Category: Finance

Causes for your digital marketing campaign to fail

When you are starting or continuing a digital marketing campaign you probably have already done extensive research into what helps make a campaign succeed. However a lot of people tend to not look into the measures that can cause its down fall.

The causes of failure are just as if not more important as the factors that can make it succeed. If you are using a Melbourne SEO agency or a different kind of third party to run your campaign they should already know the causes for failure but knowing yourself can also help you set up the campaign for success.

Below are some of the causes that you need to be aware of that could lead to the failure of your digital marketing campaign.

Website optimisation

A very easy way to cause the failure of your digital marketing campaign before it even properly starts is having a poorly optimised website. The main goal of all SEO and PPC campaigns is to direct people searching on the internet to your website. If your website is poorly optimised and just simply doesn’t flow or engage your visitor base there is no point in wasting money investing in redirection methods.

Before you start with any good digital marketing agency they will always analyse your website before starting any SEO or PPC strategies because as previously mentioned it is like directing cars to a dead end. A good website will engage visitors and get them more interested in your website with the underlying goal of them becoming a client the priority.

Poor website optimisation can account for high bounce rates, low average session times and a low amount of leads with visitors still coming in.

Black hat SEO efforts

In the SEO world there are two different streams of approaching SEO known as white hat and black hat strategies. White hat can be deemed as the ethical and appropriate methods that you should be taking to increase your Google ranking. This includes optimising your website with relevant and engaging content, link building and building a reliable review platform. White hat SEO methods is what all digital marketing agencies should be using as black hat methods can have negative outcomes.

Black hat SEO methods are what Google deems as unethical ways to artificially boost your Google ranking. Google frowns upon any website that uses these tactics and can lead to them having their listing on Google removed completely which can tank your online presence completely. Black hat SEO methods include link spam, invisible text and webpages on your website.

The budget

Naturally with all investments, the more you can put into something the larger return you will get. Digital marketing is no different and a reasonable budget needs to be determined for you to achieve your goals. SEO budgets are mostly poured into the improvement of your website while PPC is to allow you to capture certain search terms and have more of them.

Depending on what your goals are, you need to assess what these services cost and then adjust if they don’t meet with what you have in mind. For example website redesign is not a cheap service can cost several thousands of dollars which for many people and small business owners is not feasible.

How to Get Rid of Bad Debt

Getting rid of bad debt, or more prominently, writing it off is often required by businesses who have customers that can’t pay their bills. Having customers owe money to your business, can be potentially extremely harmful to your business and might force you to have it written off entirely.

Bad debt thus generally refers to a situation where an individual has bought products, or rendered services, from a company, on credit, but isn’t able to pay it back, according to the instalments that are set up by the company.

Bad debt is an awful thing for a business, especially one starting out, to have. That is because bad debt cannot be collected, making it next to impossible to generate it out of a pocket other than your own.

How to Deal with Bad Debt

https://www.youtube.com/watch?v=GanCy3hv1mI

Although it is difficult to solve the problem at hand, when it comes to bad debt, there are a few ways one can solve it.

Businesses can incur bad debt by offering loans to their clients and vendors, take out a business loan to pay it back without hurting their company, as well as by reducing credit sales to customers, to help the problem from increasing with more customers.

By reducing a business’ credit, for instance, businesses have a far better change managing their customers and the credit they can afford than they would if they only allowed them continuously increased credit.

How a Business Can Write Off Bad Debt

Regarding financial accounting, bad debt, if not paid by customers, becomes an expense for businesses, which when it comes to accounting, can be very time-consuming and turn out to be quite expensive.

When it comes to accrual accounting in business, payments get marked as receivable accounts and are receivable as money owed to the business.

bad debt

If this money isn’t paid, according to its scheduled instalments, or after that after negotiating payment terms with the customer, it becomes a bad debt that needs to be written off. It means the business’ accounting books need to be readjusted, to be able to represent the actual amounts of the business credit accounts.

Since writing off bad debt includes removing it altogether, it will affect your business balance sheet. It can either be written off with an allowance method, or direct write-off method.

Writing off Bad Debt

Allowance Method

This method allows you not to predict the payment that is receivable for credit sales, which is that owed by all your customers. It results in debiting all bad debts, expenses, as well as credit allowance, for accounts you’re uncertain of. In the case of bad debt, you’ll be able to credit your receivable accounts, as well as your debit allowance for those accounts.

Direct Write-Off Method

This method is most commonly used to write off bad debt and takes place after receivable accounts get recorded, which must be credited as receivable accounts, where bad debt expenses must be debited, to be able to write it off completely