 Customer acquisition calculator. Create a profitable strategy for your business, part one of two. Now, guys, this is a two-part video series. You really should go watch part two. I'll have a link in the description below so you can go over and do that. But we're going to talk about getting customers. If you want to get more customers, whether you're selling digital products, physical products, services, it doesn't matter. You're going to want to watch this video to the very end. I also have a course, a $97 course absolutely free, and I'll tell you how to get that too. Now, whether you are trying to get your first 10 customers or you're trying to get your 10,000th customer, customer acquisition is always going to be a thing. It's something you're always going to need to work on. Now, it shouldn't be a product of, you know, well, I've got 10 more customers this month. I don't know where they came from, but I got 10 more customers. It should actually be a process. It should be actually something that you're working towards, not just, you know, I got more customers. I just don't know where they came from. You should know where they come from. You should actively be going out and getting them. And in this video, I want to show you exactly how to do that. Okay. I want to put a graphic up on the screen so you can kind of see, you know, where they come from first off. Okay. So the first part, your leads, you can see they come from awareness and interest. Okay. So they become aware of you through a video or through an ad or they were surfing the Internet or whatever it is. And then they develop some interest. The next stage of this is called consideration. Consideration is they're like, yeah, okay. I've heard about this company. You know, maybe they're for me. I think I'm going to do a little bit more research on them. I think I'm going to look at some of their products. That's where they get into intent. They're actually intent on possibly doing business with you. And then they evaluate what you've got. You know, they maybe read your descriptions. They look at your products. They look at your reviews. And they evaluate it. And then it comes right down to the actual purchase of the product and they become customers. So you can see their leads, prospects, and then customers. Now, as we're acquiring customers, especially for running ads, that's a whole lot easier to do. We have what's called a CAC or customer acquisition cost. How much does it actually cost you to get a customer? Let's take, for example, you run ads on Instagram. And on Instagram, let's say you spend, I don't know, $500 a month on creating whatever content you're going to create or running ads or whatever it is. And you get 50 customers out of that. So your customer acquisition cost was $10 per customer. So 10 times 50 gives you 500, which is exactly what you spent. Now, we need to look at this because we want to make sure our customer acquisition cost is going to be profitable. Let me give you an example. Let's say that you acquire a customer and that customer's average spend, okay, you got to look at average, some are going to be higher, some are going to be lower. But let's say it's $50. Now, we take that $50 and we say, well, how much of that is profit? And we say, well, 50% of that $50 normally is profit. So that leaves me $25 profit. Now, if my customer acquisition cost was $10 per customer, like I just said, I spent $500 and I got 50 customers that gave me a customer acquisition cost of $10. And my profit, when they do buy is $25, I've got to subtract out that customer acquisition cost to come to a profit of $15. I hope that makes sense, okay? So I've got a $25 profit minus the $10 customer acquisition cost. My profit is now $15 on that product. Now, in some cases, you want to look at your lifetime value of a customer, okay? That is LTV, lifetime value of the customer. And the reason you want to do that is because once you get positioned, once you have a little bit of money, you will probably spend more for that customer than you will make profit on their first sale. But you may realize that on down the road, the average customer is going to spend X number of dollars. Like we know the average customer at our survival food company is going to spend several hundred dollars. So if we run an ad, if we do customer acquisition and we gain a customer and we lose $50 or $100, it's not a big deal because we know they're going to spend several hundred dollars over the lifetime of that particular customer. Now, you do have to have the money to build up that audience, right? But you know you're going to get it back because they do repeat purchases. And that's how we look at it. Now, what I'd like to do is just put some averages up on the screen. This certainly is not accurate, but it's an average for each industry. So let's check it out. We've got arts and entertainment. Customer acquisition cost is $21 on average. Business and industrial, check that out. $533. Clothing shoes and or accessories, $129. Electronics and or electronics accessories is $377. Food, beverage and tobacco products is $462. Wow, I would never have thought that. Health and beauty is $127. Home and garden is $129. Looks like arts and entertainment is the way to go, right? Because it's so low. But what is the profit margin on arts and entertainment? I mean, let's say a movie theater is arts and entertainment, you know, somebody's going to spend $15 or $20 to go to a movie. So you're not going to make a whole lot of money back, but some of the business things that you do and some of the courses you could sell, that can be quite profitable because that's the area that we're in. So you've got this budget and you want to acquire some customers, but you're not sure where to put the money. Let's look at some of the things you can do. The first thing is paid advertising. Okay, you can certainly do paid advertising where you actually run an ad. You run it on Facebook. You run it on Google. You run it on YouTube. But that's the first way of doing it. The second way is influencer advertising. Okay? Influencer advertising is where you find somebody that matches up with your brand and they talk about it. They sample it. They demonstrate it. Influencers nowadays can be vastly helpful because they have influence, okay? They have an audience of people that follow them and listen to them and buy products. If you were to just put your product out on TV, okay? Listen, you're going to put it on TV. It's going to go out to everybody, okay? It doesn't go out to a specific group of people. So, you know, even television and radio for years has been using influencers. They'll use celebrities, right? They use sports figures. They know that the value of having an influencer is incredibly helpful when you're selling a product. The next thing is one of my favorites. I love it. And that's email. Email marketing, okay? I can send out an email and I know I'm going to make money within hours when I send out an email because I've already built my own audience. In the beginning, you won't have your own audience, but that doesn't mean you shouldn't start sending out emails to whoever you have, okay? The audience will build. You can also use referral programs. I use referral programs. I think that's a good way to get more customers in the door, too. Referral programs, where you pay somebody else to bring you customers, works great. Number five is traditional advertising. Traditional advertising would be newspaper, radio, television, that type of thing. That's one way to get your product out. But understand, you can't target it very well on those medias, but it is a way to advertise. And if you ever check into it, late night ads on TV are very, very inexpensive. Number six is search engine optimization. I do spend money on this. I work on this myself. It's a hard thing to wrap your hands around because there's so much to do, but it's very, very important because when people search online, you're basically getting free customers if you look at your web pages. Number seven, and I kind of touched upon this when I said email marketing, but audience building, okay? How are you going to build your audience? If I spend money out there to run ads, to give people free downloads on how to protect their home and family, I know those people are concerned about protecting their family, which they may also be concerned about having survival food, which is what we sell. So you can spend money and build your audience. And that's what you have to market to once you've built that list. The next thing is content marketing. I'm actually doing content marketing right now. I'm doing free content. I'm talking to you guys. I'm sharing with you ways that you can make money. And that's content marketing because you're going to hear me talk and you're going to say, well, that makes sense. I like that. What else does he have? I do have courses, right? I'm going to talk about content marketing. I can also write blogs. I can write articles. They don't all have to be videos. All of those things are content marketing. Things that help people out where they can click and maybe buy your product or click and learn more about your company after they've consumed that content. It works very well. Now, I'd like to put another graphic on the screen and it has to do with areas that people trust. There's a question ask. In general, which type of advertising channels do you trust more when you want to make a purchase? The first one up there is print ads in newspapers and magazines. And then there's TV ads. And then there's ads and catalogs. And as you can see, it really drops down. You know, ads and podcasts are way at the bottom. But keep in mind, ads and podcasts haven't even existed up until just recently. Online pop-ups don't do as well. But you can see all the different places there. And you can also see that search engine stuff is right in the middle now. It's really, really grown where it didn't even exist before. Now, keep in mind, some of these things don't work as well as they should because there are things that prevent it now. Like a lot of pop-up ads, people can block now. So they won't see those ads anymore. A lot of people are desensitized to a lot of the ads that are out there because they see so much online. So that's why I like to do content out there. That's why I've put over 1,100 videos on this channel. Yeah, check it out. 1,100 videos on this channel. At the time that I'm recording this, I don't know how many it will be by the time you watch this video. But bottom line is I like to give before I take. And I think that is a really good rule of thumb when you're really trying to build your audience. In video two, I'm going to go over some more ways that you can market your company and really get good results. So that's it for this video. I hope you got something out of it. There's more detail in video two. And I think that's going to open up some more opportunities for you. It's going to probably open up your imagination too. So you'll want to check that out. There is going to be a link below for video two in this series. I want to thank you so much for watching this video. If you haven't subscribed yet, please do so. Hit that subscribe button below. Turn it from red to gray. And don't forget to ring the bell. Turn on all bell notifications so you are notified each and every single time I go live. Thank you so much for watching this video. Put your comments below. Introduce yourself. Say hi. Okay? 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