Get notified at ethicalsales.com

*Caution. Notes auto-generated.

[00:00:00] spk_2: talk about poor management

[00:00:01] spk_0: mindset and risk versus reward. So if you're going to be successful in business, you have to take a risk. Okay, that's pretty much it. Is there anything else we should say about on that podcast? I mean, I just did that little one by

[00:00:12] spk_2: myself. No, that's about it. Well, pretty much sums up business risk versus reward. Welcome. If you ain't willing to risk it, you probably ain't going to

[00:00:26] spk_0: get a lot of rewards trying to do

[00:00:27] spk_2: the intro. All right, welcome knock yourself out. Are you gonna be quiet now?

[00:00:34] spk_0: Welcome back. Owen, and mute him. All right, wait, wait.

[00:00:43] spk_2: During crisis and economic depression, small business owners often struggle with making sales and keeping the loyalty of their people because if you ain't selling it's hard to pay the bills

[00:00:54] spk_0: on the ethical sales podcast, you will learn new ways to selling ethically and communicating with your people to create more loyalty and getting out of the rut of stress and frustration

[00:01:05] spk_2: when there is plenty of sales, there should be plenty of profits to keep things flowing smoothly

[00:01:09] spk_0: and everybody be happy. Happy! Welcome back to another episode of ethical sales podcast. We are coming to you live from Cochrane to in pennsylvania, sitting in the last his office here has got us all miked up and looking like some nerds or something. But today we're gonna talk about risk versus reward and in, in marketing, we're gonna talk about marketing, poor marketing management, poor marketing mindset.

[00:01:47] spk_2: I'll tell you right now owns the marketing man, you know, I'll go out and sell the job, but I'm definitely not your marketing expert Owen is the man with the plan. So my name on this podcast, we're gonna hear a lot

[00:02:03] spk_0: from Owen. Most people, most people are in in my shoes or your shoes, they're not knowing shoes, they're not marketing people. That's why you have to line yourself with good marketing, right? That's why you have to line yourself with people who are good at doing something that you're not good at. That's why you have to spend money at it.

[00:02:21] spk_1: That's why marketers should also get information from people that are not marketers so they can understand them.

[00:02:29] spk_0: Did you know that you can literally buy what you're not good at. So if you're not good at marketing, you can buy that

[00:02:40] spk_1: and I think that's where risk versus and

[00:02:43] spk_0: if you don't have money to buy it, then you need to market. Yeah, if you ain't got money

[00:02:48] spk_2: to buy it, then you probably need to get out there yourself and uh shake a lot of hands and introduce yourself.

[00:02:54] spk_0: That's a place to start. And, you know, shaking hands, introducing yourself is something that you can do forevermore in your business. But at some point you should be getting your business set up to where you know, you can do that as a small part of it, not as the main part of it, I would say,

[00:03:13] spk_1: I think marketing is one struggle that most new business owners have, you know, they start a business but they're afraid to spend the money to market and yet marketing is one of the most important things. Foundational things to get clients get business. So how can we have a better mindset about marketing? That's really what it boils down to. How can we have a better mindset? One of the struggles is are one of the things to look at his risk versus reward. You know, what's the reward, What's the return on investment, what's possible versus how much you spend for it?

[00:03:53] spk_0: I think every business should know that. I think every business should know their number. And if you don't know your number, then figure out your number from your past and marketing. If you knew the business then keep track of this and figure out your number. For example, If I spend $5,000 in marketing or $10,000 in marketing, I can expect X return and when you understand that number for you and your company and whatever and each different form of marketing, it makes it easy for you to take that risk because it's calculated now. It might very but still across the board, you know That if you spend $10,000 in marketing and you made $50,000 off of that. When's the next time you're going to do that, you're gonna do that over and over and over and over. You know the question is If you give me 10,000 and I give you 50,000, how often do you want to make that transaction? As long as I can you know and in marketing you should look at that the same way. But no your number figure up your number, keep track of it, you know? No hey if I do this form of marketing this is what I've, this is my ex return. Typically if I do that this is my return so you can keep track of it and kind of start getting a feel of where your money is best spent as well. So it's so you can get the biggest return for your money

[00:05:15] spk_1: and you can take this to deeper extends to uh the 80 20 rule probably applies here For example they say less than 4% of people that search on Google, click an advertisement on google And so people are spending big amounts of money on Google ads which is fine because they're still getting a return. But what happens to the other 96% of clicks on google, where do they click if it's not on advertisements? Where is it? And are you showing up there? I just learned that last night? You know there's there's a huge amount of clicks happening on google search that are not going to advertisements, where are they going? And can we show up there? So the risk versus reward but backing up big picture, you know figure out how much can you put into marketing, take that risk and then get rewarded for it.

[00:06:13] spk_2: I remember uh it's probably been 78 years ago. Um My brother Conrad and brian before they took the roofing business over. Um They were working for us, I think brian was working full time. Connors working part time. And I remember one weekend I'm Conrad came to me or we were on the way to work and he goes, He asked, he said man how could I make more money than what I'm making right now working for you guys because we're paying him $20 an hour or something I forget. And I said hey I said I don't care if you do a drop of mailers. I said use my name. I said you'd be a sales guy for me. Um Just to drop the mailers, I said go sell roofs, I'll let you use my equipment for the weekend. And when we're not doing jobs, I said you can go out and do some of those jobs on your own. He's like what's that going to cost me? And we figured out it's gonna cost him I think about $3,000 to do the dropping mailers. I think it was like 5000 pieces he was gonna do. And the next day he told me he was like man all we got in our, in our savings account or whatever was like $3,000. He said and this is probably read it july and he said I just don't think we're gonna spend, you know we're gonna take the risk on taking our savings money and just putting in the marketing mm And so um I don't know, we talked about it for a day or two and and and he was like no I'm not gonna do it. And I said okay, I said just remember this, I said I'm gonna teach you a lesson. I said I'll put out my own money for you. I said I'll put three grand out, I'll pay it for you. I said well go sell some jobs and then you've got to pay that money back to me when we do the jobs like that comes up out as part of the profit of the job I get paid back. And he was like okay that sounds good to me because right it was my money now not his money. And um we did a drop of mailers I forget how many calls they got but it was actually a pretty good drop like I think you got like a dozen calls off of it and he went out and sold some of these jobs and none of them were huge jobs but they were nice little projects actually. I think one of the companies they still do work for today. Um And uh he did the jobs on weekends. I forget it might have took him a week or two, I forget what it took him to do the jobs, but he had, I think it was close to $20,000 that we had left over after everything was paid within like a month or two months and a half. And I remember I wrote him a check out because we run all the money through our account and I gave him the check and I said now I said if you just spend your own $3000 well that's a pretty amazing return, you think that would have been a good investment. He was like, oh yeah, he said my wife really likes this and I'm like yeah sure she does, but that's a risk versus reward, you know, and they took our business on about 77 years ago and we've worked full time with the team since then. Um and they've done a great job at,

[00:08:57] spk_0: you need him to check and like let this be a lesson for all the little boys and girls,

[00:09:01] spk_2: but they've done a great job in understanding that now and building that business, that that story

[00:09:07] spk_0: kind of reminds me and I kind of get in my

[00:09:09] spk_2: head, I get this picture of

[00:09:10] spk_0: a, of a farmer, I'm not a farmer at all, barely know what a plow looks like, but If you're having a hard time spending the 5000 that you might have or some of it to market, it is no different than the farmer having bags of corn and saying, you know, we can't afford the planet, we're just going to eat it. Well if you don't plan it, you're not going to have another crop, you're not gonna grow more corn, you're gonna starve to death because you just ate all your corn. And so I always think of that, you know, your money is c is a seed, you have to plan it. If you want to have growth, you have to take some risk. Yeah, when the farmer goes out and pushes that in the ground, he's not guaranteed that that's gonna come up, you could have a flood, you could have a drought, there's all kinds of things that could happen, but it doesn't keep him from going, pushing those old things into the ground again, we just have to take our money and push it into something and make it grow more times than not. Well, come on. Mhm.

[00:10:13] spk_1: Hey, hey, hey, before you leave, let me ask you a question. Have you ever struggle with knowing how to open a conversation? Have you ever struggle with knowing how to close the sale, Elias Rayburn, his twin brother Matt put together a small booklet titled simplify the sale, that teaches you how to open conversations and how to close a sale. You can download your copy for free at smarter Rufer dot com forward slash simplified again, download your copy for free at https://SmarterRoofer.com/simplify