Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Marketing Cost 🤑 is Killing this Business 🔪

6 Nov 2024 · 1 min

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0:43

A short conversational clip from a YouTube video by Mike Andes (uploaded Nov 6, 2024) in which Robert and Mike discuss financial strain in Robert's small business driven by high marketing costs. Key points: Robert reports marketing eats 20–25% of monthly revenue; Mike states the business's average job value is $350 and customer acquisition cost (CAC) is about $110, meaning ~31% of revenue goes to advertising (Google/Facebook) rather than profit.

Questions this video answers

20–25% per month.

$350.

Around $110.

Chapters

But I'm always wondering, like, where the hell's all the money? Yeah, sometimes it'll be a day. Or it just seems like all I'm getting is customers that are just really not super happy. Or I'm getting people that are calling like leads and they're like, oh, that's not worth it, you know, And I just feel like, like a failure. Easy. After a day like that, especially a couple of days in a row, man, it's. It's brutal. It's like, I think marketing's like, accounts for 20 to 25% every month. Really? Ever? Yeah.
Roberts told me that the average ticket or the average cost of every job that he bills out is $350. He's also told me that his customer acquisition cost is around $110, which means more than 30% of his average sized job is being spent on advertising. Where's all the profit going? It's going to Google, it's going to Facebook, going to these other advertising platforms instead of his pocket.