The Only Three Ways to Make More Money in Your Business

by Chuck
(MD)

In my opinion, there are really only three ways to make more money in any business. We will cover each method in more depth below:

1. Get More Customers: This is what most entrepreneurs focus on. And I believe this is the worst strategy of all. Most entrepreneurs will take your money and forget about you. They will spend the rest of their time trying to find new customers.

2. Increase the Cost per Transaction: This is a smarter way of doing business. Let’s suppose that you only monetize your website with AdSense. You get 300 visitors per day, which generates 6 clicks. Each click pays you $1. So 6 clicks equals $6. That means that your per visitor transaction is $6 income/300 visitors, which equals $.02 per visitor.

Personally, I think that’s pretty bad. But, many entrepreneurs will take it, and not try anything else. As an alternative, you could find one affiliate product to promote on your website that pays you $30 per sale. Of the same 300 visitors per day, you now make 1 affiliate sale, in addition to your AdSense income. Your new per visitor value is $6 from AdSense + $30 from affiliate product equals $36 revenue/300 visitors equal $.12 cents per visitor. Just by adding one more monetization stream you to your business, you increased your value per visitor by 6 times. What would happen if you could find a few other good products or services?

3. Lifetime Value of a Customer: In business, the big money is in the follow up. Most business owners make two costly mistakes. (1) They don’t market their new products and services to their existing and former customers and (2) they don’t follow up consistently forever, until the person dies or asks to be removed from their mailing list. If you follow up consistently, and you can increase your lifetime value per customer by $100, and you have 1,000 customers, you would add an extra $100k on your bottom line. That’s huge.

Whether you are building awebsite business, a MLM business, or a traditional business, never forget this advice. You should focus on all three activities, not just # 1. I hope that helps.