Here’s an excellent technique that I learnt recently about how to ensure that you’re maximising your marketing spend without ever going over your marketing budget.
It’s all about recycling. Recycling your marketing budget. It’s devilishly simple, but very effective.
…Lets say that you’re going to spend £500 on a marketing campaign. A leaflet drop, a newspaper ad etc. That’s £500 that you’re prepared to spend and take out of your business.
So, you’ve allocated that £500 as part of your marketing budget and your aim now is to get that (and more) back as quickly as you possibly so that you can reinvest it asap.
So, for example, lets say that this spend has returned £2000. Take the first £500 from the return and put that back into your marketing budget. Then repeat the campaign.
Now, some business owners will think “Hold on, then that’s £1000 spent on marketing” – Well yes, it is, but all you’re doing is recycling the first £500.
When I find marketing that works, I want to do it as many times as possible. If every time I spend £500 I get a return of £2000, then I want to spend as many £500’s as I possibly can.
It’s by this approach tied in with careful monitoring of your marketing returns that you can build and develop a large marketing machine without overspending and letting your expenditure run away with you.
I told you it was simple!