Don't chase money...

So very often I hear about this business or that business holding huge receivables for overdue amounts that should have been paid either up front or on time. I saw it in the radio biz when I was on the radio and I've seen it time and time again. Owners lamenting about how they signed up a client who supposedly all with good intent promised to pay their first billing on time, only to have them either string it out for months or not pay at all. Nobody works for free. If you're not collecting at least 50% up front at signing, you're setting yourself up for weeks if not months of possibly chasing money. Never have I seen it as often as I have over the years, with businesses and individuals signing on for someone to do their social media. Because of the realistic time frame for seeing any results from social media marketing, so many individuals and businesses alike think nothing is being done on their behalf. One can spit out all the "jargon" and "analytics" they want, but if the client doesn't see instant gratification in too many cases they believe that not enough if any work is being done. And as I have heard too often, that client tends to not want to pay for the work that has already been done.
If I have a client who balks at paying up front, I simply explain that 
a. Why it takes more time than they may imagine to realize ROI yet I will be working all that time and... 
b. If they are not satisfied and I have to do more work, it's easier for me to make up any additional postings, etc. than it is for me to have to chase money. In most cases, the client understands and agrees.
So my advise is to always collect 30%, to 50% up front when signing a new client. That way if you do have someone go "south" on you, they have at least paid for a solid portion of the work you have completed.

How do you know if it works...

So very often the question arises from clients..."How do I know if my Social media efforts are working"?
I like to say that many of the old methods of tracking it are more effective than not.
To that end, I came across this article which really says what I've been saying for a long time and I would like to share it with you. My thanks and acknowledgment to Kimberly Yuhl for hitting the nail right on the head...

Social Media ROI for Small BusinessSEPTEMBER 16, 2013 BY Kimberly Yuhl

It seems as if every social media expert is advising how to measure the Return on Investment (ROI) with relation to hours and costs associated with marketing using social media. ROI is important to justify the budget for consultancy costs or additional personnel to big business. I contend that social media ROI for the small business owner means something entirely different.

The biggest cost to small businesses using social media as a marketing tool is time. So the question becomes less about money and more about the value of their time. This doesn’t mean that ROI isn’t relevant, it just means it has a different meaning and different metrics to the small business owner than it does to big business.

Measuring Social Media ROI

As a small business owner, measuring Social Media ROI may leave you feeling like you are chasing an elusive number. The reality is you are. Instead of measuring ROI, set goals around things you can actually measure such as:

• How many customers converse with you through your blog or Facebook page?
• How many customers made a repeat purchase last month?
• How many customers reviewed your business or product on Yelp?

Customer engagement is something that is important to the success of your business and is pretty easy to measure – as long as your goals are specific. For instance, the number of likes on a Facebook page are not as important as the number of customers that take the time to like or comment on a post.

Key Performance Indicators

When you measure items that speak to customer engagement you are actually measuring Key Performance Indicators (KPIs). This is different from ROI and there is a strong case for the small business owner to use KPIs instead of ROI to measure the effectiveness of their social media efforts. A small business owner is involved in every aspect of the day to day business and as such will be able to make a correlation between an increase in certain KPIs and the value it adds.

As with anything new, it can seem overwhelming and impossible to add another thing to your already over-scheduled day. Tracking this type of information can help you hone your social media efforts to activities and networks that actually add value. After some time, you will see patterns emerge that will prove helpful. Look for information that will point you towards the type of content, time of day and the social networks that increase your customer engagement. With this kind of valuable information, you will know where, when and how to spend your time. In the end, you will know you are getting your money’s worth and isn’t that what ROI is all about?

Your Action Item

Choose three customer engagement measurement goals and track those goals every week for three months. At the end of three months evaluate the data and determine if your efforts are resulting in increased engagement. If not, it might be time to alter your strategy.

If you find that "time" is not on your side in creating a social media campaign for your small business, give me a shout. I will help your small business get more visibility immediately.

Bob V.