A word of warning: these articles will not be fluff pieces. They will not contain a bunch of irrelevant space fillers. We intend to make them all about real tactics that you can implement in your Facebook advertising agency, or any business for that matter, to help you make more money, get more leads or, overall, just help your business grow.
At the same time, we make plenty of mistakes running an agency here in San Diego, California. So, we’re going to share those with you too. We’re keepin’ it real, folks! Hopefully, by reading our blogs or watching 5 Minutes With Billy Gene, you can avoid making the same costly mistakes we have made.
So let’s get to it! The #1 reason why most small businesses fail:
LACK OF PROFIT PRODUCING ACTIVITIES (PPAs).
Now, I’m bringing this up right now because we just received an interesting email.
It was from a Charles B. and it read; I have been in the business for about two years and our company is steadily growing, but not fast enough. What do you suggest for rapid growth without increasing my overhead by a million bucks?
First of all, Charles, if your problem is worrying about increasing your overhead a million dollars, maybe we should have a coaching session and you can help us out?
On a serious note, I think the key to rapid growth is identifying how many profit producing activities your team is actually carrying out on a day-to-day basis.
So what the hell is a Profit Producing Activity?
Simple. It’s an activity that makes more money for your company. So, let’s say you have a team of 10 employees. On a day-to-day basis, how many of those 10 employees are actually doing tasks that directly result in sales? I’m talking about real world hustle stuff that makes you more money…
For example, my employee, Reena, has specific tasks she performs every day with our team to make sure that we’re bringing in sales as a company.
One of those tasks is, at eleven o’clock, the whole team starts calling and e-mailing either current clients asking them for referrals, past clients inviting them to come back, or responding to inquiries from new potential clients.
And the crazy thing about that, it’s just unbelievable what a simple task that is; just dedicating an hour every single day to having our entire team work on a few money-making tasks.
But that one hour a day almost always brings in an additional two to five thousand dollars in the door. See how powerful even small profit-producing activities can be?
You’d be surprised how many past clients will happily come back into the fold if you just reach out to them.
Or let’s talk about referrals. The best time to ask someone for referrals is when they’re happiest, when you’re just killing it for them, bringing them a bunch of customers from their Facebook campaigns.
That’s the moment to give them a call and ask if they know anyone else who could benefit from using your services. Chances are, they’ve let their friends and colleagues know how they’re kicking ass and when they’re in that happy place, they’re happy to tell others about who helped them get there.
That’s the secret. That’s why it’s so helpful to dedicate a specific time, every day, to make calls and send emails. It has changed our business pretty dramatically and it will change yours too.
Now, the thing is. We don’t have a dedicated sales team making those calls. It’s our actual account managers. That’s not part of their normal job, but they’re required to do it anyway.
A lot of businesses miss this point — make sure you don’t…
I don’t care what role you have in the company, everyone’s job is to bring in sales.
Everybody needs to be a salesperson. I’m not saying they should all be giving people a hardcore sales pitch. Just asking a happy client for a referral, or reaching out to a past client to let them know we care, to ask how they and their business are doing, and offer an invite to come back — these have direct, and dramatic impact on our revenues.
And anyone can do these.
To answer your question, Charles B., you need to reevaluate your business, check with your team, look at your processes, and make sure that you’re allocating at least an hour of time every single day to money-making activities.
If you do that, I guarantee your sales and your company will increase exponentially, because that’s what it did for us; we witnessed it first-hand.
Let’s nail down this idea of Profit-Producing Activities
We have an exercise we do with new hires — we have them write out what they think a profit-producing activity is.
I want to share some answers we’ve gotten, because I suspect you’re making the same mistakes. In fact, I can almost guarantee that you are because I did — especially when first starting out.
The first couple of answers are pretty good, they basically say what I’ve just said: e-mailing prospects and cold calling. Yeah, those dreaded words: cold calling. Regardless of how you feel about it, pick up the damn phone and call!
You will make more money. It’s crazy, but true. It can be fun and it works. Pick up the phone and ask people to buy your product or services — it’s a guaranteed way to always make money. A percentage of the people you ask will say yes. You just need to ask enough people.
Here’s another answer we’ve gotten: Plan your daily schedule! Yea, that is NOT a profit-producing activity. As a matter of fact, that’s the OPPOSITE of profit-producing.
I know too many entrepreneurs that get so caught up in having the perfect day. They spend so much time laying out the perfect plan that by the time they’re done, the day’s half over. Then they wonder why their business struggles. Imperfect action trumps perfect action every time for growing your business. So get some imperfect action done now.
How about … prospecting and networking?
Ok, sort of. But only if you follow up via phone and email with the people you meet!
How about this one … giving out your business card?
No, not exactly. Let me be clear here. Giving out your business card might eventually make you more money. But getting out of your comfort zone, marching into a business, getting face-to-face with the business owner, and asking him to purchase your product or service is going to get you a lot further than handing out business cards at a networking event.
Those cards are only going to end up in someone’s desk drawer, forgotten for six months, then eventually tossed because the person you gave it to forgot who you are.
Fact is, you might never need a business card to run a highly successful business. I don’t carry any. Instead, I put that prospect’s number in my phone and mine in theirs.
Let me say that again … I put the prospect’s number in my phone! Into my contacts. Instead of taking a chance on losing a business card, I can text them, call them, hit them on Voxer, call them on Skype, even add them on Facebook. FAR MORE EFFECTIVE THAN COLLECTING BUSINESS CARDS!
OK, as far as profit-producing activities go, handing out business cards is close to the bottom of the list.
How about … writing a sales script?
Believe it or not, writing a sales script is NOT a profit producing activity, because it doesn’t directly make you more money. I have written many scripts for my own Facebook advertising funnels that I’ve never used and that will never see the light of day.
Now, if you take that script, make a video and then show the video to people who can potentially purchase your product or service … now that’s the PPA, not the script writing itself.
I’m making this distinction because too many times I see people waste time doing things like writing a script or even worse… building a beautiful website.
Yes, me, a digital marketer, is saying that perfecting your website is a waste of time. Websites are dying. It’s true — the website has been the entrepreneur’s worst enemy since the first one popped up on the first browser (WorldWideWeb) back in 1990.
That might sound harsh, but it’s true. Because instead of spending their time on activities that will actually grow their business’ and give them the lifestyles they long for — business owners get all caught up in choosing the perfect colors, deciding whether to use a video instead of a picture, moving this text over here, changing that text to read just so, and getting obsessed with “pizzazz”. Shut Up!
Websites are the antithesis of profit-producing. They’re GIGANTIC time and attention stealers. When I run an ad for myself or a client, I NEVER link the ad to a website. Ever. But that’s another conversation to be had.
Instead of worrying about making your website look pretty, you should be out on the street inviting people to buy your products and services!
I hate to call you out, but somebody’s got to do it, my friend. May as well be me.
So, how are you REALLY spending your time? That question will determine whether or not you make more money, grow your business, and get to enjoy the lifestyle you started your business for in the first place.
Now, if you found profitable advice in this article, pass it along to a friend or colleague. Thanks!
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-by The Billy Gene Is Marketing Squad