Throughout the FULL The Real World Marketer Program, there is a focus on testing and sound risk and money management.
To reinforce its importance, included is a special Interview with Master Investment Coach Andrew Baxter.
Investment and Marketing aren’t too different when it comes to how you should think, particularly on the risk and money management side.
For example, as Andrew Baxter explains in this Interview, there's a difference between risk and a loss...
"Let’s say we bought a stock at a dollar and our stop loss was at 95 cents. If this stock did go to 95 cents and we sold out at that stop loss level - we’ve cost ourselves 5% - this was our risk capital and hence is not strictly a loss – it was how much we were prepared to risk on the trade.
That wasn’t a 5-cent loss that was the 5 cents that we were preparing to risk on that trade – that’s very different. But if we sold the shares for 90 cents, we’ll have the 5-cent risk capital, plus the 5-cent loss because in this case, we did then make a loss by not exiting at our pre-determined stop/loss level.
So there is a subtle difference between a risk capital and a loss and again very, very few people really understand that because they haven’t taken the time to objectively think about what they are trying to do."
This is only ONE point in the Interview which demonstrates that there are many parallels between investing and marketing.
With marketing, you’re not going to succeed with every Campaign you run and not every product you become involved with will be a winner no matter how much you like the product. So there's got to be a point where you stop (exit), just like with investing.
In some cases, the first campaign you run may not be indicative at all of the long term potential. So you have to build your Process with a long term perspective ... just as many investors do.
Where Andrew Baxter speaks about risk capital above, you have to factor the same into your marketing. There is a cost in acquiring new customers - it is rarely profitable. You get your return from REPEAT SALES and LIFETIME VALUE. Both areas are addressed in detail within the FULL The Real World Marketer Program.
When you have a Process which incorporates effective measurement and controls, then you WILL be able to track all your activities and make the right decisions for your business.
Most importantly, having a Process (which includes trackin
g and analysis) means you'll always be able to keep everything in perspective – so you don't act on emotion, another key area addressed by Andrew in this MUST READ Interview.
  
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