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Advertising for profit 18 Feb 2016

Do you measure your responses from advertisements?

How many of those responses turn into sales? Don’t know? Then ask your new customers, every time, why they came to you.

Further, have a look at the quality of customers you’re attracting, in other words, whether they're serious about what you offer. There’s no point in advertising for poor quality business.

Above all, keep figures to see if the advertising is earning its keep. The revenue you derive from your advertising is not just what you get from the first sale. It's the earnings over the lifetime of that customer. So if the average customer stays for five years, measure the expected sales you're going to make over this time. The profit on those sales needs to exceed the cost of the advertising.

Advertising is expensive. Some people advertise, get responses but never follow up. Perhaps they have more business than they can handle! If this is you, why advertise?

Examine your return on your advertising. Keep records. If your advertising works, that’s fine. If it doesn’t, save your money.

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