Does this seem like an impossibility?  At ActionCOACH, we believe that it is very possible.  You will have an unlimited marketing budget when you treat your marketing & advertising spending as an investment, not an expense. 


Let me explain.  Marketing & advertising can be considered as an investment when we look at the efforts as our cost to “buy” a new customer, who will in turn, spend more money than it took to acquire them and who will also refer many of their friends and family as additional customers. (Assuming we are giving them excellent customer service and consistent quality of our service or product.)

Finding out if our marketing budget is an expense or an investment, requires us to really examine each of our marketing efforts in terms of cost of acquisition (cost of marketing/# of new customers) compared to the amount the new customer spends in the same time period.  This can be done by looking at the average transaction fee of our customers (gross revenue/# customers served) and comparing it to the amount spent on our marketing efforts.

For instance, let’s say that you ran an ad in a newspaper for a month and it cost you $450.  If you received 9 new customers in that month from that ad, your acquisition cost per customer for this marketing strategy would be $50. If our average transaction fee for that same month was $150, in this scenario, the customer pays back the cost to “buy” them in the first visit.  If we found that the ad brought in less customers, let’s say only 2 new customers, the acquisition cost would change to $225.  At the same ATF of $150, that customer would take a minimum of two transactions with your company to pay back its marketing cost.  In this case, we would need to dig deeper to determine the average lifetime value of a customer, the quality of customer and the likelihood of these customers to refer their friends in order to determine if this ad is worth the money that you are spending on it.


It is crucial to know your numbers for each campaign, because if one method is dragging you down, it may be time to cut that anchor and find another source.  We advise our customers to have a minimum of 10 different marketing efforts running at any given time.  With this strategy, if one campaign is lagging, it has the power of all of the other efforts to keep your leads and new customers streaming in while you find another way to acquire new customers.


At ActionCOACH, we believe it is important to not only measure each campaign individually, but also know a summary of all of your marketing efforts together in terms of acquisition cost as compared to your average transaction fee and the customer lifetime value to see if all of your marketing efforts working together are “paying for themselves”.  If they are, you now have an UNLIMITED MARKETING BUDGET!


Do you need help developing a plan for an unlimited marketing budget? Do you need done-for-you marketing, social media, and more? We’re here to help. Schedule your no-cost, no-obligation business analysis today!

Portrait, Michelle Calcasola
About the author,

Certified Business Coach Michelle Calcasola

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