Episode 26: Client Acquisition Costs & Referral Programs, with Colin Sprake

Colin Sprake is a four-time best-selling author and mentor to over 47,000 entrepreneurs!

Colin has built several different million dollar businesses within 6 months. He has over 30 years of business experience having come from the mining industry to building his own multi-million dollar businesses from the ground up.

A dedicated teacher, Colin is the Master Trainer at Make Your Mark Training and Consulting and is devoted to people achieving huge success in their businesses. His purpose is to assist business owners to dramatically improve the number of businesses that succeed. After all, failing businesses affect us all in negative ways.

Using decades of business experience, Colin speaks and trains on a wide variety of topics for corporations, organizations & associations. Colin Sprake is all about delivering what is required to achieve the desired result and holding you accountable for your own success.

What you’ll learn about in this episode:

  • What does it cost you to bring one client on board? This is your client acquisition cost
  • Which costs go into client acquisition costs and which are other costs (like overhead)
  • New sales from old clients: why costs related to these sales are NOT client acquisition costs
  • Using client acquisition costs to determine your pricing
  • Building a referral program to bring in clients at a much lower cost than your client acquisition cost
  • The importance of keeping track of your hours — even if you’re not paying yourself yet in your business
  • What to do if your client acquisition costs exceed the price of your product or service
  • Why every business needs a referral program
  • The problem with most referral programs: they don’t pay enough for a referral
  • Why you should never pay out a referral fee until a prospect becomes a paying customer