How to Double Your Revenue, With Your Existing Customers
This technique work online and offline, as do ALL of our Hybrid Marketing strategies. So why am I posting it in the Online category? Well, because I haven't posted here in a while silly... ;-) This ties in directly with our concept of "The Ultimate Backend" and a real powerful concept is to challenge yourself, your clients, vendors and employees to constantly search for new businesses within your business. Here we go... First, in ANY business there are an unlimited number of offshoot businesses you can create. You just have to be creative. For instance, in a mail-order company, you could have an offshoot of consulting to those people that you sell to. You could then telemarket. You could then do seminars and workshops. For car dealers, you could provide extended warranties and insurance to new car owners. For a contractor, whether it's heating and cooling, pools, pest control or whatever, you can provide annual service contracts. I'll use a pool contractor as my example, and show you how to double your annual revenue without having to increase your customer base. A pool contractor for instance might use upselling through the offering of an annual service contract to clean and service a pool four times a year. This can dramatically improve his bottom line. In fact, we can easily double the value of the customers by added income from adding just 40% of the clients to an annual contract. How, you ask? Let's walk through the math... For the sake of easy numbers, let's say the service call for pool service (or pest control, or <insert service here>) is $100 and there are 100 customers per year. There's a gross of $10,000, which is $100 per customer. Here's the upsell and how to easily double your annual revenue... The upsell strategy is an annual contract where you're going to visit four times a year. The cost for each visit to the client is $100, so the total cost at this point is $400 (before giving them your "preferred customer" discount). If they buy your annual contract today, let's say you give them a discount of $150, of which now just $250 is the cost to the customer. You following me here? (This is EASY!) If you close just 40% of these people, your new revenue is $10,000. 40% of 100 is 40 people times $250 (the cost of your annual contract) and that equals $10,000 per year. So, the new value of these 100 customers is $20,000; $10,000 for the service call ($100 x 100 customers) and another $10,000 for the 40 people who paid $250 for the annual contract. The value per customer is now $200. You just DOUBLED your annual revenue! You still have the same 100 customers, so it didn't cost you anything extra to gain new customers. How cool is that? If you enjoyed this simple strategy, leave a comment - or better TRY IT and let me know how it works for your business! (And if you need help putting the offer together, request a FREE Strategy Session and we'll help you integrate this powerfully simple technique into your business.) - Lee Collins
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