Wednesday, January 30, 2013


Q: Larry what formula to use for advertising. Example: if I run a print ad for $1000 what return on my dollar should I look for to measure success of ad? 

A: Here are my thoughts on justification for $1,000 of advertising.  As an explanation, if you see 26 clients and they each pay you $80.00 you will have rung up $2,041.  But wait a minute.  From that $2,041 you have to pay the producers, back bar, payroll taxes on the producers and credit card fees.  In your case that amounts to about 51% of the sale. 

So if you do $1,000 in advertising and because of it you get 26 client visits you will have made just enough to pay for the ad.

Let me know if you have any other questions.