once you know how much it costs to buy a customer, and as long as you make more per customer than the acquisition cost, you're ready to start reaping the profits.

Buying a Customer

The difference is huge. When you switch from selling to new customers to focusing on buying new ones, you'll start to see a whole new, unlimited world of sales and marketing results. 20