Do you ever get that thing where your bank balance is looking alright, and a couple of weeks later it seems to be disastrous?
That’s happened to me this month.
And I’m not quite sure what happened!
Hey ho, money comes money goes.
The important thing, is to make sure that you don’t do this in your business.
In your business you never want to lose track of where your money’s going or coming from.
It’s important to assess what’s making you the most revenue, what’s costing you the most, and what’s generating the best return.
Ideally you want to do this every month.
But, if I’m honest, I struggle to do this every month.
However, without fail you need to do it at least once a quarter. If you don’t, you could suddenly find you’ve spent a lot of money on something that doesn’t work.
Let me give you an example.
A large, well-known, company were buying customers at a cost of £25 (about $35). They paid this every time the advertising company got someone to purchase a £4.99 product.
The idea being that they got a customer who had purchased a product, and then they needed to sell that person more in order to make their money back and turn a profit.
It’s something that works if you’ve got the budget to do it.
And the company in question knew it worked, because they did it on a load of different products.
Problem is, nobody checked in on this campaign for a year!
They were buying around 1000 customers per month, that’s a £25,000 spend each month, and the initial sales were generating £4990.
That left a loss of £20,010 to make back.
Totally possible, and probably without a huge amount of effort.
But, as I said, nobody checked in for a year.
Eventually, when a manager decided to check this campaign, they discovered…
After the first sale, the one where they paid for the lead, the leads weren’t being used!
Nothing was being emailed to them!
In fact, no other contact had EVER been made!
They;d been losing £20,010 a month, for twelve months, because nobody had bothered to check if these leads were being properly followed up and sold something else.
That’s a £240,120 loss because nobody bothered to check in where money was going and coming from at least once every three months.
But here’s the great thing…
It cost them £240,120 to learn that lesson.
It costs you the five minutes you just spent reading this email 😉
Over ‘n out,