80% of Marketing Budgets Are Wasted, Says 80/20 Marketing Expert Kevin Donlin
2012 APR 21 - (VerticalNews.com) -- Can I use the 80/20 rule in business? If so, is there such a thing as 80/20 marketing? The answer to both questions is "Yes," according to 80/20 marketing expert Kevin Donlin.
"Most businesses waste most of their marketing budgets - and they don't even know it. If 20% of your marketing produces 80% of profits, then 80% of your promotions produce only 20% of profits. In other words, 80% of your marketing is a waste of time and money," said Donlin, president of Client Cloning Systems.
Donlin credits use of the 80/20 rule in marketing with uncovering a new revenue stream of $2,159,342 for his business in 2005.
How did he do it? "By focusing the majority of efforts on the vital few marketing activities that made the most profits. Following the 80/20 principal in marketing can set you free," says Donlin, a marketing copywriter, author and speaker.
"After I applied the 80/20 rule in marketing, profits surged. Specifically, revenue in one business unit jumped from $1,109 in May 2005 to $7,808 in July, to $51,856 in September 2005 and kept climbing to $110,945 one year later, in September 2006. And it kept pouring in," he said.
Donlin combined elements of the 80/20 Rule in Marketing to create a new concept he calls 80/20 Marketing. One of the key components is replacement. Simply replace the time, money, and effort you're spending on low-value 80% marketing activities with high-value 20% marketing activities.
"Example: Let's say you spend 10 hours a week marketing your business. And, after careful analysis, you find only 2 of those 10 hours spent marketing -- 20% -- are highly profitable. Turns out, those 2 high-value hours are spent attending a single weekly networking meeting, where you get 80% of your business," says Donlin.
The remaining 8 hours a week you devote to marketing are on low-value (for you) activities like Twitter, writing articles for ezines, and answering email.
"To engage in 80/20 Marketing, replace 2 of those low-value 8 hours with 2 hours of high-value marketing. For you, that's networking," says Donlin. "You can find one more valuable networking group, spend an extra 2 hours being useful to the people in your current networking group, or start your own networking group."
80/20 Marketing works especially well for professional service firms, marketing managers, sales reps, sales trainers, and other professionals.
"80/20 Marketing all boils down to this: Do more of what makes you money in the time you now waste doing what doesn't," says Donlin.
For more information, please visit the 80/20 Marketing website, http://www.clientcloningsystems.com/8020.
SOURCE Client Cloning Systems
This article was prepared by VerticalNews Marketing editors from staff and other reports. Copyright 2012, VerticalNews Marketing via VerticalNews.com.