Marketeers and accountants are wrong

Nearly every business has their whole concept of marketing completely and utterly wrong.

Do you want to grow your business?

Do you think you can grow your profits by spending all your cash?

This does not seem right does it?

Spend all your cash, as much as you can and yet make more profit?

You can, read how…

Typically we see business owners, whether they’re a one person business or large private business, set their marketing budget each year, largely based on what they spent last year, adjusted for what they think that they can afford.

The problem that way of calculating your marketing budget is that is it wrong, totally and utterly categorical wrong.

And if your accountant tells you any other way, then they’re wrong too.

It’s insane.

It’s a limit that will limit your business growth.

And this is why most business owners and nearly all accountants are wrong.

They see marketing as a cost, to be minimised and managed. This is why they are all wrong.

If you (or someone in your business is good at marketing then you should know that it is never a cost, it is an investment.


Because and investment is a risk that you can generate a return on. Just like stocks and shares, you invest and take the risk that it could go down but compensate yourself from that risk by calculating that it could go up.

And this is what marketing is.

It is an investment that will go down (by the value of you marketing costs). But if the marketing assets you acquire perform (like stocks and shares should), then you should see a return on that investment in the form of additional sales.

Providing that you get a return on your investment that outweighs the cost of delivering that sale, then why would you ever want to put a limit on how much you can invest?


Consider for a moment that you sell shoes:

each pair sells for £125, costing you £55 per pair to make.

Each pair costs you £20 to market.

But you only have £1,000 in your shoe marketing budget.

So you can only sucessfully market and sell 50 pairs.

The most you can earn is £3,500.

You’d stop marketing when you spent your £1,000.

And that is why you’re leaving profit to be taken by your competition

Why would you stop spending money on marketing them if the cost was £20 per pair?

Your total costs are £75 per pair and you generate £125, meaning your £50 better off.

Keep spending £20 by the barrel load, because for each and every £20 you spend, you get £50 back.

You’d earn more by spending more

This spend may be on Google Adwords, your Direct Mail, your Advertising in newsprint or your media buyers in general. Once you know how much you need to spend to make a sale, then spend as much as you can afford to.

Never limit yourself to your marketing budget! Well, maybe a bit. Of course there are cashflow considerations to consider so you may have to limit yourself and work to a budget say a month or two in advance, but if you generate a return, then increase that marketing spend and earn more.

Never just spend up to you fixed annual marketing budget.

Give your marketing teams, consultants and advisors as much as you can!

Listen to Napoleon Hill, but go one step further. Don’t just think and grow rich, spend and grow rich, but spend it wisely.

Buy each and every new customer.

Know your numbers, work out the cost of each and every marketing pillar, calculate the profit per sale and then spend a lot of money on buying a new customer.

It really is this simple to grow your business and profit, but only the successful entrepreneurs understand this.