The 5 Step Proven Profit Formula For Doubling Your Profits

The 5 Step Proven Profit Formula For Doubling Your Profits

All small business owners want more clients and more revenue and to double our profits. But how do we go about finding more clients?

Firstly you MUST generate leads… and then you MUST convert those leads into clients

By breaking down the end result into the vital components required to generate them, you can put together a specific strategy and plan of action to attain that end result.

Once convert those leads into clients, your new clients will be paying you a specific value for what you sell.

As a business you have many expenses to pay and those expenses come directly out of that very revenue, so the next revenue component to consider is your margin.

Your Margin

Just think if you could persuade your current clients to increase the number of sales or transactions they complete with you each year what would it do for your business?

There are five essential and critical steps that every business owner NEEDS to address in order to bring in new clients and generate more revenue…

  1. Leads
  2. Conversions
  3. Number of transactions
  4. Average sale value
  5. Profit margins

In order to double your profits and create exponential growth, you have to start with a baseline.

You have to know your current numbers in each of these critical areas. First, work out exactly where your numbers are right now and once you have them, you can work out what you need to do to double those profits.

Leads

There are many ways to generate more leads. Our E-Learning Marketing System which I run with my colleague Andrew Sayers will show you all that you need to know and more! But as an overview you should be doing the following lead generation activities:

  • Your Website
    • Does your website clearly display the business name and necessary information?
    • Does your website have a method(s) for capturing leads?
    • Does the website have a unique selling proposition?
    • Does the website have a clear offer and call to action?
  • Are you using Pay Per Click advertising?
    • Google PPC
    • Bing PPC
  • Are you using Search Engine Optimisation strategies?
    • Video Marketing
    • Article Marketing
    • Google Places listing
  • Are you using email marketing?
    • Autoresponders
    • Multiple offers and active contact with clients
    • Email sales funnel
  • Do you have a blog?
    • Is it updated regularly?
    • Are there regular readers?
    • Does it include video?
  • Do you have a podcast?
  • Do you utilise social media and social networking?
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

There are many more avenues of course and I have named a few. If you need a robust marketing plan then speak to me and we can spring into action to get your lead generation firing on all cylinders.

Conversions

Moving on to conversions, there is no point generating hundreds of leads if you are not converting any of them. If you are finding this then you are probably fishing in the wrong pond. Who is your ideal customer and are you speaking to them?

Your conversion rate is where a prospect becomes a client and this needs to be a healthy percentage to justify your advertising spend.

Your advertising copy needs to be compelling – completely eliminating any barriers to entry for your prospects. You will want to create irresistible offers that practically force your prospects to buy from you!

Do you have a drip campaign in place?

A drip campaign is a series of follow-up communications via email or direct mail in times gone by! Drip campaigns continuously nurtures any prospects until they’re finally ready to make the purchase.

The typical prospect doesn’t buy from you until they receive on average 6 marketing messages from you.

Do you currently have a drip campaign in place to your current prospects?

If not, you’re leaving a fortune on the table!

Your copy needs to be so compelling and persuasive that it positions your business as the ONLY choice for your prospects to buy from.

Our E-Learning Marketing System will help you here, we have scripts, drip campaigns and marketing copy for nearly every eventuality and we are offering free access!

Increase The Number of Transactions

If you can get your current clients to purchase from you more often you would see a huge increase in revenue.

For example let’s take a look at a hair salon.

What if we 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? Just this one strategy alone would increase this salons total revenue by 70%!

Average Sales Value

Suppose you sell a product for £100 and the net profit on that product is 15%

If you increased that price by a measly 5%, that additional 5% is pure profit

Your net profit just increased from £15 to £20… that’s an increase of 33.33%

For example let’s look at an example from a health club…

Let’s say you own a health club that offers a package of health services for £60 and you presently have 300 clients enrolled

Your total revenue equals £18,000  (£300 x 60). Your 25% net profit margin equals £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  (£4 x 300).

I know raising prices is difficult and many people worry about losing customers but let’s look at the health club again.

In this example the health club would have to lose 63 clients from this program just to get back to your original net profits.

Do you think 63 out of 300 clients would drop from your program over £4 per month, especially if you offer more value than any of your competitors?

Profit Margins

Lastly you can look at strategies that will dramatically increase your profit margins.

Accounting, book keeping, printing,  advertising, office supplies, and other everyday business expenses can be reduced.

You can also see a huge increase in your profit margins just by properly identifying, and then targeting your ideal client.

The 80 / 20 rule states that 20% of your clients generate 80% of your total profits.

If you replace the 80% of your low margin  clients with more of the 20% high margin group, you will see your margins explode!

There are lots of opportunities!

There are many ways to increase your revenue and we have touched upon a few here. All this content and more is part of our E-Learning Marketing System.

Our E-Learning System will double or triple your profits as well as creating exponential growth for your business.

When you use all of our tools, resources and templates… along with the powerful audio and video training we make  available to you… you will immediately begin to see results just like this.

Pop on over to The Nicest Guys In Marketing today to see for yourself.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *