5 Affordable Marketing Tips That Will Increase Business

A small business owner's first impulse when money is tight might be to cut funding for marketing.

But that's not a good idea.

Without marketing, a company would have to rely entirely on referrals for new business. So, marketing isn't exactly a superfluous expense. But there are ways of marketing on the cheap.

Here are five ways to bring in new business without sacrificing the rest of your savings.

Go Out and Meet People

David Wogsland, CEO of Eden Prairie, Minn.-based Enhanced Home Systems, thinks the best form of affordable marketing is "personal contact."

"It's still the same old thing," he says. "Go meet somebody, and shake their hand. There can be no shortage of personal contact."

The market conditions of the last year or so have mandated an "all hands on deck" approach to business for Enhanced Home Systems. "It's necessity time," says Wogsland.

That means contacting past customers and seeing if he can make upgrades to their systems. To do so, Wogsland says Enhanced Home Systems is "working to personalize" its communications. "I mean personal contact," he asserts. "Phone calls."

Wogsland suggests offering a free 30-minute evaluation of clients' home systems as a way of getting into the home.

"I imagine that, if we can get out to a customer's house, it could be worth the 30-minute stop — maybe a TV and a remote." He adds, "And maybe, while you're there, you can get them to add some security."

Work with the Chamber of Commerce

Tim Palladino, a self-professed "neo tradesman" with Maven Audio Visual in Dutchess County, N.Y., has found success working with his local Chamber of Commerce. He says the networking alone pays for his Chamber dues.

"I personally pay the Chamber $325 a year," he says. "They offer free courses on how to network. Every time we launch a new service or technology, they include us in their newsletter. There are 1,700 [Dutchess County] Chamber members, and the newsletter is sent out to 2,000 people. It creates a good buzz."

The Chamber of Commerce is a good source because "you know the members have money," Palladino adds. "I've met most of them [the Chamber members]. You get to put an image to your work."

Internet Marketing

Enhanced Home Systems is personalizing its Internet communications. "We haven't really launched it all completely yet, but we've already seen our customers starting to call us," Wogland says.

The e-mail effort will coincide with some improvements to the company's Web site. "We need to start expanding it to make it more interactive for people."

Nick Vecchioli, co-owner of Canandaigua, N.Y.-based Image Audio, Electronics and Home Theater, has enjoyed success employing Web-based communications, including the free online services of MerchantCircle.

Vecchioli uses his free MerchantCircle account for e-mail marketing templates.

MerchantCircle, a networking site, provides Vecchioli with e-mail marketing templates and profiles of potential business partners.