Business Growth With Paid Traffic [06:10]
Hey this is Charles Kirkland founder of the Media Buyer Association. We’re going to be talking about growth today. Now this is one of the biggest issues that marketers and businesses have. They believe their growth is supposed to be like this – hockey stick. Day One. Day 30. I mean you’re already a gazillionaire.
This point we’re selling out. We’re cashing out this business, buying us a small island in the Caribbean. Life is good. Buy plenty of suntan lotion. Unfortunately that is not realistic – far from it. Now we need to talk about some realistic growth.
How do you get it? The biggest problem that marketers have is they believe in the magic unicorn. The magic unicorn comes by and gives them leads, sales, and conversions. Everything they need in life is from the magic unicorn. Magic unicorns only exist in people selling you whatever they’ve got, because Lord knows, if they actually tell you it takes work. It may not be what you want.
But let’s talk about growth here. Let’s say we’ve got a business. And we want to get this kind of growth. Is it impossible? No. Is it doable? Yes. The thing that you have to understand is it takes many, many, many, many, many – and I mean a whole lot of things working together.
So let’s talk about this. Let’s just say we initially start a business. And let’s just say we’re only using Google ad words. Could be Facebook, could be anything. But let’s just say only Google ad words when people are searching in Google, on the home page, we’re showing up. And we’re actually breaking even. Sounds good. I like that. We’re getting people to the site. We’re breaking even.
So lets just say that brings us to here. Well, the problem that we have is you may actually- Let’s say we’re searching for a 10 x 12 shed. Maybe we have 90 percent of the frequency share. Let’s just say somebody searching for this – you get 1,000 searches a day. And 900 times, your ad is number one, number two, number three. Going back and – well let me just double my ad. I need some more exposure.
Doubling the amount of money you’re willing to spend, is not going to double your ROI. It’ll actually drive up your ad costs significantly and you’re still not going to get a much larger share –
So your ROI is not there. In theory, you’d think, “Charles I doubled my price, I should double my share.” No. That doesn’t happen.
Okay so we’re at Google here. I like Google. Let’s just say that now we start using Google retargeting and we also decided to go ahead and use Google’s display network, and we’re using, maybe, Google and YouTube together. Let’s just say that we’ve got Google and YouTube ads and stuff. That may take us here. Do you see that now we’ve combined an additional source of traffic? That’s doing good.
Let’s just say that we’re doing good. Let’s go ahead and say we need to grow a little more. You’re going to reach a revenue saturation where your revenue – you can’t get anymore out of what you put in. Your ROI is maxed. You can’t go any further with these traffic sources. Let’s say we add Facebook. Facebook retargeting. Facebook ads. Create a fan page. Draw people to the fan page. Get them to like your page. Communicate with your page, whether it’s a group, whatever the case may be.
Do you see how we’ve added different parts of Google? And now, let’s go ahead and add in some MSN here. And MSN’s doing good. Let’s go ahead and add MSN, which is about to have MSN retargeting, which is extremely exciting. In general, MSN buyers, from my experience, buy a little more than a Google buyer. But just follow me with this.
Now let’s add SMS text messaging here. Now we can actually get everyone who’s through this entire funnel to give us- you know- well at least present them the opportunity to give us their phone number. So we’re growing. And let’s go over here and start doing email solo drops. So we go out to people and companies – that we’re doing sole emails – we’re buying that – make sure you use impression lists. And maybe we’re at JVs.
So I’ve got JVs, email, SMS, MSN, Facebook, and the big G down here for Google. Now the problem that most marketers have is they only want to use one of these – maybe it’s JVs, emails, whatever the case may be. They only want to use one of them. And they expect for that one thing to give them this giant result. “Charles, that’s relatively unrealistic.” You have to have multiple traffic sources all going together, because guess what?
The Facebook traffic now gets retargeted via Google, through Google retargeting. And now you’ve got Facebook retargeting. We’re about to have MSN retargeting. You use SMS and email to drive your traffic daily. You do joint ventures and all that’s retargeted, going back here. Do you see how this creates a massive, massive, massive, massive wheel? Each one builds upon itself. Each one, by themselves, can do a little bit. When you combine them together, you can start getting hyper- hyper-growth. And that’s what you need to look at in your business.
The issue that you need to comprehend is none of this will work if you don’t have a quality product or you don’t have a product that’s got a decent lifetime value. One of my coaching clients owns a video game company. And we’re talking and he’s like, yeah- when they look at the lifespan of their buyer, they’re not looking at days, weeks a month. They’re literally looking at years. So just think about that.
If your product is – let’s just say the lifespan of your product is two months, three months, or the lifespan of your lead is two or three months. You really can’t get this kind of growth. Unfortunately, yeah, you may get right here. That’s the end of the story. May not go any further than that. So make sure that you’ve got a good product. You’ve got a good customer base that they’re going to be with you long term, because the longer they’re with you, the more money you can afford to spend to acquire that lead. The longer they’re going to be with you, the more money they’re giving you back. And therefore, it makes it very easy to grow that business.
I hope you enjoyed it, as always. By the way if you want to go ahead and look at joining the Media Buyer Association, or learn more cool tricks like this, click the link below, and I’ll see you on the other side. This is Charles Kirkland. Have a good one.