Black culture vibing big time in NYC! This block party was 🔥🔥🔥
I LOVE us! Happy. Enjoying life. Celebrating Blackness. It’s beautiful. I was looking for Spike on this X thing but I can’t find him. Thanks for all your great movies!
#BlackTwitter#BlackCulture#SpikeLee
The difference in how a $1 million, $10 million, and $100 million company thinks about marketing.
Most people think that the difference is the number of channels leveraged.
Not really.
And some think it is the way they execute.
Again, that’s not it either.
Here’s the difference.
$1 million
When companies are smaller, they have less money.
So, when they spend money on marketing, they want it to be profitable.
For every dollar they spend, they want to recuperate that dollar, plus all their other expenses and a bit more so there is profit.
$10 million
Mid-sized companies tend to have more money, and their goals are usually more growth-oriented.
So when they spend $1 on marketing, they typically just want to break even on the front end (right when the first transaction happens).
They want the first purchase to recuperate the $1 they spent, plus all their other expenses.
But they don’t care for profit, at least right then.
They aim to make their profit on the backend. By selling more to the customer and optimizing for additional revenue.
$100 million
They typically know what their customer is worth over the lifetime of that customer being with their company.
So for every $1 they spend on marketing, they are willing to lose money on the front end.
In other words, when the first transaction takes place, they are ok to recuperate some money, but not all the money they spent.
The main reason is they are optimizing based on the lifetime value of their customer.
They know that even though they are going to lose money upfront, they will make it up and a lot more over years 2, 3, and beyond.
That’s the difference in how a $1 million, $10 million, and $100 million company thinks about marketing.