Digg it UP - Business

Compensation Resources, Inc. Releases Its 2005 Year-End Compensation Survey
Upper Saddle River, N.J. - November 2005 - Compensation Resources, Inc. (CRI) has released the results of its 2005 Year-End Compensation Survey. The purpose of this study was to obtain compensation data used for trending and planning purposes at companies of all sizes and shapes. Data was compiled from survey questions that were developed by CRI and distributed to companies in 16 industrial classifications, in addition to Not-for-Profit organizations. The survey sampled year-end compensation data from a variety of organizations, collected in October and November 2005.Results indicated that the average merit/salary increase for all employee functional groups was 4.0% in 2005, and 4.2% is the average projected merit/salary increase for all groups in 2006, an increase over 2004 year-end survey results. Generally speaking, Privately-Held companies reported higher percentages of actual 2005 and budgeted 2006 merit increases overall as compared to Publicly-Traded and Not-For-Profit organizations. As reported in 2004, survey participants indicated that they expected the number of layoffs, hiring freezes, and salary freezes to decrease from 2004 to 2005; in fact, projections were accurate, as respondents in this year’s survey reported actual decreases in these corporate events.Highlights of this year’s results, including a comparison with the prior year’s findings:MERIT/SALARY INCREASE2004 Results 2005 Results Group Actual 2004 Projected 2005 Actual 2005 Projected 2006Executive 4.3% 4.3% 4.5% 5.1%Management 3.8% 3.8% 4.1% 4.4%Exempt Salaried 3.6% 3.7% 4.1% 4.0%Non-Ex

minimizing or eliminating it. Contrast this with managing it like it's an investment, and maximizing the return you realize on it.

Direct response radio advertising - by its very definition - is a profit-driver. If it's not driving a profit, it would not exist - or at the very least it would not be called direct response radio advertising but instead "brand" or "awareness" advertising. Profitability is a fundamental aspect of direct response radio advertising.

On To the Fundamentals

Now that we've cleared our minds and allowed for two basic concepts about how to think about radio advertising, let's move on to the meat of the fundamentals of direct response radio advertis

Making Your Business Card Stand Out
Designing a business card is no easy task. You want to make sure that your business card looks unique and well planned. Your business card should stand out and not stick out like a sore thumb. It should make an impression and stand out from the rest. Do not compromise simplicity and style for uniqueness though. It will be in the company of other similar business cards when you hand them out to clients so its best if you think of a way to make yours stand out in the best possible way.The colors you use are important. If you own a legal firm or a bank, then you should use somber colors. Dark colors for the typefaces work well with light colored backgrounds. However, if your company is related to visual graphics and the like then its best that you be as creative as you can be.Your logo should be distinguishable and should say something about your company. If you have affiliate companies, print their logos in 2 colors only because having too many colors will make your business card look cluttered. The attention should be concentrated on your logo and your details and not your affiliate companies.The impression your business card makes will also depend on the typefaces you use. Limit your typefaces and keep the characters simple. It looks professional if you use only 2 different typefaces at a time. The size of the characters should be just enough. They should be readable and clear. Don't make them too large. Your name or your company's should be larger than the rest of your contact information. Make sure that the text on your card does not look squeezed in. Leave spaces where they should be left. You don't have to fill out the

Direct response radio advertising, at its core, works in the same way regardless of what type of business you are in. Whether you own a direct-to-consumer model business, a retail business, a web business, or some combination thereof, direct response radio advertising can help you grow. And grow profitably. The fundamentals of direct response radio, then, must start with a discussion of how radio advertising works within the context of a basic business model. The purpose of this article is to convey the fundamentals of direct response radio advertising that apply across businesses.

First, Two Important Concepts

Throw out all you think you know about advertising, radio advertising, and especially direct response advertising. It's best to begin with a clean slate, a blank whiteboard so-to-speak. There are two important concepts I want to introduce before moving forward.

Concept One: Radio as A Highway From Your Business to Your Potential Customers

Think of radio advertising as a 5,000 lane highway from your business to groups (station audiences) of your potential customers. The many lanes on this highway are the many different radio stations and radio networks that are available for you air your radio advertisement. It is on these "lanes" that you send your message to your customers.

The lanes are clustered in such a way that they reach groups collections of customers who have similar tastes and demographic profiles. Therefore, some of these lanes lead to groups that have a high concentration of people who match your target customer profile. As a result, advertising on those lanes (stations) is more profitable than others with a lower concentration of your target customer profile. These groupings are the radio formats, which are used in radio advertising to enhance the efficiency of, or return on, advertising efforts. For more about radio formats, see our summary at http://www.strategicmediainc.com/radio-advertising.php.

Concept Two: Radio Advertising is a Profit-Driver, Not a Cost Center

At this juncture, the one thing many business people can't seem to put out of their mind is the one of "how much does it cost" to advertise on radio. We've written extensively about this question because it is one of the most common that we get. The problem is that embedded in this question is the presupposition that radio advertising is a cost. The concept that one needs to fully grasp is that radio advertising is not a cost center. That is, it does not stand alone without any relation to revenue or profit. It is detrimental to think of direct response radio advertising as a cost because that leads to managing as though it's a cost, which means minimizing or eliminating it. Contrast this with managing it like it's an investment, and maximizing the return you realize on it.

On To the Fundamentals

Now that we've cleared our minds and allowed for two basic concepts about how to think about radio advertising, let's move on to the meat of the fundamentals of direct response radio advertisi

Communication Skills - Say What You Mean and Mean What You Say
In using our communication skills and abilities how we say something is just as important as what we say. Body language plays an extremely important part of our communication. In fact studies have been done showing that when we interact in a communication process the receiver actually receives 7% of the message verbally. The other 93% is received based on the non-verbal aspects of the message.How we dress, our gestures, facial expressions, posture and body movements are also being received when we verbally communicate with someone. That is why it is very important that our actions and non-verbal signals match what we are saying. When our words do not match our non-verbal signals we confuse the person we are trying to communicate with. When the listener gets their signals crossed this is when misunderstanding occurs.The idea of dress for success came into being based on the idea of how people read a person's physical representation. Like verbal symbols and signs, non verbal symbols like your clothing choices send a message of who you are. For example in the traditional business world it is assumed that how conservative one dresses determines how business orientated one is. I don’t happen to agree with this but in the traditional work settings this is a fact. You can go to a job interview with the best resume, but if you are dressed inappropriately you will not get the position. On the other hand you can have a half decent resume and dress to the nines and get the position. This is all based on the physical signal that says yes I dressed the part so you know I want the job.The same goes for how we say something. If we give a

ng, and especially direct response advertising. It's best to begin with a clean slate, a blank whiteboard so-to-speak. There are two important concepts I want to introduce before moving forward.

Concept One: Radio as A Highway From Your Business to Your Potential Customers

Concept Two: Radio Advertising is a Profit-Driver, Not a Cost Center

On To the Fundamentals

Now that we've cleared our minds and allowed for two basic concepts about how to think about radio advertising, let's move on to the meat of the fundamentals of direct response radio advertis

Establishing A Budget For Advertising
Before you can decide how much to spend on your advertising and marketing campaign, you must decide on how often you plan to advertise. Many experts say the best time to advertise is all the time. When business is really good, advertise for even more business, but even more important, so that business doesn’t get bad. After all, every business has it’s down times, so help to eliminate or shorten them by advertising during the good times. When business is really bad, or a startup business, since you need to increase your profits, and usually the two best ways to do so is the control your expenses and to increase your customers.Before going any further, I must address one of the many things in life that amazes me. Many businesses, in their wisdom, budget their advertising dollars and stay on budget year after year. Although, I can understand their thinking, I can never understand when a business comes across a method of advertising that is producing large unexpected numbers to their bottom line, yet still cancel because they will be going over budget. Isn’t the idea of advertising to increase your bottom line, and if so, you find a way of doing more than you ever expected, you should continue to advertise and adjust your budgetary problems. I have seen advertisers cancel their ads because they have gotten too many new customers. What, I say, while scratching my head in amazement, is always my response to this comment.Now, to how to spend your budgeted advertising dollar. First of all, you’ll need to figure out the percentage of your incoming revenues that you can afford to spend. Don’t use your current incoming revenues

llections of customers who have similar tastes and demographic profiles. Therefore, some of these lanes lead to groups that have a high concentration of people who match your target customer profile. As a result, advertising on those lanes (stations) is more profitable than others with a lower concentration of your target customer profile. These groupings are the radio formats, which are used in radio advertising to enhance the efficiency of, or return on, advertising efforts. For more about radio formats, see our summary at http://www.strategicmediainc.com/radio-advertising.php.

Concept Two: Radio Advertising is a Profit-Driver, Not a Cost Center

On To the Fundamentals

Now that we've cleared our minds and allowed for two basic concepts about how to think about radio advertising, let's move on to the meat of the fundamentals of direct response radio advertis

Joint Ventures: The Power of Partnership
When two people join forces, there's a certain synergy that takes place, that's why many ebusiness folks are seeking out joint ventures. What IS a joint venture (JV for short) you ask? Basically it's when you agree to form a partnership and jointly promote someone.== BENEFITS OF JV ==Here are some benefits you can realize from forming joint venture.1. EXPOSURE: You can instantly "double" the exposure of your products and services by tapping into each other's built-in audiences, business relationships, and mail lists.2. MENTORING: As partners, you'll form a powerful relationship and learn from one another. As you create plans together, each partner's specialties and knowledge will complement the others.3. FORM A DYNAMIC DUO: Being associated with other highly successful business people enhances your image and reputation. Look at the fantastic relationships that Jim Daniels, Rick Beneteau and other successful marketers have built. They are examples of people who truly are putting the power of partnerships to work!== TIPS FOR BUILDING A SUCCESSFUL RELATIONSHIP ==Are two heads better than one? Well YES and no… You see, relationships can be sweet or they can quickly turn sour. Like a good marriage, a joint venture relationship needs to be built on a solid foundation of trust and friendship. Partnerships need nurturing, loyalty, and faithfulness from both parties. It's not a one way street. Partner's need to genuinely care about and trust each other.1. BE HONEST AND SINCERE: It all starts with the proposal. If you don't write a strong proposal, the future of your JV will quickly be decided with

ing is a Profit-Driver, Not a Cost Center

On To the Fundamentals

Now that we've cleared our minds and allowed for two basic concepts about how to think about radio advertising, let's move on to the meat of the fundamentals of direct response radio advertis

Advance Fee Fraud, Does it Take a Fool?
International Scams and the new MethodologySo you've heard about the Nigeria 419 scam, and about the Russian and Philippine brides-to-be scamming American and European men out of thousands. You're street smart, and you're not going to fall for some foolish game. You won't be sending money off to Africa. You wonder, how can anyone be so foolish, to send thousands of dollars off to Ghana, Nigeria, Russia, the Philippines, Colombia or South Africa, to someone they've never even met? All you need is a little common sense, you say. But, is it really that simple to prevent? Does it really take a fool?There are approximately 2 billion Internet users worldwide. Many have just recently discovered the world wide web. Many are senior citizens, many are honest, hard working and trusting folks who expect the same of others. The truth is, advance fee fraud has come along way since the early days of emails claiming the individual has won big, or has been selected to participate in an amazing business opportunity, with the only catch being the advance fee to release the winnings, the cash, etc. Sure, the public is more educated now about scams. So, why then is the number of victims rising rapidly in almost every country in the world?Wymoo International recently reported on the methodology and fraud schemes employed, and how so many intelligent people worldwide become victims. According to David Wilkerson, Vice President, "criminals have evolved advance fee fraud into endless variations and use sophisticated techniques to conceal their identity. They seek out their victims on dating websites such as Match.com and countless others, w

minimizing or eliminating it. Contrast this with managing it like it's an investment, and maximizing the return you realize on it.

On To the Fundamentals

Now that we've cleared our minds and allowed for two basic concepts about how to think about radio advertising, let's move on to the meat of the fundamentals of direct response radio advertising.

The Basic Formula

We'll begin with the basic formula involved in all direct response advertising:

You buy placement in radio media to air your radio ad, which gets your message broadcast to a certain number of people. This results in a cost per person reached with your message. In advertising this is known as CPM, or cost per thousand impressions of your ad.

Some percentage of those people will respond (call, visit your web site, visit your store), giving you a response rate.

Of those who respond (otherwise known as leads), a percentage will be converted into customers (orders), and by that conversion rate generate profit and revenue.

From this formula, you will derive your media "CPO", or "cost per order", which is found by dividing media spend by the number of orders achieved with that spend (media spend in the numerator/number of orders in the denominator). This is the amount it costs you in radio advertising to acquire one new customer, which is why it is also called "cost per acquisition" ("CPA").

The important question at this point is this: Is the lifetime value ("LTV") of each of your customers, on average, greater than this CPO? This fundamental question applies whether your business is a direct response advertising business (which includes radio advertising, print advertising, DRTV, catalog, or internet) or a traditional retailer. Every business pays to acquire a customer, and every business has a certain propensity to retain that customer over a period of time in a relationship consisting of subsequent purchases and therefore profit streams. Regardless of whether your business uses direct response radio to acquire new customers, or it uses one of the other approaches to customer acquisition, your success will be fundamentally based on whether your business model facilitates a strongly positive lifetime value. If it does not, there is little that radio advertising, or any other form of advertising, can do to change this.

If your LTV is not greater that your CPO, your business isn't profitable and you'll want to stop advertising so you can make the changes to both the advertising and the business model that will result in profitability. Even if LTV is greater than CPO, you will want to increase that amount to maximize your profitability. To do this, you'll need to increase LTV and/or decrease CPO. This process is called business (or campaign) profitability optimization, and it is absolutely essential to the long term success of any direct responses radio advertising effort.

Improving Lifetime Value
There are a number of ways to increase the LTV of each customer. Let's look at three of the main ways:

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Digg it UP - The Fundamentals of Direct Response Radio Advertising

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