So lets dive right into it...
Today I'm going to share with you a formula to double your business revenue.
How did I come up with this formula? Did I just pluck it out of the air?
No, I certainly didn’t do that.
In fact it is simply based on the irrefutable law of business growth put forth by Jay Abraham … which states:
There are only three ways to grow a business;
1. Increase the number of customers
2. Increase the average transaction value per customer
3. Increase the number of transactions per customer
What you see here is a formula for doubling your business revenue and it goes something like this...
the no. of leads you have (L) x the no. of customers you have (C) x the customer lifetime value (CLV) = your growth potential (GP)
L x C x CLV = GP
Doubling any of the variables above will double your revenue. Double all and it will 8x your current growth.
Basically, these are the 3 assets in your business that you need to optimise to double your revenue.
Let’s look at each “asset” in turn…
How to Double the Number of Leads
Want more Leads?
You either need…
- A Giveaway Product
- More Giveaway Products
- Better Giveaway Products
A Giveaway product looks like this…
If you click on that “Get Free Instant Access” button you will be asked for your email address to receive the content.
Here’s another Giveaway product…
Giveaways are free products. An irresistible bribe, that is valuable, specific and enticing to a prospect in exchange for their contact details (usually an email address) and permission to follow up.
In majority of the cases the reason why Giveaway product landing page (assuming you are getting traffic to that page) is not performing well is because it does not solve a specific problem.
This is a terrible Giveaway product…
Or even this one…
In both cases the offers are vague and not specific with the message.
So, if you want to double your leads, start with optimising your Giveaway offer.
How to Double the Number of Customers
Ok this step is about doubling your number of customers and not profit. You may actually start profiting but the actual doubling of profit happens in the next step.
You may ask that why do we need to double the number of customers if we are not profiting?
Well it isn’t about profiting from get go. It is about giving value upfront, establishing yourself as authority to ensure that these newly acquired buyers at cost or even at loss do not go anywhere else in the future to achieve their desired end result.
The idea is to 'wow' them with your Foot In The Door product.
Here’s one from Holsted Jewellers…
Here’s one from famous marketer Russell Brunson…
Holsted Jewellers will not meet payroll selling 2 rings for $1.95 each and Russell didn’t get rich selling books for $7.95.
Introduction of the FID product is simply about warming up the prospects, making them aware of your existence while providing great value. In other words priming them to do real business with you.
FID is a high value, low barrier to entry offer. So if you want to double your number of customers - build a solid Foot In The Door product.
How to Double the Customer Lifetime Value
You see, even if the business has the foot in the door (FID product) and core offer (CO), it will be profitable however, without the 4th type of product called the PROFIT BOOSTER, the business is probably doing barely half the profit it could do if it did.
This is where you increase the number of transactions per customer (as per Jay’s law of business growth), thus increasing the customer lifetime value.
So what exactly is a profit booster you may ask?
Profit Booster product essentially is an additional product in your product eco-system that could be an upsell, bolt on or cross sell to your core offer which can be offered immediately after the core offer purchase or at a later stage via email or retargeting ads.
So using the above examples…
Russell offers a copy of his book as a FID product which then leads into buying his perfect webinar slides & then into booking a call with a coach to help set up funnels.
So before you checkout you’ve been upsold on 2 more products.
Similarly, with Holsted Jewellery site, when you reach the check out page, you are offered matching earrings to those rings as well as upgrade on the type of stone used on the rings.
These additional offers is where the money is made.
These upsells are what make the cost of the customer acquisition worth it.
Looking to double your customer lifetime value?
Ask this simple question: “How else can I add value to the customers I am acquiring?”