Do you know how much you buy your customers for?

Did you realize that you buy your customers?

Hi, I’m Doug Barra, and in this episode of BusinessSUCCESS, we’ll explore one of the basic tenants of business: how much do you pay for each new customer that you acquire?

All business owners need to know their customer acquisition cost. This is one of the key numbers to know inside of your business growth strategy. Please take a moment now and like this video. This helps others get the opportunity to see this information. And share it with one person that will get value from it.

So how do you calculate your customer acquisition cost? In simple terms, if you invest $10,000 in sales and marketing and you get 100 new customers, then each customer costs you $100. Now the investment in sales and marketing is where you might not be including all the costs involved. Your investment includes your marketing costs, commissions, materials, credit card fees, and any other related expenses.

Then you take that number and divide it by the number of new customers. The problem is you may not always capture the total costs of customer acquisition. It is often the unseen costs that can sneak up on even the most intelligent business owner. Think about these points. Do you have people outside the sales and marketing departments doing sales and marketing work? For example, if you have someone in your administrative staff stuffing sales flyers into envelopes, their time for that effort needs to count towards your costs for sales and marketing.

Do you include the costs involved with your website, your landing pages, CRM, blogging, article writing, content management, and social media? If not, that is a mistake since all those items are important for your sales and marketing. Do you routinely send non-sales and marketing team members to events where they come into contact with potential customers?

This can be at trade shows, networking events, industry education meetings. This contact contributes to the sales and marketing of the company. As you can see, it is crucial to know the extra things that are adding to your sales and marketing costs. Why is this so important? Because it’s a key component of knowing the profitability and scalability of your business.

Now don’t be fooled into thinking that you must reduce your acquisition costs at all costs. That could be a fatal mistake. And it isn’t necessary if you understand what the lifetime value of a customer is to your business. If your cost for a customer is less than their lifetime value, your business is making money on each new customer. If not, then you can look at lowering your costs or, better yet, raising your lifetime value. But this is a subject of another video.

Would you like to experience the freedom of business ownership? What if you could have your business create more wealth for you without having to devote more of your time?

This is what’s available when you build a solid foundation for your business. I have created this resource to show you the roadmap to that kind of business success. I call it

“The Insider’s Guide To Success In Business,”

and you can download your FREE copy by clicking the link below this video or by visiting insidersguidetosuccessinbusiness.com. I’d love to know what your cost is for buying customers or what questions you have. Leave me a comment. I read them all.

Remember, please like this video and subscribe to our YouTube channel and be sure to click the bell for all notifications so you don’t miss a single episode. Once again, this is Doug Barra, and now it’s your turn. Click the link, download your FREE guide, take your business to the next level, and I’ll see you in our next video.