Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
All right, good morning, good morning, just mid morning, all right,
welcome everybody to the morning Meeting. A couple of things
I want to talk about before we get started. As
you are all aware, we are running a homecare one
oh one course. We have the business development part and
the home care management one oh one piece going on
(00:27):
and it's starting this Tuesday. And I did extend the
sale on the class so that you can still join
up for three point fifteen instead of the regular price
of five hundred, and you if you sign up for both,
there's a lot of bonus stuff included, and you know
you get them both for six seventy five. All right,
(00:49):
So on that note, let's let me ask you guys
a question. Whoever's watching this right now, are you guys
calculating the return on your marketing efforts? All right, So
when we are building a marketing campaign, and it doesn't
matter what it is, it could be you're you're sitting
(01:11):
there and you know you're you're gonna do a series
of lunch and learned, you're gonna do a you know
you're gonna do a pay per click campaign. You're gonna
do a Facebook Facebook marketing campaign. You're gonna spend some
(01:31):
money on LinkedIn, You're gonna buy promotional items, whatever it is.
And let's let's talk about this. Do you track the
return on your investment? Is this something that you actively do?
And if you do, are you aware of how much
money you're making per client? So in our last video,
(01:55):
we went over a little bit of how to go
you know, how to calculate your client lifetime value. So
now let's build on this and let's talk about how
your client lifetime value. You know how to use that
number and understanding what that is to figure out the
(02:16):
return on your marketing investment. All right, So I'm going
to share with you guys on the screen here a
calculator that you get as part of the as part
of the homecare marketing, the homecare one O one. Of course,
this is part of figuring out your budgets and everything.
(02:36):
So let's take a look here. So let's say we're
going to start a campaign on August first, all right,
So let's go ahead and do that, all right, Hold
on a second, Sorry about that though, I didn't realize
(03:02):
it was locked. All right. So let's say we're gonna
do August first, all right, and we're gonna run that campaign.
You know, we're gonna run the campaign for you know,
August till December. Now, one of the things that we
(03:29):
always recommend is whatever campaign you're gonna do, you have
to understand the client life life cycle. So your average
client does last about one hundred and twenty days or
four months. So any campaign, if you're gonna do a measurement,
that's how far out you're gonna want to measure it.
So if we're gonna start in August first, we're gonna
(03:50):
stop tracking it on December first. Even if the campaign
itself stops on September first, it doesn't matter. This is
just a general rule of thumb because of in order
to get accurate tracking of the client life cycle. All right,
So if let's say we're gonna spend a total of
(04:12):
one thousand dollars a month on digital digital marketing, so
we're gonna spend do like Google ad campaign, all right,
at one thousand dollars a month. So over the course
of this month, now we're gonna have to sit there
and see every time we get a new client, we're
gonna have to put this in. So let's say at
(04:33):
the end of the four months, we got five new
clients out of this deal, and we got let's say
it's it averaged out to weekly billable hours. You know,
a couple of clients went bigger, couple of clients went smaller.
So let's say the total billable weekly hours for all
five clients, let's say it was one hundred hours. Okay.
(04:56):
Let's just say they got twenty hours a week and
our month our bill rate, and we're billing out at
twenty five bucks an hour, okay, and paying our caregivers.
Let's say we're paying them thirteen okay. So that means
that we're keeping a forty eight percent gross margin, all right,
(05:16):
And we have created a total weekly revenue at one
hundred hours for the week of twenty five hundred dollars
with a gross profit of twelve hundred for the week,
all right. So that means over the course of the month,
we generated a gross profit of forty eight hundred dollars,
you know, for ten thousand dollars for the month on
(05:38):
weekly revenue. That's great, But let's take a look at
what really happened. How much money did we actually make
over the course of the campaign. And this is the
part that a lot of people just tend to leave
out or forget about how much money you're charging how much.
None of that matters. The only thing that matters in
(05:59):
business is how how much money are you keeping in
your pocket at the end of the day. So, if
we're looking at a you know, the marketing budget of
four thousand dollars, okay, over the course of the campaign.
So let's take a look at this again. It's one
(06:20):
hundred and twenty days, roughly four months of service, okay.
So if we're looking at it from that perspective, what
is it that we're spending it? So if we're to
have a thousand dollars a month over the course of
four months, that means that we have spent four thousand dollars.
(06:40):
And if each month the clients are generating forty eight
hundred dollars, each client is actually going to generate for
US eight thousand dollars okay, gross gross After we pay
our caregivers, we're generating about thirty eight forty and that
(07:05):
means we are going to generate about a fifty percent ROI,
meaning that after we've we've taken our profit out and
you know, after over the four months, you know, we
got five clients out of it. We spent four thousand
dollars and we made an additional four thousand dollars profit,
So we've essentially doubled our money. Now, whether you would
(07:26):
consider that a win or not, that's up to you.
But understanding how to calculate your numbers and understanding how
much money you're actually making after you spend the money
to advertise your business is very important. Okay, So let's
take another example. Let's say you did you have budgeted
(07:48):
out for one lunch and learn a week at one
hundred and fifty dollars. Okay, Let's just go ahead and
calculate that at work that out, So that's six hundred
dollars for the month. Okay, all right. So if over
the course of four months, those luncheon learns for six
(08:11):
hundred dollars a month, which means we're spending twenty four
hundred dollars, if they netted us because we tend to
get higher numbers from that, Let's say they netted us
from all of those facilities we did the luncheon learns
with we you know, rewarded our our partners here. Let's
let's say that it netted us a total of twelve clients,
(08:36):
all right, and we'll just go with the same usual
what we've been doing. The you know, we'll go based
on about twenty hours per week per client, so we'll
do two hundred and forty hours at same bill Wright's,
same everything else, all right, So that means we've profited
(08:57):
fifty six hundred dollars with a smaller budget over the
same period of time. And these are things you want
to track, and these are things that you want to
make sure that you have a clear understanding of and
so you can spend your marketing dollars properly and truly
grow and expand your business. Thank you all for joining us,
(09:19):
and please don't forget there is a link in the
description of this video, you know, our home care homecare
one on one which includes business development and home care
management or we're going to talk about ways to grow
your business and exponentially expand your marketing, business development, and
(09:40):
even your recruiting efforts as your agency grows. And it
doesn't matter if you're a novice and just opened up
last week or if you've been in business for ten years.
This class is beneficial to all of you. All right,
Thanks again, and you know we'll see you guys hopefully
come Tuesday. Seats eating is limited, please don't register today.
(10:03):
All right, talk to you guys soon. And if you're
watching this on YouTube or listening to the podcast replay
of this, don't forget to give us a like, leave
a comment, and subscribe. Talk soon. Have a great one.
All right, good morning, good morning, just mid morning, all right,
welcome everybody to the morning Meeting. A couple of things
I want to talk about before we get started. As
you are all aware, we are running a homecare one
oh one course. We have the business development part and
the home care management one oh one piece going on
(00:27):
and it's starting this Tuesday. And I did extend the
sale on the class so that you can still join
up for three point fifteen instead of the regular price
of five hundred, and you if you sign up for both,
there's a lot of bonus stuff included, and you know
you get them both for six seventy five. All right,
(00:49):
So on that note, let's let me ask you guys
a question. Whoever's watching this right now, are you guys
calculating the return on your marketing efforts? All right, So
when we are building a marketing campaign, and it doesn't
matter what it is, it could be you're you're sitting
(01:11):
there and you know you're you're gonna do a series
of lunch and learned, you're gonna do a you know
you're gonna do a pay per click campaign. You're gonna
do a Facebook Facebook marketing campaign. You're gonna spend some
(01:31):
money on LinkedIn, You're gonna buy promotional items, whatever it is.
And let's let's talk about this. Do you track the
return on your investment? Is this something that you actively do?
And if you do, are you aware of how much
money you're making per client? So in our last video,
(01:55):
we went over a little bit of how to go
you know, how to calculate your client lifetime value. So
now let's build on this and let's talk about how
your client lifetime value. You know how to use that
number and understanding what that is to figure out the
(02:16):
return on your marketing investment. All right, So I'm going
to share with you guys on the screen here a
calculator that you get as part of the as part
of the homecare marketing, the homecare one O one. Of course,
this is part of figuring out your budgets and everything.
(02:36):
So let's take a look here. So let's say we're
going to start a campaign on August first, all right,
So let's go ahead and do that, all right, Hold
on a second, Sorry about that though, I didn't realize
(03:02):
it was locked. All right. So let's say we're gonna
do August first, all right, and we're gonna run that campaign.
You know, we're gonna run the campaign for you know,
August till December. Now, one of the things that we
(03:29):
always recommend is whatever campaign you're gonna do, you have
to understand the client life life cycle. So your average
client does last about one hundred and twenty days or
four months. So any campaign, if you're gonna do a measurement,
that's how far out you're gonna want to measure it.
So if we're gonna start in August first, we're gonna
(03:50):
stop tracking it on December first. Even if the campaign
itself stops on September first, it doesn't matter. This is
just a general rule of thumb because of in order
to get accurate tracking of the client life cycle. All right,
So if let's say we're gonna spend a total of
(04:12):
one thousand dollars a month on digital digital marketing, so
we're gonna spend do like Google ad campaign, all right,
at one thousand dollars a month. So over the course
of this month, now we're gonna have to sit there
and see every time we get a new client, we're
gonna have to put this in. So let's say at
(04:33):
the end of the four months, we got five new
clients out of this deal, and we got let's say
it's it averaged out to weekly billable hours. You know,
a couple of clients went bigger, couple of clients went smaller.
So let's say the total billable weekly hours for all
five clients, let's say it was one hundred hours. Okay.
(04:56):
Let's just say they got twenty hours a week and
our month our bill rate, and we're billing out at
twenty five bucks an hour, okay, and paying our caregivers.
Let's say we're paying them thirteen okay. So that means
that we're keeping a forty eight percent gross margin, all right,
(05:16):
And we have created a total weekly revenue at one
hundred hours for the week of twenty five hundred dollars
with a gross profit of twelve hundred for the week,
all right. So that means over the course of the month,
we generated a gross profit of forty eight hundred dollars,
you know, for ten thousand dollars for the month on
(05:38):
weekly revenue. That's great, But let's take a look at
what really happened. How much money did we actually make
over the course of the campaign. And this is the
part that a lot of people just tend to leave
out or forget about how much money you're charging how much.
None of that matters. The only thing that matters in
(05:59):
business is how how much money are you keeping in
your pocket at the end of the day. So, if
we're looking at a you know, the marketing budget of
four thousand dollars, okay, over the course of the campaign.
So let's take a look at this again. It's one
(06:20):
hundred and twenty days, roughly four months of service, okay.
So if we're looking at it from that perspective, what
is it that we're spending it? So if we're to
have a thousand dollars a month over the course of
four months, that means that we have spent four thousand dollars.
(06:40):
And if each month the clients are generating forty eight
hundred dollars, each client is actually going to generate for
US eight thousand dollars okay, gross gross After we pay
our caregivers, we're generating about thirty eight forty and that
(07:05):
means we are going to generate about a fifty percent ROI,
meaning that after we've we've taken our profit out and
you know, after over the four months, you know, we
got five clients out of it. We spent four thousand
dollars and we made an additional four thousand dollars profit,
So we've essentially doubled our money. Now, whether you would
(07:26):
consider that a win or not, that's up to you.
But understanding how to calculate your numbers and understanding how
much money you're actually making after you spend the money
to advertise your business is very important. Okay, So let's
take another example. Let's say you did you have budgeted
(07:48):
out for one lunch and learn a week at one
hundred and fifty dollars. Okay, Let's just go ahead and
calculate that at work that out, So that's six hundred
dollars for the month. Okay, all right. So if over
the course of four months, those luncheon learns for six
(08:11):
hundred dollars a month, which means we're spending twenty four
hundred dollars, if they netted us because we tend to
get higher numbers from that, Let's say they netted us
from all of those facilities we did the luncheon learns
with we you know, rewarded our our partners here. Let's
let's say that it netted us a total of twelve clients,
(08:36):
all right, and we'll just go with the same usual
what we've been doing. The you know, we'll go based
on about twenty hours per week per client, so we'll
do two hundred and forty hours at same bill Wright's,
same everything else, all right, So that means we've profited
(08:57):
fifty six hundred dollars with a smaller budget over the
same period of time. And these are things you want
to track, and these are things that you want to
make sure that you have a clear understanding of and
so you can spend your marketing dollars properly and truly
grow and expand your business. Thank you all for joining us,
(09:19):
and please don't forget there is a link in the
description of this video, you know, our home care homecare
one on one which includes business development and home care
management or we're going to talk about ways to grow
your business and exponentially expand your marketing, business development, and
(09:40):
even your recruiting efforts as your agency grows. And it
doesn't matter if you're a novice and just opened up
last week or if you've been in business for ten years.
This class is beneficial to all of you. All right,
Thanks again, and you know we'll see you guys hopefully
come Tuesday. Seats eating is limited, please don't register today.
(10:03):
All right, talk to you guys soon. And if you're
watching this on YouTube or listening to the podcast replay
of this, don't forget to give us a like, leave
a comment, and subscribe. Talk soon. Have a great one.
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