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#21 jaxgus

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Posted 03 January 2010 - 07:59 AM

Lots of alcohol and pain killers.

Seriously though,

Treat it as a real business, get as much information as you can to start up a business from and run it like a business.
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#22 BounceHouseGuide

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Posted 12 January 2010 - 12:23 PM

See funny how everyone forget the true pusher of your business, so I will go ahead and tell you.


Learn to love Google. Sure everything these guys told if fine but to be honest, without Google, your company just don't exsist. You and your company will peddle until you sink to the bottom. Your arms will get tired. So go ahead wear Google's life jacket, you won't sink I promise you that!


So my advise is.....Google,



Laser said it "Google."

Now is the most power single businesses have ever had in terms of advertising to exactly who they want . . . know your business, know your target market, and know Google.

#23 comet

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Posted 08 February 2010 - 07:57 PM

Look up a company that is close but isn't a direct competitor. Ask if you could shadow them for a few weekends. Getting your hands on this stuff before you buy it will be a huge advantage. You will be able to learn trade secrets the easy way :pardon:
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#24 asjjb17

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Posted 12 February 2010 - 12:45 PM

Start out as big as you can afford.
Research, Research, Research!!
Make sure you will love doing this job-research has shown people who love their jobs are happier & live longer.

#25 Ted Amberg

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Posted 17 February 2010 - 04:27 PM

Decide SPECIFICALLY who you want to work for. (Corporate, back yard, school and church, etc). Then create a detailed and targeted marketing campaign aimed at this target market. As you grow, you will be able to branch out and hit other types of clientele, but in the early stages, it's important to build a solid reputation in one targeted area. It also allows you to focus your precious budget in one direction, both saving you money and allowing you to really hit that one area.

#26 SuperFunGal

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Posted 18 February 2010 - 06:06 PM

Besides getting your legal structure in place and developing your strong business plan, spend time developing a Marketing Calendar and Marketing Plan for the year. You can have the best business in town but if no body knows about you then you are going to be sitting home alone on the weekends. Determine your target market groups and determine the most effective way to communicate with them. My general rule is to bring in 3 times what I spend on marketing so make sure you are using your dollars wisely for marketing. Many companies spend a lot of wasted money in the beginning “test driving” marketing. This can be avoided with the right amount of research and by not “getting sold” on go-nowhere marketing.
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#27 MWC

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Posted 26 February 2010 - 01:21 AM

My general rule is to bring in 3 times what I spend on marketing so make sure you are using your dollars wisely for marketing. Many companies spend a lot of wasted money in the beginning “test driving” marketing. This can be avoided with the right amount of research and by not “getting sold” on go-nowhere marketing.


Does anyone else think is insane? 33% of your revenues spent on marketing?

#28 B N

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Posted 26 February 2010 - 08:50 AM

If I spent 33% on advertising my wife would kill me. I have grown from 2 unsed units to over 30 new units, tents, tables, chairs, food machines.

Magic and super your advise is great and helpful but alot of these companies on this forum are not bringing in 7 figures and we could not justify 33% on advertising ex. $100,000 earned I should spend $33,000 on advertising that is insane.

There are start up advertising companies all over just like the bounce houses everyone thinks they can do it. So grab them and advertise. I meet one last year because he rented a bouncer and he told me what he did. Advertise. I spent $400 on a 1/4 page color ad and put it out to 70,000 homes. And was booked solid. I also do Val Pak which is costly but great $220 for 10,000 and Im booked solid in those towns. You dont need to spend alot.

We mainly support local businesses and restruants and for that my business cards or fliers or coupons are in there place of business at a cost of $0. Craigslist $0 Facebook $0

If you bring a quality product and great service to the table word of mouth will be your #1 marketing plan.

Magic and super if your running a million doller business may this is true you need to service a whole state as compaired to several towns.
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#29 BlasterBouncer.com

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Posted 26 February 2010 - 11:01 AM

My general rule is to bring in 3 times what I spend on marketing so make sure you are using your dollars wisely for marketing. Many companies spend a lot of wasted money in the beginning “test driving” marketing. This can be avoided with the right amount of research and by not “getting sold” on go-nowhere marketing.


Does anyone else think is insane? 33% of your revenues spent on marketing?


Yes, I agree with you Midwest. I would consider any marketing campaign that cost 33% of revenues exceptionally poor quality.

#30 AHB

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Posted 26 February 2010 - 11:20 AM

Thats not what she said, she said bring in 3 times what you spend, on marketing. You still have revenue from other sources such as repeat customers, internet, etc. It's not 33% of your revenue.

ex: a val pak coupon, spend $500 need to bring in $1500 to make that marketing worthwhile. An it was a GENERAL RULE, NOT THE GOSPEL!!!!

Geez, you guys are just like a pack of wolves waiting to jump on someone.

Edited by AHB, 26 February 2010 - 11:22 AM.

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#31 MWC

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Posted 26 February 2010 - 03:27 PM

Thats not what she said, she said bring in 3 times what you spend, on marketing. You still have revenue from other sources such as repeat customers, internet, etc. It's not 33% of your revenue.

ex: a val pak coupon, spend $500 need to bring in $1500 to make that marketing worthwhile. An it was a GENERAL RULE, NOT THE GOSPEL!!!!

Geez, you guys are just like a pack of wolves waiting to jump on someone.


Blake, I never thought of that aspect. I will wait for her to respond. But if that is her logic, I wasn't clear and neither were others, so she needs to clarify her postings.

#32 Magicbounce

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Posted 26 February 2010 - 06:57 PM

Go get a job at McDonalds. All the food you can eat and you get to keep all your weekends from doing set-ups and nights from doing everything a business requires. When you add it all up, a job at McDs will pay much better!

I ment this as a joke, but the more I thought about it, the more I am thinking about it! lol


While you're there look for your next potential employee...the work ethic of some of those McDonalds employees is priceless!

#33 coastal

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Posted 26 February 2010 - 07:18 PM

My general rule is to bring in 3 times what I spend on marketing so make sure you are using your dollars wisely for marketing. Many companies spend a lot of wasted money in the beginning “test driving” marketing. This can be avoided with the right amount of research and by not “getting sold” on go-nowhere marketing.


Does anyone else think is insane? 33% of your revenues spent on marketing?


I would say 33% is excessive and not necessary. You do have to consider though that launching a new business or product, your initial marketing expenses should be higher than subsequent years expenses, unless you are being conservative and just testing the waters. Through time, if you are using 33% gross revenues on marketing as a "general rule", you'll be bankrupt within a few years, or you'll see very little profits after all the other expenses involved in business and you'll probably not want to continue to operate.

Do the math. There is only a certain number of percents in 100-percent of gross revenues to work with until you run out.

+Delivery 20%
+marketing 33%
+taxes 30%
+operating expenses 20%
=Bankruptsy or "in the red" depending how you look at it

And this isn't even all you have to worry about paying if you want to run a bounce house business. Don't forget about warehouse space, office space, office employees, replacing equipment, insurance, loan payments, vehicle maintenance, workers comp, the list goes on.......

#34 BlasterBouncer.com

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Posted 27 February 2010 - 10:17 AM

No matter how you read it, I still don't think this is good advice. If I spent $500 to get $1,500 in business, I would consider that marketing avenue a substantial failure and would not repeat it. It should not cost that much to bring in new work. Even if you valued your customer at the present value of future profits, I think 33% is too high. Perhaps Dawn could elaborate, because I generally agree with coastal's post. If this advice were followed long term, I think it would, at a minimum, substantially damage margins. Generally, margins decrease as you get further away from the production, so I don't see this working better for turn key operations over equipment rental operations.

AHB, you know how this forum is! If you're going to throw an idea out into the peanut gallery, you can expect criticism and support for the idea. That's the great thing about the forum. The idea stands or falls on it's own merit, no disrespect to the poster (with the exception of disrespectful posters, and Dawn is not one of those).

#35 Castle Party Rentals

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Posted 27 February 2010 - 11:06 AM

My advertisement last year was less than 1% of my total sales. If I spent 33% of my sales on advertising, this wouldn't be a very profitable business.

I'm curious to see where you spent all your money marketing.

#36 SuperFunGal

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Posted 27 February 2010 - 11:15 AM

Besides getting your legal structure in place and developing your strong business plan, spend time developing a Marketing Calendar and Marketing Plan for the year. You can have the best business in town but if no body knows about you then you are going to be sitting home alone on the weekends. Determine your target market groups and determine the most effective way to communicate with them. My general rule is to bring in 3 times what I spend on marketing so make sure you are using your dollars wisely for marketing. Many companies spend a lot of wasted money in the beginning “test driving” marketing. This can be avoided with the right amount of research and by not “getting sold” on go-nowhere marketing.


Wow, this comment sure stirred up some conversation :wacko: AHB, Thank You for helping me clarify. You read that correctly!

Let me clarify further. If I spend $500.00 per month on a Yellow-pages Ad, I would expect to bring in no less than $1500.00 from that ad per month...minimum. If I spend $1000.00 on sending a postcard (including design, printing, postage, list costs and labor) I would expect to book no less than $3000.00 of events from it. I would consider anything less a failed marketing campaign and would not re-run that campaign in the future. This has nothing to do with my total revenue, this has to do with what I spend on that specific marketing campaign. My personal rule on marketing is, If I do not bring in at least 3 times what I spend (per marketing campaign) then I consider it a failed attempt and I try something else. If I bring in at least 3 times what I spent (per marketing campaign) then I consider it a success and add it to my calendar for next year. I think of it like fine tuning my marketing message.

If you are asking about what percentage of total revenue should be spent on marketing, experts will recommend about about 10%. I personally spend less than that.

The main point to my post is that it is proven that most business owners waste a lot of money on failed marketing efforts. Spend your money wisely. Make sure you track your results and really evaluate what is working for you.

#37 Jose'

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Posted 27 February 2010 - 12:28 PM

With more and more people online and Thousands of more folks getting computers, your invest should be much much less....If you find you are spending more than $300 a month on advertising your Marketing plan has a loop hole. The only investment that are the biggest should be your Marketing material, Vehicle wrap and your website. This should come off the first your or second year, after that it should be all downhill.

I'm no stranger to making money....Let me rephrase that...Lots of money and to be honest, It's not even worth it....Uncle Sam will flip you upside down and squeeze every cent that he can.

Realistically, the majority of these great folks here do backyard parties and although most can do better with the right plan, some are just happy and that's what matters to them.

I tell these folks if you can double what you make from a regular 9-5, than you made in big improvement. Do you need to spend more to gain more customers with today's technologies? Absolutely not!!

I too have my tiny Inflatable business with a low average during the season of $12,000 a month. Let me mind you this is not my only business, but this one we use it to pay my other employees and staff.

Stay focus, stay within your means and plan your Marketing with realistic goals you can achieve.



Laser

#38 Ted Amberg

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Posted 27 February 2010 - 01:33 PM

With more and more people online and Thousands of more folks getting computers, your invest should be much much less....If you find you are spending more than $300 a month on advertising your Marketing plan has a loop hole. The only investment that are the biggest should be your Marketing material, Vehicle wrap and your website. This should come off the first your or second year, after that it should be all downhill.

I'm no stranger to making money....Let me rephrase that...Lots of money and to be honest, It's not even worth it....Uncle Sam will flip you upside down and squeeze every cent that he can.

Realistically, the majority of these great folks here do backyard parties and although most can do better with the right plan, some are just happy and that's what matters to them.

I tell these folks if you can double what you make from a regular 9-5, than you made in big improvement. Do you need to spend more to gain more customers with today's technologies? Absolutely not!!

I too have my tiny Inflatable business with a low average during the season of $12,000 a month. Let me mind you this is not my only business, but this one we use it to pay my other employees and staff.

Stay focus, stay within your means and plan your Marketing with realistic goals you can achieve.



Laser



I think I see the problem here. I'm not sure that everyone understands what marketing is. I am not trying to be a jerk here or call anyone out, but when I read comments like above I feel like I have to respond. Marketing and advertising are two different things. Advertising is simply one vehicle in an overall marketing campaign. Laser, your comment about "If you are spending more then $300 a month on advertising there is a loop hole in your marketing plan" is way off base. I understand that this forum is for the most part made up of backyard party people. I also realize that some of these people are content with where they are at and have no interest to grow. That's ok. There is not much I can contribute to these types of people other then offering some safety advice, or how to maintain their current level.

The people I am trying to help out are the ones who want to grow. The ones who have passion to do great things but maybe need help on the roadmap of how to get there. And they are on here. I can attest to this from the growing number of PM's and Emails I have been receiving recently for advice. Laser, I understand that you are trying to help and also realize that you offer an SEO business. This is also an important component in a successful marketing campaign and I have no doubt you may be able to help people on this subject. But you have to ask what market someone is looking at and going after before saying anything "over $300" is a waste. I'm not even really sure how you came up with that number? Granted, things like yellow pages are becoming a thing of the past as more and more people do their searching online. Having an online presence is extremely important. However, a solid marketing campaign (direct mail, some advertising, etc) is essential to grow. You have to go and find prospects, and that may take money. For instance, if I do a mailing of letters to 2000 people it will cost me about 55 cents each or $1,100. Thats just one mailing.

What Dawn was saying (and I think she has now cleared up) is that any marketing efforts should be carefully studied and tracked. If you don't know specifically how much this ad made you, or what your return rate on this mailing was, you are wasting your money. I spend about 3% -4% of my yearly gross on marketing. We track EVERYTHING and things that are not making us money are no longer used.

Blaster, you made a comment about how you would not spend $500 to make $1,500. While I agree it's a low margin and not very profitable...it is in fact profitable. Let me phrase it this way. If you handed me $10 and I handed you back $30 each and every time you did this, would you continue to hand me the $10? You would be crazy not to. If I spend $5,000 to attract large corporate customers and I end up netting $15,000 in return I may not be dancing in the streets but I am sure going to be happy. If I can find a way to spend less to make more I am all for it. Who would not be? However, unless you are actually losing money or just breaking even profits are profits.

I am not trying to tell everyone that they can be rich and make a killing in this business. The fact is they can't. It takes the right kind of person, with the right kind of attitude who is willing to put in the effort to do it. It also takes implementing a plan that may be out of some peoples "comfort zone". Remember, there will always be naysayers who tell you that you "can't". The majority of people end up believing them and convincing themselves that it was a bad idea in the first place. Then there are the ones who dream bigger and have a true desire to move forward. These are the select few who will advance beyond the barrier that most people limit themselves with. If you are one of these few people, then don't let anyone tell you that you can't. I look forward to seeing you at the top.
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#39 Jose'

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Posted 27 February 2010 - 01:46 PM

With more and more people online and Thousands of more folks getting computers, your invest should be much much less....If you find you are spending more than $300 a month on advertising your Marketing plan has a loop hole. The only investment that are the biggest should be your Marketing material, Vehicle wrap and your website. This should come off the first your or second year, after that it should be all downhill.

I'm no stranger to making money....Let me rephrase that...Lots of money and to be honest, It's not even worth it....Uncle Sam will flip you upside down and squeeze every cent that he can.

Realistically, the majority of these great folks here do backyard parties and although most can do better with the right plan, some are just happy and that's what matters to them.

I tell these folks if you can double what you make from a regular 9-5, than you made in big improvement. Do you need to spend more to gain more customers with today's technologies? Absolutely not!!

I too have my tiny Inflatable business with a low average during the season of $12,000 a month. Let me mind you this is not my only business, but this one we use it to pay my other employees and staff.

Stay focus, stay within your means and plan your Marketing with realistic goals you can achieve.



Laser



I think I see the problem here. I'm not sure that everyone understands what marketing is. I am not trying to be a jerk here or call anyone out, but when I read comments like above I feel like I have to respond. Marketing and advertising are two different things. Advertising is simply one vehicle in an overall marketing campaign. Laser, your comment about "If you are spending more then $300 a month on advertising there is a loop hole in your marketing plan" is way off base. I understand that this forum is for the most part made up of backyard party people. I also realize that some of these people are content with where they are at and have no interest to grow. That's ok. There is not much I can contribute to these types of people other then offering some safety advice, or how to maintain their current level.

The people I am trying to help out are the ones who want to grow. The ones who have passion to do great things but maybe need help on the roadmap of how to get there. And they are on here. I can attest to this from the growing number of PM's and Emails I have been receiving recently for advice. Laser, I understand that you are trying to help and also realize that you offer an SEO business. This is also an important component in a successful marketing campaign and I have no doubt you may be able to help people on this subject. But you have to ask what market someone is looking at and going after before saying anything "over $300" is a waste. I'm not even really sure how you came up with that number? Granted, things like yellow pages are becoming a thing of the past as more and more people do their searching online. Having an online presence is extremely important. However, a solid marketing campaign (direct mail, some advertising, etc) is essential to grow. You have to go and find prospects, and that may take money. For instance, if I do a mailing of letters to 2000 people it will cost me about 55 cents each or $1,100. Thats just one mailing.

What Dawn was saying (and I think she has now cleared up) is that any marketing efforts should be carefully studied and tracked. If you don't know specifically how much this ad made you, or what your return rate on this mailing was, you are wasting your money. I spend about 3% -4% of my yearly gross on marketing. We track EVERYTHING and things that are not making us money are no longer used.

Blaster, you made a comment about how you would not spend $500 to make $1,500. While I agree it's a low margin and not very profitable...it is in fact profitable. Let me phrase it this way. If you handed me $10 and I handed you back $30 each and every time you did this, would you continue to hand me the $10? You would be crazy not to. If I spend $5,000 to attract large corporate customers and I end up netting $15,000 in return I may not be dancing in the streets but I am sure going to be happy. If I can find a way to spend less to make more I am all for it. Who would not be? However, unless you are actually losing money or just breaking even profits are profits.

I am not trying to tell everyone that they can be rich and make a killing in this business. The fact is they can't. It takes the right kind of person, with the right kind of attitude who is willing to put in the effort to do it. It also takes implementing a plan that may be out of some peoples "comfort zone". Remember, there will always be naysayers who tell you that you "can't". The majority of people end up believing them and convincing themselves that it was a bad idea in the first place. Then there are the ones who dream bigger and have a true desire to move forward. These are the select few who will advance beyond the barrier that most people limit themselves with. If you are one of these few people, then don't let anyone tell you that you can't. I look forward to seeing you at the top.



No, no...I understand what you guys are saying and doing. I agree with you guys. It takes money to make money, I know this first hand. My comment was more for the backyard business. However, if they want to take a different approach and take your business to a different level than that's totaling different animal. This type of game will take thousands and man hour to implement. I've been there and done that.

Don't get me wrong, I have a high respect for those that take destiny hands and live life the way it should be lived.

I didn't mean to come off wrong, I just don't want my little folks here to be left out.

Laser

#40 coastal

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Posted 27 February 2010 - 07:35 PM

With more and more people online and Thousands of more folks getting computers, your invest should be much much less....If you find you are spending more than $300 a month on advertising your Marketing plan has a loop hole. The only investment that are the biggest should be your Marketing material, Vehicle wrap and your website. This should come off the first your or second year, after that it should be all downhill.

I'm no stranger to making money....Let me rephrase that...Lots of money and to be honest, It's not even worth it....Uncle Sam will flip you upside down and squeeze every cent that he can.

Realistically, the majority of these great folks here do backyard parties and although most can do better with the right plan, some are just happy and that's what matters to them.

I tell these folks if you can double what you make from a regular 9-5, than you made in big improvement. Do you need to spend more to gain more customers with today's technologies? Absolutely not!!

I too have my tiny Inflatable business with a low average during the season of $12,000 a month. Let me mind you this is not my only business, but this one we use it to pay my other employees and staff.

Stay focus, stay within your means and plan your Marketing with realistic goals you can achieve.



Laser



I think I see the problem here. I'm not sure that everyone understands what marketing is. I am not trying to be a jerk here or call anyone out, but when I read comments like above I feel like I have to respond. Marketing and advertising are two different things. Advertising is simply one vehicle in an overall marketing campaign. Laser, your comment about "If you are spending more then $300 a month on advertising there is a loop hole in your marketing plan" is way off base. I understand that this forum is for the most part made up of backyard party people. I also realize that some of these people are content with where they are at and have no interest to grow. That's ok. There is not much I can contribute to these types of people other then offering some safety advice, or how to maintain their current level.

The people I am trying to help out are the ones who want to grow. The ones who have passion to do great things but maybe need help on the roadmap of how to get there. And they are on here. I can attest to this from the growing number of PM's and Emails I have been receiving recently for advice. Laser, I understand that you are trying to help and also realize that you offer an SEO business. This is also an important component in a successful marketing campaign and I have no doubt you may be able to help people on this subject. But you have to ask what market someone is looking at and going after before saying anything "over $300" is a waste. I'm not even really sure how you came up with that number? Granted, things like yellow pages are becoming a thing of the past as more and more people do their searching online. Having an online presence is extremely important. However, a solid marketing campaign (direct mail, some advertising, etc) is essential to grow. You have to go and find prospects, and that may take money. For instance, if I do a mailing of letters to 2000 people it will cost me about 55 cents each or $1,100. Thats just one mailing.

What Dawn was saying (and I think she has now cleared up) is that any marketing efforts should be carefully studied and tracked. If you don't know specifically how much this ad made you, or what your return rate on this mailing was, you are wasting your money. I spend about 3% -4% of my yearly gross on marketing. We track EVERYTHING and things that are not making us money are no longer used.

Blaster, you made a comment about how you would not spend $500 to make $1,500. While I agree it's a low margin and not very profitable...it is in fact profitable. Let me phrase it this way. If you handed me $10 and I handed you back $30 each and every time you did this, would you continue to hand me the $10? You would be crazy not to. If I spend $5,000 to attract large corporate customers and I end up netting $15,000 in return I may not be dancing in the streets but I am sure going to be happy. If I can find a way to spend less to make more I am all for it. Who would not be? However, unless you are actually losing money or just breaking even profits are profits.

I am not trying to tell everyone that they can be rich and make a killing in this business. The fact is they can't. It takes the right kind of person, with the right kind of attitude who is willing to put in the effort to do it. It also takes implementing a plan that may be out of some peoples "comfort zone". Remember, there will always be naysayers who tell you that you "can't". The majority of people end up believing them and convincing themselves that it was a bad idea in the first place. Then there are the ones who dream bigger and have a true desire to move forward. These are the select few who will advance beyond the barrier that most people limit themselves with. If you are one of these few people, then don't let anyone tell you that you can't. I look forward to seeing you at the top.


1500 divided by 500 equals 33.33333....%. That is the cost of that/those lead(s). That is not an effective marketing campaign or advertisement by any stretch of the imagination, if you are interested in turning a profit. It doesn’t matter how you try to explain it, it is still 33% cost of the sale. I would not give anyone a 33% cut just to get a job. I would never pay a salesperson that amount for a sale and I would never agree to some advertising scheme that cost 33%. Consider that you could have rented that item to a full paying customer at minimal marketing cost instead. Also consider that there is a certain price on everything where it just doesn’t make sense to rent it out. No one gets into business just to see how much gross revenues they can make. They want to make profits.

If 33% marketing expenses is your goal, you might as well just lower your prices 33% and whore the market out instead of gambling with marketing that may NOT work. Some people believe low prices seem to attract new customers. I don’t recommend this approach, but I see it affecting your bottom line the same way. I don't and would never lower prices 33%, even to a good customer, and wouldn't even consider a 33% marketing campaign to be a way to increase your bottom line. You might increase gross, but in the end, you have nothing to show for your effort. You’re spinning your wheels.

MagicGuy, Your scenario about handing $10 to an arbitrary person and receiving $30 in return is not exactly the same as running a business with overhead. It would be hard to make a profit in business handing over $10 and getting a return of $30 if you have overhead involved with handing out that $10. Perhaps you might have to pay someone to hand the $10 out, you might have to pay the city to get a vendor license, perhaps the city wants proof of liability insurance so that you can stand there by the side of the road holding up a sign saying “free $10 bills”, etc., you get the point. This sounds like it would work, but with business expenses, you might find yourself in the red, believe it or not.

I have heard some people say that they paid for example $250 for postcards and they sent out 500 postcards and got 5 jobs in response to sending out those postcards. They say “oh well, at least I got my money back and a little more. Of course they did not realize, even after going over the books, that they actually lost money on that particular campaign.

Of course some types of businesses can spend 33% on marketing and still see a profit, but the bounce house business is not one of them, especially if your in a competitive market. Try finding a business with little or no overhead and you’ll make a profit on a 33% marketing campaign.




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