When business owners hear the words "paid advertising" the usual response is they DO NOT WANT TO DO IT 😀
What these two words trigger is a whole lot of internal struggles.
Maybe you were taught that spending money is bad or maybe you really fear losing money.
Maybe you are still living in the past when things were not as good as they are for you now.
It could be you feel that the money being spent on paid advertising is a waste and that you could just get customers without spending money.
Maybe you are afraid to try new things that you don't understand or control.
It could be that you have heard horror stories of other business owners spending money on paid advertising and losing it all (maybe this was you)
But here are a few things that cause business owners to struggle with paid ads.
They have no proven sales system. I see business owners all of the time try to run advertisements to pages and services that have no real systematic way of selling to their customers. This is a HUGE reason why money is lost on paid advertising.
Advertising in of itself is not a magical thing that does ALL of the heavy lifting. It only does helps to generate the initial awareness of what you have to offer then once the prospect comes into your funnel it is up to you to know how to sell them.
So if you want to avoid losing money on your paid advertising spend a lot of time thinking this process through.
They don't track their numbers. If you don't track your numbers you run a MASSIVE risk of losing a fortune in paid advertising.
Both in ad losses and opportunity costs.
The ad losses are easy to understand you spend money without knowing what you are doing and the losses start to add up.
But the BIGGEST loss in my mind is the opportunity cost of shutting things down or not scaling because you don't know your numbers.
So let's say that you are running ads but you are not tracking your numbers as closely as you should.
So the thought starts to creep in your mind...hey maybe I should turn these ads off to save some money.
So you shut the ads off. And then your sales start to drop and you cannot figure out why.
You blame it on a bunch of external factors and then get frustrated.
Well...it's very possible that you had some ads that were impacting your bottom line and were in a position to get you even more sales if you spent more money.
BUT because you were not tracking your numbers you impulsively just shut everything off and missed out on a GOLDEN OPPORTUNITY.
This can be frustrating for the business owner and this happens all of the time.
They DO NOT REINVEST. When business owners put money into advertising they want to see a return on investment.
This is what all business owners say they want to see. ROI...ROI...ROI...
I want to put a dollar in and get two dollars back. I want to see profit.
This is what I hear all of the time from business owners and that is the right mindset to make sure you are getting a return.
But if you want to grow you have to reinvest a portion of those profits back into your ads to continue growth because if you just pocket your profits right away you are literally taking away from future business.
This is where you as the business owner has to make a decision on if you want to just focus on short term profits to buy new things that you want and possibly take away from your business or continue to grow it so it can be an asset to your life for years to come.
That is a decision that you will want to make but make sure you choose wisely.
If you are looking to grow your company then don't make the mistake of pulling all of your profits out from your successful ad campaigns.
Instead take a percentage of those profits and then keep reinvesting it back so you can see steady and predictable returns.
This will help you to create a moat in your business and keep a competitive advantage.