Cash Free Advertising
Pay for the ad after you make a sale! Cash free advertising is a relatively new form of advertising that implements the methodology of cost per acquisition (CPA) commonly used in the online e-commerce world and transfers the “pay-per performance” structure to the brick and mortar business. Cash free advertising campaigns allow businesses to forgo the upfront cost of advertising and only pay when the advertising medium generates a measurable sale. Typically, with advertising using the traditional method, a business would map out a budget for their advertising and pay upfront for the campaign. This could be a billboard, radio spot, a TV commercial, mailers and even online marketing. After it runs the business would then wait for the customers to arrive. With cash free advertising the business pays nothing upfront, the advertising campaign runs and the business only pays for the advertising when the customer makes a purchase. This method eliminates the risk of paying for ineffective advertising campaigns and affords the business the ability to accurately track the return on that investment. Another great option with these programs is that in some cases the business owner can also pay for the advertising using the goods or services of the business. This creates a unique 3-way barter system where the business owner pays for the advertising campaign at its cost of goods sold (COGS) while still charging the customer full retail price for products sold and services rendered. This option is great for a business with low COGS and a high gross profit margin. Assuming that those businesses also have relatively low fixed costs, it creates a massively discounted advertising payment strategy. Cash free advertising is changing the way that businesses pay for advertising and is being done with new technologies that track the way consumers spend money. With state of the art tracking software through point of sale systems advertisers can now guarantee that the advertising worked. The key element is that if the campaign does not work the business does not pay for it, thus eliminating the most critical risk in...
Read MoreA Quick Look at Corporate Structuring
Corporate Structuring Defined: Corporate structuring is the management of recognizing the legal ownership and operational structure of a company. This structure is vital to the foundation of any company. This includes what type of incorporation is best for a business whether that be Limited Liability Corporation (LLC), an S Corporation, or C Corporation. In other cases the best structure will be that of Sole Proprietorship with a DBA or a General Parternship. The designation of S Corp over C Corp has very important tax consequences that must be considered prior to filing for S election. In the case of LLCs, included is the decision to be manager or member managed. There are different operational and tax advantages to all of these options and it is important to make the decision based on the independent needs of the business. This structure must be agreed upon by all incorporating officers or members and managers of the company and is a decision that should not be taken lightly. Also included in corporate structuring should be a detailed operational agreement between all of the principles of the company. This will secure a predetermined course of action for the business given any disagreement arises between officers or members. Corporate structuring can be done by the incorporating parties directly, but for situational advice and a “what if” perspective, it may be in the best interest to consult with a professional in order to structure the business. Should you have any further question or seek additional advice feel free to contact us....
Read MoreBipolar View of Business Development
Business Development Defined: Business development is the process of incorporating a number of techniques and responsibilities, which aim to attract new customers and penetrate existing markets. This includes everything from incorporation, business strategy, planning, projections, marketing, advertising, lead generation and fulfillment. Business development is for companies just starting as well as seasoned organizations. Although at times, the business development process will address every element of an organization, typically business development focuses on either a company’s “Value Stream” or “Commodities.” Value Stream Definition: Often referred to as the “Supply Chain,” the value steam for a business is the end-to-end milestones that drive to deliver a product or service to the customer. The process steps throughout the value stream may include, purchasing, planning, production, manufacturing, quality control and logistics. Throughout the value stream there are key points of product, service and information flow that can be analyzed for improvement in the overall chain. Value stream mapping is a common lean manufacturing technique that aims to analyze the supply chain efficiency and eliminated non-value added steps or procedures. The idea is that by removing these elements from the value steam, it will help minimize costs, increase throughput, decrease turn times and improve time to market. Supply Chain Consulting: Specialists in the world of supply chain consulting utilize “Six Sigma” and “Lean Principles” to diagnose symptoms of a poor performing supply chain and make suggestions for improvement that will allow the business to run more efficiently. Often, a more efficient supply chain will result in reduced costs that improve bottom line profits. Utilizing a supply chain professional allows the business to focus on their core competency and will also help identify what the core competency truly is. The benefit to the business is that they can focus on performing that company’s chief revenue earning practice, rather than spend time trying to improve the underlying processes. Business Commodities: Business commodities for this discussion, are all aspects of the business outside of the value stream and/or core competency of the business. For many businesses, the commodities are as follows… Human Resources / Payroll Marketing / Advertising Implementation Legal & Administrative Finance / Accounting Information Technology These business elements fall outside of the primary revenue source for most businesses and a majority of small to mid-sized business outsource all of these elements completely. For many small businesses, sales and marketing is an afterthought, yet thousands of ad agencies are consistently attempting to sell spots to them. How does the business know what type of ad campaign to run without a proper upfront strategy? Legal is another area that is commonly skimmed over because of the tremendous cost of 3rd party attorneys. For many small businesses, Finance / Accounting is another lightly visited area, and many small business owners are oblivious to their cost structure including basic concepts such as the business “break even” point. Information Technology tends to be either highly under or over utilized for small to midsized businesses. What good is a high priced E-Commerce web site without the proper marketing to let consumers know that it exists? Commodity Consulting: There are thousands of companies today that aim to sell various tertiary elements to the business owner but very few that truly align with the business in order to drive its overall success. Total Merchant Network is the first business development company that truly views the business as a client and not as the next sale. By aligning itself with the top providers for each commodity, Total Merchant Network gives the small business owner access to strategy development and...
Read MoreResponding to Changing Market Needs
With an ever changing world of technology and commodities, how does a company stay the course and continue to develop the right solutions for its customers? One answer can be found in Peter Senge’s book The Fifth Discipline. He argues that only those organizations [learning organizations] that are able to adapt quickly and effectively will be able to excel in their field or market. Another potential answer can be found in Charles Fine’s Clockspeed. Fine notes that companies and individuals must simultaneously exploit their current capabilities while consciously and purposefully building new ones for the inevitable moment when the old ones no longer provide a competitive advantage. Rather you run an establish business, are developing a start-up company or are an individual employee; this principle applies. With the internet boom of the last decade information moves must faster and thus so does everything else. We have moved from industry to information and from inventory to internet business. Gone are the days when companies dominate their market for decades, and these shifts have impacted industries and individuals alike. Through all the chaos, bubbles bursting and a down economy, how does an individual create security? How does a business carve our market share and sustainable revenue? Although having a big bundle of cash would ease some worries, we believe that security is truly attained by developing abilities. The way to do this is by strongly pursuing excellence in the chosen field, learning from the experts and continually going through the business development process. It does not happen on accident but takes years of hard work to achieve . “We are what we repeatedly do. Excellence, then is not an act, but a habit.” ~ Aristotle...
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