• Home
  • >
  • Blog
  • >
  • Doubling Your Money And Still broke…

Doubling Your Money And Still broke…

April 7, 2022  


By Charlie Hutton

April 7, 2022

Fucking marketers.

So saw this advert on Facebook yesterday – from a marketing agency (AKA charlatans):

======

When we manage your ads we GUARANTEE that you will double any money that you spend on ads. In other words, if you spend £10 on advertising we’ll guarantee that you’ll get £20 back! […]

======

Hmmmmmmm.

A great pitch and one that I’m sure is making THEM money hand over fist.

However, it’s one that shines a light on an important lesson around money, maths and marketing.

In fact, if you’re currently running any advertising, anywhere, then you’d be wise to buckle up…

… Because this the maths here is important and, chances are, will save your life.

So for the sake of fairness, let’s use their numbers in their ad and say …

  • You’ve spent £10 on ads.
  • You’ve got £20 back in revenue.
  • You’ve doubled your money.

… But… But… But… 

Here’s the kicker.

You haven’t.

Because you’ve actually only pocked £10.

(The difference between the £10 you spent and the £20 you got back.)

Which means IF what you sell costs more than a tenner to provide & deliver – then you my friend are bleeding bunce. 

… And despite doubling your money you will fast end up broke.

It’s why for me, and despite what the dickheads with digital diplomas will tell you, the most important number to know, in advertising, is Cost Per Sale.

Or in other words how much did it cost, in ads, to sell something.

Let me explain.

Now, lets say…

  • You’ve spent £10 on ads.
  • You’ve made 2 sales.

… That makes your cost per sale £5.

Now, here’s the important bit.

… That means if your margin on what you sell is great than £5 – you are ALWAYS in the black and in the money.

It’s why for men like you and I, understanding the money maths is always the key to the kingdom – especially as you start to scale.

The fact of the matter is, I could get you a 100X ROI and still leave you dead in the water – if the cost per sale was outta whack.

Anyway, the point of this email is two-fold:

1) Don’t trust marketing agencies to put food on your table

2) Stop tracking ROI and start tracking Cost Per Sale.

It’s the only way to scale in the new economy.

… And comes back to One Man Empire Iron Law #23:

Stop the money bleeding out AND maximise the money flowing in.

Probably why the men that come and join us get results… 

… Because they’ve started to understand the art and science of how to turn advertising into profit.

http://ApplyForYourSeat.com

Make More. Provide More. Be More.

Charlie Hutton

 


CHARLIE HUTTON

Founder Of The One Man Empire Movement.

Make More. Provide More. Be More.

Connect With The Movement Now