What’s Hard About Digital Marketing?

It’s easy to justify marketing spend. What’s really hard…validating that spend.

Validation: the action of checking or proving the validity or accuracy of something.

My goal with every advertising campaign is to make you $10 for every $1 spent on digital advertisements. Does that seem like a lot?

But even a 1000% return on investment doesn’t mean you actually made money.

That’s a 10X (1000%) return on investment (ROI).

Let’s say your products costs $100 (MSRP) and costs you $20 to make (80% net revenue).

Now let’s adjust for the cost of actually delivering that product.

Shipping = $5
Transaction Fees: $3
Advertising and Marketing: $10
Overhead inventory: $10

$100 less total cost of goods sold so far = $31 for overhead + $20 to make the product = $54

Want to sell that product on Amazon? Subtract another $20.

So let’s just say that if

Continuing, your overhead costs (keeping the lights on, paying your employees) costs you about 60% o

For 99.9% of sites, that rate is probably closer to 0%. And that’s okay. One of the biggest differences in overhead websites costs is whether or not your require the infrastructure

It certainly doesn’t mean they’ll buy it. Not even if the want it.

Selling products online is competitive. It’s easy to eat up your margins before you’ve cleared any sales. This is not the field of dreams. It’s a long-term game that requires a long-term strategy.

If you’re tired of burning through your budget faster than you can say “advertising agency”, then you’ve come to the right place. We don’t need to reinvent the wheel; we just need to provide information in a more compelling and organized way than our competitors.

I build lean marketing and advertising campaigns that connect ideal customers…the ones that deliver long-term profits and repeat purchases. I catch the bigger, badder fish and leave the junk trophies for my competitors. But first, what are we trying to catch?

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