The 7 Key Profit Generators
Ask nearly any business person what they want most for their business, and the answer you’ll most often hear is that they want more customers.
And that’s exactly what most of them spend the majority of their marketing time, money and effort on… acquiring new customers.
Getting customers is critical to the success of any business, but there are other, more effective ways to reap windfall profits from a business.
Cash Flow Is King
The number one way to increase the profitability of your business is to increase the positive cash flow of your business. When you consider that it costs up to six times more to acquire a new customer than it does to sell to an existing customer doesn’t it make sense to focus more on finding more ways to keep the customers you have? What’s interesting is that most businesses acquire new customers at break even, or maybe even a little less then break even, it’s easy to see that getting new customers is not the most cost-effective way to build a business, but they still keep investing their money in getting the same new customers
Double Your Business Overnight
Most businesses can actually double or triple their bottom-line profits very easily and nearly overnight by concentrating their efforts on a few key areas that are overlooked by nearly every business owner.
If you’re not paying attention to The 7 Key Profit Generators you’re leaving a lot of money on the table. So let’s take a look at each one and the 7 ways you can
1- Increasing The Number Of Leads
1. Advertising / Marketing / Promotion
Have multiple sources of leads. Don’t put all your eggs in one basket.
2. Networking
______
3. Become A Published Author
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4. Information Products
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5. Press Releases
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6. Strategic Alliance Partners
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7. Live presentations
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8. Online Social Network
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9. Ads on Social Media
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10. Co-Op Marketing
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11. ______
12. ______
13. ______
14. ______
2 - Increasing Conversion Ratios
1. Educate
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2. Offer A Guarantee
______
3. Try-It-Before-You-Buy Offers (Sampling) ______
4. Using Scripts
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5. Free Offers
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6. Sequential Mailings
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7. Testimonials
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3 - Improving Profit Margins
1. Specialize
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2. Systemize Your Operations And Procedures
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3. Buy In Bulk
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4. Re-Package Your Product?
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5. Focus on marketing your most profitable product or service. ______
6. Use multimedia to cut your marketing costs
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7. Sell ebooks instead of physical books
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4 - Increasing The Amount Of The
Average Sales Transaction
1. Increase The Price
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2. Sell To The Affluent
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3. Up-Selling
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4. Cross-Sell and Add-Ons
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5. Bundles and Packages
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6. Combine products with services.
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7. Have a family and friends package
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5 - Getting Your Customers
To Buy More Often
1. Capture The Names And Addresses Of All Prospects, Customers And Visitors
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2. Communicate Regularly With Your Current Customers
______
3. Hold Special, “Preferred Customers”
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4. Program Your Clients For Repeat Purchases:
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5. Show Appreciation To Your Customers
______
6. Contact Inactive Customers
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7. Promise A Lot… Deliver Even More
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6 - Increasing The Number Of Referrals
8. Be Specific
______
9. Use Special Reports ______
10. Make it easy for them ______
11. Add Extra Value
______
12. Establish a “By Referral Only Business”
______
13. Give a Surprise Refund
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14. Referral Reward:
______
If only 10% referred eight people, your business would grow by 80%. If 25% of your clients referred four people to you, you would double your business. And if 50% referred eight people, your business would grow by 400%!
7- Increasing Your Referral Conversion Ratios
8. Educate
______
9. Offer A Guarantee
______
10. Try-It-Before-You-Buy Offers (Sampling) ______
11. Using Scripts
______
12. Free Offers
______
13. Follow up - follow up - follow up
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14. Testimonials
______
Extend Your Customers’
Average Buying Lifetime
1. Communicate Regularly With Your Current Customers
How can you best keep in touch with your customers and let them know of special events, sales, promotions, etc.?
______
2. Contact Inactive Customers
What can you do to encourage those customers who haven’t purchased recently, to buy from you again?
______
3. Show Appreciation To Your Customers
How can you best show your customers that I care about them and appreciate their business, and that you don’t consider them “just another sale?”
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4. E.A.R.N. The Right To Their Continued Business
— Earn – What can you do to show your customers that you are worthy of their continued business?
— Ask – How can you effectively ask them to do business with you without appearing to beg for their business?
— Recognize and Reward – What can you do to continually let your customers know you appreciate them and their continued support?
— Next – What other things can you do to solidify your relationship and in effect, “obligate” your customers to you?
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It Doesn’t Take Much To Realize Big Profits
Now, here’s the exciting part: You don’t have to make big improvements in these areas to see massive results. All it takes is small, incremental improvements, and the results will be exponential!
Let’s suppose you attract (through various means) 100 people per month to your business who are interested in purchasing the products or services you sell. And let’s say that you convert 30% of those leads into buying customers.
And for example’s sake, let’s say that on average, each of those 30 customers spend $100 with you twice a year at a 50% profit margin, and that they refer an average of 1 person to you during the 3 years they do business with you. Your “lifetime income” from those customers would add up to $162,000.
Now, if you were to implement some very easy-to-do, very inexpensive strategies in your business, and were able to increase each of those areas by just 10%, your lifetime income would shoot all the way to $308,688… an incredible increase of 90.5%! The accompanying table graphically illustrates how this can be done.
Ann DeVere’s Tri-Factor System:
www.TurnYourShowIntoCash.com