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How to Stop Marketing Dollars From Going Down the Drain

This text is from our consulting firm's latest 321 Biz Development episode found on fifteen podcast platforms. There is too much content to write for this article, so readers are referred to the podcast episode for complete story.

The story is known all too well to small business owners.

The marketing proposal starts as an investment and, at the end, the marketing dollars were an expense.

The "investment" presumed revenue dollars would exceed the investment by twice or higher the marketing investment.

As an hypothetical example, a business development proposal required a $7,500 marketing investment. The small business owner desired revenue of 3X the marketing investment, or $22,500. Unfortunately, within a 90-day window, the marketing investment only generated $3,500 in revenue, mathematically, redefining the original $7,500 investment as an expense.

Seeing an investment turn into an expense is a hard pill to swallow, not to mention teeth marks to your cashflow and bank account.

I use the analogy of weight loss diet products vs personal trainer to highlight the big difference between passive and proactive steps to achieve results. This article is not a slam on diet products. This analogy focuses on the activities required to see success between the diet product and the personal trainer.

Using the same $3,500 as an example, as readers, which do you think is more likely to achieve improved physical fitness and weight loss? The diet product or the personal trainer?

The diet product is an inanimate object. Meaning, the product is a drink. It's a grain bar. The weight-loss drink or food item does not compel the customer to stick to the weight loss regimen. The diet product makes no verbal or emotional demands to the customer.

The customer can skip a day or two with the weight loss program without consequences. Failure to use the diet product carries no penalties. And the weight loss company does not care if the customer loses weight or not. The weight loss company already has the money.

On the other side of the coin, the personal trainer works with the customer either in the same location or virtually. The personal trainer works out with the customer for 1-2 hours per session, 3-4 days per week. The personal trainer combines diet and physical fitness knowledge and experience to help the customer achieve desired results.

Accountability is in effect. Every week, the personal trainer takes weight measurements, monitors increasing strength levels and sets new goals for the upcoming weeks.

As you may able to see, the personal trainer is, by far, the more effective method for customers looking to achieve fitness goals.

The same holds true for increasing sales revenue goals. Small business marketing investments (which result in mostly expenses) is not proactive. Small business owners are essentially paying third-party marketing companies to relieve themselves of being directly accountable to grow their own businesses.

Marketing companies cannot be held accountable for growing other people's businesses just like the weight loss company is not responsible for people's weight loss.

In the current state of the economy, 321 Biz Dev LLC believes it is more prudent and practical for small business owners to take more control and responsibility for their businesses. 321 Biz Dev LLC works alongside small business owners in a consultative, learn-as-you-earn sales system training and business development program.

If this episode/article provoked some deep thought about improving your sales performance, please do not hesitate to contact me, Rick Nappier, at 726-999-0999.

Interested parties can click here to visit our website. Then, click the Questionnaire tab to complete the 5-minute questionnaire so 321 Biz Dev can learn more about your current sales situation or learn about your current or past experiences with trying to improve sales performance. A 321 Biz Dev specialist will contact you within two business days to review your responses.

We hope your enjoyed today’s post and linked podcast episode. Please check out the podcast episode for a lot more content on this subject matter.

Rick, CEO


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