| Are
You Building Your Business By Guessing Or Testing?
, By Bob Leduc
A distributor for a network marketing company called me this week for help
in promoting her business. Julie places ads in
ezines (email newsletters) to generate traffic
to the free website provided by her company. She
also sends postcards to several targeted mailing
lists to generate inquiries and traffic to her
website. I asked her what was producing the most
profitable results. She answered, "I don't
know."
It's amazing how much money some business owners
spend on an ad, sales letter or other business
promotion without evaluating how much profit it
produces. Your advertising decision is only a
guess if you don't know how much profit it's likely
to produce. Advertising based on guessing is gambling
with the future of your business.
Increase Profits And Reduce Risk
Effective testing increases your profits and reduces
your risk. Decisions based on the results of continual
testing put you in control of your business profits.
I once increased the response to a postcard promotion
from 3 percent to over 20 percent by constantly
making changes based on results revealed by repeated
testing.
Testing may be fun for engineers but it's boring
for most entrepreneurs. That's why many business
owners avoid it. If you're one of them, you're
making an expensive mistake. The benefits you
gain and risks you avoid by testing make it a
valuable function you can't afford to ignore.
You may want to copy the 80/20 guideline I use
if you find it difficult to test your marketing
efforts on a regular basis. I simply invest 80
percent of my advertising budget in proven promotions
and 20 percent in testing new variations. This
formula generates a constant stream of profitable
business from proven promotions while forcing
me to continually test for better results.
Continually Test Everything
Continually test and evaluate everything you use
or do to promote business. A partial list of things
you should test includes:
* Different offers
* Different ad copy
* Different webpage layouts
* Different sales letters
* Different media (where you place ads)
* Mailing lists
* Different guarantees and some less obvious things
like:
* Timing of your advertising (day of week, week
of month)
* Products and/or services offered (or combinations
of them)
* Networking activity (time and money allocated)
* Affiliate programs (time and resources to promote)
TIP: Test the headline for an ad, sales letter
or webpage before testing what follows it. Find
the headline that attracts the most readers before
testing what the headline attracts them to read.
Test only one change at a time or you won't know
what variable produced the new result. Code each
variation you test and track the results. Every
time a change produces better results, make it
your new standard and continue testing. There
is no such thing as the perfect promotion. But
continual testing gradually gets you closer to
it.
Testing is boring work for most business owners.
But it pays off in higher profits and reduced
risk. Start testing today if you've been avoiding
it. Implement a program to continually test and
evaluate everything you do to promote your business.
The steady increase in your profits will surprise
you.
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