I had sent out an email to a few people yesterday about the power of a system. It was well received, so I wanted to share it with you as well.
When marketing yourself — online or offline — you need to know two numbers in order to be successful. Sadly, most agents (small businesses in general, actually) do not know these numbers.
The first number you must know is called your (CPA) Cost per Acquisition – how much does it cost you to pick up a client?
Do you know this number?
Add up all your marketing costs (networking events, Facebook, billboards, radio spots, post cards, etc) and divide that number by the number of clients you generated in that time period.
That will give you your CPA.
With online marketing, it makes it much easier to track this number, although you certainly can do it with your offline efforts as well. You’ll also have to factor in your time as well, as that is extremely important.
The second number you need to figure out is (LTV) Lifetime Value – how much is a client worth to you over their lifetime? You must include referrals in this number as well. This number can be a bit tricky to calculate, but you should be able to get a general idea.
Your LTV must be higher than your CPA or you’re going to go out of business. This happens to a lot of businesses, but it’s because they do not know these two numbers.
For every $350 you invested into “your marketing machine”, it meant a signed contract ($350 is an example, it could be more or less).
Wouldn’t it be nice to know those numbers?
Lets say you want to close 2 deals per month.
You would have to invest $700 per month.
You want to close a deal per week (4 deals per month)?
Just invest $1,400 into your machine.
As long as your CPA is less than your LTV, you’re in good shape. Since your commissions are in the thousands, it would be very hard to not be profitable with online marketing.
If you know how to build the proper system that it. That is a big “if”, but I show you how in in FREE report below.