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Is Your Marketing Budget Making Any Sense?

Regardless of how much money you make, you should live within a budget. The key to wealth is not how much you make, but how much you KEEP! Setting a budget for your life, your business, your entertainment just makes sense. As a 30+ year entrepreneur, I realize the importance of setting a budget within my business. I do this annually and budget for marketing, payroll, equipment purchase or maintenance, supplies, office rent, advertising cost, etc.

The biggest mistakes people that new entrepreneurs make is either not having a budget or spending money in all the wrong places.

Marketing Is Where It’s At

The single most important element of your business plan has to be MARKETING. You can have the greatest website, blog, capture page, content, and videos. If you don’t get traffic to your site, you’re OUT OF BUSINESS.

We all come into business with different cash positions. Some are cash flush with great incomes either from their jobs or other business endeavors. Some are just squeaking by. Regardless of your circumstances, there is a marketing plan to fit your budget.

Either You At Work Or Your Money At Work

There’s only two ways to work, make money, or to get things done — Man at Work! or Money at Work! There’s just no way around it. If you view that from the entrepreneurial perspective, there’s only two ways to market, add friends in Facebook, bring traffic to your website, write articles, build a blog, etc. Either you do it or you pay someone to do it for you. Paying for it can include simply hiring someone to do the work for you such as building a website or even adding friends to Facebook. Or it could mean paying for some kind of online system or computer program to do some or all of the work for you. While there’s lots of free tools and strategies out there, you still have to do some work to set it up (or, once again, pay someone to do that for you) Enough said there…

It’s important to budget both your time and your money. I find that people usually have more of one than the other. In my case, money isn’t as critical of a consideration as is my time. I really have to work at getting the time to do the things I want to do and therefore, I need to be careful to spend my time ONLY on the things that move my business forward. If you have more time than money, then you need to have laser-sharp focus on your spending.

To financially budget your business you simply need to decide how much money you can afford to get things going and how much can you afford monthly to maintain your overhead. Start up costs and ongoing overhead need to be considered. Your monthly overhead will include (depending on your budget), your business overhead, your capture page system, your blog, your email auto-responder, phone expenses, advertising (such as PayPerClick, banner ads, classifieds, etc), and web hosting.

Especially when you are starting out, you should spend 90% of your time and money on marketing. Get to a point where you have more leads than you can handle, then make some adjustments.

So here’s a list of marketing possibilities grouped into two categories: Free and Paid

FREE

Social Marketing
· Facebook
· Twitter
· YouTube
· BetterNetworker
· Blog
· UStream
Content Marketing
· Video Marketing
· Article Marketing
· Press Releases
· Squidoo / Hubpages etc

PAID

· Pay Per Click (Google, Yahoo, MSN others)
· Ezines / Solo Ads
· Banner Advertising
· Facebook Social Ads

Most of the FREE options have some tools you can purchase to help you automate some of the tasks. For instance, there’s article submission software that can automatically submit your articles to hundreds of Article Directories for you. There are similar programs for videos to distribute them all over the internet.

Simply decide if you want to put you to work or your money to work or both! There’s so much you can do for free but you can accelerate your growth if you decide on some paid strategies as well.

To Your Success,

Please call me if you have questions...

.
Dennis Volz

Dennis Volz is the owner of The Red Hot Millionaire Marketing and the author for The MLM Resource Center .com.
Dennis continues to oversee his insurance agency in San Diego, CA he has owned since 1978.
RedHotMillionaire.com
www.TheMLMResourceCenter.com
www.MLM-Toolkit.com
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Email: DennisVolz@gmail.com
619-630-5437

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Posted by Dennis Volz on 10/29/2009 06:46 PM

Comments (68)

attraction marketing, budget, expenses

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68 Comments on Is Your Marketing Budget Making Any Sense?

OCT

Hi Dennis! Excellent points to remember as I am currently in review of a few major marketing items that I pay dearly for--no pay-per-clicks or pay-for-referrals but, I do have questions for 2010 about several of them. Great reminder that alot of the GOOD STUFF is FREE!

Have a great evening...

Its about that time of year to cosider the new year budget. Cutting back is not usually the right answer.

Dennis,

Thanks for your wisdom on this subject. I have learned to cut all but essentials and actually now feel less pressure. That doesn't mean relax and coast. It means I can enjoy what I do without pressure.

Great Stuff, Debe. Seems to me that Article marketing, Capture page and a series of auto responders is a GREAT combination for success. Only hard cost is the auto-responder ($20/mo) and the website/capture page at probably less than $100/year. lemme know how it goes.

Linda,

WOW... working without pressure is one of the keys to more sales. Clients can tell when you're under pressure somehow. Usually kills the sale or at least makes it much harder to get to.

Rob,

I agree. While cutting back usually isn't that answer, sometimes it's reallocating to better ROI's. Using some of the FREE items to 'free up' some cash can allow more $$$ spent on the PAID items. Always a juggling act!

Hi Dennis. Great timing considering that many of us have been working on our 2010 marketing plan. ~ Lana

Dennis,

How do you use google clicks in your business and has it generated any good leads for you? I am interested in hearing more!!

Very true Dennis. If you are not making the most of your time or your money, then you are out of business. Your sites are very informative. Even, as experienced agents, we still need to watch the bottom line.

Being new to RE I have found it hard to set and keep to a.budget as it seems I find something that I think will help and wanting to succeed do not want to put it off. There are also a lot of sales calls that sound good bit as I am unsure of what and if they will work may be letting a good one go as it is not in my budget.

Dennis, Definitely a tricky balance time or money! I am spoiled by a strong referral base, so have not been good at marketing in terms of spending any money, except the church bulletin. It's hard to figure out what works the best or what makes sense to spend money on. Thanks for the info in a timely manner as we plan for 2010! Michelle

Lucky for me I have a financial and business management background or else I would be in the poor house, lol. :) This is a great post Dennis! :)

i am doing more free stuff and just paying for websites and hosting. I wonder what the future brings

i've been known to spend time on doing things myself that I should just pay for. Sometimes it just a waste of time to spend your time on things that can be delegated.

Diane and Bob,

GOOGLE clicks (or YAHOO or MSN) are tremendously powerful marketing tools. The key is to get them to land on your capture page. The SOLE MISSION of your website should be to get a name and an email and (hopefully) a phone number. Plug those hames into 2 year auto responder series of information, encouragement, websites, tools, trends, etc. People don't always want to buy or sell when they go to your site but eventually they will.

I suggest you head out to my site www.RedHotMillionaire.com. Although it's a completely different industry than Real Estate, if you opt in on that page w/ your info you will begin to receive a series of emails. Just look at them and gleen what you can for your RE business. That's the way I learned most of what I learned about online marketing -- Just watching They were written by professional copywriters. Tweak them and fire up an autoresponder series of your own. Use Aweber who is simply the best and most versitle. If you don't have web hosting you can use BlueHost for that and you get a free domain name. You can build your own capture pages that are simple and cost NOTHING to keep up and running. Simply drive traffic to your capture page with Articles or PPC's (Pay Per Clicks), or blogging.

REMEMBER... THE MONEY IS IN THE LIST. ALWAYS!

Great stuff Dennis. How's the old neighborhood doing. I used to live right up the road from you on Mt Helix. I still get home sick once in awhile.

Clifford,

See my comment to Diane and Bob. Do whatever you can to get your leads into you SALES FUNNEL. That is your list aht keeps them in touch with you over and over and over with soft, gentle and helpful emails that don't necessarily pitch them all the time but that help them make decisions and keep them informed.

Christine,

Suggest you layout a definite marketing plan. I have tools to help you with that if you want. Allocate 'X' hours per week for specific items like Facebook, blogging or Posting Articles around the web. Then decide to get REALLY GOOD at one strategy. Once you do, you will probably be able to minimize your hours there and then you can branch off to another. It's definitely hard to focus when there's SO MANY ways to brand yourself online these days. Sometimes I just can't get my mind to shut off. I keep writing notes to myself and I have to tell myself STOP, DENNIS. TIme for sleep! :) UGH...

France and Mark,

Was a HOT summer here. Mt Helix is still as beautiful as always. Life here in San Diego is a dream come true. Keep hoping I don't wake up!

France and Mark,

Was a HOT summer here. Mt Helix is still as beautiful as always. Life here in San Diego is a dream come true. Keep hoping I don't wake up!

Dennis - Really helpful post, thanks! I've got it bookmarked! I've got some of the things going you've mentioned here, and quite a few I've never heard of and need to look into.....Thanks for steering me in the right direction! :)

Thanks for the well written post Dennis, you nailed it, time or money. Which ever it is, you have to spend it to make it!

Thanks for a great post! Much of this I am doing but you have some suggestions that look very interesting.

Great post! I really need to re-visit where all of my marketing dollars are going to right now. I'm having much more success with my FREE social networking. =)

Sincerely,

Kathleen

Dennis, Trulia is also an excellent free or low cost option for exposure. I just received a prospective buyer from there. Giving helpful answers to questions and not just vying for business seems to have worked out for me - she said I was the most knowledgeable one and she read all my comments.

What a great list here Dennis.. You make a great point here. and I agree... "The key to wealth is not how much you make, but how much you KEEP!"

Dennis this is a great way to see all the free options that we need to be taking advantage of. Thanks.

Thank you for all the wonderful comments. We have so many choices for internet marketing these days. Possibilites are endless....

thanks for the reminder. I have slacked off in October. Time to get back on track.

Angelina,

We ALL need a gentle kick in the keester once in a while. I'm thankful for the people in my life who help keep me on track.

Dennis great information I need to go back through and revisit "the budget."

Dennis:

Two years ago I moved to Texas and cancelled everything that I was spending on marketing. I would go to a convention, buy everything in sight with good intentions, then not use it. It was just crazy. I spent a lot of money needlessly. Now I justify every nickel and dime. I am adding things back slowly. People are still finding me on the web in my old location but slowly I am being found here in Texas.

Heather, Sometimes that budget can either be an old friend that you visit or a stalking monster that haunts you until you do. I know the feeling.

Carol,

GREAT approach. Stick with what works. Master THAT. THEN...test the water in something else. Best lf luck!

Thanks for the post Dennis!! I'm so wrapped up with a handful of nightmare transactions that I have lost some marketing focus over the last couple of months! Will keep this post as a point of reference for sure!! All the Best!!

OCT

Thanks for the article. My group is spending time considering our plans for 2010. I read somewhere that you should set aside 10% of you anticpated or desired revenue in the coming year as your marketing budget. I've never followed anything strictly to the letter. Whatever I've been doing has worked very well. I have some internal budget management that seems to work. I do like the idea and believe it's imperative for me to start writing out an anticipated annual budget. Thank for the reminder.

There is nothing FREE about your free list. People are paying for it with their time. I understand what you are saying though. I guess I would say, if you are planning on using the "FREE" stuff don't expect to put in an 8 hour day. All that "FREE" stuff is going to have to be after you put the kids to sleep.

Good advice -- it is so critical to constantly keep an eye on the expenses and see what is working.

Dennis:

I cancelled the credit card I usually used for business expenses. I know it sounds crazy, but it opened my eyes to how much money I was spending on my marketing. I had over 200 domains. I sold some and have less than 100 now. I was using some Pay per click stuff but have found that there are other search terms that people use to search out a new area. For instance I have a Davis Vantage weather station in my backyard. It transmits wirelessly into the house and through the magic of Virtual Weather Station software I have a weather website up that gets me traffic. www.LeanderWeather.com There are inexpensive ways to drive traffic, just not enough time in the day to get it all done. It's happening but slowly.

Dennis - These are all great low cost ways to market.

Darrin, You are absolutely right -- The FREE list is free as far as financial.

I've heard it said that you make you living from 9-5 and you make your fortune from 5-midnight!

Carol. What a GREAT IDEA. KInd of like cleaning the slage and starting all over.

LOL... aren't those URL's so EASY to pick up. You get in there at GoDaddy, and you say, "Well I need this one, of course. And as long as I'm getting the .com, I should get the .net, .biz and .info" (which is a great strategy by the way, if you're getting the .com, get the whole family). Then you get another couple of ideas and pick up a couple variations (and their familys). Before you're done you own 32 more domains. It's so mush WORSE than Costco! :)

p.s. Carol.

Love your weather station idea. What cool technology. I'm dreading the day when our Blackberrys AUTOMATICALLY Tweet to Twitter every 15 minutes exactly what we're doing. Scary! :) [Dennis is taking a shower], [Dennis is cussing at his lawn mower], [Dennis is singing 80s rock songs to himself]

Frank,

Great Plan to budget your marketing expenses for the year. Never heard the 10% guideline before. So on $120K of income you'd be spending $12K or $1000/month on marketing. I like the thought. It pushes you to get as much money as you can out there working for you every day. If it's on the internet, it's working for you 24 hours a day. Great opportunity to really scrutinize your expenses and remember the GOLDEN RULE OF MARKETING.... Track it.

There's easy ways these days to put little snippets on your links that will determine if someone clicked from your Facebook Page or from your email for the same web destination.

Dennis:

I see that you are selling that article submission software. Did you write it? Do you have any more information on how it actually works?

Thanks very much.

HEy...all good thought and suggestions in you post today. Thanks for sharing. With the real estate market slower these days we need all the tips/advice and help we can get on how to spend money.

Patricia/Seacoast NH

Hi Claudette,

I haven't had the opportunity to use it myself as I'm a MAC guy and this software is PC ( I use a couple other systems to get the same result, but I'm thinking of picking up a cheap PC JUST to use this software. It's THAT good.). I've heard NOTHING but rave reviews from the people in my industry that use it religiously. One user I know, David Wood uses Article Marketing almost exclusively and he generates over 50 leads A DAY with his strategy. It can be a very effective and inexpensive lead generating strategy and this powerful program makes it even easier.

It works like this: You enter your article in the software and then you need to take a little time to rewrite some of your sentences. Just use different words to say the same thing. You do that throughout the article and then you submit and the program takes about 20 minutes to submit to hundreds of article directories. The beauty of this is not only does it automatically drop your article into all these directories but it also puts a slightly DIFFERENT VERSION each place using various combinations of your 'alternative sentences.' (GOOGLE will virtually ignore you if you put identical text of the same article in multiple places.)

What you get is this:

1. Hundreds of unique articles ALL with links back to your capture page or blog. (GREAT for SEO)(GOOGLE LOVES YOU)
2. Dozens of different versions of your article in mutiple sites that further increases your SEO (GOOGLE LOVES YOU EVEN MORE)
3. Infinitely more rankings in GOOGLE Searches which exponentially increase traffic to your website, capture page or blog (your HUB).

The beauty of Article Marketing is that it's RESIDUAL in nature. You see, articles, unlike ads or PPC's are FOREVER. If you commit to posting just one article per work day, at the end of the year you'll have over 200 'Little Billboard Ads" out on the internet that, for the most part, just stay there FOREVER showing up on GOOGLE searches and driving traffic to your site. Every one of them is what's called "A BACKLINK" to your HUB. The more unique backlinks you have to your main page, the better THAT page shows up in GOOGLE and now you're driving not only people to your articles which in turn drive them to your HUB, but you're also driving them DIRECTLY TO YOUR HUB.

(sorry for the CAPS, but I get a little excited about the potential of all this for you....)(but I digress....)

The sales page for the software goes into more depth than this and the best thing about is that it comes with 90-day, no muss, no fuss, full money-back guarantee.

*IF* you're good at writing and can see that as a task you'd look forward to instead of dreading, Article Marketing is a natural for you. This software just exponentially magnifies your results. Almost a no-brainer to give it a try for a month or two then you'll know...

Good luck...

P.S. TO Charlotte....

re-did the math and if you post one article per work day, you'll have over 200 articles out there in a year. If you use Article Software to submit to let's say an average of 100 Article Directories (I think there's about 250 sites in the program). Using that factor (200 x 100) , now your have over 20,000 LITTLE BILLBOARDS out there. THAT'S why David Wood gets 50+ leads a day. I think he's only been seriously submitting articles for 6-8 months now.

Remember though that David Wood is in the MLM industry. I think that's a plus for Realtors. You can 'swipe' a strategy that works amazingly well in another industry and fashion it into your own and one of a very few in the Real Estate industry that use something that's just 'foreign' to most Realtors.

I did that for years in my insurance agency (which I still own and manage) and had tremendous results. I used strategies used by affiliate marketers, internet website marketers, Network Marketing people and Realtors. All of them blended into a very powerful online system that still drives phone calls and email to my insurance agency on a daily basis.

It is amazing how many new agents enter our industry with little or no working capital ! Also learning how to say no to every vendor who wants you to advertise with them is critical to making a profit !

It is interesting to compare this to only 2 or 3 years ago when our marketing budget was aimed at print ads and there was very little free. Now it is a complete switch and those that are not taking advantage of this need their heads examined. I agree with Michael above, we get bombarded with emails every day telling us we need their product to succeed, clearly that is not so.

RIGHT ON, Connie. FREE is my favorite four-letter word! :) There's so much of it available and sometimes I'm just too lazy to take advantage of all of it. I'm getting better though.... Lots of therapy!!!!! :)

Hi Dennis,

GREAT article. As the owner of a printing and marketing company who specializes in servicing the print and Internet marketing needs of the real estate community, I only wish I would have written this great article.

It is so unfortunate that so many in the real estate community who are seriously struggling financially (thanks to the economy) can't seem to find a budget to market their businesses. We have marketing programs that run as little as $100/mo to help our clients find marketing consistency and so few take advantage of it in the grand scheme of things. They have no business to pay for their marketing, but don't market their businesses to create income to pay for marketing. CRAZY and such a pickle!!!!

I understand the finacial dilema, I really do. The thing I absolutely don't understand is how few of the real estate and mortgage professionals I meet with don't have a database of past clients, which is the easiest and least expensive when it comes to marketing to them. Email marketing can be FREE or as little as $10/mo when you subscribe to email services.

I also don't understand why if some have more time than money they aren't investing what they do have...TIME....in blogging and social networking which is free and definitely WORKS! I wanted to help out by making blogging super easy because I know so many are compltely overwhelmed by it, so I wrote a free e-book called "blogging for buyers", just for my friends in real estate...and I made it very basic with easy to follow step by step instructions on how to build thier own blogs...FOR FREE if they wish.

Thanks for the GREAT blog post and it is 100% true. My clients who market with us monthly are NOT short on business or marketing budgets. They have consistency in thier marketing and consistency in their businesses. Amazing how that works!!!! :-)

Nadine

www.Printerbees.com
www.NadineBlogs.com

Nadine,

You are a ROCKSTAR and certainly a great blessing to any realtor who chooses to listen to your advice and read your eBook. I'd love to read a copy of your book. Is it available at your website??? THANKS

I would add to the paid a really good IDX solution with drip email built in.

Hi, Dennis:

I asked for an answer and I certainly got one. Thank you! I am going to take this for a test run and will get back to you with my results.

By the way, my name is Claudette - not Charlotte. (I have an aunt Charlotte. My family seemed to favor these ette names :)

Thanks again, Dennis.

Dennis - Thanks for the tips. I know marketing is probably the weakest area of my business. I guess the first step is always admitting it. I'm going to take some of your ideas to heart and try and improve on that lacking area. Thanks for sharing!

Hi Dennis,

I have tried article submission software before but had the problems with the form fields at article directories populating when I checked the results of the auto-submitter. If the directory's form does not recognize the data as words, it will never publish the article. It was able to work only on article directories that had no page rank or low page rank and definitely not on higher ranking, human edited article directories such as EZINE. Have you experienced this and is your software different?

I struggle with this nearly every day as well. To me, my time is more important than the money - if I budget my time correctly, the money will follow. These are the kinds of thoughts that keep me up at night! Balance is truly hard, but I enjoy and thrive on the challenge of it! Go entrepreneurs!

I think far to few people know how to budget their time. I think it is actually easier to budget time than money.

Claudette, So sorry about the name error. I got it right on the first answer and messed it up on the P.S. That was betwen 43- and 5 am my time today and I was either just smelling my brewing coffee or sipping my first cup. Pre-coffee is a dangerous time!!!! :)

Emily... LOVE YOUR ATTITUDE! You ROCK! What keeps me up at night is all the ideas that jump around in my head stealing sleep from my body. Then I wake up with a full list of TTD (things to do) and hit it. Days are full, but I love it that way. Better to BURN out than to RUST out.

Anita... I need to pick up a cheap PC in order to use this software as I'm a MAC person. Collegues of mine who use this however swear by it. Youl'll notice it comes w/ a 90 day money-back guarantee. I don't buy anything anymore unless it has an EXIT CLAUSE! :) I'd say give it a shot, play with it for 30-60 days and if it doesn't get the results you want, send it back! Almost as good as Nordstrom's!

Thanks for the information...I agree marketing is very important you have to make your dollars work for you!!

Dennis,

At our brokerage we have gone through all types of marketing but what has seemed to work best is making our local website as relevant as possible. The more local info other than just real estate really keeps people coming back. That has been most cost effective for us from a brokerage side, we then make sure and train up our agents on all the free areas availablr to them that can increase their business. Much like blogging, hyper-local seems to result in the most qualified leads. The brokerage gets them at the beginning of the search then the agents efforts target into specific areas and let the leads almost qualify themselves. Thanks for the post!

Shawn,

GREAT strategy. Local usually works very well. Glad it's paying off in Sandpoint, ID!

Blogging for locals is also a tremendous tool to get traffic and search results. Other local strategies include posting guest articles in various other local sites such as Chamber of Commerce, other local organizations (The Rotary, The Bridge Club, The Local Car Club, etc...) Always being sure to include a link back to your blog or capture page to increase SEO and get clicks back to your blog.

After awhile, you see a pattern of the internet 'flow' that you can begin to apply to other strategies such as PPC ads, Book Reviews, Banner Ads, etc. I've even seen some local newspaper ads with a contest or give-away that simply directs to a webpage for details. You can buy an iPod Shuffle now for $59 ! If you give one of those away once a month or once a quarter to the 100th person to sign up for your newsletter what would THAT do to your mailing list!?!?!?! (granted that these might not ALL be "highly-targeted leads") But now your name is in front of hundreds of people every month. Can anyone say, "REFERRALS!" :) Stay in touch with them and EVENTUALLY they will likely want real estate information of some kind. That demonstres the importance of a lllllloooooonnnnnnngggg email auto-responder series.

Somthing like once a week for the first month, once a month for the first 2 years then once a quarter for the next 8 years keeps your name in front of them for 10 years! That's only 59 short emails to write and set up in something like Aweber. Easy to do and you can write out 59 short emails in a weekend. (jokes, recipes, links to current information, etc.)

AND...... (sorry, I'm trying to stop)

When you have built up your list to hundreds or even thousands you can "blast" the list anytimg you want! Let's say there's a big HoeDown happening in town. "BLAST" the details and contact information or whatever to your entire list. One realtor I know even reports local freeway issues (like temporary closures) and Fires....(in southern California there's LOTS of opportunities for that.) "5 NORTH-BOUND CLOSED BETWEEN OLD TOWN AND HIGHWAY 94 DUE TO A MAJOR ACCIDENT"

Possibilities are really endlessssssssssssss

ok... i'm stopping now....

dv out

Great list I still keep in mind that although a lot are free some of these free items take up time ,.... they may not cost anything but you got to give time to get it.

OCT

I analyze my marketing budget and the ROI at the end of each year. I'm done with print advertising. I've found that the two best investments I ever made, besides AR and Localism, were starting a community blog and using Constant Contact for mass permission e-mails. I have over 300 subscribers to my Constant Contact e-mail updates which I use to drive traffic to my community blog or to my real estate website. The SEO from my AR blogs, my community blog, and my real estate blog keep me at or near the top of the first page of Google and bring one or two leads a week to me, which is all I can handle. Total cost is less than $50 a month for all of these services.

Gail,

You are the poster child for this kind of system. You've found the best blend for your style, personality, market and niche. The key is to have the HUB which is exactly what you've done. You have a capture form right on the front of your blog that invites people for the free newsletter. Others have used Free Reports or even eBooks that cover local markets or HOW TO DRESS UP YOUR HOUSE TO SELL, or 10 THINGS TO LOOK FOR IN A VINTAGE HOUSE.

There's TONS of ways to entice people to part with their name and email address (and sometimes their phone number)

You have some links pointing back to your blog and website which will definitely give those sites " GOOGLE JUICE".

AWESOME!

NOV

Marketing is so much more acceptable than selling. When we give people something of value for free then we hope that they will remember us when they need a REALTOR.

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