Generating Sales from Marketing Efforts

In Japan, we have what’s called a contingency fee. The term refers to compensation paid for outcomes. Although, it’s not a foreign concept in the United States. For example, commission sales, which refers to a percentage of a sale made by a salesperson, is a form of a contingency fee. With this in mind, it’s easy to see why a contingency fee exists in sales but not in marketing. Marketing, in itself, does not directly generate sales.

For example, marketing activities like increasing your Google ranking and writing reviews on social media don’t directly correlate to sales numbers. Therefore, I’m uninterested in marketing that evaluates effectiveness based on rankings and reviews alone. I understand that a product won’t sell unless it attracts people. But even then, there’s no guarantee that it will sell. Therefore, it’s necessary to also evaluate the sales generated from marketing tactics.

Many marketing firms value rankings and review numbers. However, I disagree. In my opinion, the leads generated from marketing and the ability to convert them into sales are what matter. As I’ve said before, marketing is an expense. And marketing that doesn’t lead to sales is a waste of money. When considering digital marketing, it’s also important to make sure there’s a system in place to sell to those potential customers. Some of my peers in this industry might get angry with me, but anyone can increase their ranking on Google. And they can get more reviews too, if that’s all they’re spending their money on.

Kenichi Uchikura
President / CEO
Pacific Software Publishing, Inc.
ken.uchikura＠pspinc.com

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