Traffic Tip 1: Think Like An Investor

Too often digital marketing campaigns are set up and managed by creatives, and this is a recipe for disaster.

[img] Traffic Tip 1: Think Like An InvestorCreatives are always trying to come up with new, exciting things and make things look beautiful, instead of looking at the numbers, finding out what's working and then doubling down on that.

Instead of thinking like a creative you’ve got to think like an investor. And just like investing, with digital marketing you must learn to ignore your emotions and make your decisions by numbers. You're not “Coca Cola” or “Vodafone”. You shouldn’t be running so-called “branding ads” to get your name out there. You should be running ads that bring you customers and a return on investment.

If ever somebody tells you that your ads are for “branding” or “getting your name out there”, run for the hills. Leave branding exercises to the big companies and the very demise of your own competitors.

Your ads should bring you customers and they should cost you less that what you make on the sale —that is all.

Creatives are always talking about cool new ideas, new designs, beautiful images or social media campaigns that generate “likes”, when all they should be doing is getting you customers and delivering you $10 back from $1.

Let me ask you a question.

Let’s say you’re looking to invest some of your hard earned money in a company. Are you going to choose the company that “looks cool” with no numbers behind it or the one that looks less exciting but has data to prove that its going to grow?

You’d pick the one with the numbers, of course.

The same is true in digital marketing. You’ve got to learn to think like an investor and keep the creatives on a leash. When I studied 200 successful businesses, they all treated their digital marketing campaigns like investments. They knew if they put $1 in now, $10 would come out 45 days later and they had all the data to back it up.

There was no guesswork, no creative genius and no flukes. They had built their digital marketing campaigns to bring in customers and generate a return on investment, and that was all.

The digital marketing campaigns of successful companies were run by people with an obsession on numbers. They tracked and measured everything you could possibly measure, and they knew what happened to every single dollar.

So what does this have to do with getting traffic to your website?

Well, traffic costs money.

Whether you’re running Google Adwords, Facebook Ads, or paying a company to rank your website organically so that it comes up on the first page of Google, it all costs money. When you think like an investor, you try each approach on a small scale, see if it works and then, if it does, you try spending more and, if it doesn’t, you stop spending.

Let me give you an example.

We had a locksmith client who started out spending $1,000 per month with us for Google Adwords. It took us 1 month to collect the data and we found that, for every $100, we were generating him around $500 —that's a 500% return.

The next month we upped the budget to $2,000. The numbers and the returns still held the same so we upped it again, this time to $3,000. And, again, the returns were still the same.

Today that locksmith spends $10,000 a month on Google Adwords, and in 1 year he’s grown from a 1-man business to a 10-man business, and is making over $100,000 a month.

Did we create him a fancy logo or put a pretty image on his website? NO. We thought like investors, started small, collected data, found what worked and then scaled up.

When it comes to digital marketing, chain the creatives to a tree, think like an investor and get a return on your investment.