What Should You Spend on Advertising? – Businessweek

Pile of Cash

With the start of a new year comes new goals and new budgets. One bothersome question that small business owners wrestle with all the time is how much of your budget and/or income should be dedicated to marketing or advertising. The successful business will have an answer to this question. The failures will not.

Cover of BusinessWeek

Read this article from Businessweek then come back and let me enlighten you with more tangible information.

What Should You Spend on Advertising? – Businessweek.

A marketing expert said in a seminar I attended today that each business should dedicate 10-15% of their gross income to marketing. He correctly pointed out the few business actually do this. The Businessweek article says to look for examples from similar public traded companies and base your decision on them. Another way, they say, is to start at 5% of revenue and move your spending up or down depending on several factors. It’s assumed that “revenue” they refer to is “net-revenue” otherwise I can’t imagine them recommending that a growing business would spend so little.

In a blog entitled Marketing as a Percentage of Revenue Benchmarks blogger Jeff Grill  provides far more detailed survey results on what other companies do, and thus gains credibility in my eyes.

Time invested in marketing/advertising must be factored in. And when doing so judge the time in terms of dollars. How much would it cost you to hire someone to do what you do? That’s the determining factor. Far too many entrepreneurs pay themselves far too little, and one should not base their calculations on such an unrealistic figure.

From my standpoint business owners and managers are no different from others and can get lost in the world of marketing, or social media; two not too divergent characters any more. Your time is best spent making money. Any “How-to” book on starting or running your own business will tell you this. Find a marketing expert who can demonstrate the success they will bring for you or the time they will save for you will ultimately make you more money, since you’ll be focused on serving your customers and making money.

Another great mistake made by small business is to pull back money from advertising when the economy softens. It’s exactly the opposite of what should be done. When dollars are hard to come by you need to increase your efforts to get some. Cut back elsewhere.

Total Broadcasting Service helps small business in so many different fields. we strive to be a one stop shop for small business marketing. Website design, Video production, radio advertising, and SEO expertise are our primary areas of focus. We’d be honored if you called us to assist your business.

Thanks for visiting. Comments are welcome.

Be Yourself on Social Media.

Image representing Facebook as depicted in Cru...

I joined Facebook with my personal profile page in May 2008, and some would say at that point a monster was made. The truth isn’t quite so dramatic and was in fact a slow evolving process. Now I’m very active on Social Media and a lot of it is for fun, but most of it is a calculated effort to promote my company Total Broadcasting Service, and recently my wife and my Advisor status with the direct sales company, AdvoCare.

The truth is the “monster” reference above refers to both my frequency of posts and my willingness to break some long-standing “rules” for business and networking. The big one of which I refer is “never talk religion or politics”. It’s long been believed crossing the line into those two subjects is a sure way to lose customers or potential customers. Well, I’m a happy example of how that “rule” is largely myth. And I’ve come to the conclusion that the politics and religion banishment from social media discussion or business and networking discussion is created mostly by people who are personally more reserved anyway.

Nothing is wrong with being more tightly guarded about your thoughts, actions, or beliefs. But those who are ought not unfairly judge those of us who are happily more vocal. After all, if everyone held ideas so closely to the vest and never shared them how would people learn and grow and solve problems. It’s the more boisterous in society who call attention to problems and those problem’s solutions.

FB Tower pic w-number

Total Broadcasting Service is an eight year old company. We’re a radio advertising brokerage and audio production company that has added video production for internet marketing to our list of services. We experienced four years of growth after beginning operations in 2005, and then fell on hard times like so many others in 2009. We saw a lot of customers close their doors that year. Since then every year has gotten progressively better. And in 2012 we have recorded our best year ever in terms of gross income.

What I find interesting about this is the fact that 2012 was an election year and I made no secret about my support for what the election determined was a minority opinion. Not only was it a minority opinion nationally, but my Conservative politics was and remains an extreme minority opinion where I live and where most of my business originates from, in King County, Washington. So how can it be possible that my business has continued to grow and support my family with what amounts to an above-average income and life-style?

Stephen Colbert in New York City at Border's s...

Stephen Colbert

As Comedy Central’s Stephen Colbert demanded to know during the Chick-fil-A vs Gay Marriage controversy last Summer, “I’ve got to know what positions my food has taken on all the issues. For example, I love Carl Jr’s Western Burger. It must be anti-ObamaCare, because it is clearly trying to kill us. And whenever I go to Applebee’s, I insist that they only give me right wings. After all, you are what you eat. And now, you also believe what you eat.”

The absurdity of Colbert’s comment should be obvious. And to me the obvious conclusion I’ve come to is that most people don’t care about politics or religion. Traditionally poor voter turnout proves this fact. Studies showing only about 50% of Americans regularly attend church further proves it.

Like Adam Smith clearly enunciated in his seminal book, The Wealth of Nations“, 

Profile of Adam Smith

Adam Smith

everyone cares about their own selfish interests. And that’s a good thing. Because in caring for our own selfish interests we as individuals and individual businesses are stronger and better able to serve specific customers and the general populace. Weak people and weak businesses serve very few. And in caring for their own selfish interests people care little about my politics or religion. They care about whether my business can make their lives better, something we constantly strive to do. And we strive with equal fervor for our Liberal customers as for our Conservative customers; for our Christian customers as for our Jewish, Buddhist, Atheist, or Muslim customers. Doing so is in our best interest.

My efforts on Social Media now include regular posts to my Facebook personal page, business page, and personality page. In 2010 I added Twitter and LinkedIn personally and for business to my Social Media promotional efforts. And in 2012 Pinterest began receiving our attention. And we are bloggers here on M Schuett blah blah blah. (We’re also on Biznik. But since they started charge money for even their most basic profile page we discontinued our subscription). Selfish advocacy of my political and moral points of view are frequent subjects of my posts. But foremost at ALL TIMES is merely to be interesting to as many people as possible in order to promote my business interests; Total Broadcasting Service, and in the past 3-4 months, AdvoCare health and nutrition.

AdvoCare allowed me and my wife to lose 30 lbs each in just 4 months.

AdvoCare allowed me and my wife to lose 30 lbs each in just 4 months.

Social Media experts will tell you that marketing through social media is not intended to get you direct business; but instead to keep your brand, product or service in the front-of-mind for potential customers. That’s true. But when you make yourself interesting on Social Media and are not afraid to “show a little leg” and make yourself vulnerable you gain credibility with even those who disagree with you. And in gaining credibility you gain direct customers. As we have. And we’re grateful.

Thanks for visiting. Comments are welcome.

Go Ahead Make Fun of MLM & Direct Sales. I Did.

Português do Brasil: Representação gráfica do ...

MLM or Multi-Level Marketing companies are a joke. But if that’s true, why are there 30-million Americans (1/10th of the country) involved in a Network Marketing Company?

Direct Sales companies don’t make you any money. But if that’s true how do you explain the checks I’ve been receiving for the two months I’ve been representing AdvoCare? Or the $20,000 per month a friend and his wife earn through Advocare in only three years representing this great company? And how do you explain the $153-billion spent on products and services provided by network marketing companies?

Like anything in life, its all what you put into it. AdvoCare or any MLM with a good product pays well to those who work and represent the products. To those who don’t, it doesn’t.

I’m a living example of getting out of work exactly what you put into work. In 1992 I began working in a sales job in my chosen industry of radio. I did OK for a couple of years and was pleased with myself. But others within my own office were doing better. I looked at most of them and said “What have they got that I don’t? Why can’t I sell as much and earn as much as them?”

So began my investment in myself. I spent thousands of dollars of my own money over the next few years on all kinds of seminars, books, videos and audio tapes with the goal of improving my sales ability and my income and my family’s lifestyle. Sales trainers like Brian Tracy, Tom Hopkins, Dr. Kerry Johnson and motivational speakers like Zig Ziglar

Live video feed of Zig Ziglar speaking at the ...

Zig Ziglar

became my mentors. It worked. In only 2-3 years I went from being an OK sales representative and among the top ten in my company to number one in my company. I regularly broke sales records for a 25 year old company that regularly employed around 40 sales reps. My sales were consistently 15-20% ahead of whoever was in second place. My income tripled. My family bought a 3000-square foot home in one of the more expensive suburbs in the country. And, after 13 years at that company I left it and started my own business, Total Broadcasting Service, and have been successful with it for 8 years (in spite of one of the worst economic downturns in U.S. history). I couldn’t have achieved any of this had I not put in the time to train myself and bring my sales from OK to OUTSTANDING.

The other day I posted a link on Facebook to my AdvoCare website, something I do periodically. A bold former “friend” made a particularly nasty, negative comment about MLM’s and me posting about my involvement with them and posting on FB about a direct sales company he clearly had no knowledge of. Given I really didn’t know the guy and only connected on FB because of a single mutual connection, he made it real easy for me to unfriend him. Who needs that kind of negativity?

But in making his Comment he also did me a favor. He reminded me of an attitude that exists in the eyes of many about direct sales companies like AdvoCare. He reminded me of how I felt about MLM’s. And if you are skeptical and even cynical toward AdvoCare and other multi-level marketing companies its OK to admit it. I was the same way. But if you can admit your cynism perhaps you can also admit you really don’t know much about the subject of MLM’s in general, or AdvoCare specifically. I didn’t.

I grew up watching my Mom chase the pot of gold under every rainbow that ever appeared. She was part of all kinds of MLM’s over many years, including the BIG one, Amway. Her failure to devote time and stay dedicated to any of these businesses ultimately guaranteed that she would never be successful with them. Her failures became my reality. Perhaps you are like me…I knew someone once who tried something like that and it didn’t work. Perhaps you can be fair and admit that “someone” didn’t tell you much. “Someone” didn’t stay with “it” long. “Someone” didn’t put in a lot of time toward their business during the short time they “tried” it. And “someone” got exactly out of their business everything that they put into it.

My wife and I became AdvoCare distributors because we tried their products and each lost 30 pounds of fat in 3 months. We became distributors because we saw our friend and his wife leave the “regular” work world and begin raising their kids with a healthy income and a freedom we could only envy. We became distributors to find three other families who wanted to join us in earning $5000-$10,000 per month while working less than 20 hours per week.

Let me educate you about a few things you may not know about network marketing companies. They’ve been highly successful in this country for at least 150-years. One of the early successes was the California Perfume Company which began in New York in 1890 with 10,000 sales representatives and later changed their name to Avon. 

Español: Logotipo de la empresa estadounidense...

The Fuller Brush Company began selling their products in 1905 and by 1919 had made over $1-million in sales. Fuller Brush and its business model spurred the creation of other companies you may have heard of including Stanley Home Products and Mary Kay Cosmetics which began operations in 1963 and was already selling $2-BILLION in products by 1996.

Tupperware became a world-wide billion dollar company through the direct sales method, and in so doing they became a name synonymous with all plastic air tight food and beverage containers.

And Amway grew out of the Nutrilite vitamin supplement company in 1949. By 1973 Amway had over-taken Nutrilite, and bought the company. Amway’s bad name, in the eyes of many, began when the Federal Trade Commission filed suite in 1975 against the company accusing them of being a pyramid scheme. By 1979 a Federal judge had ruled in favor of Amway. But unfortunately the “pyramid” tag stuck (as do so many false accusations but not exonerations). Still it didn’t prevent Amway from growing into a company with $11-BILLION in sales in 2011.

So with all these success stories I gotta ask just how do you mean “They don’t work”? Are you afraid of success? Certainly some people are, and that comes down to self-esteem issues we won’t get into in this blog.

But, again, with huge, immensely successful company’s like AdvoCare helping people achieve financial freedom all over this great country why not ask yourself to re-examine your own prejudices, like I had to do. I’m a successful businessman with a growing company, happily married for more than 25 years, a nice home and a lifestyle that many would be happy with. And I’m no dumby. And I enthusiastically became an AdvoCare Distributor and Advisor. I plunged into the world of MLM and so far the water’s fine.

Is AdvoCare and specifically direct-selling for you? Well, I would ask that you look at the recent Rookie Bonus earners in AdvoCare and see what a diverse bunch it is, from Orthopedic Surgeons, to stay-at-home moms. Anyone and everyone does this and education or previous high income (or low) have little to do with one’s success with AdvoCare.

Don’t be afraid. Learn for yourself.

Thanks for visiting. Comments are welcome.

Get Testimonials to Sell Your Business.

In seven years of operating my business, Total Broadcasting Service, I have been reminded by people, articles, videos, and by other means countless times to get testimonials from customers. It’s a long time business practice that is fabulous for giving your product or service credibility with those who don’t know you, who you would like to know you.

I don’t want to spend a lot of time explaining the benefits of getting testimonials. I think they’re self-evident.

Where I thought you (the reader) might benefit is hearing how I went about gathering the testimonials I will share here.

Since Total Broadcasting produces marketing videos shooting a testimonial was easy for me. But it can be easy for you too. I’ve asked a good handful of customers to do them for us. In asking I emphasize that they will be posted to our YouTube Channel, which has nearly 12-thousand views, and elsewhere on the internet so they and their business can get some exposure too.

Amongst our many services Total Broadcasting produces a line of customizable marketing videos for realtors and others in the real estate business. Bellevue, WA Realtor Justin Richards was asked by me to explain how he uses our videos and what he likes about them.

As you can see I close the video asking Justin to tell the video viewers about him, his services, and how to contact him. It’s a great way to make the testimonial you need be a win-win for everyone involved.

I did the same thing in this video for one of our customers who benefit from Total Broadcasting’s auto mechanic marketing videos.

If doing video is beyond your capabilities then get some testimonials in writing. One of the easiest ways to do this is to write the testimonial yourself. Doing so saves your customer the time of writing it themselves. You also benefit by being able to use the words and make the emphasis you want to make.

Testimonial Letter

KC Martin Automotive in Lynnwood, WA was kind enough to provide us with this testimonial letter.

All you need do is send the testimonial your wrote to your customer on a blank piece of paper. Send an accompanying letter saying something like this:

I’d like to request that you provide us with a testimonial letter attesting to your favorable impression of the work we have done for you. We would be happy to have you write it in your own words, but to save you time and trouble we’re providing you a sample of what you might like to write. If you agree with it just copy it onto a piece of your company’s letterhead, sign it with your name and title and mail it back to us. Thank you in advance very much for doing this for us.

You may sweeten the request AND do some advance selling by telling your customer that in exchange with providing you with this testimonial you will discount their next purchase by some fixed or percentage dollar amount. In no way does this cheapen the testimonial or make it insincere. Once again, it’s merely an easy way to turn the request into a win-win for you and the customer.

When you focus on making a win-win situation for your customer under any circumstance you go a long way toward building a successful business.

Thanks for visiting. Comments are welcome.

The Swings of Babe Ruth and Ty Cobb. Why aren’t there More of Them?

“Imitation is the best form of flattery” –Charles Caleb Colton

Babe Ruth and Ty Cobb

Babe Ruth with Ty Cobb

In the annals of sports the names Ty Cobb and Babe Ruth carry weight. Their accomplishments and fame extending far beyond the baseball diamond. Cobb was considered the best who ever played the game. And then came Ruth. Ruth is generally recognized as the greatest athlete of the 20th Century (or at least Top 3). Both Cobb and Ruth were well-rounded in their baseball skills. Cobb could run the bases like no one before, or since. Ruth was a record-setting pitcher before being moved to the outfield in order to better take advantage of his hitting. Ruth and Cobb made their names as hitters.

What has always fascinated and bewildered me is that in spite of their prolific accomplishments at the plate Ruth and Cobb had no imitators. Since their time as icons of baseball in the early 20th Century no one else has come along emulating some of Ruth and Cobb’s unique styles. I see this a lot in life. People come along in various fields and do something different from what everyone else is doing and they accomplish great things. And…then…nothing. No one follows the Master. No one imitates that which well accomplished people perform and subsequently continue with similar success. I’ve often wondered why that is.

Ruth’s batting stance featured him standing in the batters box with his spindly little legs and feet together, holding the bat very low, his hands at about waist level. He then stepped into the pitch, raised his bat and unleashed a powerful swing using his entire body for greater force. His follow through left his body twisted in such contortion that he resembled a human barber’s pole.

Babe Ruth

Several aspects of this stance and swing have never been duplicated. And yet when he finished playing Ruth’s 714 career home runs were so overwhelming that 2nd place on the career home run list was Lou Gehrig with less than half Ruth’s total.

Because of the age in which Cobb played video and photo’s of his “style” are much more rare. But what is certain is that Cobb swung the bat with a split grip. He says it gave him better control of the bat, as you would expect by simple analysis and the laws of leverage. Instead of holding the bat during his swing with his hands near the bat’s base, side-by-side with each other or slightly overlapped like all other hitters, Cobb gripped the bat with one hand NEAR the base and the other 3-5 inches higher on the handle.

Ty Cobb with a split grip

He retired with 4189 hits in 24 seasons. In 500 more career games Pete Rose finally surpassed Cobb’s total, finishing with 4256. Rose and Cobb are the only ball players to ever exceed 3800 hits. Still, do you ever see a hitter swinging the bat with Cobb’s split grip? I watch a lot of baseball. I don’t see it.

For thirteen years I worked in sales for a 30-year-old company in Bellevue, WA before starting my company Total Broadcasting Service. I’m proud to say I led all the company’s 40+ person sales staff in annual sales for the last seven years of my employ. With all humility I set every sales record the company recorded and outsold whomever was in second place usually by 15-20%. My success wasn’t based on longevity as most of the company’s top sellers were with the company before I began in 1992. It wasn’t based on any kind of favoritism. Nobody would EVER have accused my Sales Manager or General Manager of grantingme any favors. My success came from a presentation style and from a manner in which I managed my accounts that was unlike anyone else. I always tried to share my methods with others. But few were interested, and none adopted them. It perplexes me to this day.

Many if not most of my sales accomplishments with my company and the one I worked for previously are done over the phone, inside-sales. The less knowledgeable would call it telemarketing. The profession is held by some in similar esteem as that of lawyers, politicians, and professional thieves. That might be an exaggeration. But the point is, recruiting people to the industry has been a constant challenge in the 20 years in which I’ve been employed in it. This in spite of a life and lifestyle which is the envy of many. But do as I do? Seemingly the answer is “not me”.

Are there a lot of Pablo Picasso imitators out there?

Les Demoiselles d'Avignon. Oil on Canvas (244 ...

His Cubist style of painting was radical and became beloved; and he is renowned as THE painter of the 20th Century. Yes, some have attempted Cubist stylings. But they’re rare compared to other forms of abstract paintings. What about Steve Jobs? His over-emphasis on style contributed to Apple computer pricing far exceeding that of a computer with the more popular Window’s operating system. But that specific emphasis on style and appearance spreading to Apple’s other hardware products is a major reason Apple is now the richest company in the world. Any yet…do any other computer manufacturers place ANY emphasis on their hardware’s style and appearance? Not really.

And before I hear from detractors, I don’t equate me or my accomplishments with those of Ruth, Cobb, Picasso or Jobs. I’m merely relating personal experiences and observations that are first hand.

I could go on and on. It’s true that a “Master’s” uniqueness is part of what makes them special. But in measured accomplishments where a success approach is capable of being emulated it should be. Imitation may be the highest form of flattery. But all things considered, we should be flattering our most successful people more often. Is there someone in your field who far exceeds the accomplishments of the masses? My advice is to find out what they do and how they do it and copy or imitate as much as you possibly can.

Thanks for visiting. Comments are welcome.

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