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How You Can Determine With 100% Accuracy Whether Your Marketing is Making You Money

Written by Bob Regnerus

What I’m about to share with you is powerful, but simple.  In a day when we can have more information at our fingertips than our brains can handle, I’m going to remove the stress of figuring out which numbers to track and focus you on a couple figures. 

I am going to give you one number to review each week in your business. Just one. This number will tell you if your marketing is profitable or not.

Be warned.  If you hire people to manage your PPC campaigns, drive traffic through SEO, or do placement campaigns for you, they will NOT be focusing on this number because it’s not in their favor.  They will only be concerned about secondary numbers that matter to them, and those they have full control over.  Things like Click Through Rate (CTR), Cost Per Click (CPC), and landing page conversion rates. 

While these number matter, they don’t matter as much as the number YOU, the Business Owner have total control over and must manage with precision. It is called:

LeadSource Income 

Chances are, you’ve never even heard of LeadSource Income or even know what it means to you and your company. 

Leadsource income tells you the amount of income you made from a lead source. 

A Lead Source is a marketing channel, such as Google Adwords, MSN Adcenter, Postcard Campaign, Space Ad, and any other channel you place your advertising.

Leadsource Income reveals the profitability BY CHANNEL, and therefore the rate of success and effect it has for the bottom line.  You will almost always see a disparage from one channel to the next in terms of Leadsource Income.  

The equation is: TOTAL DOLLARS INVESTED IN THE MARKETING CHANNEL minus TOTAL REVENUE EARNED FROM PROSPECTS ACQUIRED VIA THIS CHANNEL equals LEADSOURCE INCOME.

In order to track Leadsource Income, you need to track each marketing initiative. For example, all of your Google PPC marketing has to be tracked back to the income you generated off of leads from Google PPC. (Thus the name LeadSource Income) 

Let me make it more simple. 

In the month of August you invest $2,500 in Google PPC, $3,000 in SEO, $4,000 in Print Marketing and $1,000 on Yahoo/MSN. 


A report you need to review each week looks this simple: 

LeadSource Income 
Google PPC – Cost $2,500 – Income $2,500 
SEO – Cost $3,000 – Income $1,000 
Print – Cost $4,000 – Income $2,900 
Yahoo – Cost $1,000 – Income $2,000 

Now you and your team are armed with the right data to make decisions on where to increase and cut marketing budgets. In just the first 30 days, we can see we’ve made money or broken even on two marketing initiatives and lost on two. 

Granted 30 days is not a sufficient amount of time to get the real picture. (That comes in when we discuss lifetime value of the customer) But it gives us a real snapshot of our efforts. 

Why Guessing And Fuzzy Math On LeadSource Income Is A Bad Idea 

Most marketing firms can’t give you the specific, quantifiable, scientific results on how the marketing is performing. Usually it’s guess work. 

What you need is a fool proof system to tag a lead, once it enters your database.

For the most part, marketing teams guess at which web site, print ad, adwords are working. They look at cost per click or the opt in percentage, figuring that’s good enough. 

It’s not. 

While all those numbers are important, none tell you what is making you money and how money it’s making you. 

Guessing on the financial return on investment for your marketing is not a good long term strategy.  One I suggest you work on changing… quickly. 

When I went to work with The Tuck School Of Business at Dartmouth University, they had a similar situation. They spent a fortune on marketing, but couldn’t tell what was working. 

After 6 months, we were able to show them, specifically and with quantifiable data, what marketing was bringing in the most and best new students. 

We have done the exact same thing with other dozens of other companies.

Resolve now to track which Leadsource is bringing you the most revenue with the best return on your investment.

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