There are lots of good answers to that question. Surely one of the most important things to think about is –
“How much does it cost for you to acquire a new client and close a sale?
Here’s some math to consider –
* Last year you spent $10,000 on (direct) marketing
* Number of new clients: 20
* Number of sales: 10
* Average commission: $4000
* Total commission: $40,000
* Average cost of each sale: $1000
So, all other things being equal, would an additional marketing expenditure of $5000 generate another $20,000+ in commission for you?
Think about it…..
Jim Trainer CPA, CA