The Importa Magazine - Issue 4 by Read Publishing

Why Business Is A Game Of Margins

Visit The Most Beautiful

WINTER

WONDERLANDS

TYLER PERRY

WHAT ENTREPRENEURS CAN LEARN FROM

WALT DISNEY

Exemplifies Perseverance

CONTENTS 7

TYLER PERRY: RAGS TO RICHES

10 10

A ROUNDUP OF CES 2019

WHAT ENTREPRENEURS CAN LEARN FROM WALT DISNEY

17 17

BORDER SECURITY AND IMPORTING: WHAT YOU NEED TO KNOW

KNOW YOUR MARKET

WINTER WONDERLAND

7 MISTAKES YOU’RE MAKING WITH YOUR FACEBOOK ADVERTISING CAMPAIGNS

DAN LOCK: WHY BUSINESS IS A GAME OF MARGINS

Advertising Enquiries: READ PUBLISHING Published By: READ PUBLISHING Distributed By: READ PUBLISHING Designed By: READ PUBLISHING

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EDITOR IN CHIEF Matt Buchel

Welcome to the fourth issue of The Importa. Thanks for taking some time to check it out. This edition focuses on real world advice to help you along your business journey. As you flick through the pages, keep an eye out for the rags to riches story about Tyler Perry. His inspiring story is a reminder that if you continue to dream and work toward your goals, despite the adversity, you can succeed. His journey toward a thriving Hollywood career is worth checking out on page 7. We all know of household name Walt Disney and the monumental success of the Disney empire. But, how did he do it, and what can we learn from the great Walt Disney? Turn to page 13 to learn about the innovative marketing strategies which have allowed the empire to maintain its standing as a household name for over 100 years. The Consumer Electronics Show offers a global stage for innovators to introduce their latest

offerings to the market. The show has launched some of the biggest breakthrough products over the last 50 years. We check out this year’s developments and trends in the wholesale and retail arena on page 10. Also in this issue: • Must-see Winter Wonderland travel • 7 Mistakes You’re Making With Your Facebook Advertising Campaign • Why Business Is A Game Of Margins • Border Security And Importing: What You Need To Know We hope you get a plenty of tips and ideas to help you smash it on your journey in business. Remember to follow us on Instagram @theimportamagazine to stay up to date and read more great content in-between issues.

Matt

Tyler Perry: Rags To Riches

usiness moguls make growing and attaining a successful business look incredibly simple. We see CEOs, company founders, and celebrities living exciting and luxurious lives, jet-setting to beautiful and exotic locations, and it seems, living without a care in the world. But, for some of these highly successful business men and women, the luxuries of life didn’t come until much later. Sometimes, those we envy in business haven’t come from money and haven’t had parents to lend them million dollar loans for their startup. They know what it’s like to scrape for every penny and they’ve overcome great adversity. American actor, playwright, filmmaker, and comedian, Tyler Perry, was named the highest paid man in entertainment by Forbes, earning $130million USD between May 2010 and May 2011. While he has built an empire including the beloved Madea character, stage plays, TV series, partnership with Oprah Winfrey, among other projects, his success wasn’t always so obvious or even fathomable. theimportamagazine.com

Perry, formerly known as Emmitt Perry Jr. was born in New Orleans, Louisiana and has overcome an extremely traumatic childhood. Suffering severe abuse and molestations during childhood, Perry explained how his father’s answer to everything was beat it out of you. He said that he never felt safe inside or outside of his home and to escape his surroundings, he would close his eyes and imagine himself living in a freer and better place. Recalling memories from this time, Perry told Oprah Winfrey in an interview “I felt like I died as a child.” He recounts a memorable beating by his father and being unsure what the cause was. He took drastic measures and tried to commit suicide to escape from the abuse. Instead of accepting his situation, Perry strived for something better. He now relates his story to one of strength, courage, and victory. In an effort to distance himself from his abusive father, Perry changed his name from Emmitt to Tyler at the age of 16, went on to earn his GED, and turned to his faith for comfort and refuge. He was moved by a comment made on The Oprah Winfrey Show about how writing about difficult experiences could lead to personal breakthroughs and growth. Inspired, Perry wrote a series of letters to himself that became the basis of his first musical and the start of his Hollywood career. At 22 with a giant leap of faith, Perry moved to Atlanta, Georgia and produced his first play, I Know I’ve Been Changed—which encompassed themes of Christianity, forgiveness, dignity, and self-worth and addressed the issues he’d faced with child abuse and a dysfunctional family history. It flopped. While this failure could have easily forced Perry to give up, it didn’t. It pushed him to work harder and dream larger. He eventually would sell out a showing of I Know I’ve Been Changed, draw attention from investors,

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and develop a devoted African-American following. The same play would sell more than $100million in tickets, $30million in videos, and estimated $20million in merchandise. He produced 300 live shows a year and gained the attendance of nearly 35,000 people per week. Perry’s first film, Diary of a Mad Black Woman was widely well received and grossed earnings of $50.6million domestically. He went on to become a director, producer, and coproducer of several other films that gained as much popularity. He’s won awards for his work and, to date, has produced more than 20 plays, movies, and TV shows. He began Tyler Perry Studios in 2006 where he guides the work of other filmmakers. He has also signed a multi-year deal with Winfrey Network (OWN) to create a scripted TV show. Perry says, “when a seed is planted in the ground, all you can do is water it. You cannot control the sunshine. You cannot control the weather. And you cannot control what the locusts would do when they would come to destroy it. All you can do is plant your seed in the ground, water it, and believe.” He credits his situation now with merely planting ideas and tending to them. He encourages everyone to “never despise small beginnings that would change the world.” If you’re someone interested in starting, buying, or contributing to any business, there will be drought. There will be downpours. There will be failures and hardships. But if we can learn anything from Tyler Perry about business and success, it’s that if you continue to dream and work toward your goals, despite the adversity, you can succeed.

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A Roundup of CES 2019 10

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hen you’re a multi-tasking business owner working in the importing industry, it’s important to stay abreast of all the latest developments and trends in the wholesale and retail arena. This will keep you up to date with which products are likely to be in demand. If you’re involved with tech gear, or if you want to get into this area soon, one of the top events to check out is CES. The annual Consumer Electronics Show first took place in June 1967, in New York City. Today it’s held every January in Las Vegas, over four days. It attracts over 150,000 attendees from across the globe. CES offers a global stage for innovators to introduce their latest offerings to the market. The show has launched some of the biggest breakthrough products over the last 50 years. This list includes the VCR, CD player, Plasma TV, Xbox, Blu-Ray DVD, tablets, Android devices, smart appliances, driverless car technology, 3D printers, wearable technology, and virtual reality. The event is held over multiple venues and showcases products in more than 30 different categories. Thousands of businesses exhibit each year, and the show’s conference program includes hundreds of sessions on tech. As with the preceding years, the 2019 event was yet again the place to hear about some of the most exciting new consumer tech products to hit the market. Here is a wrap up of some of the coolest you need to know about.

Withings Move ECG Smartwatch Wearables (smartwatches, fitness trackers, health monitors and the like) had their moment at CES 2019. While there were many excellent offerings at the show, one of the most talked about was the Withings Move ECG smartwatch. This is the first analog smartwatch with an electrocardiogram (ECG) built in, meaning it can detect heart rate irregularities and save lives. The hybrid watch doesn’t need charging as it comes with a one-year replaceable battery. It also features the analogue face of a traditional watch, for those who prefer that style, plus it’s water resistant to 50 metres, provides sleep and workout tracking, and sends notifications like a typical smartwatch.

Halo Sport 2 Headphones Human performance company Halo Neuroscience debuted their upgraded Halo Sport headphones at this year’s CES. The Halo Sport 2 is a high-end headphone product that does more than deliver excellent audio quality. The headphones actually act as a brain stimulator, accelerating muscle memory development. They deliver an electrical current to the motor centre of the brain which, through 20 minutes of use before an activity, help to

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create a state of hyper-learning. Known as ‘neuropriming’, this focused state assists people to learn and remember. The latest version of the headphones now offers an entirely wireless experience and better audio than before. The neuropriming action is easier, too, and the related Halo Sport app also features new tracking and reminder possibilities, plus content.

P&G Opte Precision Skincare System The world of beauty is getting increasingly tech-driven these days, something demonstrated by Proctor & Gamble’s new Opte Precision Skincare System. The company’s venture capital arm came up with this thermal inkjet printer for the face that could soon make the future of makeup and skincare brushless. The idea is that a handheld, digital, wandlike device applies product to the face with pinpoint accuracy. It works like a thermal inkjet printer to apply tiny dots of serum, makeup and the like to the skin. Using a small camera, the machine scans faces at 200 frames per second, looking to detect freckles, moles, sunspots and other things to cover up.

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The Precision Wand is designed to utilise blue LED scanning lights to enhance the skin’s contrast and thereby pick up three times more pigmentations than normally seen by the human eye. From there, it applies a precise amount of product (mineral makeup, moisturiser or a skincare serum) to the skin via a nozzle in just seconds.

Other Notable Products Some other notable products demonstrated at CES 2019 were: • LG Signature Series OLED TV – a rollable TV that unfurls from a storage base at the touch of a button. • Foldimate – a folding machine that, after just five seconds or so, spits out perfectly folded laundry. • -Kohler Numi 2.0 Intelligent Toilet – a smart toilet that allows owners to converse with Amazon’s Alexa as they do their ‘business’. It also comes with ambient lighting, mood music, a personal dryer, and a heated seat. • Cambridge Audio Alva TT Turntable – the first vinyl player in the world that can stream Bluetooth aptX HD, allowing it to stream 24-bit/48kHz audio to speakers, amps, and headphones.

What Entrepreneurs Can Learn From

Walt Disney

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e all know Disney as the huge conglomeration it is, but like any business, it started small and faced many obstacles along the way, particularly financial challenges. But despite hard times and mistakes, Walt Disney used his own magic to not only bring his vision to life, but create a brand that is known and loved worldwide across generations. How did he do it, and what can you learn from the great Walt Disney?

Marketing Disney’s major strength was in marketing, and was a pioneer in branding, brand stretching and merchandising. Snow White And The Seven Dwarfs was the first ever full-length animated feature, and was also the first film to have a complete merchandising campaign on release. By constantly innovating and pushing the boundaries, Disney went from a moderately successful animation studio to a complete entertainment experience – with theme parks, merchandising, cruise ships and so forth. Nearly 25% of Disney’s revenue comes from the sale of consumer products. Here are the top 5 Disney marketing strategies: • Surprise! - Disney added surprise to his business model by giving away prizes at Disneyland. All you had to do was be there to win. • Stories - Walt knew that the story was the real reason people enjoyed his attractions. Every Disney feature has a story behind it. People relate to these stories. • Connecting a brand to feelings Disneyland was known as “the happiest place on earth,” and who doesn’t want to be happy? • Talking to customers - Walt Disney was often seen walking around Disneyland talking to visitors. At other times he’d go

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to see a Disney movie and get people’s reaction to the picture. • Attention to detail - you know that something special is about to happen as soon as you enter Disney properties. There is magic in even the most ordinary objects, for example Disney’s street signs are rabbit ears.

Finance This was not Walt’s strongest point, and in fact he nearly ran the business to the ground several times. But he did learn to stay out of finance, and hand over responsibility to the experts. Fortunately, Roy Disney understood his primary job was to realize his brother’s dreams. He was the businessman while Walt was an artist led by inspiration. In the end, the company flourished precisely because Disney was such an indifferent businessman. There were also a few clever tricks along the way, worth considering in any business: • Get your pricing right - The first Disney animation was a series of black-andwhite cartoons featuring a rabbit named Oswald, produced for Universal Studios. When Universal refused to give Walt a raise he quit drawing Oswald. • Brand value - Walt set up a private company that owned the merchandising rights to his name, allowing the business

to charge for use of the name. Walt Disney Productions paid $46.2 million to buy the company back in 1981. • Adaptability - Disney made it through the Great Depression and World War II by dedicating his studio to producing health, education, and propaganda films for the U.S. government. It also produced short comedies aimed at boosting national morale. • Capitalising on assets - The company did not produce any new feature films during World War II, but in 1944 it re-released Snow White, bringing in much needed revenue without much cost. Thus began a strategy of re-releasing films every 10 years, and later regulating the availability of Disney films on VHS and DVD.

Letting go While the value of the business was largely attached to Walt Disney’s name, Walt recognized his strength was in story design, not actually animating, and for the business to grow he would need to learn to delegate and let others create his vision. By the time the brothers built their studio in Burbank, California, they employed more than 1,000 people, including animators, producing hit after hit. While we can’t all become the next Disney, there is much to learn from the young entrepreneur who started a studio in his uncle’s garage.

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Border Security And Importing: What You Need To Know

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ne of the first things you must do if you’re considering getting into the importing business, is learn the ins and outs. This means more than figuring out the costs to buy and then ship the products; you must educate yourself, ASAP, on the laws related to border control.

Australia has one of the largest and trickiest border environments on the globe. The ABF has not only all major and regional international airports to look after, but also around 37,000 kilometres of coastline, 60 international seaports, and a 10-millionsquare-kilometre offshore ocean zone to protect.

Whether individuals or companies don’t have to hold an import licence to import items into Australia, permits are required to clear particular types of products through customs. There are also stringent rules around which goods can and can’t be brought into the country at all.

Every week, the agency has to inspect approximately 700 ships, 750,000 air passengers, and 1.1 million mail items. The goods you bring into Australia have to adhere to certain regulations to get past border security.

Australian Border Force (ABF) is the agency designated with protecting the nation’s border. The ABF enables legitimate travel and trade and stops threats of many different kinds from endangering the country’s environment, animals, and inhabitants.

Packages must be clearly and correctly labelled, for starters, with an accurate description of the goods inside. There must also be information listed about the country in which the products were made or produced. Importation costs are a factor, too. These are

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often waived for packages valued at under $1,000 (although not always) and calculated according to factors such as the value of the goods, the category of the items, and how they are shipped (i.e., air or sea). There are numerous and complex methods of calculating how to value goods for customs purposes, so it’s best to seek advice from a customs broker. These specialists can help you to determine the best calculation method to use for different kinds of deliveries. As a business owner, the onus is on you to understand your rights and responsibilities when importing goods, and to adhere to the appropriate regulations. This includes not trying to bring in prohibited goods illegally. Some prohibited items or that you must get special permission for are:

Many people and organisations do try to get around these regulations each year though. In fact, according to a 2018 story on News. com.au, Australian border forces intercepted approximately 340,000 biosecurity risk items trying to be smuggled into the country in 2017. Authorities confiscated things such as crucified bat skeletons, bear bile, tiger tooth necklaces, skinned frogs, steroids, ballistic helmets, growth hormones, and ice pipes. While you’re surely not be going down this path, do be aware that sometimes even things you think are entirely innocent could be seen as an issue by border security. Speak with your suppliers about the specific makeup of each item in your shipment. Having as much knowledge as possible about this and all the Government restrictions will help you to protect yourself from unfortunate financial and legal repercussions.

• Fireworks • Weapons, including things like automatic knives, blog guns, concealed blades, daggers, and firearms • Electric shock devices • Fake designer goods • Live plants • Live animals, particularly unique or exotic ones • Ozone-depleting substances • Many types of drugs and chemicals • Pirated DVDs • Soil mud or clay • Consumables such as seafood, seeds, fruit, and vegetables If you try to import prohibited or restricted goods without having the necessary licence or written permission, your assets may be seized. You may also face harsh penalties such as up to 10 years’ imprisonment or a $525,000 fine, or both.

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KNOW YOUR MARKET B

uild it, and they will come. Right? Unfortunately not. Finding a product you like might be easy, but finding the market is harder. This means knowing your market BEFORE choosing a product, and then matching the product to the market. You may reach your market via wholesalers and distributors, but it is important to understand the needs of the end user or customer. When launching a new product or service, we need a pre-sell strategy; a clear path to customers before we even start. Some people make the mistake of believing that pre-sell is just a matter of making this big announcement, and then launching your product. If only it were that easy! Pre-sell involves distinct steps which,

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when rolled out, cause the customer to desperately want your product. Most people are in a hurry to launch after slogging through the creation and production stages. They are keen to sell the product as quickly as possible to start bringing in some cash to cover all of the costs spent so far. But rushing a launch will not achieve maximum attention and sales, bringing in a fraction of the cash you had hoped to see pouring in. An important part of the launch is the waiting list. You need an eager crowd waiting to pounce. Think of the people lining up for days for every new Apple product. How do you make your customers so eager? Engaging with your audience in the development of your product can build

your pre-sell market. First, identify a problem you want to solve for your customer. Next, find at least 10 people that you think may be facing the same problem. Then ask them to recommend more people facing the same problem. This way you should interview at least 30-50 people. If you already have a following online you can canvas many more people by inviting comment, posting surveys or polls. From there you might ask some individuals for more detail or a full one on one interview. You should start to see some common threads, and in particular, the language your potential customers use to describe their pain points. This will become useful when offering your solution. Your job is to introduce solutions that remove the roadblocks, and to communicate that to your market. Start developing your product idea and take it to a group of your interviewees. At this stage you donâ&#x20AC;&#x2122;t need to make the product, only be able to describe its qualities, and ask whether it meets the needs of your audience. Doing this will let you know if you are on the right track before wasting time and money on the wrong solution. Also find out what they would be prepared to pay for the solution, so you can think about whether you can produce it within that price and make a profit. Your audience will most likely enjoy feeling they have been involved in creating the product, and will be happy to go through a few rounds of feedback on your ideas. Once you have developed a prototype, you can reward your audience with some freebies, that will reap rewards in endorsing your product or highlighting important changes to be made before the official launch. You can then ask for testimonials. Your original group of interviews then become your launch market and your waiting list â&#x20AC;&#x201C; they have already engaged with you and you know they have a problem you can solve. theimportamagazine.com

Here are the key steps to launch:

1 Call attention to a specific group of people (i.e people experiencing the problem). This tells people your product is relevant to them. For example “calling all pet owners”. 2 Ask a question related to the pain point (“Ever wanted to get rid of pet hair?”). 3 List three to five benefits of your product. Include testimonials from your test group (social proof). 4 Make it clear that this is a pre sale. Create scarcity with a limited timeframe and limited number of units. 5 Give a call to action Ask them to buy and tell them what they need to do to access your solution. 6 Send reminders and a last chance email.

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Winter Wonderland W

e tend to associate overseas winters with bleak, grey skies and runny noses, but there’s a beautiful side to this season, which often gets overlooked. Think Italian mountains covered with snow, pristine frozen lakes, and English cottages that put Norman Rockwell paintings to shame. Winter celebrations brighten up the darkest months of the year all over the world, and some locations are particular picturesque during this time. A castle in Slovenia, a village in Japan and Reindeers in Wyoming are all among our list beautiful places from around the world that look even better under a layer of winter snow. While we encourage exploring these destinations any time of the year, we won’t judge if you want to walk through some winter wonderlands from the warmth of your armchair. So grab a mug of hot chocolate and forget about summer for a little while.

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Tallinn, Estonia

Tallinn’s medieval old town is enchanting throughout the year, but during Estonia’s long winter months it takes on a whole new dimension of wonder. Take a stroll around the fortified Toompea and eventually you’ll end up in Raekoja Plats. Pop into the tiny room beside the Town Hall for a glass of glögi or some homemade soup.

Plitvice National Park, Croatia

Imagine a series of sixteen turquoise lakes, cascading into each other in an unforgettable display of water’s power and majesty. Now imagine that same scene, but frozen. Plitvice National Park is one of Croatia’s main tourist attractions, almost deserted in the winter months but all the more beautiful when its waterfalls are frozen in time.

Jigokudani Monkey Park, Japan

Jigokudani may not be the most dramatic winter landscape in Japan, but it is unmissable in winter when the resident Japanese macaques, or snow monkeys, bathe in the steaming hot springs. It’ll take a fair amount of willpower to resist stripping off and joining the monkeys, although the attendants might have something to say about that…

Blue Pond, Hokkaido, Japan

The Japanese island of Hokkaido is a poster child for natural beauty, with its volcanoes and lakes becoming even more surreal come wintertime. One notable example is the Blue Pond, whose protruding trees and azure waters really know how to work those layers of ice.

Gokayama, Japan

The coldest parts of Japan are in its northernmost regions, but nowhere is snow country more beautifully represented than in the thatched cottages of Shirakawa-go and Gokayama (pictured). These UNESCOprotected villages cover 170 acres in central Japan, and are tucked into the mountains like real-life snow globes.

Hallstatt, Austria

Hallstatt is a tiny lakeside village and UNESCO World Heritage Site in Austria, all the more glorious when nearby Salzburg Mountain is blanketed in snow. It is often voted as one of the prettiest villages in the world, and we wouldn’t disagree.

Banff National Park, Canada

The star attraction of Banff National Park is undoubtedly Moraine Lake. Located some 15km from Lake Louise, the lake’s crystal-clear waters reflect the snowcapped Valley of the Ten Peaks. We’re not the only ones who love it here – the Canadians put the scene on their $20 banknotes during the 1970s.

Grand Teton National Park, Wyoming

Wintertime in Wyoming can’t be missed: Snow has fallen, elk have descended from the mountains, and a sense of tranquility fills the landscape. It’s the perfect time to enjoy views of the Teton Range, whether on skis or from the warmth of a fireplace.

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Antarctica

There are few places (if any) more stunning than the world’s southernmost continent. Although 99 percent of Antarctica is covered with ice, the landscape still manages to be amazingly diverse—surreal blue glaciers, active volcanoes, the rough waterways of the Drake Passage, and 360-degree views of untouched snow. And those views are made even better when an emperor penguin or humpback whale makes an appearance.

Bruges, Belgium

With its cobbled alleyways, frozen canals and gingerbread architecture, Bruges is without a doubt at its most beautiful during the winter months. Come in January or February when the popular Christmas markets have packed away and you will have the town to yourself. It’s unlikely you’ll return home without seeing a castle or two – there are more per square inch here than any other city in the world

Schloss Neuschwanstein, Germany Remember Sleeping Beauty’s castle at Disneyland? Well this is the building that inspired it, only you won’t find any adults dressed as furry rodents lurking around here. Located on a hill above the village of Hohenschwangau in southwest Bavaria, Schloss Neuschwanstein is even more beautiful in the winter months when the surrounding forest is dusted in snow.

Queenstown, New Zealand

Queenstown is a great place to visit no hyphenated words across lines round but during the winter months (May to September) it really comes into its own. Nearby, the Remarkables and Coronet Peak ranges offer some of the finest skiing and snowboarding in New Zealand, and the town is particularly lively in June and July when the Queenstown Winter Festival takes place.

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Dolomites, South Tyrol, Italy

The Dolomites are the cozy cousin to the Alps’ glitzy ski towns. The area’s powdery slopes can be accessed via the 86-mile Great Dolomites Road, one of the world’s most beautiful alpine drives—and a perfect day trip from Venice.

Český Krumlov | Czech Republic

Dating back to the 13th Century, Ceský Krumlov is a Czech city in Southern Bohemia. A UNESCO World Heritage site, its castle is one of the largest in the country. Beyond the delights of the city, which include the castle’s baroque theater and a traditional brewery, Ceský Krumlov is only a short distance from the Šumava National Park, which is always a delight in wintertime.

Amsterdam | The Netherlands

In wintertime, banks of snow can line the canals of Amsterdam’s main thoroughfares and add another layer of wonder to an already beautiful city. Winter events abound in the Dutch capital, with ice skating rinks being set up, seasonal lights illuminating the city centre and various cultural shows taking place, from musicals to theatre, to the annual street parade. The 15th Century weigh house, The Waag, is always worth a visit around this time of year.

7 Mistakes You’re Making

n the world of social media sites, Facebook is the big kahuna. Sure, there are older sites – but it’s the biggest and gets the highest engagement. Facebook advertising has been around for a while, too, and you might think you’ve got it all figured out… Except you don’t. In fact, we’re willing to bet there are a few things that you’re doing wrong. Do you want to start getting it right? Start by correcting these 7 mistakes.

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With Your Facebook Advertising Campaigns

Spray and Pay

Are you doing some kind of math that says since you’re only paying for clicks, you don’t need to target your ads? Maybe you figure since people who aren’t interested aren’t going to respond to your ad, you might as well reach as wide an audience as possible.

If that sounds familiar, you’re making what could be a costly error. Ultimately, the people most likely to click on your ads are people who are in your target audience.

Think again. The truth is that more companies are using Facebook advertising to send traffic to their websites and encourage sales there than are using it to build engagement.

A far better bet is to target your ads to users who match your customer persona and do what you can to maximize your ROI. You’ll end up spending less and earning more as a result.

While social media engagement is important, sales and conversions are what keep your company afloat. With your next Facebook ad campaign, focus on conversions to get the biggest possible return on your investment.

Avoiding Video Marketing

You can’t go anywhere online without reading an article about how video marketing is the belle of the ball – the one thing everybody’s doing. While it’s true that video gets a ton of engagement, it’s also true that on Facebook, the bulk of advertising money is not being spent on video. In other words, video isn’t as saturated as standard ads and that means that if you make the investment in video ads, it’s likely to boost your ROI. They’re more expensive than standard ads but they can pay for themselves. By the way, statistics back this up. A majority of consumers say they’d rather learn about a product or company from an explainer video than from written content. Why not take advantage of that?

Focusing on Engagement instead of Conversions

There’s no question that Facebook advertising can be useful as a way of increasing social media engagement and building your following. And you might even assume that’s all it’s good for.

Assuming CPC Costs Are Increasing

Given the popularity of Facebook and the saturation of ads there, you might expect that the added competition would compel Facebook to raise its advertising rates. You’d be wrong. In fact, CPC ad rates on Facebook have been holding fairly steady. It’s still one of the most cost-effective and beneficial forms of advertising around. That doesn’t mean that costs won’t go up at some point in the future. If and when they do, you’ll have to make an assessment of how Facebook advertising will fit into your marketing mix. But for now, the low prices make Facebook advertising a must.

Not Using Lead Ads

Facebook has a vested interested in keeping users on Facebook (or on the mobile app if they access the site on their smart phone or tablet.) But it’s still true that the majority of advertising money on Facebook comes from web conversion ads.

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While all of Facebook’s algorithms are proprietary, you might get slightly better placement for your ad if you use a Lead ad that allows people who click to fill out a lead form without leaving Facebook. Best of all? You can integrate Facebook advertising with your CRM to ensure that you don’t miss those leads as they come in.

Boosting instead of Advertising

Since you pay for boosting posts, that’s basically the same thing as paying for an ad on Facebook, right? We’ve lost track of how many times we’ve heard this one – and if you’re making this mistake then the chances are good you’re losing out in terms of ROI. Here why. Facebook boosted posts are ONLY meant to increase engagement. They can bolster the reach of a particular post, ensure that all of your followers see it, and potentially earn you a few new followers, too. That’s all well and good, but here’s what you need to remember. When you run an ad for the purpose of conversion, Facebook targets people who are likely to convert. Likewise, lead ads are targeted to people who are likely to fill out a lead form. The purpose of the ad dictates who sees it. Decide which goals are most important to you and then tailor your Facebook advertising campaign around them.

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Not Using Facebook for B2B Advertising

Thereâ&#x20AC;&#x2122;s no denying that Facebook advertising is a useful tool for B2C companies, but that doesnâ&#x20AC;&#x2122;t mean you should ignore it if you sell B2B. In fact, Facebookâ&#x20AC;&#x2122;s targeting makes it possible to target people who work in certain industries or who have a particular job title. If a company is big enough, you may even be able to target its employees specifically. You might have to use slightly different tactics than you would for B2C marketing, such as offering an eBook or white paper as a lead magnet, but the bottom line is that Facebook advertising can be a remarkably effective lead generation tool for B2B companies. We have found that quite a few companies are still operating in the dark in terms of how best to use Facebook. They make mistakes, fall victim to common myths and misconceptions, and ultimately, they end up losing out. Avoid these 7 mistakes to make the most of your Facebook advertising, maximize the return you get on your advertising investment, and meet your top marketing goals.

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Why Business Is A Game Of Margins with Dan Lok

n the age of start-up companies, fast-paced advancements in tech, and testing new business models, finding the appropriate sales package has become not only critical but an evolutionary role within an organization. Some companies have become notorious for their fast sale-cycles and large customer attrition even though customer attrition has been taught to mean a weak business model. So how are these companies still making money? They’re closing large amounts of deals at incredibly low rates, and their customer pool is still full. On the other hand, other companies, generally start-ups and small businesses, make significantly smaller quantities of deals

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with higher costs and pay more attention to customer satisfaction in order to preserve a high profit margin. Consider brands like Apple or similar tech companies—their product prices are generally very high. While there are market competitors and their customer isn’t purchasing often, they’re not that concerned because a single sale is worth the slow sales cycle. Most people are under the impression it’s incredibly more difficult to do business like Apple—with high price tag products and similarly high margins, but it’s not. Dan Lok, Chinese-Canadian business magnate and global educator, insists selling high ticket products and services may be your key to a successful business.

High Ticket = More Profit, Less Hassle Lok’s number one reason for selling high-ticket is simply gaining more profit with less hassle. “When you sell a high ticket item, you make higher profit margins,” he explains. Selling low ticket may be easier—seemingly less difficulty and a wide array of customers. However, there is a major downside to blindly sticking with these low margin products according to Lok: “Stores selling low margin products have been around a long time…like Wamart. But if you notice, before Walmart there was K-mart. And where’s K-mart? Gone. Before that there was Sears. Where’s Sears? Gone.” The problem with selling at a low price to the general public according to Lok is that it isn’t sustainable It’s easy for someone else to come into your business space and charge less for the same product or service. But this would be silly—you’re barely making a profit, so how can they afford to charge less? Simple. They use their own capital to grab market share and acquire customers at a loss to put you out of business. Once you’re gone, they can increase their prices. And with more customers, there is more hassle. These companies will need a more complex company infrastructure—more customer service, offices, staff, shipping & handling, etc. When you sell high margin products and services, you enable your company to require less infrastructure, less hassle. Lok prefers to keep his businesses simple: “If I can hit my financial goal with 1000 customers versus 10,000, I prefer 1,000 customers. If I can hit my goal with 100 customers, I prefer 100 over 1,000. More profits, less hassle.”

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Business is a Game of Margins, Not Volume Reaching higher volume is enticing, and it seems like the key to a successful business strategy. But that’s not always true, as we’ve discussed. Even if you are currently pulling in a million now, and your margin is X, even if you make three million, you can’t assume your margin will increase. Lok explains this is because business isn’t a game of volume but instead of margins. Lok explains this concept simple: “Transaction size matters. To make a million dollars, you need 40,000 customers to buy a $25 product. You need 10,000 customers if you are selling a $100 product. Or you can sell a $10,000 product and make a million with only 100 customers.”

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But does it require more effort to sell at a higher price? Not really. You still require the same marketing efforts regardless of your margin. If selling a $100 product, you still need to acquire 10,000 customers. And if you’re product sells at 10k, you still need a way to market to your 100 customers. According to Lok’s logic on profit margins, you need to take a serious look at your company’s standings. If you increase your prices, how would it affect your business? Would you lose customers but maintain the same profit margin? If you lose customers, would you enable your company to downsize staff and save money on overhead? Think about it.