Case Study
Let’s make a quick comparison using marketing language, Return On Ad Spend, [and] R-O-A-S.
- The best result you can hope for, the benchmark, according to Web FX, is 200%, meaning if you spend $1,000, you get $2,000 in revenue.
- Most businesses can’t make money with a 200% R-O-A-S.
- Let’s assume your business has a 50% markup, meaning you buy something for $200 and sell it for $300, giving you a gross profit of $100.
- You cannot sell products on the roundabout at normal prices; you won’t stand out, so you discount down to $250 and lose half your profit.
- You spend $1,000 on marketing and get a best-case R-O-A-S of 200%, you get $2,000 in revenue, and you [make] 8 sales ($2,000 divided by $250).
- The product cost is 8 x $200 = $1,600; the marketing cost is $1,000, and your marketing Guru cost is $1,000 giving you a total cost of $3,600
- But revenue is only $2,000, which means you lost $1600.
- You paid those 8 purchasers $200 each to take your product. You need a great loyalty system to turn them into loyal customers. Otherwise, you’re going out the door backward.
- You need to make another 16 sales at your [entire] $100 profit per sale to pay for your marketing. If only 1 customer returns, that means that [the] customer must purchase 16 times before you break even.
- The more loyal customers you acquire, the quicker it is to recoup your costs and grow your business; that’s why most successful businesses have loyalty systems and why KPMG states that 85% of growth comes from loyal customers.
- When you spend $1,000 with Earth Points, the outcome is much better because it’s only 3% on sales (Ads, Impressions & Clicks are FREE), you’ll get back over $33,000 in revenue. That’s 16 times better than the benchmark! No other marketing system can produce those sorts of numbers.
- Why are the returns so much higher?
- Because with the Erth System, all the ads, impressions, and clicks are free. Plus, other businesses and ECOs in your Erth network send your special offers out for free, and you only pay 3% when the customer pays you.
- Plus, with the Erth System, you’re investing in your own business; 60% of Erth PAY-per-SALE fees go towards super loyalty, and 20% goes to sales and marketing.
- 20% to the customer in Erth points, [for you] to spend back at your business.
- 20% goes to what the customer cares about, their nominated ECO; you can market to that ECO’s supporters.
- 20% goes to the environment; there are a lot of environmental customers you can attract.
- 20% goes to the sales and marketing network to help bring more customers, businesses, and ECOs into the Erth System.
- So, 80% of the Erth fee goes towards driving your business’s super loyalty and promotion, which is where 85% of your growth and profits come from. The more invested in your loyalty, the better your chance of profitably growing your business.
- If your marketing Guru has not recommended a great loyalty system, you must ask why and either get one or a new guru.