Should I Pan for Gold or Sell Pans?

Should I Pan for Gold or Sell Pans?

Why Starting a Digital Marketing Agency is an Undeniably Smart & Profitable Move

The New Gold Rush

No doubt, we’re all familiar with the Gold Rush in the 1800s here in America. A er all, the discovery of gold nuggets in the Sacramento Valley in early 1848 lead to the California Gold Rush — arguably one of the most significant events to shape American history during the first half of the 19th century.

And when news spreads, thousands of prospective gold miners (many of which with no experience) traveled any way possible to the west coast for their chance to strike it rich.

gold rush panning for gold

PROFIT SMARTER, NOT HARDER

striking it rich with gold

Many of the gold miners at the time either failed miserably or only eked out enough profit to keep moving forward without ever truly finding that elusive financial success.

On the other hand, the smarter business owner would have gone into business selling pans rather than taking the ultra-risky road towards business success based on hope and simply a desire to strike it rich.

In other words, panning for gold had high-risk potential but it created a gigantic audience with a need for pans — when thinking about what kind of business to launch, think about selling pans and not panning for gold.

Fast Forward to Today

What Does History Tell Us to Do in 2020 and Beyond?

starting a digital marketing agency

THINK ABOUT THIS:
Research shows that a majority of businesses in America today don’t have an active marketing plan. According to a survey of 350 small and medium business (SMB) owners, 50% do not have a marketing plan for 2019. They are basically panning for gold.

digital marketing is profitable

NOW THINK ABOUT WHY BUSINESSES OFTEN FAIL:
A couple of the most common reasons businesses fail are due to a lack of capital and a lack of an effective marketing plan. If we equate them to those who are panning for gold (and there are millions of those businesses out there), that means a huge demand is out there for digital marketing agencies to swoop in and save the day.

Just like the Gold Rush in the 1800s, a huge audience was out there scraping up tiny nuggets, but the company that sold the pans had exactly what every gold miner needed — today, every business owner needs a reputable, trustworthy digital agency that gets results.

put it to the test

avoidable mistakes when starting a business

LET’S PUT THIS TO THE TEST
Start with Avoidable Mistakes: How to NOT Choose a Business Idea

If you’ve never owned a business before, know that the majority of businesses owners learn that it’s not the person running the business or the employees that make or break a company’s success— it’s often the need for, and profitability of, the idea behind the company.

People often choose a business idea that they want to turn into a fledging business based on two (2) common personal reasons.

And it’s more important for the success and longevity of the business to approach the pre-planning from a completely different angle than what comes naturally to mind.

The Two Most Common Personal Reasons/Misconceptions About Pursuing a Business Idea:

NUMBER ONE

“I already know this business!”

Just because you’re a great with cars doesn’t mean you know how to run an auto repair shop. Nor does it mean you know how to successfully capture your local or regional market.

3 common business mistakes in the beginning

NUMBER TWO

“I love this [product/service]”

Just because you love something doesn’t mean a profitable business will result based on your passion, even of there are successful businesses just like it already.

Learning to run a business is hard enough. You don’t need the added challenges of doing something you love rather than doing something that customers will love paying you in a profitable manner.

think of the goal first

Start at the End:

3 Ways You’ll Know Your Business Idea Can TRULY MAKE A PROFIT

Where’s the End? It’s Where You Want To Be With Regard to Profit, Of Course!

thinking of profitable business ideas

ONE

Make sure the product/service has a repeat buy component

This is the most important aspect of business success based on longevity. You have to have a product or service that people will continue buying.

It’s more profitable to have a pool service company than a pool construction company. You’ll want a profitable product/ service based on not simply acquiring customers, but retaining them. In the world of digital marketing and advertising, the vast majority of solution-based services are monthly recurring services that produce monthly recurring profits.

TWO

Feature products/services with a high profit margin

Sure, as consumers, we can all be guilty of buying the ‘cheaper product’ from time to time; however, businesses that are in the game for the long term know that is not a sustainable model. This is especially true in the starting stages of a business.

Cash flow is your best friend at this point and if your profit margins are low and you’re banking on the strategy of doing business based on volume, you had best have a large amount of working capital on hand to get you through the lean years ahead. High-profit products and services are naturally the best strategy for businesses just getting started.

THREE

Plan for and have a strong support team: Good ideas go badly without this essential element

We’ve been exploring the need for a great business idea, but few great ideas flourish and prosper without the right team of people behind you and on your side. A great team will always greatly improve the chances for financial and competitive success of any business (new or established).

don't start a business that is ready to fail

Don’t Plan to Pan

You don’t make money simply panning for gold, you’ll make money selling pans. And with the millions of businesses out there struggling to stay in business, succeed financially, and compete on a level that will keep those businesses growing for the long term, the question is:

Where is the gold rush today? You guessed it, digital marketing.

DIGITAL MARKETING STATISTICS

recent digital marketing statistics

* 2018 saw digital marketing and advertising revenues hit $17 Billion
That includes traditional marketing and advertising (TV, radio, billboards, etc.).

* 54% of that revenue was for digital agencies only.

* Roughly $9 Billion in revenue was split among all digital agencies in the U.S. (2018).

* On average, that means roughly $700,000 per agency in revenue (includes small one/two person shops. Again, this is average).

However, you have to account for operating costs (office space, equipment, employees, tools, etc.).

You can see how the revenue starts to whittle down to leave profits; however, our program is built to not only help you remove those operating costs (keeping more revenue in the profit column), but the program is also built to scale profits higher than the U.S. average (above).

WE LAUNCH DIGITAL MARKETING AGENCIES FOR EVERYDAY PEOPLE JUST LIKE YOU

digital agency owner

OPERATING COSTS? NOT SO FAST!

The most common overhead for each of our ‘graduates’ and their agencies is the following:

• Laptop
• Smartphone
• Printer
• Internet connection
(Almost everyone has this equipment already!)

Office space? Unnecessary. Employees? Our entire team of experienced marketers ARE your team. Tools? Since it’s our team doing the work, you need few, if any tools that come with a high price tag.

Start at the End:

Remember these 3 essential components?

Make sure the product/service has a repeat buy component
The majority of services we train you to offer are recurring monthly service solutions.

Feature products/services with a high profit margin

We offer every ‘graduate’ high-quality, result-driven services for their clients at a true wholesale cost; enabling a sizable mark up on a monthly basis.

Plan for and have a strong support team: Good ideas go badly without this essential element

Our team of marketers and project managers are yours to ensure quality campaigns are helping your clients grow. And, not only is your access to all of them included in your training investment, your own Support team is as well: they’ll help you prospect, strategize, write proposals, and pitch proposals (and more).

Although we are Digital Marketing Training Group and digital marketing training is part of what our business model entails, we are so much more than simply a marketing training program: We are a digital marketing agency launchpad that comes with support, marketing for your agency (you’ll need to be in front of the right buyers, right?), and so much more. Let’s chat today, shall we?

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Joe Schaefer
Marketing Director at Digital Marketing Training Group
Joe Schaefer is the Marketing Director at Digital Marketing Training Group. Digital Marketing Training Group offers a business opportunity for entrepreneurs that launches a fully-functioning digital marketing agency with full support and a team of white label, professional marketers who perform the heavy-lifting when it comes to implementing modern, forward-thinking, working digital marketing strategies. Apart from being simply the Marketing Director, Joe Schaefer is also the lead instructor of the 5-day, in-person digital marketing training that precedes the launch of an individual's digital agency.
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