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CHAPTER 5 MULTIPLYING YOUR BUSINESS PROFITS

a return of only $450. That’s a loss of $550. In this case,
advertising is an EXPENSE!

For most businesses I know, advertising is an expense simply
because their ads don’t work. What’s worse is that most
businesses don’t even measure the effect of their advertising.
They have no clue as to how many extra customers their
ad brought in or the additional gross profit made through
the ad(s).

However, when a company uses effective ads and measures
its results, advertising becomes an INVESTMENT. When you
learn how to write powerful ads and place them in the right
media, you will be able to generate much more leads for the
same amount spent.

Assume that with the right strategies, your $1,000 ad is now

able to pull in 240 people into your store (four times the

previous ad). Out of the 240, 36 customers buy an average
of $80/- each.

This time, the additional gross profit generated from the ad
is ($80-$30) x 36 = $1,800. Spending $1,000 on the ad has
brought you extra profits of $800. This is an 80% return on
investment (ROI). Advertising is clearly an investment this time.

So, let me ask you this. If investing $1,000 returns you $1,800
each time, how many $1,000 will you put in? Put it another
way, if you get $1.80 for every $1 you invest, how many $1
would you invest? Stupid question! You would put in as many
‘$1’ investments as you can!

This is how I built Adam Khoo Learning Technologies Group
into Singapore largest and most prominent training company

140 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES