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cashlooming 9th May 2010 06:35 PM

Newbie, Need Advice
hi everyone, newbie here. I need some advice. I'm starting a new business that I bought into. I know u have to invest money in order to make money. But I'm feeling pressured into spending LOTS of money right out of the gate by the company I bought into to. They want me to spend $3500 for the initial advertising package. Of course I was thinking on a much smaller scale and had some of the same ideas as they do but I would do the work myself at a much lower cost. I guess its all relative as to how much u spend and how much u can make but it makes me very nervous. Do you think starting on a smaller scale and doing a lot of the advertising avenues on my own will pay off, just take a little longer? Or should I jump both feet first all the way?

I purchased my business through a private company called Image Incentives, and my website can be found here:

What do you guys think ? Thanks for your input.

DBeavers 10th May 2010 12:59 AM

I would be very hesitant to purchase any advertising package sold by the company you have joined. Many companies sell their own advertising package to increase their profits - whether their package does squat for the buyer.

Many bizopps use incremental sales to their distributors, charging for anything and everything, all the while knowing that they are profiting regardless whether their sales force is or not.

Managing your own advertising and marketing keeps you in control of the cost, and doing it little by little, you can adjust future purchases based on what works.

You'll need to test various methods in such a way that you can quantify what works vs. what didn't. Try a mix of both online and off-line marketing media and expand where you get the best ROI (Return on Investment).


mktgbiz 10th May 2010 06:49 AM

Sound advice by Dennis.

One thing you might check regarding their suggested advertising is past results. If they can prove that in the past $3500 brought $20,000 in new profits then go with it!!

Sahan Asad 10th May 2010 07:05 AM

Hi mate,

You shouldn’t be feeling pressured into spending with this advertising firm. Just tell the truth what you have in mind and see what solution they have for you in your budget. There are plenty of companies out there.

Regarding jumping both feet depends on many situations, i.e. your financial situation, the research you have put into it and your belief in your business.

Can you afford to blow $3500 if it fails?

Do you have a plan B?

How many marketing companies have you contacted?

Have you considered outsourcing some part of the marketing that you’re weak at and spend more time on your strengths? (much much cheaper)

Who is your competition? Are they easy to beat? Is there demand for your market?

I could go on and on…

Sometimes it’s best to walk first then run.


cashlooming 10th May 2010 06:51 PM

Thanks u guys for the advice. It's just what I expected. And no, they aren't going to prove any results. They've already said they can't guarantee anything, of course. I'm expecting my marketing manager to call back tonight. He's expected to land the sale, I'm sure. I just hope he backs off and lets me do this my way. If anyone wants to share their knowledge or experiences about effective marketing, I'm open to it, I welcome it. I think joining this forum was some of the best advice my son has ever given me. Thanks again.


DBeavers 11th May 2010 08:25 PM

Promotional advertising
A bit of follow-up.

What percentage of the $3500 for "their" marketing package is for self-promo advertising of the products you hope to sell.

I spend very little on marketing my business for anything other than promotional products. Since my purchase of logo'ed ink pens, coffee mugs, pocket screwdrivers, USB memory sticks, and almost any of the 800K plus products we have to offer. My biggest expense outside self-promos is my 3 Chamber of Commerce memberships, which run less than $700 per year.

I'll spend far more than that passing out self-promo shrimp peelers, travel mugs, etc, but it's all targeted to prospects and clients in my markets of SW Louisiana, Beaumont, Orange, Port Arthur, and Houston (metro) Texas.

Yellow page ads, newspaper, radio, internet banners and pay-per-click (PPC) just can't deliver the 'impact' of my putting my products into the hands of qualified buyers.

Here's a recent example of a successful self-promo I'm using -

I ordered 12 of these (at my subsidized price of course). So far, I've given away 5 to clients and 3 as door prizes through Chamber of Commerce events in the past 2 weeks. So far, I've written 6 orders for 12 to 30 pieces at the Kaeser & Blair special price of $14.99 (plus $50 one-time set-up charge).

That's nearly $2000 in orders for 5 clients and one new buyer (in 7 days), with more orders pending, and I still have 4 more to give away. And my total subsidized price was less than $150 for the 12 initial pieces, with less cost on repeat orders. Those orders came from small to medium cities in Louisiana, Houston, and one rural Texas client - credit unions, vo-tech school, communications company, an automotive garage, and a take-out pizza vendor. I have a couple other potential orders that may take a week or two for approval.

I'll definitely be ordering at least 2 dozen more.

$150 for PPC or banner advertising online isn't likely to produce near the results in 2 weeks or two months from my experience - if you can even set up a feasible online campaign for $150. My knowledge of promotional advertising allows me to choose my marketing products from past experience, with free advise from the suppliers, multi-line reps, as well as K & B. Getting advice for internet advertising will cost more for skilled advice (no PPC or banner ads) than my total cost for the self-promos with TTL added.

And with every item I give away, I'm demonstrating to my prospect or client my belief in the products I sell. When they see my as an individual giving away the same 3 Gallon, stainless steel and plastic Bubba Keg that I can sell them for only $14.99, they are responding - Immediately. All six orders came within 24 hours of showing the product. Three of the orders were sold in 2 minutes or less. No that spells R E S U L T S in any language.

Just my 2 cents worth for anyone considering investing serious money in marketing promotional products with other media.

(I realize those selling exclusively via the internet with have to do some form of online marketing, unless they already have excellent traffic they can direct to the site. I sold off line for 15 years before even getting a computer online in my office, and still prefer to make face-to-face contact with my clients at least once a year, with exception for the few online customers I've had for the past year to 10 years.

I apologize for the length of this post, but when it comes to my industry, I'm definitely brevity challenged.


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