You are currently being seduced!
Seduced by the noise of the market that is telling you to spend your time and money to drive traffic to your website.
I believe that as a result when you listen to this noise, you quickly get overwhelmed and made to feel that you have to do this, because that’s what everyone is doing, so you are told.
I believe that this is a fundamental mistake and one that is costing business owners like yourself many thousands of dollars in lost revenue, critical cash flow, and potential profits.
This post is to help you master the optimisation of your profitability from your clients.
Which I believe is the one single most important thing for you to focus on.
It’s a formula that I first saw some twenty plus years ago when I was just twenty one.
It was created by the legendary growth guru Jay Abraham.
Put simply, it’s that there are only three ways to grow a business:
- Increase the number of clients
- Increase the average transaction value per client
- Increase the frequency of purchase by the client
I call it Client Profit Optimisation or CPO.
I’d recommend you read this post carefully.
Read it over and over and commit it to memory.
This is the stuff you don’t get taught at business school.
Learn the Steps of Client Profit Optimisation.
Here are the steps:
- Determine Product/Market Fit
- Choose a Traffic Source
- Offer a Lead Magnet
- Create a Moment of Momentum (Often referred to as a SLO or Tripwire)
- Offer your Core Services
- Offer your Profit Maximiser
- Create an Attraction Path Back
Let’s begin with
Step 1: Determining your service market fit.
Often, people say, build a business around the things you are passionate about.
Though, that may seem to be a very good advice, it still misses a lot on the hay side.
No matter how passionate you are about your business or your services if you do not have a market to sell it to, then, I’m sorry, no amount of hard work will bring you success.
We can add in passion in building a business but that passion should be paired with intelligence.
By intelligence, I mean, determining the following:
- Is the market big enough?
- Is the market monetisable?
To help you know if your market is big enough, try to look for the following:
- Active blogs
- Active forums
- Active email newsletters
- Active Facebook Pages
- Active associations
- More than 30,000 plus Google searches per month using your top 3 keywords.
To check if the market you’re targeting will pay for your services, find the following:
- Your direct competition (means they are doing what you want to do – this is a good thing).
- Indirect competition
- E-commerce sites
- Affiliate offers
Those things mentioned are not necessarily conclusive, there is a possibility, for example, that even if you don’t find more than 30,000 Google searches or if you don’t have direct competitions, you could still have a profitable market or you could be the first to discover a need that the market needs to satisfy. If you have done your research well and saw that most of the criteria above are present, your chances of succeeding is great.
You may have often thought that you have a traffic problem, but no, you don’t have.
You can get traffic from anywhere but this needs to be backed-up by your full knowledge and understanding of the Client Profit Optimisation.
The goal is not only in choosing the best traffic resource but more of on knowing how to measure what traffic is worth and on knowing how to extract the maximum benefit from the traffic that you are getting.
Before teaching you the tactics of online traffic like Facebook, Blogging or email marketing, understanding the Client Profit Optimisation concept must come first.
Now to the third step.Step 3: Offering a lead magnet.
Offering a lead magnet is a way to increase your client numbers.
What is a lead magnet?
Think of it as an irresistible bribe that attracts your clients to give their information for something that would benefit them.
Most people come to your site looking for something that they have a problem with.
A lead magnet is something to help them in their journey to solve a problem they have.
This is often the first step you take in getting your prospects.
So make sure that you offer them something that they can’t resist – something that is of value to them.
When you offer them something, make sure you direct them to some place where they can get what you’re offering and you can get what you need, their information. This place is usually the landing page or squeeze page.
Landing pages need not be fancy.
Simple and easy to use landing pages are enough for as long as you’re surely sharing value and it is working.The lead magnet is your way to getting a lot of leads giving way to your potential buyers.
And as we said before, the lead magnet is on the very top of the Client Profit Optimisation.
So, ask yourself, what valuable offer can you bribe your customers to give you what you need?
Here are some resources that could help you figure out your lead magnets:
Understanding this step will enable you to be ahead of most of your competitions.
Like in step 3, creating a moment of momentum is a way to increase the number of clients you have.
Though, in step 3, what we only got there were just leads and we have not generated any clients yet.
So how do we create a Moment of Momentum?
You do this by offering those leads you gathered from the lead magnet (step 3) something (this could be either information or physical) small that they can’t resist that requires them to take out their credit card and make a small purchase.
The most important thing to remember with creating a moment of momentum is that it is something that is affordable to your clients, usually pricing at $1-$20.
The goal here is to convert a lead into a client, be it small – and a happy client at that. The fundamental thing here is to make an offer that the leads cannot resist.
Remember that MoM offers do not act as a way for you to profit but a way for you to acquire a list or bunch of clients.
Yes, making MoM offers to be irresistible may cause losses to you but this is how the client profit optimisation process works.
That’s why it is important that you understand this concept of Client Profit Optimisation very well so you will not lose heart even though you are not gaining from these MoM offers.
Clients are what we are targeting at this step ... not direct profit!
MoM offers can be both physical or informational/intangible
Here are some examples of MoM Offers:
Joining the Gym for $1> A Chiropractor Offering the first visit for just $19 that would normally cost $150
GrabOne and Groupon is a website that is full of these types of deals.However, you don’t need them to create and market your own. You can see MoM offers from everywhere. That super low travel and tours all in package is a MoM.
The buy 3 get one package of yogurt at the mall is a MoM.
Basically, the game is converting your leads into paying customers even if it may cost you with the understanding that you are acquiring paying customers that will deliver profit following the 5th, 6th and 7th step.
A brief recap of the four steps in this infographic:
.Now we go to those steps that will help you become unstoppable.
Step #5: Giving your market a Core Service
Reading the word ‘core’ would already give you a hint on what we mean by this step.
Core service simply means your main service that you offer to your target market.
You don’t necessarily need to profit in this step.
This is a step that you take without fear once you understand the process.
Core services may or may not give you profit. But don’t worry.
It is a way to acquire more clients, and with the 6th and 7th step, a way for you to gain a lot of profit.
To tell you the truth, a lot of the most successful businesses in the world do not make any profit until they get to the 6th and 7th steps, Profit Maximizers and the Return path.
Now, we are here where things get juicy.
Step 6: Offering a Profit Maximiser
Offering lead magnets and MoM are ways on how to increase the number of clients, now we go to increasing the average transaction value per client which is the second stage in growing your business.
It’s not really shocking to know that those businesses that closed down lost sales because they only focused on their core products.
Here are some fun facts:
McDonalds do not get profit in selling hamburgers, their core product, but what makes them earn a lot is on their fries and coke add-ons – these are their profit maximisers.
Core product – Hamburgers. Profit Maximiser – Coke and Fries.
How can you make your own Profit Maximiser?
Think of your core service and what deals you can add to it so you and your client can both benefit?
Think and you’ll be unstoppable in hitting your sales goals.
Step #6 isn’t the end step.
We go to:
Step #7: Create your Clients’ Attraction Path Back.
Like we said awhile ago, there are three ways to grow a business:
- Increase the number of clients (Lead Magnets and MoM)
- Increase the average transaction value per client (offer a Core Offer and Profit Maximiser.)
- Increase the frequency of purchase by the client
For number 3, we increase the frequency of purchase by the client through step #7 which is creating an Attraction Path Back.
By creating a path back, we mean maintaining your communication and good, effective customer relations.
Also, keeping your marketing working.
In step 3, you were able to capture your clients’ email and info, then you can implement email marketing – letting them know of your offers and at the same time, letting them feel that you appreciate them through exclusive discounts and occasional greetings. Email marketing here is safe since permission was given by them when they sent you their personal information.
An effective return path increases your customer’s purchasing frequency – which is very beneficial to you.
Are you reaching out to your existing customers well?
Are your ways working?
Last tip: Read this over and over again.
Understand the steps and you’ll surely double your profit.
Do you still have questions?
By all means, ask away and I’ll see you in the comments!