Small Business Marketing Tip: Are Yelp Ads Worth It? 💲💲

Is Yelp right for your business? That’s what I’m going to talk about in today’s small business marketing tip. Hi there, internet fans. I got the idea of this video blog from an article I saw on Market Watch, from 2015, that said that business owners, specifically restaurants, independent restaurants, were spending $7,200 annually on advertising budget. However, their revenue from Yelp was only $4,600. And one of the caveats that came out in this article was the fact that they were only looking at the initial return on investment. And what I mean by that is that if you’re in a business where consumers come back to you on a regular basis, then you really want to look at the lifetime value of that client. Let’s say for an example, this client is spending $500 and he’s getting three new clients every single month on average from Yelp. If each new client does the new client special, let’s just say it’s a hundred dollars for easy math. That means that $500-investment is generating revenue of $300 every single month. That is a net loss of $200, which does not sound like a good idea. That’s why it’s important to know what the lifetime value of every single new client is. We know that some clients are gonna last for maybe one visit, or two visits. Other clients are going to last for years and years. If you collectively add up all that information, divide it by the number of clients that you have, you’re going to get an average spent per client. That will let you know what your lifetime value of a client is. And let’s just say, as an example, it’s $1,500. That means that $500-investment on Yelp that’s generating three new clients, at $1,500 lifetime, that’s $4,500. I don’t know about you. Are you willing to spend $500 for $4,500? My answer is, yes. Now that doesn’t mean we can’t look for more efficient ways. I would love to break even every single month. If I’m gonna spend $500 on Yelp marketing I would love to see a thousand or $1,500 return on that investment every single month. But is it necessarily required? Well, in this scenario it’s not, because we’re actually clearing $4,000 every single month based on the lifetime value of that client. Here’s the key takeaway from today’s video blog. I would like you to check your numbers. If you have an accountant they can pull this information up for you real quick. If not you’re going to have to do a little bit of digging on your own. But find out, what is the average lifetime value for that client? Now, you don’t have to just use this in Yelp, as an example, you can use it in your Facebook advertising, any SEO money that you’re paying. It’s really important to understand what the true lifetime value is for that ad. What’d you think about this video? Did I cover everything? Did I miss something? Make sure you leave your comments below. Also, be sure to subscribe to the channel here, and check out a couple of the other videos that I’ve done for small business owners down here. Alright, everybody, take care. Is Yelp the right… Is Yelp the right advertising solution for your small business? That’s what I’m going to talk… Hey there, internet fans.

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4 thoughts on “Small Business Marketing Tip: Are Yelp Ads Worth It? 💲💲

  1. makes sense you should also point out that yelp offers reservation, ordering, and request a quote services that other social media do not Also consumers write detailed reviews on yelp, while only a short sentence on google or facebook / instagram they are not thought of by the consumer the same way

  2. what do not like about yelp adds is they push you to pay you mush give them a credit card and agree to pay the min of 5$ a day that's a lot for a business that may not make that much profit each month. and it would not be so bad if say you could tell them ok do not charge more then 50$ in a month but they will not as other places wthat advertise will. also all their adds are fore in their website and not the search places like google or yahoo or ming and so on. That's like the guy that keeps trying to get me to do it he keeps telling me how they advertise on other places and I will get noticed more . when you search my businesss or anything to do with my business on yelp or any other site you in or near my zip code and even some zipcodes far a way my name is so none that I show up. it actuley suprized the guy I talked to becose he was telling me on the phone if you go to are site and type in antiques witch I sell and your town you will see that you do not show up and you want to show up in the top three. then tells me let go to the yelp site and do that while you are on the phone so you can see and what happened he did it and their I was number 2 on the list. buy the way the name of my store is benson corners antique mall are zip code is 53104 and town Bristol for people who want to see what I mean. I think adds for the most part are a wast and if you do the research you can get the info you want out their for free or little cost. a big thing that helps is using wix to build a website and their free advertising apps

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