The 5 Step Proven Profit Formula

 

Leads … Conversions … Transactions … Profits …. Prices … This, with how to increase every one of these 5, is your very 1st Business Coaching Lesson, (if you have never had one, or know what they are about) !!!

 

Buckle Up!!!

 

What if I could give you a formula that will create massive exponential growth for your business … starting immediately?

If you ask any Small Business Owner what they need most in their business, you get the same two answers every time … more clients and more revenue. But here is the problem. That ISN’T what most Business Owners want. Oh sure, they want more clients, but what does it take to produce more clients? First, you MUST generate leads … then, you MUST convert those leads into clients. By breaking down the end result of wanting more clients into the vital components required to generate them, namely leads and conversions, you can now put together a specific strategy and plan of action to attain that end result.

As for revenue, what does it take to produce more revenue? First, once you generate leads and convert those leads into clients, those clients will be paying you a specific value for what you sell. So, sale value is the first component in the revenue equation. But it does not stop there. You have expenses to pay and those expenses come directly out of that revenue you just generated, so the next revenue component to consider is your margin. How MUCH of that revenue do you actually put in your pocket? But you are still not done. If your client only buys from you one time, you are right back where you started. Now you need a new batch of leads and to convert them into clients.

What if instead you could compel your clients to increase the number of transactions they complete with you year after year? NOW you have something to build upon. Here is the bottom line. There are 5 critical steps that every Small Business Owner MUST address in order to attract new clients and generate more revenue … leads, conversions, average sale value, number of transactions and profit margins. So, let’s back up those steps with some specific numbers to illustrate exactly how this works.

For you to double your profits and create exponential growth, you must start with a baseline. That means you must know your current numbers in each of these critical areas. So, you first need to work out exactly where your numbers are right now. Once you have them, you can work out what you need to do to double those profits and make sure that you spend your time doing what you should be doing.

 

Leads

 

Let’s start with leads. Let’s say your current base is 1000 leads per year. Your conversion rate is 25% … meaning one of every four people you sit in front of agrees to buy from you … so that means you convert 250 of those 1000 leads into clients. Let’s assume your number of annual transactions equals 10. So, each of your 250 clients buys what you sell 10 times every year. Let’s further assume your average sale value is $100. So, your 250 clients are buying a $100 product or service from you 10 times each year for a total annual revenue of $250,000. However, you must subtract out all your expenses, including rent, mortgage, salaries, Marketing, cost of goods and so on. In this example, let’s assume your profit margin is 25% … which leaves you with a profit of $62,500.

The trick now is to find a way to increase each of the 5 critical metrics for your business. I provide a multitude of ways to do that. I help to increase leads, conversions, number of transactions, average sale value and overall profit margin.

I provide separate and distinct strategies to dramatically increase leads. These strategies are field-tested and proven to work. Each strategy walks you step-by-step through its implementation and execution, so all that is required is the application or implementation of the information. For example, targeted direct mail campaigns, Compelling Marketing messages, finding highly qualified and targeted prospects that are actively searching for what you sell, finding a boat load of fresh new leads, Networking Strategies, effective Referral Programs, Monitoring the entire internet, lucrative Strategic Endorsement Partnerships, Webinar’s or Teleseminar’s and a whole bunch more of world-class tested and proven-to-work tips, strategies and ideas …

These strategies are just a drop in the bucket when it comes to helping you generate all the leads your business can handle. But whichever one or more of these strategies you elect to use for your business … do you think you could conservatively generate at least 10% more leads by using them? And remember, that is leads … NOT clients … I think you can! Let’s tackle that 2nd step … your conversion rate.

 

Conversions

 

Your Conversion Rate is where a prospect becomes a client. They agree to buy what you sell. This simply means you found a way to compel their decision-making process, so they choose you over your competition. I give strategies that would teach you how to add so much value to what you sell that you could charge double the price that your competition charges and your prospects wouldn’t think twice about paying you that amount …

With these strategies, I teach how to completely eliminate any barriers-to-entry for your prospects … and how to create irresistible offers that practically force your prospects to buy from you … And perhaps most important, I teach DRIP Campaigns created for your prospects who don’t initially buy from you …

A DRIP Campaign is a series of follow-up communications … usually email or direct mail that continuously nurtures your prospects until they are finally ready to make the purchase. Did you know that the typical prospect does not buy until they receive a minimum of 6 Marketing messages from you? Are you currently sending out a minimum of 6 follow up messages to your current prospects? If not, you are leaving a fortune on the table. And I have found that typical Small Business Owners have no idea what this actually is …

Would you agree that conservatively you would have NO problem whatsoever increasing your conversion rate a meager 10% … from 25% to 27.5%? I think you can! So, now you are converting 27.5% of your 1100 leads which totals 302 clients. Now let’s increase your number of transactions. Let’s implement a series of strategies that will compel your clients to buy from you more often.

 

Transactions

 

I teach how to condition your clients to purchase from you more often … As an example, how many times have you looked in the mirror 3 weeks after getting your hair cut and noticed you were beginning to look a little shaggy? You call the hair salon to book an appointment and they schedule you to come in 2 weeks later. Right? What if I could teach this hair salon a strategy that would compel their clients to automatically book their next haircut at 3-week intervals … and commit to this at their initial appointment each time? Do you realize that just that one strategy alone would increase this salon’s total revenue by 70%?

Or consider a florist. Most guys buy flowers for their better half once a year … if that. Suppose I could teach a florist how to set up a continuity program called “Lover of the Year” where a guy could come into the florist shop once a year and select a pre-arranged package of flowers, gifts and cards … each targeting a special date that calendar year … such as Valentine’s Day, Mother’s Day, her birthday, your anniversary and perhaps one day as a special “out-of-the-blue, just thinking-of-you” day.

Each package they select would include a specific floral arrangement that fits each unique occasion, a special gift that she will treasure forever and a romantic card containing a special hand-written message. All of this can be taken care of in about 20 minutes. The florist will guarantee to deliver each arrangement on the appropriate dates … and send an email reminder to the guy the day before each delivery so they don’t forget the occasion and to confirm that each delivery will be made on time.

The florist could also finance the entire cost of the program over 12 months and charge the guy’s credit card a set amount each month to make this program an affordable no-brainer. Guys love this because the entire year is planned out in advance and they do not have to make their typical “last minute” dash to the store to pick something up for each occasion.

Do you realize this florist just conditioned this client to buy from them five times per year instead of once? And do you think this one guy will tell four or five of his friends about this unique program? Of course, he will. Did you know that a version of this strategy can be adapted to work for almost any business in any industry? I can show you how to implement this strategy for your business as well.

So, looking back to the original numbers and remaining conservative, could we assume it would be fairly simple to use strategies like this to easily increase your original 10 visits each year to just 11 visits? I think you can! Now let’s consider your average sale value.

 

Higher Prices

 

This is the price you charge for what you sell. What if I could help you implement a series of targeted strategies that would allow you to instantly increase your sales price … with NO affect whatsoever on your conversion rate? Did you know that price is one of the least understood components when it comes to Small Business Ownership? Let me explain.

Suppose you sell a product for $100 and the net profit on that product is 15%. That means after you pay the rent, the salaries, the commissions, the cost of acquiring that product to re-sell it, the utilities and everything else that goes into your business, you put $15 of that $100 into your bank account.

So, what would happen if you increased that price by a measly 5%? Do you realize that an additional 5% is pure profit? Typically, there are NO additional expenses that must be factored into determining your net profit. In fact, your net profit just increased from $15 to $20. That means your profit on this one product just increased by 33.33%. Consider this real-life example.

Let’s say you own a health club that offers a package of health services for $60 and you presently have 300 clients enrolled in this program. That means your total revenue is $18,000. You operate on a 25% net profit margin, so your net profits are $4,500 per month. Suppose you raise your price by just $4 per month or 6.67%. You just increased your net profit by 26.67% or $1,200 per month. For some people, that’s a house payment … or at least a brand-new Jaguar!

But if you are worried that raising your price even $4 may lead to some clients cancelling their memberships in your program, then listen to this. As the Health Club Owner, you would have to lose 63 clients from this program just to get back to your original net profits. In other words, you could lose 63 members and it would have zero impact on your original profits. Do you really think 63 out of 300 clients would drop your program over $4 per month, especially if you offer more value than any of your competitors? I teach pricing strategies and positioning tactics that allows you to raise your pricing substantially … without affecting your conversion or retention rates.

So, looking back on the original numbers, do you think with strategies like this in place you could conservatively increase your original $100 price point to $110? I think you can! So, now your total revenue has increased to $365,420. Finally, it is imperative we look at your profit margin. Everything we have just discussed is basically worthless if you are not making a profit on every sale you make.

 

Profits

 

I reveal strategies that dramatically increase profit margins by leaps and bounds. I teach ways to slash costs without affecting day-to-day business operations. For example, I show how to use the art of barter to significantly reduce or eliminate many everyday expenses. Accounting, bookkeeping, printing, advertising, office supplies, and other everyday business expenses can be dramatically reduced or possibly eliminated by following proven barter strategies.

Do you realize you can see a huge increase in your profit margins just by properly identifying, and then targeting your ideal client? This ties into the old 80/20 rule which states that 20% of your clients generate 80% of your total profits. If you can replace the 80% of your low margin clients with more of the 20% high margin group, you will see your margins explode … sometimes by as much as 16 times.

Another example has to do with separating your business from your competition by becoming unique in what you do. Setting yourself apart from the herd creates a massive competitive advantage that can skyrocket your profit margins. As an example, one of my clients used to manufacture more than a thousand different types of ceramic tiles and accessories. He voluntarily discontinued 80% of his products, focusing his sales and development efforts on only those products that gave him a competitive edge. The result has been a rebirth of his company where he doubled his profit margin and increased his sales.

So, let’s assume you implement just one of these strategies … and keeping the numbers conservative … let’s say your profit margins go from 25% to just 27.5%. We now go from our original profit figure of $62,500 up to $100,490. So now we have over $100,000 in profit. We have almost doubled our profits which was our original goal. Not too bad.

But what if I could show you how you could easily increase these percentages … and instead of increasing them by a meager 5% or 10% as I did in my examples … what if I could increase them by an incredible 50%? Do you think that is possible? Well, do not chuckle, because it is …

 

Imagine this … What if you had
several simple and easy ways to increase your leads …
and to increase your conversions …
and to increase your average sale value …
and to increase your number of transactions …
and ways to increase your profit margins … ???

 

 

There are so many outstanding Strategies, you wouldn’t have the time to get to half of them … So, if it’s help you want or need, I’m your man! Why not reach out to me to start a conversation … I’ll be ready …

 

 

 

#marketing, #marketstrategy, #marketingtips, ##marketingdigital, #digitalmarketing, #marketingconsultant, #marketingstrategies, #marketingonline, #socialmediamarketing, #business, #branding, #imjusticemarketing, #smallbusiness, #marketingstrategy, #instagram, #SEO, #contentmarketing, #businesscoach, #businesscoaching, #leadgen, #leadgeneration, #davesmith

 

Please share! And we await your comments and questions
Share on LinkedIn
Linkedin
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on Tumblr
Tumblr
Pin on Pinterest
Pinterest
Share on StumbleUpon
StumbleUpon
Share on Reddit
Reddit
Buffer this page
Buffer
Print this page
Print
Email this to someone
email