Radio advertising only works if you are charging proper fees and you have a solid conversion (sales) process. You can be the best marketer on the planet, generating qualified leads, but if you don’t have a sales process to convert them into clients, you’ll feel that the radio doesn’t work, when in fact it does. Radio advertising doesn’t make sense if the product or service you are offering is inexpensive, commoditized, and doesn’t lend itself to direct response such as tax preparation or accounting services. That’s because you’ll never have a positive ROI due to the low-fee structure of tax preparation, which is around $300–$400 per client. Radio works really well for tax resolution services because the average fee per engagement is $5,000. It will cost you $700–$1,000 to acquire each new client from the radio, and you will expend another $1,500 in labor to service the case, leaving you $2,500– $2,800 to cover any additional overhead expenses plus a healthy net profit. When you know how to properly charge for each phase of a tax resolution case by employing fixed-fee value pricing, radio advertising can be one of the fastest andmost profitable ways to jump-start your tax resolution business. Here’s an example of a radiomarketing campaign I did: Length of campaign: 13 weeks Investment: $4,829 per week or $62,782 for 13 weeks Leads/calls generated: 331 Cost per lead: $189.67 ($62,782/331) New clients generated: 68 Cost to acquire each new client: $923.26 (68/$62,782) Total sales/revenue generated: $323,350 Average engagement value: $4,755 ($323,350/68) Return on investment: 5.15 to 1 ($323,350/$62,782) In order to close 68 clients and generate $323,650 in business, you need a really good phone sales system and sales script that converts leads/callers into clients. You can find these scripts and the fee schedule either in your tax resolution domination system and toolkit or on the membership website. Or, if you’re a member, email Becky, manager of client happiness, and she can send it to you! The goal of any direct response radio campaign is to get the phone to ring fromqualified callers. But before you spend a penny on radio, youmust first determine who your target audience is; second, you need to have the right direct response message that resonates with this demographic so that they call you. Falling short on this will reduce the effectiveness of the campaign and increase your costs per lead and costs to acquire a new client to the point where you’ll have negative ROI and lose money. PRACTICE CORNER FROM THE
MARKETING: Radio Advertising for Tax Resolution in 2019
After you’ve determined your target audience, made your messaging and copy“tight,”and included an irresistible offer and a call to action (telling the listener what you want them to do upon listening to your commercial) in your spot, you need to address the 12 things I’ve listed below to ensure as much success as possible. 1. Type of station – Conservative talk news radio and 24-hour news and traffic stations performbest. 2. Schedule - Monday throughThursday; morning and afternoon drive times (rush hour). 3. Frequency – 1–3 spots per day. 4. Length of campaign – Stations will want you to commit to a minimumof 13 weeks. If you don’t get calls within the first two weeks of being on the air, you need to tweak things as outlined here. It generally takes consistency and frequency for several weeks before you start seeing results. 5. The copy – Must be direct response copy that gets them to call now. 6. Demographics of Audience – Look for radio stations that have independent contractors and small-business owners as a big part of their listenership. 7. Reach of Station – Should be at least a 50,000-watt station. 8. Voiced Spots vs. Endorsed Spots vs. Your OwnVoice – Endorsed spots will outperform voiced spots, and your own voiced spots should do very well. 9. Controversial Talent/Personality – Look for stations that have controversial shows and/or personalities. The more controversial the talent, the better your response will be. 10. Call Tracking Software - Youmust have a phone tracking system so you canmeasure results fromdifferent ads and time of day so you can calculate cost per lead, cost to acquire a new client, revenue per call, ROI, etc. 11. Negotiation of Rates - Everything in radio is negotiable. Everything. 12. Bonus or No-Charge Spots – Always secure bonus spots whenever negotiating a contract. You should ask for one bonus spot for every 3–5 paid spots.
–Michael Rozbruch
888.670.0303 • 3
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