Should you spend money on advertising and promoting your business? Does advertising work? Can you grow a business without advertising? On this podcast edition of the Thrivetime Show, Clay Clark is breaking down the importance of advertising and how it’s impossible to create a time and financial freedom producing business without advertising consistently to your ideal and likely buyers.
PR Podcast with Micahel Levine and Clay Clark – https://www.thrivetimeshow.com/business-podcasts/art-grinding-every-week-spending-11-budget-marketing-pr-guru-michael-levine-2/
Thriver Question: “Most of my business comes from word of mouth, so I don’t need to advertise. Why do I need to start advertising more?”
NOTABLE QUOTABLE – “Keep your sales pipeline full by prospecting continuously. Always have more people to see than you have time to see them.” – Brian Tracy (Canadian-American motivational public speaker and self-development author of Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time)
Clay’s Reasons To Always Advertise
NOTABLE QUOTABLE – “A man who stops advertising to save money is like a man who stops a clock to save time.” – Henry Ford (founder of the Ford Motor Company, and the sponsor of the development of the assembly line technique of mass production)
FUN FACT – “True loyalty clearly affects profitability. While regular customers aren’t always profitable, their choice to stick with a product or service typically reduces a company’s customer acquisition costs. Loyalty also drives top-line growth. Obviously, no company can grow if its customer bucket is leaky, and loyalty helps eliminate this outflow. Indeed, loyal customers can raise the water level in the bucket: Customers who are truly loyal tend to buy more over time, as their incomes grow or they devote a larger share of their wallets to a company they feel good about.” – https://hbr.org/2003/12/the-one-number-you-need-to-grow
Reasons people push back against advertising:
ACTION STEPS –
Get ready to enter the thrive time show three, two, one wait a ll right, thrive business conferences nation greetings from the camp clark and chicken chicken palace studios at camp clark and chicken palace studios. The official time is five thirty eight in the morning, and we had a thriving for that emailed in a question, and i thought to myself, we’ve had many thrive er’s email in the same question. So marshall, when i want to do right now, is i want to focus on forever ah, tackling and devouring and bombing and blowing up and destroying the idea that there could be some kind of business out there in the world that does not need to advertise. The question is emailed in all different ways, they say, you know, i’m in a i’m in a business where i predominately make my money word of mouth. Do i need to advertise where they’ll say most of my business comes in ? Word of mouth ? Do i need to advertise ? They’ll say, gosh, you know, i’ve been in business for forty years. I have more business than i know what to do with do i need to advertise marshall ? Why does everybody need to advertise ? Well, everybody needs toe advertise, because unless you advertise, you’re not going to fill your pipeline with any me new leads. Okay. And so my main man, brian tracy bryant. Tracy ? Yeah. What ? One of the best selling authors, renowned business conferences sales teacher salesmen for people that are not there with brian tracy. The guy’s written many, many books. He’s ah, speaker that has been put in the same categories as let’s say, you know, he might say, zig ziglar, you might say tony robbins, unc, brian tracy that’s all in that same family he’s been a consultant for some of the biggest brands in the country. What does he have to tell us ? He says, keep your sales pipeline full by prospecting continuously, always have more people to see. Then you have time to see them. And so you’ve got to do this because when your sales pipeline is full, then you’re never going to be wanting for new deals. Well, marshall, i tell you what it is we’re doing this this podcast specifically about the importance of advertising. I want to make sure that you can take some show notes here because i think everybody needs to know no, these these big reasons for advertising kate one is when you have a full pipeline of prospects, it allows you to say no to the customers you don’t want that’s a profound idea, it allows you to say no to the customers that you don’t want in marshall this justin have we ever had somebody reach out to us with one of our company’s ? Maybe let’s go with the deejay company back in the day did we ever have somebody reached out to us ?
Where were you ? You thought i thought someone thought this is probably not the gig we want this is probably me we should not be sending somebody out there to go do this show i would call that the hell gig the oka so as an example when you when i started deejay connection though if you had a pulse and you called may i would do that gigs let me tell you the gigs i’ve done i did a gig on grand lake that took two days for three hundred fifty dollars because the guy said i know your normal rate is six hundred dollars for a limited time so i would like to use it for both days and i said what acid it’s unlimited time for one day and he says but it doesn’t say that your advertising doesn’t limited time and i want to hire you guys but i want the unlimited time deejay service, the entertainment service where you provide this sound the lights, the embassy i went for both days for the three fifty three fifty what what ? So i had to take the head nothing i’d like to hire you as a deejay, and then i’m going to use you for the rest of my life, those that is essential, but that if you don’t have any good leads, right, you have to take whatever comes across. We’ve also had people that have reached out to us for consulting where we say no all the time, i would argue that probably one of the two people that reaches out to us for help with with coaching or consulting isn’t a good fit, and we had to reach out to us who wanted to de nuclearize ace submarine if if you could actually do are, you know, deemed demilitarize, demilitarize a nuclear submarine to create a desalination system to create clean business conferences drinking water for people in the middle eastern regions ? This is true, this is true, and i asked him, i said, what is your current occupation ? He says, well, i worked at subway and i thought to myself, no, no, no, no, and that is why i can say no, marshall is because we have other leads and we probably continuously furthermore, okay, reason number two to always advertise is when you advertise you’re getting in front of your ideal and likely buyers that would have not heard of you before. And if you do a good job, people come back and bring friends. Marshall do do people not come back and bring friends if they’re wowed and e so let’s, let’s imagine we’re running ads running ads were running advertisements for elephant in the room were running ads for elephant in the room. We have one of our top customers. Does it seem possible ? True story he came in as a result of a mailer marshall, i mean, i know this because he is a multi millionaire in toss and he says, hey, my wife says, you guys mail us all the time.
I want to take advantage of it. He came in, he he came. And you know what ? You know what he’s told his friends and now we’re getting more word of mouth. So word of mouth should be the predominant driver of growth. But you gotta have a lot of lines in the water mark. You gotta fill the pipeline at the beginning of your sales process in the first place in order to produce maur and mohr. Word of mouth. So elephant, the room bright ninety percent of our business is word of mouth, but yet we still do mailers and marshall to the millers worked great. Now we only like a three percent of the people respond two percent but that that that that is actually great because they come back and tell their friends they tell their friends it’s the beginning of the sales pipeline you gotta fill it to begin with they’ll tell their friends in the harvard business school they did a case study the harvard business review the talking about the business conferences net promoter scorer net promoter scores of profound article i’ll put it on the show notes as you break it down, folks and so what they found is that if somebody is wowed okay they’re willing to rate you a nine or a ten out of scale one to ten how likely are you to tell a friend or family member about our service if they rate you and nine or ten they’re going to tell at least five people about the product or service that you’re providing that’s incredible and that’s how these companies grow so virally over a short period of time. Now the next reason you want to advertise again reason number one is it allows you to say no to the customers you don’t want write to you can get in front of your ideal and likely buyers three three this is the big one this is the big kahuna this is the one that was this is what doctors owner taught me that’s what i’m teaching you i remember talking to doctors and i said well with the d j business i really don’t need to advertise because my business is primarily word of mouth and he said, okay, cool that’s cool, what do you do with your schedule today ?
What do you what do you doing today ? And i see what you mean, what you doing today ? And i said, well, i’m gonna go over to the bixby chamber, got a networking luncheon it’s not, i’m going to the after hours for the tulsa chamber tomorrow i’m going to bridle association at panera bread. I’ll be going to a trade show, albinius so you spend your you personally value money more than your time. You would rather spend all of your time networking and handshaking and doing all that right ? You’d rather spend your whole day marketing, or would you rather have the radio advertising for you ? Or would you rather have the internet advertising for you ? Would you rather have the yellow pages advertising for ? Because the yellow pages back in the day, the radio, the tv that advertises all the time while you’re sleeping, those ads were still going. So do you value time or money ? So the real that the the third main business conferences reason is it allows you to scale your marketing activity and marshall up to a certain point you can’t scale yourself writing at a certain point, you cannot do any mohr effort we’re still working on the stem cell research for cloning yourself so that you can but until the very close very close until then you’re going tohave tio you’re going to have to find a way that you can continuously market you can continuously put in just one more dollars so when you set up a digital marketing or a scaleable marketing system, it’s azizi as choosing to spend more money in that particular area that’s producing results rather than have to go spend eight more hours of your time running around town marketing so it’s not a mutually exclusive idea word of mouth is not the enemy of advertising you just because we’re saying you wish you were a fan of advertising because we know it works it doesn’t mean that you shouldn’t actually go out there and not at not not do a good job you want to do a great job you want to get word of mouth and you want to advertise you want to do both now now marshall i wanted allow michael levine to pile on oh yeah michael levine is a thrive time show mentor he has been the pr consultant for nike for pizza hut for nancy kerrigan and we had the opportunity to sit down with him and this guy has interviewed i mean that he’s worked with he’s coached he’s helped do all of the public relations and marketing for nike pizza hut!
Michael jackson! Prince when prince was coming to town, he would advertise when michael jackson was coming to town, he would advertise. You know, a lot of the thing is, big companies advertised and he actually study that over time, he discovered that all of the fortune five hundred companies were advertising. In fact, they’re spending over ten percent of their budget on advertising. Right ? This is this is a profound out here. If you want to be three times bigger, bigger than the average company you gotta advertise. Three tons is not. Advertising is like not putting fuel in your car that it’s not going to run. So when i understand you understand, you’ve started a business right on dh when you’re trying to bootstrap the business, you’re really trying to get it up and going, so you’re like, where can i pinch some pennies ? Where can i do that ? And the first thing that i see a lot of business the owners do is they pinch pennies on their advertising, right ? Well, you’re not gonna have business conferences sales come in if you cut costs there. How else are you going to get business to produce more sales ? So you gotta advertise, yeah. Marshall, we look at the notable quotable henry ford on advertising henry ford has a fabulous quote on advertising i think it’s a pretty here we go, let me let me read this to you and we’ll put on the show notes there he says, i wanna see here is a man who stops advertising to save money is like a man who stops the clock to save time again, he says, ah, man who stops advertising to save money is like a man who stops a clock to save time. Marshal, this is this is i see this happen. Ugo yeah, i see this happen all the time where you’re like, oh my gosh, i’m gonna have to save some money, it’s going to be tight ? We didn’t close deals is we would have liked, so i got to stop advertised that’s when you need a double down on effort, right ? Because you have to it’s counterintuitive you you have to spend money on your advertising efforts in order to you know, or leads to close more sales.
I’m so tired because i haven’t eaten in three days, so i’m just i don’t have the energy needed to eat you know means i’m just gonna because i’m so tired, my energy levels air, so looks haven’t eaten any food that’s, right ? For at least three days, so i’m not going to eat today and you should, because i’m so tired you shouldn’t do you can’t do that, i’m telling you, this is not a good thing, but when you advertise you again, khun, tap into these main three reasons to advertise a one it allows you to say no to customers you don’t want two, it allows you to get in front of your ideal and likely buyers, and three it allows you to scale your marketing beyond you, thus creating time freedom. And so now that he further ado, we’re going toe listen to our inner out to our interview, we’re going to keep some audio with my interview with michael levine, the pr consultant for nike, for michael jackson for prints for nancy kerrigan, and he will explain to you directly the importance off andrew the average business in america spends four percent of it’s gross on marketing thie average business in america spends four percent of it’s gross i’m working now, we then say, and i wrote the cinnabon, one of the five hundred fastest growing businesses in america spent a market correct answer eleven percent. So if you want out, market your competition, if you want to become brand leader or hyper grow your business, if you want to become a brand leader, either number one or two in your market or you want a hyper grow your business get out market your competition about three to one and you have to do is traditional and nontraditional way so you go broke marshall did he just say that too become successful as a business owner you have to advertise you have to advertise in furthermore or you’ll go by okay okay i mean, i think he was subtle about that there now we have dr sibley joining us in the studio here for this exciting edition of the thrive time business conferences show podcast as we’re talking about the importance of advertising ah doctor sibyl you’ve seen many of your colleagues i’m sure probably make maybe not called colleagues you know other people you know about other chiropractors unlike you who have set up shop and have gone into business as a result of not having any customers at all because all they refused to do any marketing outside of just personally inviting people to their clinic to their practice can you talk to me about what you would advice you would give for any of your colleagues, any entrepreneurs, any chiropractors ? Anybody out there who says i don’t want to advertise all my business comes from word of mouth i think that doctors have this mindset that people are just going to walk in their door right ?
They’ve got a sign up hey, i’m a doctor combined in you have to advertise what did you just say ? You have to advertise so people will know where you’re at and what your skill set is and what you do in your practice, you’ve got to advertise or you’ll go broke. Unbelievable. Marshall, did he just say you have to advertise your thing and he’s a chiropractor ? Yeah, he’s a chiropractor and it’s the same as, like a bank or the same as a barbershop or the same as ah, any number of businesses. Michael levine did it with pr for a number of different people. So i like to advertise. I’d like for you to bring up because you are a coach. You were our clients all the time. Eric chops, chop works with clients. Yes, i would like for you to list off some of the excuses you’ve heard people, not your clients. Yeah, not people, you know, but people you’ve kind of heard at the mall, you weren’t in the business owners, you’re a curious man. You’re in a business owners, you say, what do you do ? That gus is out of business and he said the advertising he says no. Can you give me a reason ? A list of reasons why people that you don’t know ? People that don’t listen to this show but other people why they say i am not going i’ve been passing them in the mall i hear them talking these are these are not people listening right now on people you’ve never met with that’s right what about like i’m already completely booked out so therefore i shouldn’t advertise anymore okay so going back to my three rules yeah three reasons for advertising one and allows you to say no to the customers you don’t want dr sibley have you ever had a patient who is a lot to say not a happy camper not aboutyou just not a happy camper about life in general and because of their caustic business conferences personality you have realized fairly quickly they’re not a good fit have you ever had that the interaction oh definitely and i would say if you’re out there listening and you are not aware of this idea southwest airlines refuses to provide service to people often so if somebody is on the plane we’ve all seen these videos now their smartphones on with the videos because because of smartphones now we can see it there’s people that come in to the business who are cantankerous and crazy and mean and belligerent and intoxicated and we have jason here the manager of elephant in the room i’ll come there super manager because that’s his title of super manager of all three stores jason with elephant room sir have you ever seen a person come into the elephant the room who you realized really quickly this person’s not a good fit for what we offer absolutely and and what what are some telltale signs where you would say well, i’m glad we’re advertising but this is probably not a good fit the one that comes to mind was at a downtown location we had a guy come in visibly intoxicated nice yeah, no real quick here just so you know, jason, that microphone is so sensitive it just it needs to be spoken to like you just gotta love on that, mike because itjust otherwise it’ll just don’t even don’t even worry about making eye contact with me you just look right in that sanctimonious microphone so you had a guy come in who is intoxicated ?
Yes, how intoxicated like five beverages in like, you know, i would say like a good six beverages and what time of day was it ? Was it something respectable like noon ? Oh, it was about noon noon thirty noon thirty okay, so again, but because we advertise were able to say it’s not a good fit what’s going on but you gotta understand this principle quite the business owner that says most my business comes from word of mouth, so do i need to advertise right it come from word of mouth because you’re not advertising doesn’t have any other hop shin or they’ll pull in their analytics reporting google say everybody you know types in elephant the room that’s how they found us because i looked the keyword search net so they found us there typing in our name right because you’re not doing any other search engine optimization it’s okay, so what’s the next reason marshall you’ve heard not your clients not people you know but people you’ve randomly met at the business conferences mall who are business owners when they have told you b it’s weird how you run into these people but you will make these failing business owners at the mall what are some other reasons they say why they don’t advertise ah this one i heard they blew it blows my mind every time i hear it is is it really ethical toe advertise and you know i don’t want to compete i don’t want to take business away from the other business owners i hear this all the time when i work with churches people because it ethical for the church to advertise we don’t want a monopoly on right on jesus in our community dr civil have you ever run into chiropractors doctors dennis people you know that have argued about thie its house unethical to advertise as a doctor as a some kind of professional ?
Yes yes why what’s the argument they just think that people should just come in and see them and they think that it cheapens their profession ality, but it does what it does. It it does not. All it does is enlighten every aspect of your practice. Advertising is a must. Oh, harry carry chae min in there. Okay, marshall what’s. Another reason people have ever said this is why i don’t believe in advertising. You have another reason. Yeah, so i don’t wantto toe what dr sibley was saying here is, i don’t want to cheapen my brand by marketing a dollar offer for my premium service. This is is one that i hear all the time where it’s, like, well, or maybe i don’t want to lose money up front. In order to make money down the road i don’t want to lose money trying to get them in the door so i hear this a lot and it is just while it blows my mind because those are the people that you need be going after you’ve got you got and skeptical people are skeptical at the very forefront now we have eric chop three now to business coach who has made his entrance into the studios marshall so in a subtle way i’m gonna have to kick you out of here okay i’m gonna i’m gonna kick him and he wants to kick it he’s been asking can i kick it and i said yes you can he said can i kick it ? Yes she can’t so eric chop think about this you’ve got clients you’ve worked with over the years business conferences coaching client some people you’ve really helped to become successful and i know that none of your clients have ever pushed back about the fundamental concept of advertising but what are the excuses you’ve heard a reasons you’ve heard the justifications you’ve heard where people said this is why i don’t believe in advertising when you’ve run into people at the mall with marshall ah lot of times all here at the mall much that’s where you’re running into these people you’ve never met him at a conference room in one of our listeners none of our clients is just one thing is that well, i just don’t have the money i just i don’t know what you guys were talking about earlier but that’s what i’ve heard lot is well, i don’t have the money to get going and the point is i have a lot of money together i have a really, really aggressive example that’s hot and fresh here do it, dr sibley this is not someone that i know it’s just a it’s a metaphysical story that in no way relates to someone that i’ve personally now but the last sixty days subliminally throughout most is have absorbed this story from the ether and there’s a gentleman i believe is a gentleman couldn’t tell what gender this person but i could feel it like a gentleman and the comet was made to me not directly because that no one i know would ever say this.
This guy goes, i can’t afford to spend two thousand dollars a month on my advertising and in the same one hour meeting asked me who i would recommend that he uses to install his new flat screens right at his pool in the same meeting his business is barely surviving. It starts off like i just cannot do two thousand dollars a month on those facebook ads which by the way, are jittering all the business all of it all of the money in orderto all of it we’re coming or the th is is this but barrel quick before i go do you and your wife were doing a pool ? Aren’t you who’s the whore you using install those tvs and i said what we’re getting renderings and stuff i need when i just got these new tvs and i need a fair word installer dr simply have you ever seen people doing this whether starving their core business to live beyond their wage yes, i see this quite frequently and and it’s really kind of funny because i can’t afford this what they say i can’t afford can’t afford it oh by the way come out here i want to show you my new car right ? Right i’m i’m building a new house that’s exactly one world one one thing i’ve heard two is my product or my services so awesome that i don’t need to advertise i’m building this thing off of just word of mouth so that everybody needs my product or service i don’t even need to advertise it just got to get it out there chuck that is advertised shop yeah final excuse you may or may not have heard for advertising is we’ve had a lot of people email us recently on again they’re emailing the question in all different ways in shapes and forms are saying do i need to advertise because i’m in the home building industry i’m in the countertop industry i’m in the lawn landscaping business i and in the blogging business conferences industry we had every industry pretty much has asked the same question i’m a chiropractor is it ethical ? I’m a dentist is it ethical ? I’m an attorney. Is it ethical talk to me ?
What excuse is that you have heard from not your clients not podcast listeners not conference attendees just random people. You’ve met them all with marshall. Advertising doesn’t work, clay. Nobody clicks on ads nobody reads signs nobody looks at their advertising does not work up, up, up, up. They love spending money on things that don’t work. Oh, no macdonald’s advertising, because it works, right. You were you ever seen a commercials ? Have you ever seen a commercial on tv ? Ever seen one of those ? I have actually. Really ? Yeah. Letter civil. You ever seen a commercial before ? I think so. Interesting right. Advertising does not work and never once. Why ? Coca cola stop through advertising right away. And nike ? Nike no longer advertising. Mcdonald’s doesn’t advertise them. No, they all advertised all the time. They never stop its exact opposite. So if you’re out there listening today and you have ever felt like advertising is not for you, i want to give you, um love kindness, air horns. I want to give you bomb blast i want to give you, uh, angel choirs i want to give you whatever i need to give you right now to make you advertise on. I don’t care what advertising you do, just think about your ideal and likely buyers. Ask yourself, who are my ideal and likely buyers, that’s, the action item, chappy, wanna put the show notes, who are your ideal and likely buyers define who your ideal and likely buyers are, and then advertise in three ways to get in front of them, and we have many podcast. We break down the three ways, but you’ve got to do it. My name is clay clark. I’m a business coach, that’s here, chump, that is dr john sibley that’s jason, the super manager with elephant, the ring with any further ado chip we always in with a business conferences boom. Here we go. Three, two, one go!