This is a common question from my new clients.
But I don't hit them right away with marketing formulas and excel calculations.
Instead, I ask something simple and a bit strange at first glance.
How much are You comfortable spending on an Ad that brings in ONE customer?
$10?
$50?
$1000?
This way, we're figuring out a specific price that just FEELS right or wrong for each person.
Then we find out why this particular price FEELS either comfortable or uncomfortable for him/her?
Where did they personally GET it from?
It might seem like a waste of time to discuss all of this.
But my 9+ years of experience in digital marketing show that it's necessary.
Guys, let me explain.
This is not about mathematics, but about psychology.
Advertising is all about money.
Where there's money, there's always risk.
And where there's risk, You'll often find fear, leading to poor, irrational business decisions.
In other words, people often have an irrational approach to advertising investment from the start.
That's why, personally, I first seek comfort for the client to show them there's nothing to fear.
Advertising is always a risk, but it won't kill them, their family, or their business.
Such comfort builds trust.
Trust leads to effective collaboration.
And only then we dive into the math, into various marketing calculations like ROI, CPC, CPM, and so on.
I like it when a client begins to find his own mathematics and motivation.
You begin to understand how much to invest in advertising.
What You can/can't afford at this stage.
What reasonable results to expect.
Yes, You are well aware that there are risks, but these risks will not kill You or Your business.
You start to focus on the right rational things, which leads to business growth.