If you’re spending money to try to get booked sales calls but running at a loss, breaking, or barely making a profit this is likely why.
The month of October is almost over and let’s say it was Month 1 of investing into leads and trying close sales on the phone or zoom or whatever.
Say you spent around $1000 in advertising & operating costs in Month 1 and got:
Month 1:
$1000 Spend
100 New Leads
1 New Sale
$1000 Total Revenue
Leaving you with a $1000 cost to acquire customer, at a break even on your investment, and confused, frustrated , and scratching your head about what with your landing page, ads, content, process went wrong and trying to make changes.
But the truth is, you’re lacking a sales system framework and proper mindset and you shouldn’t change anything on the front end.
Let me explain
In a crappy sales system, we would just forget about the 99 other leads from this Month 1 that didn’t buy and move into Month 2 trying to change something in our process and see if we can get more sales out of the next batch of 100 leads but you end up with the same results…
$1000 Spend again
100 More New Leads
1 More New Sales
$1000 Revenue again
Leaving you feeling plateaued and not able to do more.
It’s because your sales system is broken
In a working sales system, a lead never gets left behind and the CAC goes down over time . We need to always repurpose all the leads we own:
Month 1
$1000 Spend
100 New Leads
1 New Sales
$1000 Revenue
Month 2
$1000 Spend + Repurpose
100 New Leads + 99 Month 1 Leads
1 New Sales + 1 More Sales from Month 1 leads
$2000 Revenue
By repurposing leads from Month 1 during Month 2, we end up with 2 New Sales for Month 2, instead of 1 like the initial example.
Also, the $1000 CAC month 1 of the life of a lead, but because we repurposed old leads well and added an additional sale to those Month 1 leads, the closed leads from Month 1 CAC drops to $500 from $1000
Let’s do it again for a 3rd month
Month 1
$1000 Spend
100 New Leads
1 New Sale
$1000 Revenue
Month 2
$1000 spend + repurpose
100 New Leads + 99 Month 1 Leads
1 New Sale + 1 More Sales from month 1 leads
$2000 Revenue
Month 3
$1000 spend + repurpose
100 New Leads + 98 Month 1 Leads + 99 Month 2 Leads
1 New Sales + 2 More Sales
$3000 Revenue
….
Month 12
$1000 Spend + Repurpose (x11 months)
100 New Leads + 1000 old leads
1 New Sale + 10 More Sales
$11,000 Revenue
So as we repurpose older leads we continue to convert sales from that batch of leads, leading to the CAC going down as time goes on.
This is why the fortune is in the follow up
By month 12 we’re now getting a massive return from a system we thought was broken but just didn’t give enough time to.
So there may really be nothing wrong with your marketing or product or funnels or content, you’re likely just working leads incorrectly