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.

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Your Closest Friends and Family Will Not Support You. Why?

When I entered into the world of direct sales, or Multi-level marketing, by becoming an Advisor for AdvoCare  a few short months ago my friend and up-line (MLM term referring to the person who signed you up) said something totally out of their character. He said not to be surprised if your closest friends and family do not go along with your offering. He said in most cases this would prove to be true. I thought how strange to hear this coming from a guy who is one of the happiest most-positive individuals you will ever come across. And…I thought him wrong.

Turns out he was right. My friend and his lovely wife have built a business with AdvoCare that pays them $20,000 per month on average. And their business is growing. They expect to be making $40,000 per month within a year. And they’ve done all this in only three years, on their own. He points out that his Best Friend from 3 years ago STILL hasn’t come on board as a distributor. To my understanding (I could be wrong) neither have his closest family members including his sister, who I also know and have worked with. My up-line has over 1200 people signed-up as AdvoCare Distributors or Advisors. Remarkable!

English: A simple binary tree diagram illustra...

A simple binary tree diagram illustrating the hierarchical structure of a multi-level marketing compensation plan.

And yet here’s what I found. MY BEST FRIEND, who could stand to greatly benefit from the weight loss and nutrition AdvoCare products provide, not only hasn’t joined me. He won’t even listen. He hasn’t a clue what AdvoCare is or provides. And I’m his best friend, and he’s mine. Remarkable. The list of those close to me who won’t listen to anything my wife and I have to say about this company that has us so excited doesn’t stop with my best friend. My immediate neighbors and business partner in my video production company, Total Broadcasting Servicelikewise will not only not sign up as our customers or distributors…they won’t even hear a presentation. Remarkable!

English: A picture of Atlanta Motor Speedway t...

A picture of Atlanta Motor Speedway where the annual Labor Day Weekend AdvoCare 500 takes place.

And yet it turns out…not so remarkable. In a blog entitled “Why Friends and Family Members Won’t Support the New You”  business coach Ray Higdon spells out some of his ideas why this phenomena is so common. He says , in so many words, that those closest to you won’t support you because they’re used to who you “used to be” and can’t fathom you being different, in the mode of a marketer or successful person. He also intimates jealousy plays a part. They don’t want you to be successful because it will reflect poorly on them.                        I’m not sure about all of Higdon’s assertions. Direct-Sales companies face skepticism from everyone already, not just friends and family. It’s my job, and yours, to find people who you can help either with your products and service or with the income opportunity from the MLM, or both. There really are people who want to be their own boss and are disciplined enough to work a business as a business, and grow it, slowly at times, but grow it nonetheless. If you’re looking for a get-rich quick scheme most of the time you’ll be disappointed.                                                                                                                                    In this rather poor quality video Russ Howe, a network marketer with GDI, Global Domains International, actually says approaching friends and family about your business is actually a BAD IDEA:

Higdon correctly points out that your success can and will be determined by you going out and meeting and selling to new people. Which has proven to be true with me. In the approximately 3 months that I have actively represented AdvoCare 35% of the folks I’ve gotten involved with AdvoCare on a retail customer or distributor level I had virtually no previous or extremely limited contact with.  Another 53% I only had tangent contact with; which is to say periodic and infrequent. And the remaining 12% I was relatively close to and contacted with some frequency. And all this while working AdvoCare as a business very seldom. While only putting in 5-10 hours per week training myself, email corresponding, meeting in-person, and making phone calls I’ve managed a small income that has already proven valuable to my family. And since this has been done over a mere three months and with little actual time devoted I have every reason to believe the actual amount of return from this business will grow.

I find it remarkable that those who know you best are least likely to support you and your new business. You would think just the opposite were true. But facts are facts. Don’t let your friends or family drag you down. And realize it’s not personal and its not unusual and lots of folks, like my friend and sponsor, move past the disappointment of friends and family not participating in your new exciting business and go get those new friends who really do want to live well and independent.

I’m really curious to hear from other MLM representatives and tell me what your experience has been on this subject.

Private side note to any friend or family of mine: Yes, you not helping me and my wife build our business and enjoying what we have clearly benefited from DOES disappoint me. But it is what it is. Own it. It’s your decision. Meanwhile, I still love you. Period. 

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Obama: If youre “lucky enough”? He’s Still at It!

As long as our President is moronic enough to continue to claim that successful people in business were merely lucky or blessed and that hard work, guts, persistence, ingenuity and entrepreneurial spirit were the driving force…I’ll be hear to keep sharing it with you.

Mr. President if you had EVER worked in the private sector you’d know LUCK has very little to do with it. Why any business owner would give this man directions, let alone their vote, is a mystery to me.

via Obama: If youre “lucky enough”… To Be in the Upper 2% – YouTube.

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Why You Should Quit Your Job – Forbes

This short article rang true for me. Quit my job is exactly what I did just over 7 years ago. And I’ve never been happier, since.

Why You Should Quit Your Job – Forbes.

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The Miraculous Rise of Barack Obama- Bill Whittle

Barack Obama

While this video, sarcastically points to the miraculous rise of President Barack Obama from childhood to the Presidency of the United States, what I’ll find miraculous is if the critics of this post can stick to the facts and address the points of this video identifying where, specifically, the stated facts are incorrect. Far too often criticism of the President is labelled as racist, or somehow unfair. One of my favorites is the “everybody does it” argument, excusing Obama’s associations, political ruthlessness, and rhetorical statements that prove questionable.

So, there ya have it Democrats. The gauntlet has been laid down. If Whittle’s assertions in this video are incorrect. I invite you to say so.

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