More on Profit Doubling (For Those Who Like Detail)
Today we have a follow-up to yesterday’s article about how to ACTUALLY double your profit.
The ninjas tell me we have received a few emails from people asking for more detail on the “how”. Specifically, requests like this:
“Ok, I can kind of see how that would help me make more money, but I just can’t wrap my head around the numbers. How can little changes add up that much? It feels like I have to do something big and splashy (and probably hella expensive) to actually double my numbers.”
Fair question. It’s usually more than a little hard to see the solution when you’re up to your eyeballs in the problem. So let’s take a look at an example which I have conveniently plucked out of thin air.
Let us look at one could double what one is making in three years.
(And yes, ideally you’d want to do it in a lot less than three years, but for the purposes of yesterday’s example, we’re using that timeframe.)
Let’s start at the beginning.
Say that the business we’re talking about doubling is starting off with some fairly unassuming numbers.
- A modest list of 1000 people.
- A modest traffic stream of 500 visitors a month.
- A modest passive income stream of $100 a month from existing products or services (in other words, people just deciding out of the blue to buy from you).
Let’s say that those numbers have been hovering there for a while now. Not going up, not going down. Nothing seems to be changing, and you’re just puttering along.
Imagine you had that kind of business.
You might be thinking “Damn, I wish I was making more money. Maybe I should do some joint venture or mastermind teleseminar with everyone I can think of.”
You might be swayed by “Super Launch List Social Media Facebook Ads Formula” webinars. After all, magic bullets look pretty magical and they promise to solve all my money-making problems. And if they cost $2000, they must be good, right?
You might be seeing the affiliate payouts for such $2,000 products and think “Wow, if I started selling THOSE things to my list I could make a lot more money.” Or, alternatively, you might think “Maybe I could MAKE a $2000 program and sell that myself! With affiliates!”
Right. Those are all possibilities.
Let us assume that you decided to go a different route and actually GROW your existing business and get your proverbial act together.
In other words …
Let’s say you started with the fundamentals.
This would involve making the decision to fix some of the glaring, fundamental problems with your business. The basic, foundational stuff that makes a business generate revenue without having to resolve to gimmicky marketing shenanigans.
You might choose to make these fixes so that you would see sustainable growth over time rather than chasing flash-in-the-pan trends.
These fixes would probably include things like:
- Making your content more finely tuned to your audience’s actual needs so that you’d see a modest increase in traffic each month.
- Making small improvements to your website so that a FEW more people each month would actually do things you wanted them to (like join your list or, say, click on your store or sales pages and perhaps buy something).
- Making small improvements in the quality of your list content so that a FEW more people each month would stay on your list or – wonder of wonders – share your messages with other people who will then sign up to your list.
We’re not talking about magic here.
We are talking about working on the un-sexy, non-flashy fundamentals of marketing.
(You know, the really boring things that actually end up making you money.)
So, while you are waiting for your favorite marketing gurus to sell you their next Miracle Cash Flood program, let’s take a look at how your numbers could conceivably go up when you focus on the fundamentals.
Soon we will show you pictures. (No, not those kinds of pictures.)
I had Dave whip up a little spreadsheet because, well, he’s Dave. If he goes too long without making a spreadsheet he gets a little anxious. So we have a little picture coming here for you to illustrate what you might expect.
Let’s start with the beginning. This is what your for-example-business looks like now.
List Size = 1000 subscribers
Monthly Traffic = 500 visitors
Monthly Passive Sales = $100
Now, let’s assume you were doing those foundational things, like making your content more targeted so that it would be more interesting to buyers. Like optimizing your website a bit so that people clicked on your store/sales pages more and joined your list more often. Like taking more opportunities to actually sell to your list via your emails.
And let’s say you achieved the following:
- You increased the rate of your new list signups by a whopping TWO extra people each month. (Not that hard if your list content becomes more targeted and you fix your website so that people are given more opportunities to join.)
- You increased your total monthly website traffic by a whopping FIFTY extra visitors each month. (Not that hard if your site/blog content becomes more targeted and worth sharing more. And we’re talking just a new 50 people here, not even increasing the rate of new visitors.)
- You increased your click-through/purchase conversion by a whopping ONE extra sale a month. (Not that hard if your site content and list content gives people – especially new people – more opportunities to buy.)
All these things could be accomplished by taking a few months to get crystal clear on what you’re selling and to whom, and to make basic improvements to your website. That, and making sure you are giving very visible opportunities on your site and to your list for people to purchase your stuff.
And let’s say the clock started today, you spent six months getting your act together and fix things, and then you didn’t do anything big or flashy or new.
And you just waited it out with the small and utterly achievable growth we just described above.
This is what you would see over three years:
Cue the spreadsheet:
(This starts on month 7, by the way, because you spent 6 months getting your act together.)
(Note the nice big numbers at the bottom.)
Now, here’s what has happened while you were focusing on the fundamentals:
You paid attention to your content so that your traffic would grow by a VERY modest 50 additional people every month.
You fixed only the WORST problems with your website (so that people would stay) and started offering people more opportunities to buy on a consistent basis.
You made it SLIGHTLY easier and more interesting to get on your list so that the rate of new signups increased each month.
(Most of your list growth actually came from the increase in traffic. If you actually tried to make your opt-in process GOOD, your numbers here would probably triple. But we’re assuming you’re lazy and overwhelmed here.)
In this case, with six months of small tweaks and loving attention, followed by doing the right things for long enough …
We have more than doubled your list.
We have quadrupled your traffic.
And we have multiplied your passive income by 30x.
(I think that’s called “thirty-tupling”.)
You did not need to “leverage Pinterest” or joint venture with people you don’t like or hawk your wares like a carney barker.
You did not need a vision board or a tech guy or a $2,000 launch course.
You did not need to double your hours and alienate your loved ones.
You just needed to try a little bit, and try at the right stuff.
See how easy that was?