Do you know if your PPC campaigns are actually profitable for your company? Do you want to know? Well this post is a tool you can use to ask the right questions to determine just that!
Whether you are utilizing a company outside of your own to manage your PPC campaigns or you do it in house, you will be able to determine if those campaigns are profitable by the end of this article.
PPC is expensive & should always be quantified by return on investment. You should also always quantify the amount of actual leads that you are generating from those paid advertising efforts, or you’ll most likely be leaving money on the table
…or worse, you could be losing money.
I have seen so many companies be in the position where they are just helpless in regard to PPC because they know they need to be doing it, or at least they think they do, but they don’t know how to correctly measure it’s effectiveness.
It’s a tough place to be.
Let that sink in for a minute…just think about it for a minute or two.
… I know it’s painful to even consider that you could be losing money.
Ok now we can move on from the discomfort to a glimmer of hope!
If you don’t know how much money each lead costs you, and how many PPC leads you need to close a sale, there is no real way to see if your efforts are making money.
Today, you’re going to learn how to ask the right questions to determine whether or not your PPC advertising efforts are actually making you money or losing you money.
If you can’t see that, you are risking spending money on efforts that may be futile, and no one likes to throw away money, right?
Here’s what you’ll learn:
**The purpose of this post is to help you determine whether or not your PPC efforts are generating profit for your business, not how to fix the problem or to make your campaigns profitable.
I will dive into that in another post. But rest assured, the first step to success in your PPC campaigns is knowing how to determine the profitability of those campaigns. Then you have a great starting point to determine what to do next.
So…Let’s get started!
Here are some questions that you can ask about your current PPC campaign/s and the company that is managing your PPC campaigns that will help you to determine if those efforts are profitable or not.
Many companies that manage PPC campaigns for companies do so in a way that takes all the transparency and access away from their clients. There are many reasons for this, and not all of them are for the client’s benefit.
What happens a lot of the time with many companies that manage PPC services is they run their campaigns (maybe yours) through their own Google Adwords account that you don’t have access to.
Then, they give you access to a dashboard that they created that shows you the data they want to show you.
…They point the ads they are managing for you to a webpage on their own domain, not yours.
…They use a separate Google Analytics account as well. This Google Analytics account they use is not yours and you will, most likely, not have access to it.
Then you pay them one payment each month that contains both the management fee, and the Advertising budget, which they run through their own platform or their own Google Adwords account.
What all this means is that you have no access to anything that you would really need to quantify the profitability of your PPC campaigns, and they are in control of everything including the information you see.
In addition to that, if and when you leave, you won’t get to see or take the data from you campaign with you.
You won’t have access to it.
Most of all, you won’t be able to use it to make better business decisions moving forward.
This is a pretty big problem since the only way to effectively improve your campaigns is to use the data from your previous campaigns to make strategic changes and improvements.
A dangerous place to be to say the least.
This scenario may sound familiar.
If you have used any of the bigger nationwide agencies (I won’t name names, but one of them rhymes with “beach vocal”). You sign up with them and they tell you what it’s going to cost per month.
You are going to pay them both the management fee for their services and the budget for the ad campaigns they will be running together in one payment, which means they will be in total control of everything including what you see.
They don’t tell you that almost 40%-50% of the money you send each month is going to their fees, and not your Adwords advertising budget.
Then they take your website and make a copy of it on their server and domain (yoursiteaddress.beachvocal.com), which means that they will not be sending that PPC traffic to your site at all. They’re sending it to their domain with a copy of your website on it.
The question is…Why would they do that?
The first reason is that they want to show you only what they want to show you. Meaning…they want to control the information that you have access to.
This puts your company in a position where you don’t have access to the raw analytics data for that campaign. All you have access to is their dashboard where you can see only the metrics and data that they want you to see. Then they start showing you how your clickthrough rate (CTR) is getting better and your cost per click (CPC) is going down.
Wrong. While clickthrough rate and cost per click are important, they don’t show you if people are actually converting into leads and clients/customers for your business.
And…. Since none of the traffic is coming to your site, you can’t see anything except what they want you to see.
[icon_list][icon_list_item type=”chevron-circle-right”]You can’t see if and how many of your PPC visitors are submitting your forms.[/icon_list_item][icon_list_item type=”chevron-circle-right”]You can’t see any of the metrics that show you how your PPC visitors are behaving on your website. Which pages they are visiting after they get there. Which pages they spend more time on. The buttons the click. Anything.[/icon_list_item][icon_list_item type=”chevron-circle-right”]You can’t see which landing pages are converting better than the others. You don’t even know where they are pointing your traffic.[/icon_list_item][/icon_list]
You can’t see anything….except what they want you to see, and the metrics that they show you create the perception that there are profitable results coming out of these campaigns, but really, that isn’t what you’re seeing at all.
All you are seeing is activity.
And as we all know, activity doesn’t at all equate to profitability, now does it?
The second reason is that they want to harvest the campaign analytics data for themselves. This data is extremely valuable to them and you.
This data can be used to continuously improve and optimize PPC campaign results improving the profitability of the campaign and its ability to generate revenue. But…you only have access to part of it because they own the campaign soup to nuts.
When you leave, you will also leave that data behind as well, which means you will have to start from square one if you plan to do PPC without them.
On top of all that, they will use your data to improve the results of your competitor if they use their services as well.
This is just one of many scenarios, but it’s a good illustration of what many companies (maybe yours) are going through right now in their pursuit of profitable PPC advertising.
My number one recommendation to any company either paying for or considering paying for ppc would be to only work with companies that are not afraid to show you everything, and be completely transparent.
It is common practice in the PPC management world to focus on cost per click (CPC) and clickthrough rate (CTR) as the primary metrics that are used to show the success of a campaign.
The problem is that neither CPC or CTR actually equate to revenue earned from your PPC efforts.
These metrics simply show how much each click is costing your company (CPC) and how effective your ad is at getting someone to click it (CTR).
What you don’t see from these metrics is what happens after someone clicks the ad and they are taken to your website? They also don’t tell you if someone converted into a lead or customer.
If all you do is pay attention to CTR and CPC, then you could be missing the boat entirely.
What if your ad is showing for the wrong search and people are clicking it, but then they get to your site and bounce, or immediately leave because it was not even close to what they were looking for.
In this scenario:
[icon_list][icon_list_item type=”chevron-circle-right”]The ad could be compelling and have a high clickthrough rate.[/icon_list_item][icon_list_item type=”chevron-circle-right”]Your cost per click could be low as well.[/icon_list_item][icon_list_item type=”chevron-circle-right”]You get a ton of clicks, and your PPC manager is blowing up your inbox with yippees! and whoop whoops![/icon_list_item][/icon_list]
Congratulations, you just burned a trash can full of money with nothing to show for but a high clickthrough rate and a low cost per click! No conversions that you can speak of. No phone calls. Just a slightly higher CTR and slightly lower CPC.
By the way, this happens more than you might think.
It all comes down to knowing exactly how much revenue each click is producing.
No revenue = PPC should be sliced out of your marketing strategy.
But… you need to know if you are profitable before you can make that determination, right?
Often, when a PPC management company starts managing a PPC account for a client, all they will be concerned with is managing the PPC account.
[icon_list][icon_list_item type=”chevron-circle-right”]Not setting up the account to accurately track conversions.[/icon_list_item][icon_list_item type=”chevron-circle-right”]Not connecting Google Analytics to Google Adwords so you can see your paid traffic in your Google Analytics reports (which is super easy to do and takes about 5 minutes, by the way).[/icon_list_item][icon_list_item type=”chevron-circle-right”]Not doing anything that could show you whether or not your campaigns are actually profitable for you or not.[/icon_list_item][/icon_list]
According to Wordstream, Less than half of small business landing pages have conversion tracking installed.
It honestly blows my mind that so many companies & PPC management agencies don’t even pay attention to this. They just run the campaigns without any real conversion tracking in place to see whether or not the efforts and money they are putting forth are actually getting results.
Conversion tracking can be setup through Google Analytics or Google Adwords at the most basic level, and it’s easy.
Your reports should show how many conversions you are getting from the money you are spending on PPC. If they don’t, you should be suspicious and dig further to find out why conversion tracking hasn’t been setup.
This is the most important metric you can track in your PPC campaigns no matter what the platform.
[alert type=”info”](Note: I’ve prepared a bonus resource at the end of this post that shows you how to see if conversion tracking is setup in your Google analytics account among other things. Make sure you check it out.)[/alert]
This is easily trackable through Google Adwords, so it should be. If there isn’t an answer to this question, either the campaign wasn’t setup properly to show the actual return on investment your efforts are producing either on purpose or by negligence.
Again, if your reports are only showing cost per click (CPC) or clickthrough rate (CTR), you are not seeing how much money that campaign is making or losing your company, and that is what it is all about.
You need to be able to see how many actual sales or leads your efforts are generating from your pay per click advertising efforts.
This number is calculated simply by dividing the total cost of each campaign by the number of actual leads that campaign generated. Then you can compare the total cost of all your leads generated from that campaign to the total amount of revenue you make from all of the leads generated from that specific PPC campaign.
This will help you see if your efforts are worthwhile.
[alert type=”info”]Reminder: I’ve put together a checklist with these questions and some extra ones to help you dig a little deeper[/alert]
Formula: Total cost of that PPC campaign / # of leads generated = Cost per lead
$5000 / 300 leads generated = $16.67 per lead
Formula: Total Revenue Generated by that PPC campaign – Total cost of PPC Campaign = Net Revenue
$4,000 – $5,000 = – $1,000 (this campaign is a loss)
**Notice that there is nothing in the above examples that talks about clickthrough rate or cost per click.**
That’s because, at the end of the day, all that matters is that the amount money that the PPC campaign generates is more than it costs to run the campaign.
So what about if my PPC traffic is being sent to a page to signup for my email list? How do I know if my campaign is profitable then?
You can measure how many email signups you get from your PPC efforts as a conversion instead. That will at least give you a legitimate measurement instead of just hoping that a higher clickthrough rate translates to more email signups.
The next step for you if this was your situation would be to setup tracking so you could guage how profitable that email list was in terms of revenue. More on that in another post.
Again, you just need to make sure that you can see what you’re getting out of your PPC campaigns.
[icon_list][icon_list_item type=”question-circle”]Do I have access to my own adwords account?[/icon_list_item][icon_list_item type=”question-circle”]Is the agency I’m working with to manage my PPC showing me everything? Is there anything they aren’t telling me? [/icon_list_item][icon_list_item type=”question-circle”]Can I see my paid traffic in my Google Analytics account? [/icon_list_item][icon_list_item type=”question-circle”]Is conversion tracking setup for each one of my PPC campaigns, and are those conversion setup properly and reporting accurate data? [/icon_list_item][icon_list_item type=”question-circle”]How many actual leads/sales (form submissions, sales, phone calls) are coming from each PPC advertising campaign per month? [/icon_list_item][icon_list_item type=”question-circle”]How much does it cost to obtain each lead we get through our PPC campaigns?[/icon_list_item][icon_list_item type=”question-circle”]Is the cost of a sale for PPC traffic higher than the amount we make off of that sale? [/icon_list_item][/icon_list]Click here to download a printable version of these questions
This may seem a bit cheeky, but…just ask the questions. You have nothing to lose and everything to gain. You’re pay per click campaigns can and will be profitable if you know the right questions to ask.
If you find that the answer to any of the above questions is “No”, then the next question you should ask is “why?”.
Why don’t I have access to the Google Analytics account that are collecting data on my PPC campaigns? Why am I not able to see conversion data for my PPC campaigns? Why don’t I know what my cost per lead is?
Just start digging a little deeper.
If they can’t answer simple questions like how many conversions you are getting from you PPC efforts, then ask them why they can’t show you that data.
There are only two possible answers. Either they aren’t collecting that data, or they are collecting it, and they don’t want to show you. That gives you a place to start to move forward in the right direction.
If they aren’t collecting that data, then you should request that they set things up to be able to get that data. If they can’t, then take steps in the direction of finding someone who can. Conversion tracking is vital and you can’t determine if your campaigns are profitable without it.
If they won’t show you, then you should look for another company to manage your campaigns.
Transparency is key when it comes to getting the best results from your campaigns. And any company that wants to hide numbers directly correlated to the profitability of your campaign is no company I would want to do business with. Just my two cents.
Ask the questions to get a baseline of where you are. Once you have those answers, again, you now know what you need to do to move forward.
Many times, these steps are just not taken out of a lack of a full understanding of what is needed to be successful in running a successful campaign.
If your staff members who are running your campaigns are not capable of setting things up so you can get yes’s as answers to all of these questions, then you may want to consider looking to an expert to fix the problems so you can.
Your revenue is worth the investment, and if you fix these problems now, then you will have profitability for the rest of the time that you run your PPC campaigns. And that could make a huge impact on your business for years to come.
Come to think of it, if you don’t ask these questions, the loss could be just as significant.
Need more help? I've put together a few bonuses to help you get a handle on your PPC campaigns.
One of the biggest hurdles that most businesses have when it comes to PPC advertising is that they just don't know what to look for or where to start. With so much information, it's hard to know what is right and what is wrong.
I want you to have the tools and to be equipped to make money from your paid advertising campaigns, so I've put together a resource to get you off and running with confidence.
I've included a printable checklist/questionnaire you can use to diagnose your PPC campaigns. This checklist also includes additional questions that you can use to dig a little deeper and get a better picture of where you are with your campaigns and where you're going.
These resources are completely FREE. Click the link below to access them immediately.
This worksheet is meant to help you breakdown your customer’s buying process so you can see how to help them make the right decision for them and for you. It will help you to see what your customer goes through before making a buying decision. You can use this sheet for all of your customer groups.
The best way to use it is to take a customer group you have identified and breakdown each phase they go through in making their decision to buy from A to Z.
Then you will go through and put in the problems, fears, frustrations, and anxieties they are facing in each specific phase of the process.
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When you are faced with writing content for your website, one of the most difficult things in the world is to stare that that blank page with that disrespectful cursor sitting there just blinking at you, taunting you to throw a punch at your computer monitor.
Especially when it comes to writing content about your products and services, it seems like our mind goes blank and we forget everything that makes us unique and so valuable to our customers and our market.
This is by far the norm rather than the exception for most people. You are not alone!
What you need is a bit of a kickstart to help you get the juices flowing and your fingers clicking away at your keyboard.
You need a framework that allows you to answer some questions about your customers, some questions about your products and services, and questions about your company that will give you an effective formula that allows you to write great content that generates leads and engagement.
Content that not only explains what you do and how you do it, but communicates it in a way that captivates your potential clients and customers and has them anticipating the next step.
Most people write their content in the wrong way, and they end up with content that is boring, disengaging and does nothing for the reader but waste their time and give them motivation to go back to Google and continue their search.
Now hold on a minute before you start taking personal offense to what I’m saying. I know you worked hard on your content. You’re just communicating the wrong thing.
You’re writing about what you think your customers want to read about – what your company does.
The problem is that they are too consumed with themselves and their own pain and problems to really care that much about what you do.
You’ve written about what you do, but their looking for the how. Their looking for how you are going to help them feel better, do better, look better and be better.
Your customers care about themselves!
That’s why they don’t click on your buttons, or fill out your forms, or call you, or browse your site past the homepage they land on.
Just think about it for a second. How does it feel when you’re in a conversation with someone and every time they talk it’s about themselves. It sucks!
I call this “weeing all over yourself”.
Now that I have adequately covered the wrong way to write website content, let’s talk about the right way!
The cardinal role in writing content for your website is to get involved in the conversation that is going on inside your customer’s head (Thank you Robert Collier).
You have to talk to them and to their pains and problems.
You have to help them understand that you not only have a solution, but that you understand what they are going through and what they are feeling.
Image credit: http://www.whywesuffer.com
You see, they don’t even really know what they are really struggling with and what their real problem is. If they did know that, they would have taken steps to fix it.
Your job is to give them a voice. To give them something they can align with. Something that makes them feel understood and like they matter.
Your customer needs to see that you intimately know about their problems. That you understand their problems better than they understand them themselves.
There are many ways to do this, but one of the most effective ways is to ask questions in your content as if you are stating a question right out of your customer’s head. An example of this for this particular subject would be something like,
“How do I write content that gets generates new leads and sales?”
“How do I get rid of this back pain? I don’t know what to do.”
“How do I find a roofing company that won’t burn me and that will get the job done on time and within budget?”
Questions like this reveal the conversation that is going on in your customer’s head, and voices it in a way that helps them feel like you understand them. This is the first step to genuinely connecting to your customers through your website.
Most website content is written to an audience, but if you think about it, your customers are not gathering together in the cafeteria at lunch time in a crowd to read about your products and services.
In fact, they most likely feel alone, insecure, afraid, frustrated and anxious…like their the only one with the problem they have.
If you just imagined that in your mind when you wrote your content, you would completely change the way you write.
Think about it. Have you ever been so captivated by someone asking you questions that you just want to scream out loud, “HOW DO I FIX IT??!!”
Here’s an example!
When you sit down to your computer to write content for your website, do you ever feel like your boss or manager is standing over your shoulder watching you…just waiting for you to type that first keystroke so they can criticize and chastise you for your impending monumental failure at communicating the companies value in the right way?
Have you ever sat down to write, and then as the blank page stares at you as if you were David in front of Goliath, you think to yourself , “Hey, I wonder if that email from so and so came in about that new policy that is so much more important than what I’m doing right now?”
Do you ever just wish that you didn’t have to start from scratch when you sit down to write? Like if you just had something that could just get you started on the right track, you could fly through it and get it done?
Have you ever said to yourself, “I’m just going to finish clearing my inbox and re-prioritize my tasks for the day and then I’ll start writing!”?
See what I’m saying!!!! You are sitting there right now like, “Yes…, Yes!, YES!! Yes yes yes!!!! What now?”
And that is the key.
When they know you understand and that you are having the same conversation they are having in their head, the natural progression is to the next step of asking you for the answer!
It’s almost impossible for a person not to think you have the solution if they feel understood and accepted in their admission of vulnerability and weakness in a given area.
By asking questions they are asking and voicing complaints they are voicing, you are helping them admit they don’t have an answer and relieving them of the intense burden they carry. You are freeing them to think about the possibility of a brighter future!
“You have to get their attention before they will listen to anything you say.”
No matter what you are purchasing, it’s all the same!
For instance, imagine you are going to buy a new cell phone. Let’s look at two different scenarios.
You walk into the local cell phone emporium, and the guy that greets you when you come in immediately takes you over to the newest, best phone in the joint because that is the one he has and starts rattling off everything he knows including all the 3000 features and all of its capabilities. You are excited at first. Who wouldn’t be? You are going to get a new smart phone right?
Well, your excitement quickly dissipates as the constant stream of talking at you becomes overwhelming and you start to feel annoyed and agitated and wonder where you even are right now.
Painful, I know. Lets look at the next scenario, shall we?
You walk into the local cell phone’s r us and a friendly young woman greets you and your family with a warm smile. She walks you over to a comfortable seating area and asks you and those that accompany you if you would like a bottled water. She then starts by asking you all about yourself and your family and takes genuine interest in everything about you.
She asks you about the phones you have now, and what you do for a living, where you travel, what you like to do on the weekends, where you are from, where your kids go to school.
Then she asks you about the biggest problem you have with your current phone and plan and what you like best about them. She asks you if you could waive a magic wand, what would your phone and service do for you?
On top of that, she is taking diligent notes the entire time you are talking. She understands that this experience is all about you and how she can get you what you need and with the best experience possible.
Huge difference right?
At the end of scenario 1, your face is melting off of your skull, and you want to run screaming into the busy street.
At the end of scenario 2, you are so engaged that you will sign on the dotted line no matter what she tries to sell you and then you will promptly invite her over to your house to eat dinner with you and your family.
This is exactly what we want to do with your content!
When you can accomplish this sort of genuine engagement with the copy you write, here is what will happen:
There is also a great byproduct of all of the above and that is…
When you give people what they need to make a good decision and you make it frictionless to take the next step, they begin to trust you and buy from you.
Let’s get started shall we?
This questionnaire is meant to create an outline that will help you to write this page’s content in a more organized and effective way. Most importantly, this questionnaire will help you to understand the value behind this service and communicate it in a way that is engaging to the only ones who matter – your customers and clients.
**Here’s a secret…“People don’t care about the details so much as they care about whether or not you can fix their problem. You get them to see that by showing them you are in touch with them and what they are experiencing – that you understand their pains, problems, and goals.
This is the most important part of any content that you will write on any page on your website. If you don’t intimately and fully understand the problem than there isn’t a way for you to accurately and effectively solve that problem.
This section is meant to help you describe the problem in a way that your potential customer or client can relate to and engage with – in a way that they can connect with emotionally. If it resonates with them, they will be interested in the solution you provide. It’s that simple!
Describe the main pains that your potential customer/client who are reading this page are experiencing right now. What are they scared of, anxious or about, confused about? What do they need to understand what you are trying to explain on this page?
Here are a couple of examples of some problems for potential customers of a roofing company.
Here is what it should look like:
**You may not need all the spaces above. Just use the ones you do and add more if you need to.**
List all of the types of people that will be interested in this solution and this content. Who are you talking to?
Above, you defined the problem and the pain. In this section you are going to list the ways that your company helps its clients/customers overcome those pains & problems and to achieve their goals and aspirations.
For each problem that you listed above there should be a benefit below. If you can, provide an example of this benefit playing out practically for one of your customers/clients
This is an opportunity to emotionally connect with the visitors on the site. We have already talked about the problems, and now we offer the result of the solution in terms of the problems we just stated
This is one of the most important parts of the content on any page of your website. It is one sentence (2 max) that describes the main value that this page provides to your customer/client. This short introduction is going to communicate to the reader why they want to continue to read the rest of the content so it needs to be short and concise and value driven.(big picture)
Use the information that you’ve compiled above to fill in the answers to the questions below.
This is the section where you will describe the service step-by-step and explain the means or processes to achieving the benefits listed above.
This is the section where you can list the details of the process of the program/service.
How does this process look step by step?
Give a step by step description using simple bullet points. This draws attention and makes the content easily scannable. Try to limit each bullet point to no more than 3 or 4 sentences.
What is the main benefit or reason for this page?
This is a great place to insert some testimonials that speak to this. Actual experience builds a lot of trust and credibility with your potential clients.
Some examples are below, but you don’t have to fill them all in.
Some examples are below, but you don’t have to fill them all in.
There are two purposes to every page on your website. The first is to give meaningful information that moves your reader to take the next steps. The second is to make those next steps easy to find and take.
I could and will spend a lot more time talking about call’s to action, but I am going to give a basic rundown here so you know about them and how they are to be implemented at a basic level.
THERE MUST BE A CALL TO ACTION ON EVERY SINGLE PAGE OF YOUR WEBSITE!!!! (Yelling)
This is arguably the most important part of your content. On 98 out of 100 websites, the reader/potential customer/client will be left hanging at the end of the page they are reading with no clear next steps to take to move forward…or in any direction for that matter.
It’s like giving someone directions to your office by just giving them the address of the building it’s in without the suite. Then when they get there, there is no map in the lobby to guide them where they should go.
The goal is to get your visitor to take a definite action somewhere throughout your content on every page that moves them closer to engaging directly with you in some way. This can look different depending upon the situation, but here are a few possible calls to action.
There should be calls to action throughout the content that move people along the process to taking the next step, getting in contact with you and your company, signing up to your email list, or purchasing your product or service.
These calls to action can take many different forms, and must be relevant to the context they are placed in. What I mean is you don’t want to put a big red button that says “Buy Now!” at the end of your “About Us” page. Does that make sense?
Here are some examples of some possible calls to action.
In my next post, I am going to actually provide examples of this process so you can see exactly how this is supposed to look with actual content.
Subscribe below so you are updated when I post it.
They provide top quality services and a great experience to their clients which is why I chose their site to critique.
In this video I will show you how to make some relatively easy changes to your website that will give you substantial increases in the amount of leads you get from it.
I will show you what great copy looks like for a roofing contractor and some strategy to write that kind of great website content yourself for your own website.
Enjoy the video and ask any questions you have below in the comments.
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This video demonstrates how you can add a Youtube video to display on your LinkedIn profile. It is really easy, and it can be a very powerful way to get exposure for you and your business. I will be following this video up with a video on how to remove video from your LinkedIn profile very soon.
Let me know if this was helpful for you or someone you know.