How Much Marketing Do You Need?
       

alt Isn't that the $40 million dollar question? We all need clients. We all need sales. But, how much marketing do we need to get there? I ask every prospect what their marketing budget is when we first meet. You might think it's to figure out how much to charge. Not true. I want to know if...

Isn't that the $40 million dollar question? We all need clients. We all need sales. But, how much marketing do we need to get there? I ask every prospect what their marketing budget is when we first meet. You might think it's to figure out how much to charge. Not true. I want to know if

 

they know their budget, because if they haven't done the math I probably can't help. Blind leading, deaf-dumb-blind rarely goes well.
 

Simple Formula:
 Like most calculations you can get your answer by starting with the goal. Try plugging numbers into this formula.
Annual Revenue Goal/Average Annual Revenue per Client = # Clients

# Clients/Conversion % = Leads Needed
Conversion % is usually the big unknown: Most businesses don't take the time to learn this number intimately. When management does not monitor conversion % by media, campaign and salesperson they have no idea where the problem is and the blame-game begins. 
{use your best whiney voice}
Sales:  "Marketing isn't sending us quality leads."
Marketing:       "Sales isn't converting our leads."
Live and Die by Conversion %:  Sales people hate this. Too bad. They are the catalyst to revenue. Neither Marketing nor Business Development can close deals. A sales person is the final step. If your sales team will not take ownership of conversion % or you let them slide, your revenue goals are sure to be unmet.
If you can accept the responsibility for ruthless conversion tracking you will elevate yourself and team to true rock star status. Most businesses are too frightened to learn the truth.
That said: Is your conversion % amazing? Anyone who can document overall conversion of over 50%, send me an email. I may publish your story or interview you.


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Paula Pollock is CEO of the Pollock Marketing Group, further assisting good companies in becoming great through outsourced marketing services with her team of professionals. PMG supports business marketing at all levels from DIY, short-term projects and campaign corrections. You can sign up to receive her Marketing Tips newsletter at www.paulapollock.com

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Tamara Silberman  - Distributor     |24.4.117.xxx |2010-07-04 16:39:26
What people need to do is stay in touch PERSONALLY with their clients. There is nothing like a personalized thank you or birthday card.
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