Before we really get busy with all those fun online marketing ideas, there’s a variety of key concepts that you should get familiar with first. This is the first of the series of posts of skills 2 money the freelancing guide.
If you were building a house, this concepts would be the foundation of the house or in other words what will keep it from falling down. They dictate how you make your decisions, assign your time, and conclude the success of your work.
Key Marketing Concept: How You Designate Your Time
When it comes to allocating financial budgets it can be an easy process to track in certain marketing activities. But time is a different ball park. It usually ends up being tougher for people to budget and optimize it.
And when you incorporate strategies like SEO or Social Media it can get a bit more difficult, since what you’re paying with is TIME. By the way, don’t be surprised if the results are not immediate.
At some moment in time you’ll start asking yourself, “is this really worth my time?” You can figure it out.
Understanding opportunity cost (more on this later) and return on investment is important too.
These are the tools that will help open up the time you budget for marketing. To get the data you need, you’ll need to discipline yourself to keep track of your own time, watching carefully the result from your work, and diverting tasks that may seem productive but aren’t (like chatting with your friends on Facebook).
Key Marketing Concept: Return On Investment aka ROI
ROI is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
ROI essentially without all the jargon translates to “dollar-for-dollar”. In this case, the “investment” is the time and effort you put in. The “return” is the revenue it brings in.
The reason ROI is a valuable metric is, it can help you analyze every marketing task and know the dollar amount that resulted from the time and effort put in. In some cases, people like using percentage as a measure too.
When you setup the ROI across all your marketing tasks, you can begin making decisions about allocating more or less time and effort.
As you can see in this example, spending more time on social media is smarter due to the higher ROI.
You might also consider the value of your time to help assess how net profitable your time investment in marketing the business actually is.
Important Questions to Ask Yourself
- What am I typically paid per hour?
- How does this compare to the revenue I generate per hour via my marketing efforts?
Don’t forget this is the first of a series of articles. If you want to learn more about marketing for freelancers sign up below to get updates. In the next post we’ll talk about two more marketing concept every freelancer should know.
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