You Gotta Save Money to Make Money

We’ve all heard the statement “You got to spend money to make money” but in this economy I think the opposite is true for small businesses.  Before I get any further, lets get one thing clear. I’m not saying small businesses need to cut marketing spend. Some may argue, this is the best time to increase marketing budgets (if one can afford to). If increasing marketing spend is not an option, then small businesses need to get better data, and make better decisions about where to spend money.

Unless you’ve been living under a rock for the past two years, you should already know that the yellow pages, and most print adverts are a complete waste.  As always, there are exceptions… attorneys, for example, still do well in the yellow pages.  If you can find a targeted print ad, you may be able to drive incremental volume. For example, a local wedding feature in the newspaper or regional magazine may drive business to a local bridal shop.

Below are my suggestions for low cost e-marketing options. All of these could be managed in-house if you have the skills.

Work existing relationships. Email marketing is great for this due to its low cost, and availability of campaign data to measure effectiveness.  Don’t be scared to ask for repeat business or referrals. You’ll be surprised how people may respond to a well crafted offer.  For self-managed email campaigns, I’ve used Constant Contact and MailChimp.  I prefer MailChimp simply because their site is cooler, and feels less corporate. If you don’t feel you have the time, or the skills, don’t hesitate to call a local marketing company for help. Expect costs to be $0.02-$0.06/email depending on the design and email list size.

Work existing relationships(2). Social media is the epitome of working existing relationships. Through your network of friends, colleagues, and customers, you can develop an online community that is engaged in your brand and goes out of their way to tell others.  However… a big however… developing this online community is not for the faint of heart. It takes a huge investment in time, a little know-how, and some trial and error to get it done right.  There are many social media networks, so figure out which networks are right for your business before jumping in head first.

Facebook ads. Its super-easy to set up paid ads on Facebook and the targeting is outstanding. You can focus on your key demographic, and narrow the demographic further by targeting keywords located in an individual’s profile. You set your budget, so it doesn’t matter if you want to spend $10/day or $100/day.  The campaign data available is  top-notch, so refining the ad campaign is pretty easy.

Pay for ads on targeted websites. Advertising on smaller sites is usually pretty affordable. This is a little tricky, but try to find a site that focuses on your target demographic and see what advertising opportunities exist. If you don’t have graphic design skills, or have a graphic designer on standby, don’t hesitate to contact a local one to make your display ad pop.