By Rick Berg (http://berg-marketing.com)
Network Marketing on Twitter, Facebook and Google
Advertising in Network Marketing on any social media platform, like Twitter or Facebook is like advertising on anything: it requires a clear strategy and a way to measure results.
Back in 1998, while testing network marketing advertising online, I earned over $10,000 per month by advertising and selling network marketing products online. Since then, I have become a multimillionaire and developed winning strategies in advertising and marketing for all types of businesses. I’m about to share some cool secrets and some of these strategies that have made made me a successful marketer.. if you are smart, you will read this and take many notes and then go an put these into action in your own business!
One Network Marketing Business: Two different Revenue Streams
Network Marketing Distributors typically have at least two sources of revenue from their business:
1. Earning an income from retailing directly to customers.
2. Recruiting and establishing a downline to leverage their marketing plan.
This blog series will work with ANY type of network marketing business and show you specifically how to market and advertise your products and business opportunity online using Twitter, Facebook and Google with success!
A Brief lesson in advertising:
I’m going to be covering some common advertising terms in this article and it would be helpful for you to actually understand what I’m saying here if you are planning on actually learning anything here! When spending money on advertising, whether it is online or using traditional media (i.e. Radio, TV, Print), you want to know how effective your advertising is and what your return on investment is right? Well, if you are not a dummy, the answer is “of course”. So here are some terms you need to know:
CPM = Cost per Impression: This is how many times your ad was “displayed” on an ad partner/affiliate website.. this really means cost per “one thousand” impressions. You know those neat little banner ads we all know and love, that you see on any given site, like MSN.com, etc? The advertisers who pay for those ads pay a fixed amount for every 1000 times that little banner ad is displayed. The immediate (but not the only) way to measure the performance on this ad type would be how many clicks this ad generates. It may sound like a relative bargin when you see offers on CPM networks for five bucks to display your ad a thousand times, but if you only get a handful of clicks, chances are, you are going to lose money here.
CPC = Cost per Click: This is the actual cost to generate one “visit” to your site.. this is NOT a lead! Just any joe blow who clicked or responded to your add and landed on your website, is considered a click. The immediate (but not the only) way to measure the performance on this ad type would be how many leads this ad generates compared to clicks. The most important thing you need to do here is make sure you have a proper way to track the “clicks to conversions”. Most ad companies have little snippets of code that you can add to both your landing page as well as the immediate page after a lead has submitted their info. Without this level of tracking, you might as well throw your money away.. or just go watch the Price is Right and send me your money..
CPL = Cost per lead: As the name implies, this your actual cost to generate a “lead”.. remember, this is NOT a sale! This means this is the actual cost to get someone to fill out their info on one of your lead capture pages. Your CPL is measured by the conversion of a click to a lead.. if you are properly tracking your clicks as well as lead form submissions, you will have a percentage of clicks to leads. example: 20 clicks to 1 lead = 5%. Cost per lead = CPC/Conversion, so lets say in this example, one click costs .50… divide that by your 5% conversion and you see that those leads are costing you about $10 bucks each. This is critical to know, especially as you look at your tracking further down your sales and recruiting pipeline.
CPA = Cost per Acquisition: This is the total cost for you to generate a sale or acquisition. If you are recruiting, this would be a measure of how many leads did it take to sign up a distributor. If you have kept track on your lead costs, CPA = number of leads * the CPL / number of distributors. So, using the example above for CPL, let’s say we generate 100 leads at 10 bucks a pop and if you are on top of working your leads, you sign up 10 new distributors. CPA = 100*10/10, so you have a cost per acquisition at $100 per new distributor.
ROI = Return on investment: At the end of the day, for every dollar spent on any advertisement, how much money did you make. Now, with network marketing, there are a lot of things to consider when calculating this. If it’s a single product sale and that’s all you ever get, then that’s it.. however, if you are a good distributor and you are following up with your new customers on a weekly and monthly basis to make sure they are getting the results that they should be getting, you will have repeat orders as well as referral customers. Obviously, if you have this ongoing stream of orders from one customer, your ROI just keeps getting better and better! The same applies to recruiting.. if you sign up a new distributor and you are on top of your followup and mentoring this new distributor properly, the number of new customers and distributors that one distributor can bring into your organization is almost limitless, making your ROI go through the roof!
Conversion = You should know the conversions for every aspect of your advertising campaign.. Cost per Impression to Cost per click, Cost per click to Cost Per Lead, Cost per Lead to Cost per Acquistion, etc. If it is possible to measure, you need to track it. You will find out, not all advertising sources are equal and you should have some established baselines for every ad type/source. This means your banner ads will look completely different that what google adwords when it comes to overall ad performance and ultimately cost per acquisition.
So let’s put this altogether and see how this works in real life..
Network Marketing with Google Adwords
Distributors often use replicated lead generation pages, which due to the nature of replication have little chance to gain “organic” visibility on Google. This is not a problem however, as you can guarantee certain levels of visibility with Google Adwords.
The clear advantage for distributors who can use these landing pages is that the Distributor does not need to be internet savvy, they just need to “drive traffic to the page”.
Google Adwords provide a system allowing anyone to target prospects on a keyword based model, whereas the advertisers bid for the keywords. Google is selling keywords on an auction type basis, allowing any advertiser to bid for the best possible position for a given keyword or ad.
The obvious goal here is spending less on ads than you ultimately earn on the backend sale or “conversion”. Let’s say your network marketing company marketing plan is a “breakaway” plan. If a Distributor takes in $250 for each new recruit that buys into a higher level of a breakaway plan, recruited solely using Google adwords, and your CPA (Cost per Aquisition) was less or equal to the $250, this would be ideal.
The disadvantages of Google Adwords marketing for Network Marketing Distributors
Relying only on Google Adwords can be an expensive venture; Google advertising cost can be tremendous and has actually increased every year since “Google Adwords” was released. If you are gunning for large traffic and in a competitive keyword like “work from home” or “home business”, total CPA is usually “upside-down” in terms of ad cost vs profit. As I mentioned above, you need to keep track of every ad and how they perform, so you what kind of return on investment you are getting. With that said, being upside-down initially may not be all that bad; if you are really on top of your new customers and distributors and making sure they are getting good product and business results, you will have ongoing orders and referral customers. As they say, there is fortune in the followup.. and that is no lie!
How to be Successful in Network Marketing recruiting using Google Adwords
Let’s suppose you have some knowledge about keywords, targeting and AdWords, then you can figure out how many clicks you need to get one lead, and how many leads you need to sell one business pack and how many business packs you need to sell to get one new distributor, etc., ultimately, you will know the average CPA and the time frame within which you have to get these leads to be successful.
This knowledge lets you easily budget your business.
So using the same example I used above:
Let’s say you need 20 clicks to get 1 lead (at 50 cents a click), then every lead costs you $10
Let’s say you need 10 leads to sell a Business Pack, then each business pack creates a marketing costs of $100
Let’s say out of 3 Business Packs sold you recruit one distributor, that means your distributor costs $300 in marketing costs.
Let’s say your marketing plan has a breakaway commission of $250 when your new distributor gets to the manager or supervisor level and it takes 2 distributors to get one manager or supervisor: You are in the red with $300.
So once again, being upside-down initially may not be all that bad; if you are really on top of your new customers and distributors and making sure they are getting good product and business results, you will have ongoing orders and referral customers.. this will move you from being in the red to being in the black!
Advertising and marketing any MLM online needs multifaceted approach: Google Adwords is just one part of the equation.. In my next post, I’m going to show you how to generate “FREE” traffic to your sites using social media sites, like Twitter and Facebook!!!!
Stay tuned for Network Marketing on Twitter, Facebook and Google Part 2!
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