Sporty's Success Shot - Breaking Even May Not Be What You Think
What's up FLPPD University 🚀 Let me drop some serious knowledge on you today that's going to change how you think about customer acquisition forever. Here's the mind-bender: If a customer is worth $975 to your business and it only costs you $30 to land them, then every $30 you spend is actually worth $975. I'd be absolutely FOOLISH not to crank up my ad budget to produce more $30 customers! Think about it - theoretically, I could afford to spend up to $975 to bring in that customer and STILL break even. Now you're playing with house money. This is called calculating your customer's marginal net worth - and it's your secret weapon for plotting what you can afford to spend on acquisition. Here's where it gets really good: If you're working with modest capital, you could justify spending 100% of your first sale's profit to get that customer. Why? Because every $75 you spend to acquire them means $900 flowing into your bank over the next 24 months. Double your new customers = Double your next two years' profits. 💰 Here's your competitive advantage: Most of your competitors have NO CLUE what a customer is actually worth to them. They're setting marketing budgets as percentages of sales. When a recession hits, they cut their budgets. But YOU? You keep advertising at full throttle because you know the math - and you'll capture THEIR customers while they're playing scared. The Bottom Line: Spend everything you can justify to bring in a customer, as long as that customer costs less than they earn you. Start conservative if cash flow demands it, but after a quarter or two of reorder profits, step up that ad budget aggressively. T his is how you think like an empire builder, not just a business owner. Your Action Step: Calculate your customer's lifetime value RIGHT NOW. Then figure out what you can afford to spend to acquire them. Most of you are leaving money on the table because you're thinking too small. Resources: - Grab my book FLPPD at SportyGarner.com - Enroll in our House Flipping Course and get the book FREE - Subscribe to my YouTube for daily empire building content