An online home business is a great way to generate a supplementary income. While the Internet does provide many opportunities for entrepreneurs, if you want to make an online income from home, it does involve more than putting a website up onto the Internet, having a few random products for sale and then sitting back and waiting for the money to start rolling in. So how do you know if your online home business is any good?
1. Are You Generating Traffic?
You cannot generate an online income from home if you do not have any traffic to your website. Your online traffic is made up from the people who visit your website. If nobody visits your website, nobody will buy from you, and you won’t be able to earn online income from home. You can use free traffic methods or paid traffic strategies.
2. You’re Building A List.
This is the list of email addresses of potential and actual customers who have given you their permission to send them emails about your products and services. Your list is built as result of the traffic that you send to your lead capture pages that may be connected to or separate from your website.
3. You’re Offering Something Of Value For Free.
When someone goes to your website, to get their email address you have to provide them something of value in return. This could be a free report, a video tutorial or a newsletter. Don’t forget that what you give away for free is an indicator of the value offered by your online business. If you give away something that is useless, it will reflect back on what prospective customers think about your business overall.
4. Are You Selling The Right Products To The Right People?
You have to clearly know who your target customer is and what products or services you can provide that solve a problem for them or make their lives easier. There is an old saying that is still true today. It says that he who tries to sell to everybody, sells to nobody.
5. You’re Willing To Learn.
It is surprising how many people jump in head first to the online business world without any idea or direction on what they are doing right or wrong. To be successful online, you need to learn from those who have gone before you and who can help you to avoid the stumbling blocks so that you make money online and not lose money online.
Regardless of your age, education, technical skills or qualifications there are no specific requirements for being a successful online entrepreneur. However, you will be more successful with a solid business model to work from, clear direction, training and support. If you don’t know where to start, or you’re not achieving the online success that you want, check out the FREE Online Business Video Series at http://www.jonallo.com/
I participated in a “painting party” with seventy business owners. Painting has never been my thing. I don’t see myself as artistic. And creating an image by drawing, painting, sketching or anything else like that makes me uncomfortable.
There were rows of tables and easels. Each seat had paint, brushes and an apron. There were three platforms, also with easels for the instructors and a bar.
I searched for an excuse. How could I possibly get out of this “party”? I did not think it was going to be fun; in fact, I was certain I was about to expose some serious shortcomings.
With no way to escape, I got myself a glass of wine, took a deep breath and picked a seat near one of the platforms (I wanted to be close to an instructor).
The instructors went step-by-step, telling us which colors and brushes to use, where to paint and how to mix the colors.
I listened, I watched, I followed the directions as best as I could and I painted (and drank a little wine).
After a few minutes the room filled with laughter. We were having fun.
It took about an hour to finish the paintings.
Afterwards, I wandered around and looked at the paintings. Every one was different and while they probably aren’t museum quality, they all came out really good.
As I checked out everyone’s work I realized that there were lessons to be learned from the experience that apply directly to your business.
Here’s what I noticed.
1. We were all given the same materials and directions and told how much paint to use. Yet the colors turned out all different. They were all nice but some used more pigment and the colors were bold and deep, some used less color. They were less intense and softer.
Lesson: How do you approach your business?
Do you just go for it, throw caution to the wind? Do you take it slowly and cautiously? Do you stop when it is good enough, like I did because I was afraid I’d mess it up if I touched it anymore?
2. The instructors talked about “working the colors,” adding more to increase the depth, the texture and the contrast in the painting. It was obvious looking at the paintings that some people did more of this than others.
Lesson: In your business do you just put something out there and walk away from it?
Do you tweak and refine it a little, so it’s good enough? Or do you keep working and working it and are never satisfied?
3. No two paintings were alike. Some of the difference can be attributed to skill with a paintbrush but it went further than that. The real differences were about following, or not following, the directions. We were supposed to paint a sunset scene, there were several paintings that had nothing to do with a sunset, the painter simply wanted to do something else.
Lesson: In your business when do you follow directions?
When do you do whatever you want to do? When there is an expert leading do you follow their advice or do you ignore it? Do you follow an assignment or do you set your own rules? There is certainly a time and a place for both, just make sure that you consciously decide which rules to follow and which to set aside. 4. At some point along the way, most of us fell behind or got lost in the directions. Everyone handled those moments of confusion differently. Some asked the instructor for help, others called to assistants who were walking around, some asked the person sitting next to them, others looked at the person next to them and guessed at the next step, some made it up and others gave up.
Lesson: What do you do when you don’t know the next step to take? Do you get frustrated and stop? Do you ask for help? If you ask for help, who do you get to help you? 5. There were over a hundred people at the event; only seventy participated in the painting party.
Lesson: These people missed out on a really fun time. Do you engage even if you’re scared? Trying something new can be scary. Painting is WAY outside of my comfort zone. What do you automatically avoid in your business without really understanding what’s involved or even trying?
6. I already told you that I do not see myself as an artist. I don’t believe I can paint; yet when I came home I showed my painting to my son and he said “Wow, that’s really nice! And you say you can’t paint!”
Lesson: What assumptions do you make about your skills that stop you even before you start? Where are you shortchanging yourself? Where are you shortchanging your clients?
7. When we were done we checked out everyone else’s painting. A lot of them were really good but the “artist” would say that they didn’t like it. Thinking back to the evening, I said that I liked my grass but didn’t like the way the sun looked. The next morning I walked by the painting in my hotel room, it caught my eye and before I realized it was mine, I thought, that’s a nice painting.
Lesson: Do you see yourself and your work fairly? Do you pre-judge yourself? Are you open to seeing and acknowledging what you are doing well? I mean, be honest with yourself for a moment, if you weren’t talking about yourself what would you think of your accomplishments? Would you look for the flaws or the good?
Have you ever done something out of your comfort zone and found yourself surprised by the outcome? Do you pre-judge yourself? Do you risk embarrassment?
Carrie Greene is a speaker, author and business coach. She is a business strategist who helps entrepreneurs get clear on what they want and create simple and straight-forward plans to get there. She is the author of “Chaos to Cash: An Entrepreneur’s Guide to Eliminating Chaos, Overwhelm and Procrastination So You Can Create Ultimate Profit!” Free resources at http://carriegreenecoaching.com/
The retirement account I am going to tell you about is really neat if you work for a small company or own a family business that is home based or brick and mortar.A company-sponsored IRA can even be opened by the smallest of businesses known the sole proprietory. Under the SEP-IRA plan, an employer (your boss or any business entity you or your family owns that is recognized be the IRS) can contribute to an employee’s existing IRA.
The penalties for early withdrawal remain the same as with the traditional IRA. Contributions are deductible. If you are a small business owner, IRS Publication 590, Individual Retirement Arrangements, explains the contribution limits for these plans and your accountant can advise you. You can set one up with an online stock brokerage to invest in the stock market to legally avoid taxes on some of the profits of your business. Self-employed taxpayers have a different standard for contribution limits than employees of a firm that offer a SEP-IRA plan.
SEP-IRAs are flexible for employers. An employer does not have to contribute every year. The contributions are tax-deductible. Once you have the account open you buy and sell stocks using the techniques such as those that I teach!
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. â€œThe Wallet Doctorâ€, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors by teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term â€œIrrational Exuberance.â€ In 1998 he shouted to the world to â€œget outâ€ of the stock market but now he is shouting to everyone that it is time to â€œget in!â€ The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing.
While it’s so much more relaxed and casual to work from your home office, you still need to keep in mind that it is for the purpose of business that you are there. As part of focusing your mind on the work you need to do to develop and maintain a business, what you see in front of you is directly related.
Why add continually navigating chaos to your work-related tasks every time you do something? It wastes time and energy, not to mention causes you to lose focus on what you need to be doing. Make staying organized part of your work day and put things away! Get folders for things and even if all you have is a box or plastic crate, put your folders or important papers in there. ‘Out of sight out of mind’ has special relevance here. If your workspace is organized you will think and see things more clearly. Remove anything that is not related to business out of your office space entirely if you can.
There is more than one reason for creating a focused environment in your home office. For tax purposes, particularly if it is the case that you only make part of your income from home, when you are claiming home business deductions (which you should) then you have to have a clear delineation to separate ‘home’ from ‘business.’ In fact, an actual door on your office is required. (For those lucky enough to earn their entire income from home, you don’t need the door but you still need to have an area dedicated only to business.
In any case you can figure the square feet in your living space and determine how much is used exclusively for business. Then you can deduct expenses based on that percentage for rent, utilities, insurance, etc., in addition to directly related business expenses such as office supplies, equipment, etc.
Just be sure you have receipts for every penny you claim. Another element to organize and to keep a folder marked ‘Taxes’ where you put receipts and invoices all year long, so you are not scrambling at the last minute, and maybe even missing something that would have been a deduction to your self-employment income taxes.
Be sure that part of your organization and focus involves committing your time (scheduling) – where you will sit and work and do nothing else. Turn on your voice mail and be sure that your family and friends know and respect your hours of business just as they would have to if you were going off to a job. If you have little kids then obviously this time allocated to your business should be when they are at school or sleeping if possible.
You really won’t get as much done, or retain as much information if you are constantly being interrupted by the doorbell, phone, kids, dog, etc. Of course the kids (and dogs) are some of the main good reasons you have for starting a home business; and of course you can’t always have 100% control over them, but with a little planning and mutual respect you can have more time for them and still have a successful business.
Oh – and don’t forget to rest – when you shut down (and put everything away) at the end of your work time, shut the door – even if the door is only in your mind. You have to have a time where you are OFF work – to relax and enjoy the other facets of your life. Resist the temptation to log back on your computer every time you get a bright idea. Just write it down and take care of it next time you go back to work.
If you are a budding entrepreneur there are many online business opportunities available. In today’s economy, online business ideas are much easier to make a reality than physical ‘bricks and mortar’ offline businesses. Not only are the start up costs considerably less but the Internet allows you to easily expand your business beyond the confines of your physical location.
The great thing about the Internet is that it does not matter about your age, education, technical skills or qualifications if you want to take advantage of the online business opportunities that are out there. Your online income doesn’t all have to come from just one source. In fact, it can be more beneficial to start with several different online small business ideas so that you have various sources of income, and you can see what works best for you.
1. Produce Your Own Information Product.
People use the Internet to find information and if you have valuable information about a particular subject, people will pay for it. One of the best online business ideas is to write and sell your own eBook. You need to write an eBook on a topic that people are searching for information about. The topic can be one that you’re very knowledgeable about, or it can be one that you become knowledgeable about by researching the information you need to know. Other than eBooks, you can also create online courses or workshops sharing your expertise.
2. Affiliate Marketing.
One of the most popular online business opportunities is affiliate marketing. This is when you market other people’s services or products and when you make a sale, you earn a commission. You find a product that you consider is good and will sell well and you start to promote it for a commission. Promoting just means that you are boosting awareness about a product or service by driving traffic to its website.
Many people find this type of an online business one of the easiest to break into. You can promote products by purchasing various online advertising mediums. Alternatively you can promote for free by writing articles about it and submitting them to article directories, or you can blog about it, promote it on your own website or on any of the popular social media sites such as Facebook or Twitter.
3. Create A Membership Website.
Many online business ideas are based on membership sites. A membership site means that you get paid to pass your knowledge onto others. For example, if you’re an expert on how to fix computers you set up a website where people can log in and get access to answers to their questions, they can participate in a forum there, etc. Once you’ve gotten the hang of how to set up and profit from your membership site, you can turn around and teach others how to do it by writing a how-to eBook or by setting up a course!
4. Freelance Your Services On The Internet.
Another one of our online business ideas is offering freelance services. Freelance just means that you are your own boss. You can take on the jobs you want and turn down the ones that you don’t. There are so many online business opportunities for freelancers. You can do graphic design work, build websites, edit what other people wrote, or you can write articles from scratch for other people.
5. Drop Shipped Product Website.
Dropshipping means that a warehousing company makes its goods available to you for sell. This includes shipping the order directly to your customer, often without the customer knowing that it came from the dropshipper’s warehouse. It can be a very good way to start an online business as you don’t have to worry about fulfillment or inventory issues.
Success in business is mostly about marketing, especially online. Great marketing can sell an average product but poor marketing cannot sell a great product. To learn more about building a successful online business you can get access to a FREE Online Business Marketing Bootcamp at http://www.jonallo.com
There are plenty of great stuff professional services providers can offer to their clients. To all those clients who are wishing to remain on the highest of the tree then you would like to search out for key services within the web site development business. Everybody works professionally to get some vast profits from the web site. So as to try you simply need to update your web site on a daily basis. You must conjointly select an expert web development company because it is necessary to fulfil the modern needs of the business world. Continuously keep in mind that it’s good-for-nothing to decide on the primary company that involves your mind. You would like to analysis exhausting and notice an organization that may give you some superb advantages on the go. In this article, we have listed different advantages of hiring an Internet development company.
Every company wants to stay away from the fraud corporations operating within the market. A real ecommerce solutions Dubai company that gives some fine services to your business an Internet development firm that may assist you in convalescing online page ranking is that the one that you must take into account selecting. Affiliate marketers will extremely assist you in generating the most effective potential results with each problem.
The various web development corporations give you some fine services in order that you’ll select them for your business work. They know what exactly a business may need and also they can offer you the best service to incorporate with the modern technological needs of the business world. Although it is very difficult to make the selection process correct of choosing a right web development company is kind of an important issue and if you do not get it on then you would possibly find yourself on the losing aspect. There are number of the key directions that you must take into account following area unit given below. These points can sure enough render you some crucial facilitate.
1st of all, you would like to confirm that the firm isn’t a spam by merely running a check. Well, you would like to run a check on the company’s background and also completely different comes it’s handled incorrectly. You bought to form positive that you simply decision the toll free variety so as to speak to their client support professionals. If you wish to avoid spamming during this business then this can be a requirement for you. Even the firm ought to be ready to give you with a transparent web site map of what they’ll be making for you.
There is plenty of great stuff a website development company can offer to its users so that they can get plenty of great stuff from the professional developer. These professional developers will always offer suitable solutions only so that the business can get better ways to communicate with their clients. So there are great looking websites that are not only capturing the eyes of visitors but the hearts too and customers do not want to leave the website without buying something.
I am Micheal Samson working wuth Spiralclick Web Technologies is dubai based Web design and web application development company providing affordable cutting edge, enterprise-class emerging IT solutions to businesses tailored to their processes and requirements. Our range of services include web design and web development, corporate identity design, e-Commerce solution, mobile apps development and business intelligence (SEO, Market analysis).
If you are setting up an online business, your success will ultimately come down to your ability to get customers. If you have no customers, you’ll have no business. Marketing is the way that you get those customers and without it, your business is going struggle to survive. Marketing does not just just mean doing some advertising when you set up a website business. Advertising is just part of the marketing mix.
Some people think that marketing and advertising is the same thing. As mentioned above, advertising is an element of marketing whether you’re setting up an online business or working on an established business. Advertising is a more passive activity and marketing is more active. When you place an ad it sits there and does its job, but marketing is about getting people to see those ads and everything else you do to promote your business.
1. Search Engine Optimization.
An important online marketing technique when setting up a web business is search engine optimization or SEO. This is the technique that search engines, such as Google, look for keywords within your website to deliver search results. Keywords are the words and phrases that somebody types into a search engine when they are looking for something on the Internet. SEO takes time to set up, but it also needs to be kept up to date on a regular basis. Search engines like fresh and relevant content, and when you’re setting up an online business you’ll have lots of new ideas and content that you can add to your website. Just remember to keep adding new content to your website on a regular basis.
2. Build A Customer List.
One of the best methods of marketing when setting up an online business is building an opt-in mailing list. This is when you get people to give you their email address so that you can market to them whenever you want. In exchange for a potential customer’s email address you should offer them something of value, like special deals, exclusive information or a free report or video of some kind.
3. Marketing With Email.
It takes seven to twelve exposures to your message before people will take action. Effective email marketing is vitally important when setting up an online business because it allows you to build a relationship with the people on your email list. This way they start to recognize the value that you are sending to them and be more willing to buy from you. Remember that every message you send needs to have value. Whether you are providing information or selling something, it has to be of value to the person reading it.
4. Good Website Design.
When you have a well designed website, users do not know if they’re dealing with a global company or a one-person operation. And this is good news when you’re setting up an online business because it means that your website can compete alongside the big organisations. Keep your website navigation simple and remember to clearly outline the benefits of your products and services on your homepage.
When setting up an online businessthere can seem to be a mountain of obstacles to climb
– from getting your website online, to finding the right products to sell and the best customers to buy them. Discover quick, easy and proven online business strategies to help your business succeed at http://www.jonallo.com
I was once asked the following question by someone on my email list: “If there’s some advice you wish you’d received before starting an online business, what would it be?.” It’s a great question, and one I’ll examine here as I’d imagine my answer would be very useful to all those about to embark on the amazing adventure of beginning, and hopefully growing, a profitable online venture.
Anyone I’ve ever met in business will agree on one thing. It takes a huge amount of work and effort to start and grow a business. And it’s a continual, and often steep, learning curve every step of the way.
The best thing you can do on starting out is to have accurate expectations on what your journey to success will be like.
So don’t buy into the hype that is sometimes still perpetuated about the possibilities for overnight success, about the ‘4 hour work week,’ the ease with which you can grow a successful business, and so on. If you believe that when you first start in business, or that there’s a ‘secret key’ to success, you’re setting yourself up for early disillusionment, demotivation, and failure.
On the other hand, if you’re ready to put the work in, to meet the challenge head on, and throw everything you’ve got at it (and then some!), you’re far more likely to succeed.
For the first few months at least – but more realistically, years – it can involve twelve hour days (often more), seven days a week. It’s all consuming, and can take over every aspect of your life as you know it.
You need the absolute dedication, commitment and drive it takes to succeed. Even when ‘successful,’ there will be bumps in the road, down times, times when it seems nothing’s going your way and you feel close to accepting defeat and giving in.
But it’s at times like these when the wheat’s separated from the chaff, and true success is actually created. You pick yourself up off the floor yet again, figure out what the experience is trying to teach you, and keep on going on. One thing’s guaranteed – if you do stop, you fail. If you’re going to succeed, failure’s not an option.
(Study the back-story of anyone who you consider to be very successful, and you’ll find they’ve all had their moments. For example, the vast majority have been through bankruptcy, and some of those more than once. Just one example would be Donald Trump who has so far filed for bankruptcy four times.)
So in summary, prepare for hard work, give it all you’ve got, and persevere through the hard times. Ultimately, the rewards are there if you’re prepared to rise to the challenge. And the best reward is actually the journey itself.
Don’t Fear Failure – Just Do It Anyway
It might be a good idea to pick up a copy of Susan Jeffers’ best-selling book, ‘Feel The Fear … And Do It Anyway’.
So many people never start their business in the first place simply because they fear it won’t work, they’ll be made to look a fool, they’ll lose everything, and so on. Or they’ll find excuses in the form of other things they need to do first before they can start – but ultimately all rooted in fear of failure.
And so they never become all they can be, never reach their full potential in terms of what they can offer to the world, and live a life of regrets and unfulfilled dreams.
That’s not just a loss to them, but a loss to the rest of society in terms of the unique value they could have offered.
So my best advice would be to acknowledge you’re fearful – that’s perfectly normal – but just to start anyway and see where your journey takes you. Unless you start, you’ve failed before you’ve even begun – and to me that’s a great deal more scary than embarking on the adventure of a lifetime.
Define Your Goals – And Maintain Your Focus
Any journey needs a destination, and starting an online business is no different.
In starting a business, you need to decide what your goals are. And be precise. What exactly are you looking to achieve?
Once they’re defined, you then need to fully commit to achieving them. I don’t want to get too metaphysical, but the universe has an uncanny knack of conspiring to deliver what you’re fully focused on achieving.
Keep focusing on your goals until you achieve them. Find what works for you in order to keep your focus laser-sharp. For example, stick them on the wall or your bathroom mirror, convert them into affirmations to recite day and night, commit to achieving them with friends and family, or any combination.
Finally, understand that while focus on your goals is important, they’re not set in stone. Circumstances change, as do your own needs and desires, and you should be willing to adjust them as you go forward. If your goals no longer make sense for you or stop resonating, adjust them accordingly. They can be as flexible as you need them to be, but the important point is to know where you’re headed and what you’re working towards.
Avoid Information Overload – Find Some Key Mentors
There’s so much information out there, a lot of it contradictory, it can leave you in a form of analysis paralysis and you just don’t know which way to go. That’s true whether you’re just starting an online business, or you’re five years down the road.
The truth is, there is no right way, different tactics and strategies will work for different businesses at different times, and may or may not work for you.
I’d advise to follow a few key mentors, and use their information to guide you, but ultimately you need to find out for yourself whether something works or not and your own experience will increasingly become your guide.
Listen To Your Market – And Adjust Accordingly
As your business develops and you start gathering leads and your first few sales, you’ll start receiving feedback. This may be negative or positive, but the negative messages you receive will actually be most useful for the ongoing success of your online business.
– What are your customers frustrated by? What could you deliver to ensure greater levels of satisfaction, and thereby hopefully increasing levels of referrals to other potential customers for your business?
– What are your leads or prospective customers asking you about? Are you delivering what they are looking for? It could be that your original idea for a business needs completely overhauling in order to actually deliver what the market is looking for.
If so, don’t stubbornly stick to your original idea when a potentially far more profitable one is staring you in the face. Many successful businesses end up delivering products and services radically different from ones the business owner originally envisaged.
The best type of market research isn’t doing endless surveys before you even start a online business. It’s diving straight in, and then listening carefully to your market and adjusting your business accordingly to match.
Ultimately, however, the most important advice would be that you need to decide to succeed and absolutely commit to it. There can be no turning back or retreating to your old, familiar zones of comfort. It’s got to be something you commit to at a deep, internal level.
As Tony Robbins once said, “It’s in your moments of decision that your destiny is shaped.”
Every good Internet business understands the value of conversions versus hits received. Far too often, businesses become fixated on the hits they are receiving instead of monitoring their hit to sale conversion rate. This misguided focus is the road to ruin because it fails to take in the issue of abandonment.
“Abandonment” is one of those terms that has a unique meaning when applied to the Internet. The term refers to reasons why a user abandons a site before taking the action the site owner desires, typically purchasing a product or making an inquiry.
There are a number of beautiful sites on the Internet with unique innovations. Unfortunately, these sites rarely turn a profit or unnecessarily limit their profit potential. Site owners must focus on only one thing when building a site – converting visitors to customers. To avoid abandonment issues, you should focus on the following:
1. The site should always load as quickly as possible to accommodate visitors that are using 56k dialup modems.
2. The site should be designed for ease of use, not “what looks good.”
3. All advertisements must click through directly to the items that are being searched, not the home page of the site.
4. Site pages should be kept short to improve load times.
5. Information that is not germane to the product or service should be removed.
6. Flash, music and other “atmosphere elements” of the site should be removed or optional to speed up load times.
7. Signing up for the site newsletter must be incredibly easy.
8. Customers should be required to fill out the minimum of information to make a purchase.
9. Newsletters should be issued in HTML and text since some email systems do not accept HTML.
10. All images should be compressed for quick loading.
11. All links and emails must also include AOL friendly equivalents.
12. All emails must have automatic text wraps at 60 spaces so that the recipient does not receive a disjointed mess of code in their email box.
13. Email communications from the public must be responded to within 24 hours.
14. Communications made after business hours must be responded to first thing in the morning.
15. The site should offer accumulating bonus points for purchases that eventually lead to a “free gift”
16. When an order is shipped, an email should be sent to the customer telling them as much.
The list is fairly endless, but you should always view site designs and advertising from the perspective of the customer. The universal question for each project is, “How could we make this easier for customers?” By emphasizing this approach, you will bypass many of the problems you see on the net and avoid wasting your advertising dollars.
As a business owner, you purchase many things, including computers, phone systems, desks, tables, decorative things for the business atmosphere, ink, pens, paper, customers…
When I first heard the phrase Buying Customers, coined by Brad Sugars, Founder of ActionCOACH, a worldwide business-coaching firm, I had an image of a barcode on the back of someone’s scanned head…oh, wait. That’s the cover of his book on the topic; but, the point is buying customers is a new concept and one worth exploring. Otherwise, you’ll remain like most business owners, chasing customers, rather than taking some relatively simple steps toward exploding your bottom-line and seeing the profit you’ve hungered for.
In the end, it’s all about numbers. Numbers are the language of business. To understand the importance, necessity, and how-tos of buying customers, it’s important to understand what we call “The 5 Ways,” a formulated system that ensures increased profits.
Traditionally, profit was defined in one simple formula:
Revenues – Expenses = Profit.
I’d be willing to bet that most business owners still have that formula as their “go to” for calculating profits, but “The 5 Ways” shows how you can multiply your profit based on 5 key “drivers” that are part of all businesses…even yours. These include:
* Generating Leads
* Converting Leads Into Customers
* Repeat Customer Business
* Average Dollar Sale
* Profit Margins
So, what’s this formula?
(1) Leads x (2) Conversion Rates = CUSTOMERS x (3) Number of Transactions x (4) Average Dollar Sale = Revenue x (5) Margins = PROFIT.
Let’s break it down step-by-step:
(1) Lead Generation: Number of prospects that have been in touch with your business over a given period of time.
(2) Conversion: Number of leads that actually purchased from you.
(3) Transactions: Total number of transactions (the number of times they buy from you) over the course of a year.
(4) Average Dollar Sale: The measurable average amount your customers spend every time they purchase.
(5) Profit Margin: The percentage of each and every sale that is profit (You sell something for $200, your expenses are $75. Your profit is $125.) If you divide your profit by your revenue – $75/$200, you’ll have your profit margin results.
Most business owners drop prices to try to make a profit. That’s like going backwards and calling it forward. Instead, look at each of “The 5 Ways” in the formula, and increase those 5 factors by a mere 10%.
The result is a 46% increase in revenue and a massive 61% profit on your bottom line.
Granted, there’s a lot more to buying customers than the formula above, and that’s where a business coach can help you generate lifetime value customers, show you how to increase your customer conversion rates, and help you through your transition to this new way of thinking and doing business.
There’s no time like the present to get started. Let me know how it works for you.