What is your Opportunity Cost? Ask the Sacramento SEO Pro

What is your Opportunity Cost? Ask the Sacramento SEO Pro

Sacramento SEO Pro explains opportunity cost

Wikipedia defines opportunity cost as: “the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices.” You should determine your opportunity cost. Here are some examples to illustrate the point.

I pay a landscaping service $130/month to keep my lawn and gardens looking good. I do not know what tools they use. I do not know how many hours they spend at my home. I do not supervise them. I do know that I can work a few hours and make enough money to pay the landscaper. If I were to perform landscaping myself, I would spend more than five hours/month in my backyard and turn my back on much more than $130 of billable time because I did not want to pay a professional landscaper $130. Even if I did this work on a weekend, I treasure my time and feel the money is well spent.

A lawyer customer asked me to do a small project. I said it was probably a $220 project that I could wrap up in one morning. He chose to do it himself. He bills his customers $225/hour and I later learned he spent four hours on this project. He could have billed his customers $900 for his time and made $680 net after paying me for my time.

Let’s visit my friend, Daphne the Dancer. Daphne wants to send out fliers announcing her grand opening. She orders 1,000 fliers, buys a list of 1,000 names, prints them on labels and starts stuffing envelopes. She says to me: “is this a smart use of my time”?

I reply: “probably not. Let’s look at your opportunity cost. I am assigning your value to Daphne Dance Company at $100/hour. That’s what you are worth, as the President and dance instructor there. If you spend six hours stuffing these envelopes, you will incur a cost of $600.”

“You have another option. Hire the neighbor’s high school daughter to stuff envelopes. You can pay her $10/hour. She will get this done in six hours and free you up to answer the phone or do other things. You can pay her $60 for the work that would cost your business $600 if you personally did it. Daphne, you already know the answer to that one.”

Who wrote this? Sacramento SEO Pro wrote this

Mark Anthony Germanos uses Internet tools to help your ideal customers find you. Mark is the Social Media Director at YourSEOWizard.com, the premier Sacramento SEO company. They offer SEO, Internet marketing and social media solutions that get you on page 1. Getting you on page 1 takes a little time. Good things do take time.

“Yes yes yes,” you may say, “there are a lot of Internet marketing guys out there. How do I know SEO, Internet marketing and  social media will get me more business”? YourSEOWizard.com’s Sacramento SEO Pro Gold package includes creating a 6,000 word document. It has abundant content for a successful SEO campaign. Sacramento SEO Pro Gold will not produce instant gratification. Sacramento SEO Pro Gold works, promotes you to page 1 and gets you more business.

Running a successful business isn’t as easy as it used to be. The margin of error is smaller. Contract out your SEO, Internet marketing and and social media campaigns to someone you can hold accountable. Tell him to get you more business. Call (916) 752-6767 today. Google “Sacramento SEO” or “Sacramento SEO Pro” to see SEO strategies that can work for you. Mark is available at (916) 752-6767 and at http://www.yourseowizard.com/blog/how-quickly/.

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About the Author

Inbound Marketing Certified by @Hubspot. I use WordPress websites to help you get more business. I work with businesses, mostly licensees and owners of assisted living homes, who agonize over keeping their beds full. With my 21 years of business experience, I create complete marketing systems that give you a higher occupancy rate and put more money in your pocket.

“Yes yes yes,” you may say, “these guys are a dime a dozen. Why should I do business with this guy”? Here are three reasons:

1. I used to think this was useless. My business almost failed. I decided to change my attitude about Internet marketing, search engine optimization and social media. My business recovered. If you think this is useless, I can help you embrace this as a valuable tool to grow your business.

2. My ideas work. I can show proof of campaigns that achieved page one placement.

3. I am running a business too. I believe SEO and social media are tools you have to use to meet your objectives.

We’re not living in 2005 anymore. Running a successful business isn’t as easy as it used to be. The margin of error is smaller. You have to be good at what you do and your marketing has to be great. If so, you get to stay in business. If not, you become a statistic. Contract out the marketing to someone you can hold accountable. You’re running a business here. Call (916) 752-6767 today.

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