What would you do if I told you how to buy $1 for 25¢? You would buy every time. Now what if I told you that you could buy $100 for $25? Try $1,000 for $100? You know you would be all over it! Well, I can tell you how to buy $1,000 USD for $100 USD. And I’m not talking about bitcoin, inheritance, or some money laundering deal. I’m talking about a completely legal way to buy money. It’s as easy as advertising.
I picked up a carpet cleaning company as a client in the winter of 2011. The client was my second large client at my newly formed ad agency, RPJ Productions (Robert Paschall Jr Productions, me), and my third overall, so I remember it very well. Gus was a hard nut to crack. Gus had been working with an advertising agency in Dallas for years and loved their work, which brings up a funny story, but for another time. Anyway, he moved his Production, SEO, and overall Digital Marketing efforts to RPJ.
Our team had researched, designed, and built our SEO and Digital Marketing strategies with our first big client, a Chevrolet dealer in the heart of Dallas. In the beginning, we just started implementing those same strategies with Gus. Things went well, very well. We pushed the carpet cleaning site to the top of the search engines. RPJ Productions lifted the traffic considerably. It was a great start to relationship. And after 9 years of working with this carpet cleaning company, Gus came to RPJ with an idea.
This Was Gus’ Perfect Idea:
Because RPJ Productions and Gus had been tracking every form of advertising with links, phone numbers, and promo codes, we knew what ads were making money and what ads were not. So Gus and I put together a giant spread sheet. It contained everything from traditional tv and radio to social ads to the yellow pages, how much we spent on each weekly, how much we made on each weekly and everything in between. We knew which ads had the highest job gross and which ads had the lowest.
When we first started this spread sheet, we had a very scary realization; Gus was spending way too much on ads. He was spending close to 40% of their gross income on ads. It wasn’t that way for all ads, and because of this spread sheet we could clearly see who the culprits were. We started by stopping all ads that were over 20% cost. Which brought our total ad spend average to just over 18% cost.
The Real Money Started
Then, we started making Gus some real money. We A-B tested all of his ads, digital or traditional. Through this process we discovered what ads were bringing the best return on investment and which ads weren’t. Like a professional baseball team owner and general manager, weekly we would get together and figure out which players were making plays and which weren’t, how we could grow the ones that were and how we could possibly fix the ones that weren’t. If an ad couldn’t be fixed, it was cut from the team. We did this every week, even through the pandemic. Ultimately, we pushed Gus’ ad cost down to 9.6% weekly.
Gus was now buying $100 bills for less than $10. He was buying money at a discounted rate. The best part is, Gus is making more money now than he was prior to starting this practice, and his overall monthly ad spend is half of what it was when we started. This practice is something we implement now with all of our clients weekly.
The Take Aways
In conclusion, our A-B tests; Starting an ad with a dollar amount like “$50 Off Carpet Cleaning” gets 340 times more clicks than “Carpet Cleaning $50 Off”. A digital ad with more than 2 keywords get more clicks to the site, but converts less traffic to buy by over 75%. It is better to build an ad for each keyword separately.