“Speculate to accumulate” comes to mind when I talk to my clients about acquiring new clients. Of course there are ways to market your business that costs little or no money. But the fastest and most effective way is to spend money on attracting your ideal clients and when the income comes in, reinvest that in more marketing activity.

Marketing spend

Many of my clients tell me that they can’t afford to spend  lots of money on Marketing.  Well, let me assure you, it is more important than ever in this economic climate that you concentrate on Marketing to increase your new customer base.

The other thing to bear in mind is that spending on marketing is only an up-front cost if done properly.


Let me explain more:

Do you know the average Lifetime Value of your customer?

How much is a customer worth to you over the next year, 5 years and 10 years?

If you don’t know the answer to this question then take the total profit that you have made in a year and divide by the number of customers  you sold to in that year, that will give you the value of one customer in one year.

This number can be multiplied by 5 and 10 to give you an apprCustomer Valueoximate value over those longer periods of time. This can only be done, of course, if a customer gives you repeat business each year. A lesson for another day……..!


Annual profit for 1 year     =  £60,000

No. of customers in 1 year           =  300

Divide the profit by the number of customers, this will give you the average value of your customer spend.

Average value of 1 customer in year 1         =   £200

Avg. Value of 1 customer over 5 years    =   £1,000

Avg. Value of 1 customer over 10 years   =  £2,000

So how much would you be prepared to spend to acquire a new customer if you know that the value of that customer is £200 in 1 year, £1,000 over 5 years and £2000 over 10 years?

Let’s take a  look at the cost of a direct mail marketing activity;

Cost to send 500 pieces of direct mail   =   £300 

You get 4 new customers from this mail out, worth £200 each that gives income of:

£800 in 1 year,

£4,000 over 5 years,

£8.000 over 10 years.

Pretty good return from an investment of £300, wouldn’t you say.

And the higher your average customer spend, the greater your ROI.

This changes the thinking from, how much you are going to allocate to your marketing budget, to how much you will spend to acquire a new customer. VERY POWERFUL!

To help you make this year your “Best Year Ever” here are MY FREE GIFTS TO YOU –

  • Subscribe to receive your FREE guide “21 Sure Fire Ways to Find Your Ideal Client” CLICK HERE 
  • Book your FREE “Profit Booster” coaching session with me personally CLICK HERE
Please leave me a comment below, sharing your thoughts on how you allocate money to your marketing budget. Sharing is how we all improve. Thanks.x

Success to you all.

“Find a Way” and Be the Best You Can Be.
Best regards,

Email: dylis@dylisguyan.com





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