SINALOA and The Law of Averages.


I recall attending an event some years ago where it was drilled in… KNOW YOUR NUMBERS!
If I talk with 100 customers and convert 10, my hit rate is 1 in 10. So, if I want 100 customers, i’d better find 1,000 people to talk to.

And if I was paid commission, am I paid for the 10 or paid for the 100 I needed to speak to, inorder to get the 10. Hmmmm..

For me this became very relevant in keeping my attitude straight, my expectations realistic and my head in the game 🙂 I just had to understand MY numbers, and be consistent.

It was explained that SINALOA was an acronym for

If I was to repeat an act, over and over, with consistency, over a nominated period, a conversion statistic becomes evident, and once this time frame is long enough, the numbers become almost bankable.

Let me clarify…
If I stood on a street corner and asked 100 people if they wanted to buy SOMETHING, I might get 1 who actually says.. YEP :).
And If I did this for say 90 days, it might average out at 1 a day. Whatever the average is, thats my stat I can work to. In many instances, 90 days might be good enough to get a number to work with.
If I then could understand each day that about 89 will say no, I knew not take the no’s personally. They were the only numbers, and by ammortising the rewards across the 90, I was paid whether they said yes or no :). Great deal, I get paid no matter if they said yes or no! And I could realistically set a goal and work back.

To me, this was gold!!

As I would have maybe 2 or 3 activities or methods of promotion, recording the numbers of each, I could make qualified assessments and realistic goals in relation to my activities.
That is, I then could calculate with a clearer understanding and set realistic expectations. I could lay a roadmap between my activities and goals.

So don’t get hung up on the yes’s or no’s. Understand the numbers.

pay attention to your numbers

And your numbers are your numbers. We all want better. Better comes… But bank on the numbers you have that are real NOW. Not maybe later 🙂

Similarly internet advertising seems to me to have the same basis. Get YOUR benchmarks understood. Understand YOUR numbers.

It’s no secret that Pay Per Click advertising on the internet is getting out of hand.
It’s one thing to throw $50 at some paid ads, but what if the numbers are not right.
Let me explain.
You’re going to run an ad for $50 a day.
Each click is going to cost $2, so you will get 25 click thu’s to your landing page/website/promotion page a day. But you are only getting 1% conversion to an enquiry
That means an enquiry is costing $200 and you might only get one every 4 days.
And then it takes 10 enquiries to land a sale. CHA-CHING — We are up to $2,000 CPA (cost per aquisition).

So you want 100 sales??

  • How quickly??
  • Do you have the margin available to make this model viable??
  • Can you run a campaign long enough AND consistently, in order to understand your conversion numbers? Are there inefficiencies I can Identify to make the process more cost effective?

CPC (or cost per click) advertising is used by many, but understood by few. Alot of businesses will runs short splurts of advertising, give up for a while out of frustration, then start again out of desperation.
Consider niche or more targeted keywords to bid on to reduce CPC cost and get more targeted traffic to help increase enquiries.
Ensure that your landing page is consistent with the message in your ad, so there are no surprises and there is contiuity and consistencey from the ad right through your enquiry funnel.

A common problem we see nowadays is that whilst building a brand offline creates traffic online, most people ‘Google’ search rather than enter a web address directly into the address bar, taking traffic directly to a website. Searches result in ads of your competitors coming up. Television advertising for ‘company A’ does result in people Googling for ‘company A’, also to be exposed to the offers of Companies B,C,D and so on. And to add pain to that, they are exposed to any defamatory history, remarks or sabotaging reviews from unscroupulous businesses or disgruntled customers (often the former :(). Browsers (programs used to view websites) are laid out to encourage searching, as thats what most people do… And for most search engines or social media platforms, PPC advertising is their primary source of income.

When customers are referred by friends to a business, person or service, they Google the name.. Same results/Same problems.

That was one of the frustrations that motivated the Associate team to come up with a solution to directly connect users and businesses.

Anyway, back to the topic… Know your numbers and look for ways to directly engage with your customers so they don’t need to search. Look for the edge in advertising to lower CPC costs and increase consistency through your funnel or process.

Have a great day
Mike – The Associate team.

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