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The more you understand the economics of your business, the more options you have for controlling your growth and profits. While every company is different, the basic economics of business are universal.
In this episode, host Tom Ryan dissects customer acquisition costs, and explains the most common ongoing expenses. As always, Tom is joined by co-host Jason Pyles.
• Intro, and recap of sales channels discussion from last episode
• Understanding economics and activities required to generate sales
• How much can you afford to pay in order to sell your stuff?
- What will it cost to find or acquire customers?
- How much will it cost to sell your products or services?
- The 8 Key cost drivers
- Salary and payroll
- Commissions and bonuses
- Travel and entertainment
- Lead generation fees
- Rebating or co-op marketing expenses
- Memberships, subscriptions, dues and trade show fees
- Sales support
- Marketing and advertising
- How much can you afford to spend on sales staff?
• Paying for sales: Commission, salary and commission-plus-salary hybrid
• Pros and cons for each sales compensation model
• Sign off, thanks, and next episode preview
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