Stop Throwing Spaghetti at the Wall
I was sitting in a cafe in Bulimba last week with a cabinet maker who was frustrated. He was spending $4,000 a month on various 'marketing bits and pieces'—some Facebook ads, a bit of Google, and a local magazine spread.
When I asked him which one was actually putting food on his table, he looked at me and said, "Mate, I have no bloody idea. I just know if I stop everything, the phone stops ringing eventually."
That is a terrifying way to run a business.
If you bought a new piece of machinery for your workshop, you'd know exactly how many units it needs to produce to pay for itself. Your marketing should be no different. If you spend $1 on an ad, you need to know if it's bringing back $3, $5, or $10. If it’s bringing back 80 cents, you need to kill it immediately.
In this guide, I’m going to show you how to move past 'gut feelings' and start using cold, hard numbers to grow your business. We aren't going to talk about 'brand awareness' or 'engagement.' We are going to talk about cash in your bank account.
The Simple Math: Is This Actually Working?
Most business owners get overwhelmed by spreadsheets. You don't need a degree in accounting to figure out if you're making a profit. You just need to know your numbers.
Let’s look at the basic formula. You take the total money you made from a specific ad campaign, subtract the cost of the ads and the cost of doing the work, and then divide it by what you spent on the ads.
For example, if a landscaper in Carindale spends $1,000 on Google ads and gets one job worth $5,000.
Total Revenue: $5,000 Cost of Materials/Labour: $2,500 Cost of Ads: $1,000 Actual Profit: $1,500
In this case, that $1,000 investment made him $1,500 in clear profit. That’s a win. But if he didn't track where that customer came from, he might think his $1,000 was wasted because he "only got one call."
You need to track what actually makes money before you decide to scale up or shut down an ad.
Why Your Accountant and Your Marketing Person Disagree
Here is a common trap I see Brisbane business owners fall into: your accountant looks at the 'Marketing' line on your P&L as a cost (like electricity or rent), while a good marketing person sees it as an investment (like a stock or a rental property).
The difference is that rent doesn't bring in more customers. Marketing should.
If you spend $2,000 on ads and it generates $10,000 in sales with a 50% margin, you’ve made $3,000 in profit after the ad spend. If you do that every month, you’re growing. If you treat that $2,000 as a 'cost' to be cut when things get tight, you are effectively cutting off your supply of new customers.
I’ve seen dozens of businesses in Milton and Fortitude Valley go through a quiet patch, cut their marketing to 'save money,' and then wonder why six months later they are closing their doors. You cannot starve a business into growth.
The "Lifetime Value" Trap
One thing that trips up a lot of service businesses—like dentists, lawyers, or even pool cleaners—is only looking at the first sale.
Let’s say you’re a pool cleaner in Paddington. You spend $100 to get a new customer. That first clean only costs the customer $90. On paper, you lost $10. Most owners would say, "This marketing isn't working!"
But that customer stays with you for 3 years, paying $90 every month. That’s $3,240 over the life of the customer. Now, that $100 you spent to get them looks like the best deal you’ve ever made.
When you trace the path to your next sale, you start to see the real value of a customer. Don't be short-sighted. If you know a customer is worth $3,000 over a few years, you should be willing to spend a lot more than $100 to get them.
How to Track Where Your Sales Are Coming From
If you aren't tracking, you're gambling. It’s that simple. Here is how we do it for our clients at Local Marketing Group without making it complicated:
1. The "How did you hear about us?" Test
It’s old school, but it works. Train your staff (or yourself) to ask every single person who calls. Don't accept "the internet." Ask "Where on the internet? Was it a Google ad, or our Facebook page?"2. Unique Phone Numbers
You can get different phone numbers for different ads. One for your vehicle wraps, one for your Google ads, and one for your flyers. When the phone rings, a little whisper tells you "Call from Google Ads." You instantly know which one is paying off.3. Website Enquiries
Your website should be a salesperson, not a brochure. Every time someone fills out a form, you need to know exactly which ad brought them there. This is how you see exactly where sales are coming from so you can spend more on what works and stop the leaks in your budget.The Hidden Costs Most People Forget
When calculating if your marketing is making money, you have to be honest about the costs. It’s not just the money you pay to Google or Facebook.
Your Time: If you spend 10 hours a week fiddling with Facebook posts, that’s 10 hours you aren't on a job site or meeting clients. What is your hourly rate? Add that to the cost. Management Fees: If you hire an agency, their fee is part of the investment. Software: If you pay for an email tool or a booking system, count it.
If you ignore these, you're lying to yourself about your profit margins. I’d rather see a business owner spend $1,000 on ads and $500 on an expert to manage them well, than waste $2,000 doing it themselves badly while losing billable hours.
When to Give Up and When to Double Down
Marketing isn't magic. It takes time.
If you start a new campaign today, don't expect the phone to ring off the hook tomorrow morning. In Brisbane's competitive market, it usually takes:
Google Ads: 2–4 weeks to see real momentum. SEO (Google ranking): 6–12 months of consistent work. Facebook/Instagram: 1–2 months to find the right message that clicks with people.
Double down if: You are consistently getting leads at a cost that allows for a healthy profit. If you spend $1,000 and make $3,000 profit, your next goal should be to spend $2,000.
Give up if: You’ve tried three different approaches over three months and you haven't seen a single qualified lead. Sometimes the platform isn't right for your business. A commercial plumber likely won't find a $50,000 contract on TikTok, no matter how much they spend.
The Truth About "Cheap" Marketing
I see a lot of small business owners looking for the cheapest option. Cheap SEO, cheap web design, cheap ads.
Here’s the reality: Cheap marketing is often the most expensive thing you’ll ever buy because it doesn't work. If you pay someone $200 a month to "do your SEO" and you get zero calls, you’ve wasted $2,400 a year. If you pay a pro $1,500 a month and it brings in $10,000 of new business every month, who was actually cheaper?
Focus on the return, not the cost.
Your Action Plan for This Week
You don't need a complex system to start. Do these three things this week:
1. Calculate your Customer Value: How much is an average customer worth to you over a year? Not just the first invoice. 2. Audit your Spend: Look at every dollar you spent on marketing last month. Can you point to a specific customer that came from that spend? 3. Ask the Question: Start asking every single enquiry how they found you and write it down in a simple notebook or spreadsheet.
If you do this, you’ll already be ahead of 90% of your competitors in Brisbane. You’ll stop guessing and start making decisions based on what actually puts money in your pocket.
Marketing shouldn't be a mystery. It should be a predictable machine that grows your business. If yours feels like a black hole where money disappears, it’s time to change your approach.
Ready to stop guessing and start growing? At Local Marketing Group, we help Brisbane businesses turn their marketing into a profit centre. We don't care about 'likes'—we care about your bottom line.
Contact us today and let’s look at the numbers together.