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Why Marketing is an Investment, not a Cost

Written on 25th Jun 2019 by Gromoslaw Czerski, Chief Executive Officer

Last week, one of my newer clients told me that some business analysts looked at his expenditure for the month - and that my service costs were extremely high compared to other outgoings. He then started having doubts about my company’s services, until I showed him the amount of REVENUE we were bringing him in.

The dictionary definition of cost is “an amount that has to be paid or spent to buy or obtain something.” An example of a cost is buying some junk food. It doesn’t benefit you that much (unless you are in desperate need of food) and you don’t get any return from it. You get ZERO (that’s 0) return on investment.

What’s the opposite of a cost then? If a cost gives you zero return on investment, what actually gives you a return on investment? Think property, think stocks and shares. Things that are worth a sum of money now, but in 5 or 10 years time will be worth twice that, three times that, or for some of my clients, 16x that.

When you pay for a marketing service, you don’t pay all of that money in service fees, all of that money in ad spend just to say “that’s an additional cost on the table.” Yes, in the first month or so (albeit I’ve heard horror stories from clients who had other marketing agencies in the past, where the on boarding process took 3 months - ours takes only 1.5 hours) when we test your audience it might feel like a massive cost because there isn’t that much money coming back into the business; but wait until the second month. Wait until the third month to see PROPER results. Would you pull out of a stock which was making you 1% profit now if you knew it would make you 5000% profit in 12 months? Of course not! That is a stupid thing to do.

Marketing is not a cost in the slightest, and if after 3 months you aren’t getting AT LEAST ALL of your initial investment back, then by all means, get a refund because that is unacceptable.

Find out how you can invest in your business today. We are giving the first 3 businesses that email us a FREE audit on their current online presence - something we usually charge £300 ($380USD) for. Shoot us an email at mail@gac-media.co.uk with your business’s details and we will sort it out for you.

All the best, Grom