If you have something to sell, and someone to sell it to, you’re in business! That’s the easy part. To actually grow your business you need to systematically connect the thing that you sell to your customers, and do it at scale.
You have to know:
Take this example (with numbers, stick with me, it’s worth it):
#1 A medical clinic wants new patients for a procedure they are offering. They sell the procedure for $1500.
They are willing to spend $500 on getting a new patient in the door, which leaves a profit of $1000 (before costs). By the way, they are also counting on making even more from each new patient with follow up appointments and complementary services.
#2 For every 100 people that show an interest in the procedure, they find 10 people who sign up. That’s a closing rate of 10%.
#3 If they are willing to spend $500 to get one new patient, they can afford to buy leads for $50 ($500 * 10%) and know, without a shadow of a doubt, that they will be profitable.
How do you buy leads?
Paid advertising, of course. No, not billboards, TV ads or radio spots. Digital advertising is the prescription for this job.
Digital advertising – usually called PPC, Facebook ads or Adwords – has ultra specific metrics so you can see exactly how much a lead costs. There are checks and balances to make sure you absolutely make money.
No more throwing money into a void and wondering if it was worth it. Understanding these three numbers is the only thing you need for predictable, scalable business growth.