Adventures of Starting an Adventure Business
How We Approached Advertising November 12 2016, 2 Comments
We are just two small people, in a town of thousands of businesses, with almost no money, no public influence, and no hands on marketing experience. How could we possibly find customers. We already took our friends out for free to gain insight into how to handle paying customers.
We posted ads on craigslist, drove our van around town during our daily errands to catch some eyes, handed out brochures to our neighbors but still no customers. We turned next to advertising with Google with AdWords. Everyone uses Google for their searches, but we were not sure if people actually click on ads. I make a point to not click on ads because I know someone's trying to sell me something. We signed up and after a few days of thinking about using Google AdWords, we got an offer for $100 of credit if we spent $25. This sounded good enough to us, considering there was no contract or long term commitment.
After the second day, we had people writing us about our products. We had a group of thirty people who wanted to take a tour with us. Thirty people? We only had one van and six kayaks. Had we created a monster too big to tame? This seemed to be a fluke, or the result of people searching for a long time for a product they couldn't find.
After using Google AdWords for several weeks, we have found that it does bring business. We believe we have good ads with a click rate of about 5% on some of them, much higher than the accepted 1 or 2%. But, do these turn into sales? We have experienced we have a group of two-four every two or three days. So, yes, we have business. But, it's not at a rate which makes us profitable.
With AdWords, the advertiser pays for every click on their ad. The expected return rate is only 1% of those who click on an ad will actually buy the product. Admittedly, we do have a better return rate than 1%, but this means that 1 person would have to generate enough revenue to pay for each of those 99 clicks. At up to $5 a click some companies are paying for keywords of "kayaking las vegas" how can anyone ever turn a profit? We are paying around $2-$4, depending on the keywords. We don't think any type of adventure business would be sustainable if within the sale of one group, we would have to recuperate over $200 just for advertising.
We decided that AdWords is a good solution for our short term needs, to generate some customers so we can find our rhythm in normal operations, and to get some reviews. The cost of our first three Yelp reviews have been so high, but their value is unimaginable for those who wrote them. Without reviews, many customers are hesitatant to try our company, and travel companies such as Viator or Trip Advisor rejected our application to be listed on their website.
To break into the market, we had to attract customers with our low cost, generate site traffic with AdWords, and wow every person we dealt with. If you have taken our tour, we urge you to ask the companies who don't have us listed to list us, and to leave reviews at places we are listed like Yelp.
Search engine optimizer consultants charge lots of money. We understand that the only way for our business to be sustainable is for our company to come up within the first few pages of the organic search for keywords such as las vegas adventure tours, or las vegas ATV rides or las vegas kayaking. While we increase our social presence with Twitter, Facebook, Yelp, and build blog posts, we are seeing our company slowly creed up on the organic search results and are hopefully getting closer to a sustainable business.
So, just a reminder to all of you, if you like a business, save them some money by NOT clicking on their ad and type in the url. Each click costs your company $$$.