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.
