Tip 60) Why marketing is an investment, not an expense

While your accountant will tell you that marketing is an expense, the entrepreneurial mindset views marketing as an investment.

​The greater the difference between what it costs you to acquire a customer and the lifetime value of the goods or services sold to that customer, the greater your profit potential and return on investment.

For example:
You spend £100 on flyers. You only attract one client, who spends an average of £50 with you, making you £25 profit. You could be pretty disappointed with that...

But if that client then goes on to spend £50 with you every month for the next 12 months, would you consider that a successful campaign?

Absolutely!

You spent £100 and made £300 profit. Personally I'd be spending £100 every week if it made me £300 profit!

This is why you must track every piece of marketing you do and understand your average customer spend. You can't make good marketing decisions if you don't. 

To your success

Jo x

P.S. As always, if you need help, either pop along to one of our online Mastermind sessions or contact me for a 1-2-1.​