Ask Joe: Should I do Paid Advertising? | POP 800

A photo of Joe Sanok is displayed. Joe, private practice consultant, offers helpful advice for group practice owners to grow their private practice. His therapist podcast, Practice of the Practice, offers this advice.

When should you consider using paid advertising? How do you calculate the returns on your marketing investment? Have you tried AB testing?

In this podcast episode, Joe Sanok speaks about all things paid advertising: how to decide if you should do it, which numbers you need to know, and its perks and drawbacks.

Podcast Sponsor: The Receptionist

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In This Podcast

  • When Should You Do Paid Advertising?
  • AB testing
  • Return on Investment
  • Are Pay-Per-Click Ads Worth it?

When Should You Do Paid Advertising?

Before you use paid advertising, first try to exhaust your free advertising. Get your SEO optimized, and try to branch out and rely on your network to build brand awareness.

Paid advertising is good when you want to grow faster.

Joe Sanok

Paid advertising is great if you want to be on top of people’s searches when they’re looking for a therapist. It allows your brand to become visible on Google and Facebook.

It’s important to keep doing paid advertising even when you’re busy. It’s safer to have a few clients coming in than to count on your current clients not leaving.  

AB testing

AB testing is where you run two advertising campaigns against one another to see which one wins – A versus B.

Joe Sanok

This is an important principle to apply when you’re considering paid advertising. AB testing is where you take out two advertisements for the same product or service. Only, you advertise with two different companies.

The Advantages of AB testing:

  • If you tell advertising companies that you’re running an AB test with them, they are more likely to offer you a competitive deal
  • It allows you to find out which advertiser will better represent your company
  • You can compare lots of different marketing types: for example, local advertising versus online advertising

Return on Investment:

Most marketing companies will say that you should be shooting for a 1 to 5 ratio. That means that for every $100 you put into something, you get $500 dollars in business.

Joe Sanok

To calculate the return on investment for paid advertising you need to know the lifetime value of a client.

Ask yourself, how many sessions will a client book, and how much do you charge per session? If the total of those numbers is less than what you pay in advertising to attract the client in the first place, you’re losing money on your marketing investment.

If you have a typical going rate [of $100], and [the client] comes ten to twenty times, you’re looking at at least a $2000 dollar lifetime value. Meaning, if you spend less than $2000 dollars to acquire one client, the ROI is good.

Joe Sanok

Are Pay-Per-Click Ads Worth it?

Pay-per-click is where you pay every time a person clicks on your advertisement. If you’re considering this kind of paid advertising, you need to know how many clicks you need, and how often those clicks convert into a new client.

You need to know these numbers to figure out whether the price of taking out a Pay Per Click Ad is going to lead to a positive Return On Investment.  

Consider making a small pay-per-click investment first. Invest $50 and see how many people you attract. You want to establish a baseline number for click conversions.

Useful Links mentioned in this episode:

Check out these additional resources:

Meet Joe Sanok

A photo of Joe Sanok is displayed. Joe, private practice consultant, offers helpful advice for group practice owners to grow their private practice. His therapist podcast, Practice of the Practice, offers this advice.

Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.

Thanks For Listening!

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