Some business owners consider digital marketing as an expense. They may form an inaccurate perception of what digital marketing is based on the amount of money they need to invest.
Indeed, you need to spend money on marketing, but treating it as an expense is inaccurate. Unlike overhead costs like rent and utility bills, marketing expenditures are funds for achieving specific and targeted results.
Although digital marketing has many aspects and can not be reduced to a cost-profit formula, it can significantly raise your revenue, supposing you hire legitimate and performing marketing services, like Rehab Marketing.
Why Digital Marketing is an Investment Not an Expense?
Have you ever heard the highest-performing companies complain about their marketing expenses? No. It is because they consider marketing as an investment.
They do not spend funds for fun. They always mean serious business.
Plus, they spend money because they know marketing will create leads, spur sales, generate revenue, and grow their company.
Running a business is not a breeze, especially the finances. Sometimes, business owners lose sight of important things, like digital marketing, because of managing various expenses. But you have to ask yourself, what is truly an expense and an investment?
Basically, an expense is something that needs you to spend money on without expecting something to return, like bills, whereas an investment is where you put money into something to earn beneficial benefits or return on investment.
ROI is the Reason for Investment
A return on investment (ROI) is the revenue you can earn beyond what it takes to recover your initial investment. Your return on investment, or ROI, should always be the guiding element when developing your marketing strategies.
For example, if you spend $4000 on marketing and earn $6000 in revenue, your ROI is $2000. If a marketing strategy is not built on ROI, it will fail and become an expense.
Additionally, marketing investments will continue to yield results over time. Since everything marketing accomplishes is tangible, it can be challenging to appreciate it as an investment.
The results it has may not always directly relate to the budget you have allocated to it. But the ability to keep existing clients, attract new clients, and move your goods or services in this digital age depends critically on your digital presence, web traffic, etc., which are outcomes of effective digital marketing.
If you’d like to learn more about how marketing strategies might benefit your company, Rehab Marketing can assist you in developing a plan that works for your business.
Get in touch with us today!