Here’s an intriguing question.
What if you could increase your bottom line revenue this year by 80% or more…
… without adding any more customers than you’re already getting?
You might be looking at that, thinking it’s some kind of marketing gimmick. Maybe you think it’s simply not possible. Maybe you’ll keep reading just to see if I know what I’m talking about.
Regardless, I want you to keep reading because I’m going to show you not just how to do it, but how anybody can do it, in any business. I’ll even show you the math behind just how easy it is, too.
Let’s start with a simple truth.
Most People Leave Enormous Amounts Of Money On The Table
If you look closely at any business, you’ll see that there are always new opportunities for growth. New product lines can be added. New strategic alliances to made. Old customers willing to be re-targeted, re-captured and sold to again.
Every business owner knows they have holes in their marketing.
Few business owners understand just how big those holes are.
In all my years of working with private clients, I haven’t come across a single person who had a ziplock-tight seal on their profit. Everybody has leaks.
One client of mine was spending roughly $ 100,000 per month on Facebook ads. I took a look at the ads and landing pages he was running. I then made ONE simple adjustment which made the ad and landing page more congruent.
His cost per lead got cut in half.
$ 50,000 per month saved… with the same amount of leads.
I consulted another client using Google Adwords to generate leads for his business. He asked how he could get more leads. One tweak, another 5-second SIMPLE tweak, allowed him to double his leads with zero loss in quality, therefore doubling his profits.
However, the hole I’m talking about today has nothing to do with your ads. It has nothing to do with how much money you’re spending on leads, or your copy, or the way you market your business.
It has everything to do with how you treat your existing customers.
The Rarely-Talked-About Secret Of Your Best Customers
Everybody knows the gist of the 80/20 rule. It states that 80% of your results come from 20% of your efforts.
It also means that 80% of your profits come from 20% of your customers.
Let that sink in for a moment.
- 80% of your profits
- 20% of your customers
That quite literally means you can fire your bottom 80% of customers, keep only those top 20% (therefore working 1/5th the time)… and retain 80% of your income.
Tantalizing thought, isn’t it?
It begs the question…
What If We Developed A Product Or Service Only For Our Most Elite Customers Or Clients?
What would happen is that your profits would skyrocket. As much as 80% or more, as you’ll see in a moment.
And you’ll be dealing with your best, most pleasant, more UN-demanding customers or clients. You’ll be able to work on what you love most, with the customers or clients you love most. No more annoying low-end pests who do nothing but cause 80% of your customer service nightmares.
That, my friend, is today’s big “aha.”
And it’s so simple.
Step #1: Find out who your best customers are.
Step #2: Find out what they need.
Step #3: Create it and sell it to them!
Let’s Look At The Math Behind The Madness…
As you can tell, I’m a big fan of having high-ticket offers. It doesn’t matter what you’re selling, or whom you’re selling to. And just to be clear, “high ticket” is a relative term. If you’re selling $ 5 trinkets, “high-ticket” might be $ 97 or $ 197.
If you normally sell $ 1,000 coaching packages, “high ticket” might mean $ 25,000, $ 50,000 or higher.
Suffice it to say, high ticket can range anywhere from roughly 10x-100x your lowest priced product or service.
That said, let me give you a quick idea of what is possible when you add a high-ticket product or service and begin selling to your best customers.
Keep in mind, the following numbers are made up, based off numbers I’ve seen done through the businesses of my private clients, or my own. They are also backed up by the statistics shown in the book 80/20 Sales & Marketing, written by Perry Marshall.
In his book, Perry explains that due to the law of 80/20, 20% of a given set of customers would be willing to spend 4x as much money as the original purchase. Therefore that gives us the following profit increase…
Business A (Original Offer)
Product: $ 97
Total Monthly Revenue: $ 29,100
Business B (With High Ticket Upsell)
Product 1: $ 97
Product 1: $ 397 (4x amount of original)
Additional Customers: 60
Additional Profit: $ 23,820
Total Monthly Revenue: $ 52,920
Given those amounts, you’ll notice that in this particular example, this business would have increased their total profits by 81.85%.
And that’s with ONE additional offer. Imagine if you did this again, and 20% of those customers purchased another product at 4x the price.
(For the record, it would bring the total profit increase to 147.34%.)
So Why Doesn’t This Happen With My Business?
You may have upsells in place after a person buys your product. And maybe you aren’t seeing numbers like this. If that’s the case, let me explain.
#1 – This phenomenon has to do with NUMBERS, not individual products. Stated in a different way, 20% of your customers are willing to spend 4x more MONEY with you. That may happen if you have a single upsell that’s spot-on with their needs, or it may take 2-3 offers to do the trick. But if you have the right products at the right price, you will see that 20% of your customers are willing to spend 4x the original amount.
#2 – This only works if your offers are congruent to the markets needs. In other words, if you’re selling blue widgets and your upsell is red gizmos, the 80/20 phenomenon will cease to exist. In a recent launch I did, I added up the numbers and my own upsells were so congruent that I actually BEAT the 80/20 rule.
#3 – The 80/20 rule isn’t exactly perfect. Don’t expect it to be “exactly” 80/20, although in most cases it’s eerily accurate. As with anything, expect a small margin of error, such as 75/25 or 85/15, etc.
The point is, don’t worry about the exact details. If you understand your markets needs and have the courage to give them something they want, they will buy.
The main point to consider is that if you want to grow rapidly, you need to stop worrying about ALL of your customers and clients, and put 80% of your focus on those who will provide you with the highest income with the least amount of work.
I’ve used this phenomenon in my own businesses as well as my clients’. I can tell you with absolute certainty that it WORKS. However, it doesn’t work without taking action.
If you’ve tried it… let me know below. I’d love to hear any results you got! If you haven’t, let me know if this article has spurred you to take action and begin implementing a plan to capitalize on your top 20% of customers.
The post How To Add 80%+ To Your Bottom Line Without Adding New Customers appeared first on The Daily Egg.