In any business there are four main metrics that will determine your business revenue.
These are the things that you can do that will not just increase your income, but it will multiply it.
These metrics are:
- The number of traffic or visitors you can attract.
- The conversion rate you can reach in making sales.
- The amount of money you earn with each sale.
- The number of times that you can sell to the same customer.
These metrics are valid for any kind of business, on-line or off-line.
If you have lemonade stand and you get a hundred people per day that walk past your stall, you might sell one glass of lemonade and if the price is $1, then you will earn on average $1 per day.
If you can double any of the metrics, you will double your income.
If you have an online business, you can do the same.
Traffic
Traffic or visitors to your website or business is the lifeblood of any business.
You can move your lemonade stand to a street corner and double the potential number of buyers. Now you might sell two lemonades per day and earn $2 per day.
If you have an online business, you can double your number of visitors to your site by using another way of attracting people to your website.
If you used blog posts in the past, you could create videos with the same content and post them on YouTube.
Conversion Rate
You can increase your conversion rate for your lemonade stand by improving your sign and so getting more of the people to buy from you.
Now instead of just selling just two glasses of lemonade, you might be able to sell four glasses.
Your income per day will again double to $4 per day.
You can also write better blog posts that will get you more clicks and you can sell twice as many of your products online.
Increasing Your Price
Now that you know that you can make sales, you can increase your price for your lemonade to $2 per glass and again you can double your daily income to $8.
The way in which you can make this happen is to offer bigger glasses of lemonade.
Online you can also do it and thus double your income again by doubling the price of your products. Just remember that you should also increase the value of your product so that the customers will still buy it.
The way in which you can achieve this is by offering a product that will be easier to use or that will save your customer more time to see results.
Repeat sales
The last way to double your income is by getting repeat sales from regular customers. If your lemonade is just what your customers want, they will return the next day and buy from you again.
Just remember to thank them by giving them something extra for being a loyal supporter.
Now your daily income can jump to $16 per day.
By getting your customers contact details, you can start to build a list of buyers that you can bring other special offers to. Such a list can become your most valuable asset as an online business owner.
Where to Start
It will always be better to try to increase your conversion rate before you try to work on any other improvement in your business.
The reason for this is because that any other improvement will then compound your success.
If you can double your conversion rate from 1% to 2% and you then double the number of your visitors, you will not only double your income, but any other small improvement will make a bigger difference.
By starting to build a list of prospects and a buyers list right from the start, will also give you a much better chance of success.
If anything goes wrong with your way of getting new customers in the future, you will at least be able to make repeat sales from your current customers.
You can always find out what else your prospects want and then offer it to them.
The most important aspect of any business is to always deliver more than what your buyers expect. This way you will delight and surprise them and they will tell their friends about it.
It will be the best advertisement that you can ever get.
My wife and I were able to build our computer business since 1993 in this way. Today our children do not have to spend a lot on advertising anymore.
They get most of their new customers by word of mouth because the business has gained a name of excellence.
They are not the cheapest in town, but they deliver a Super Sirvice.
If you would like to learn more about building a successful online business, then you are welcome to join our free membership. Just click the link below.
Please leave a comment below if you have found any value in this post.
I would really appreciate your feedback.
