Do you think it’s a waste of money to do paid advertising?
Don’t worry. Lots of people think it will cut into their
profit margins. But you can’t compare the difference of paid vs free if you
haven’t done both first.
It’s better if I illustrate with a story…
Last night I promised to take Aya out.
She’s 6 months preggers, so our choices these days are
She’s never been a big fan of cinema, but lately we’ve been
doing a lot of that. Especially because I once tactfully explained to her that
once our baby is born, we’re not going to be able to see a movie in cinemas for
a few years.
Anyway that’s not the point…
When the movie was finished I noticed it was a little early,
so I offered to take her for a drive and a quick snack. She felt like having a
Thursday-night traffic is awful…so I decided to head into The
Springs…near enough to our house with a 24-hour Wendy’s.
After making our order, I pulled out my Debit Card to pay.
To my shock and utter humiliation, the guy says, “Sorry. Cash
I’m not carrying cash.
It’s either head to the ATM at the shop next door or ask Aya
I wouldn’t be much of a gentleman if I let the lady pay, so I
went to the shop next door.
There, I saw pretty much every snack you can imagine. Lots
of choices, a bakery, a milkshake stand…and had it not been for Aya following
me a few minutes later and telling me she paid already, I may have done exactly
It’s not the first time I’ve been put in this embarrassing
As you know, a merchant typically has to pay transaction fees
on card payments. Between 2.5 – 4% depending on the provider…
The Wendy’s administration in UAE is a bunch of greedy
fucks. As I discovered, ALL Wendy’s in UAE do are cash only.
While they may avoid transaction fee costs…just think how
much business they’re losing on the flip-side.
How many customers they inconvenienced into NOT buying.
It’s easy for anyone with two wires in their brain to
measure the “savings” by doing simplistic expense-reducing measures like not
But it needs someone with a little vision to
understand how much business they lose by inconveniencing their customers.
For example, on our 60 AED order, they might have saved 2.4
AED in transaction fees. In a simpleton’s mind, that might add up to a lot of saving , especially if you take into account the volume of transactions that go through on a daily basis.
But what if we’d taken our business elsewhere?
How do you measure the cost of the business you DID NOT get?
How many people would have gone next door to get cash and
decided to buy from there instead?
How many don’t go to Wendy’s in the first place when they don’t
It’s no different for advertising online!
An online marketer who doesn’t do paid advertising probably eliminates
the expense of advertising. They might even save a lot of money.
But how much more business are they NOT getting?
Do you know how many people are out there looking for your
exact product or service…ready to spend money on it…that you’re not reaching
because you refuse to advertise?
Do you know how much that “saving” is actually costing you?
There’s no way to know.
There has to be a reason why i’m so damn hot for paid search advertising. i know how to do lots of different ad methods, many free ones even…but i don’t waste my time with them.
Look, no body LIKES to spend money that they don’t NEED to…but the flip-side is this:
If I don’t advertise, I don’t get buyers.
To me the choice is simple:
Advertise and get daily sales, while paying a tiny
percentage of my profit margin…
Or DON’T advertise and get few sales, while keeping my
entire profit margin.
To keep 100% of ZERO is still a big fat ZERO. I’d rather
keep 90%, 50%, or even 10% of SOMETHING … and get it often than get 100% of
Anyway, that’s the lesson for today.
You may THINK you’re saving by not advertising, but you’re actually
losing unimaginable sums of money from customers who never “walk in” in the
If you want to learn to save some of those lost sales, learn
to do PPC Advertising using my KickStart method.
It makes your advertising
profitable and keeps your advertising expenses down, especially if you’re a small start-up.
Learn it here:
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