Can I Get 5 X ROI From my Investment in Digital Marketing From the First Month?
This is one of the questions that many business owners have in their minds when they first decide to add digital marketing to their marketing plan. Some want to see 5X ROI from digital marketing in the very first month. The question is what all can be achieved through digital marketing. That’s why I have decided to write about this particular topic today.
The first step for designing your digital marketing plan starts with acquiring the right information that doesn’t only let you know what digital marketing is going to achieve for your business but also how fast that growth will happen.
In addition, the more you’ll learn about it, the more it is going to help you in setting up realistic expectations. In the end, you won’t feel cheated by your digital agency or disappointed in digital marketing.
If you’re working with any decent digital agency, you will find that as much as you’re worried about losing your money, your digital agency is equally worried about disappointing you. Even your chosen digital agency wants to grow just like you do and they are aware of the fact that they can’t achieve business growth by cheating you out of your money.
To calm your worried mind, I will recommend that you start by searching them online. You can learn a lot about them from Google and other search engine results. Check out what others are talking about them or what kind of reputation they have there. Then, you can check out their social media handles. If your doubts are still not put to rest, try discussing openly with them.
Now, coming to the second point whether or not digital marketing works, I will say that digital marketing is highly effective. Many businesses have turned into billion-dollar companies just because of it.
The Confusion Between Marketing and Sales
Many business owners who are new to the concept of digital marketing often confuse marketing with sales. Surprisingly, these two are very different from each other. Understanding their differences will help you understand why sales work on a commission basis while marketing can’t.
When you go to a Ford car showroom to look for your next car, you meet salespeople there. They generally get commission (a percentage of the sales) when someone buys a car from them.
Why did you decide to get a Ford car? Why didn’t you decide to get Toyota? What about Lincoln, Jeep, or cars by some lesser-known companies? The reason is marketing. The marketing of Ford appealed more to you than the marketing of other brands.
If Ford wouldn’t have done any marketing, then there wouldn’t have been a showroom or if there was, you wouldn’t have gone there. The product wouldn’t have appealed as much to you as it does now. If you think you would have still chosen Ford, then just think for a moment when was the last time you visited an unknown showroom to buy a car.
The reason why we love some brands more than others is all because of marketing and not because of sales. You will not go to a store to buy a car, even if it has the best salesperson. You need to first have an interest in a car before you consider buying it and that interest in a product is developed through marketing.
As you can see, marketing is a cumulative long-term result of working on strategy, positioning, branding, advertising, and more. If Versace wouldn’t have done any marketing, you would not have known them as a world-class luxury brand. Also, you wouldn’t have been willing to pay a huge amount to get their products.
The same goes for every other brand. They are a result of their marketing efforts. If people don’t know you yet even though you sell good quality shoes, it’s all because of your lack of marketing.
Take a moment and think about all the brands you love. What kind of fashion brands do you prefer? What’s your favorite perfume? What’s that skincare brand you can’t live without? Now, think about why do you like them more than the rest and what made them different from the others.
If you’re going to say their products are the best and that’s why you like them, you’re not being honest. Let’s try this another example. Do you have a favorite Bourbon brand? Can you explain why?
In reality, most of the bourbons have similar tastes. I’m not saying that, it’s the result of a market research experiment conducted in the past. When we pick a bourbon brand as our favorite, we think we are doing it because we like its taste more than others but we are actually doing it because we have been touched by its marketing better than the rest.
This is how marketing and sales are very different from each other. Selling is limited while marketing is vast. If you’re a laptop seller, you will be able to sell a few laptops with the help of sales but you will not become the next Apple in the market with that. You won’t be able to charge a premium. People won’t remember you. They won’t ask for your product by its name.
If you want all that, you do marketing.
Marketing is a Long Process
It took Apple almost 44 years to hit a trillion dollar company valuation. Launched in 1976, it became a household name in 1984, 8 years after its launch. For achieving that they have to do a lot of marketing and spend $1.5million on an ad campaign.
I’m not implying that you have to wait 44 years before you can see ROI through your digital marketing plan. All I am saying is marketing is going to be a long process. So, get ready for that.
Can I Expect Five Times (5X) ROI From Digital Marketing Right Away?
I wish it was possible! None of us would have ever invested our money in the stock market or wasted in gambling if making five times money was as easy and as riskfree as investing in digital marketing.
“I want to invest to $1000 in my digital marketing plan but I want to see five times return on my investment.” I have heard such statements from many business owners.
Can you imagine what a world that would have been? Companies would have stopped going out of the market? There would have been no gambling, investment in equity, stocks, or any other thing. If there is a 100% safe way to make your money grow five times, who wouldn’t want that?
If all it takes to earn $10,000 a month is a $2,000 investment in digital marketing and a product or service to offer, then everyone in America would have taken a loan, begged their parents to give them some money, and invested in digital marketing for their products. The guarantee at banks would have been “I am investing in digital marketing, so I am expecting five times return in a month.”
To answer the question of 5x ROI from digital marketing, Let’s take a hypothetical example. You want five times to return right away. You invest $2,000 in digital marketing. At the end of the month, you will have $10,000. Now, you can invest double what you have invested earlier. $4,000 next month will bring you $20,000 and so on. Can you imagine how much will you have at the end of the year? Over $200,000? In another year or two, you will be a millionaire.
Have you ever heard a thing like this except spammers and scammers? So, it doesn’t make any sense to hire a digital marketing agency with this kind of expectation. If they have the power to make $200,000 for everyone who can pay them $2,000, gambling and the stock market will go out of business.
Marketing is Like Stock-market Investing
To keep your goals realistic, I always say think marketing as if you’re investing in the stock market. Let’s say you bought a few stocks of Tesla in 2016 for $31 each. If you would have checked their value after a month, there wouldn’t have been much different. Even the month after that.
Many times you would have seen the stock rise to $34, while many other times plunging to $30. But the performance of a stock can only be judged based on long-term results, not short-term ups and downs. So, if you would not have got rid of your stocks because you felt frustrated with the stock performance or felt as if your investment company is cheating you, you would own stocks worth $880 in 2021.
This is how marketing works as well. You will see a little or no difference in the first month but within few months, you will start seeing how the performance of your business is improving and getting better. You will notice that more and more people have started knowing about you, asking for your product by its name, visiting your website, calling you, and buying from you.
The answer to the question whether or not you can make five times (5x) ROI with digital marketing is you can but it might not be right away. It’s going to be a long journey of building and growing a brand. Share on X
If you need any help with your marketing plan, feel free to reach out to us.
Some FAQs For You
Which Social Media Marketing Channel Will Be The Best?
Every social media marketing channel has a unique element to offer to a brand. From Facebook to Snapchat, all have a unique role to play in a brand’s advertising strategy. So research where your target audience is and target that channel more than others.
I Keep Trying Digital Marketing But So Far Haven’t Achieved Any Results, Why Should I Continue?
Digital marketing is a long journey. It will strengthen your base and make you be heard, be seen and be loved. However, that doesn’t mean you cannot celebrate short success. Analyze the results and change the plan accordingly to achieve the desired results.
Do I Need To Hire A Digital Marketing Agency To Achieve Greater ROI?
It depends. You can either hire a marketing agency or can do it on your own. However, with a marketing agency, you will have professional and experienced expertise guiding you so the chances of greater and quicker ROI definitely increase.
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