Why 80% Of PPC Campaigns Consistently Lose Money

Do you fall victim to the “Half the money I spend on advertising is wasted, the trouble is I don’t know which half” club John Wanamaker is famous for founding?

Wanamaker was absolutely right when he said this many, many years ago. 

Today the dilemma is even worse because now the reality is this:

At least 80% of the money you spend on advertising is wasted and you still don’t know where it’s lost.

That’s a very prestigious club that you do not want to belong to.

That’s why I call this marketing strategy (or lack of a strategy, actually) gambling – it’s like a slot machine, because you put your money in and with fingers crossed, you pull that lever…

…and hope and pray that you get some money back.

The rainmakers in business understand that you can never build a sustainable business based upon luck.

Luck always fails eventually.

Instead these businesses employ a proven system for cost effective customer acquisition that operates more like a vending machine.

They can do this because they know their most important numbers and what KPIs they need to measure and manage in order to multiply their income.

You see the number one reason why at least 80% of PPC campaigns consistently lose money along with most other campaigns is because people are not measuring their customer acquisition cost and they are often not even aware that they are losing money.

They are even less likely to know which campaigns are working and which ones are not when it comes to profitably buying customers, so rather than give up, they just keep dropping more cash in the slot machine.

Every day another stack of cash goes in, hopeful and optimistic that with some luck and a lot of perseverance (boy that perseverance can be a way to burn through a lot more money) that they will stay ahead of the game long enough to cover that next rent check, payroll, credit card bill or unexpected snafu. That is a recipe for disaster.

If you want to survive and have the ability to scale your business, you absolutely need to be able to accurately measure your results and especially customer acquisition cost.