As a business owner you try to find the most effective way of getting things done. Let’s break that idea down, how do you find the most effective process?
When I was about 20 years old I started my first business. I noticed that Pizza places give out flyers in the mailbox. It wasn’t too long before I was giving out the flyers of most of the pizza places in my area. That business expanded to other fields as well. fields like plumbing, cleaning and other self employed professionals.
For my clients I was the main stream of New leads. At One point a new trend started, a trend of magnets on the door. The trend was catching on really fast. And though it was getting a lot of attention, self employed professionals who switched to that method found themselves out of business within a few short months.
The reason this happen to them, is that the didn’t calculate what was more effective. Giving out 1000 flyers cost about $17. That includes the price of printing the flyers and the price of getting it out. Giving out 1000 magnets cost about $125. See the difference?
The magnets had a better conversion rate, but that wasn’t enough. 1000 flyers where able to generate between 2 to 3 calls from potential clients, also known as leeds. 1000 magnets where able to generate 5 to 7 calls. To someone who doesn’t calculate cost effectiveness the magnets would seem to be a better deal. But if you take into account that they cost 7.3 times as much as the Flyers do. They are not worth your time or money.
In today’s world, flyers and magnets don’t have as high an impact as they did 20 years ago. Testing out what works it’s timeless. You need to understand what works better for you, and what is more effective.