The Illogical Secret To ROI

There is a 95% failure rate for small businesses owners.

That means that only 5% of the people you talk to actually know what they are doing.

It took me 8 yrs and a few hundred thousand dollars to figure that out.

It’s taught me to ignore the 95% and seek out the 5%.

The most valuable lesson I learned from the 5%’ers that I can pass on to you is…

Conversion rate fattens your ego, but average order value
fattens your bank account.

In your early days as you grasp for any amount of success or revenue you can touch, you’ll be lured into a high conversion rate or high click through rate on your ads.

IT’S A TRAP!!

Click through rate and conversion rate are thieves that prey on human greed.

I know it defies logic and I know it defies what everyone else is saying, but remember 95% of them will fail.

To help you wrap your brain around this, I’ll give you a real world example…

I run an ad agency and one of my clients was not getting a good ROI like our other clients.

When I looked at their lead gen page, I noticed it created a lot of curiosity but didn’t qualify the lead very well.

I asked them to split test a page our company made for them against their’s.

30 days later they wrote me to tell me their page was the winner. Their page had a 35% conversion rate while mine only had a 24% conversion rate.

I quickly wrote back and said “Can you check revenue stats for each page?”

They replied “Ok nevermind your page crushed ours in sales. We only made $4,500 from our page, but leads who came through your page spent $13,000!!”

That is why “conversion rate” is a thief!

Had they based their marketing decisions on conversion rate they would have lost out on almost 300% more revenue.

The 5% focus on cost per action and average order value. The way you win is by reducing your cost per action and increasing your average order value.

The gap between them is your ROI. As costs go down and earnings go up your ROI grows.

And don’t get caught up in driving down costs. I know costs are scary.

However, you don’t win at business by having the lowest costs. You win by having the highest earnings.

Focus on increasing how much each customer spends with you and the costs will take care of itself.

When you can afford to spend more money on marketing than any of your competitors you will crush them all.

If it was about spending the least on marketing you could win by just spending nothing, but we all know what happens to a business who spends too little on marketing!

Welcome to the 5% ;)

Check out more of my articles at…
http://imscalable.com/blog