Question: “How many methods are there to increase your revenues?”
Answer: “Three.”
Question: “How many methods do most business owners use?”
Answer: “One.”
Question: “What’s the best way to increase your revenues?”
Answer: “Start using all three methods.”
So what exactly are the three methods? Here they are…
1. Increase the number of customers. This is the method most people use. If you want to bring in more money, bring in more customers! However, there are two more ways that most people ignore…
2. Increase the average spending of customers. Have you ever focused on making people spend more each time they visit you? You can have the same number of customers, but if everyone spends more, you’ll bring in a lot more money.
3. Increase the frequency of purchase. Have you ever tracked how often a repeat customer visits you? Is it once every year? Once every two years? What if you can make them come every 6 months? Or every 3 months?
What can you do to increase the frequency of purchase? Now, I am going to show you something that is very powerful. There is a multiplication effect when you start using all three methods together.
Imagine that you are able to be 3 times more effective in Method One, 3 times more effective in Method Two, and 3 times more effective in Method Three. In other words, you bring in 3 times more customers, customers spend 3 times more when they come, and they come 3 times more often.
The combined effect is not just 3 + 3 + 3, making you 9 times more revenues. The combined effect is 3 X 3 X 3, which makes you 27 times more revenues!
That means if your current revenues are $200,000 a year, your revenues will jump to $5,400,000 a year.
How likely is it that you’ll be 3 times more effective in each method? It is possible if you work at it. It is not going to be easy, and you will run into roadblocks. But if you know the do’s and don’ts in each method, you’ll have a much better chance to succeed.
We will be dedicating the next few chapters to showing you how to become more effective in each method. For now, just remember that if you want to increase your revenues, you must do a better job on all 3 methods.
[Via Visual Scope]
