Ratcheting Up Your Revenue (Part 4): More & Better Buyers & Referrals
Ratcheting Up Your
Revenue (Part 4):
POWER PRACTICES FOR GETTING
MORE & BETTER BUYERS AND
The Revenue Ratchet Formula
There is a very simple formula for calculating your revenue. Tell me the
number of clients and customers that you have in a given year, tell me
the average size of their purchase, and tell me the number of times each
customer buys from you in a year, and I can tell you your revenue for the
This formula applies to a business of one person or a business of 1,000
employees or more. The ratchet formula is: your revenue equals the
number of customers or clients that you have, multiplied by the average
transaction size, multiplied by the number of times each customer buys.
What this formula tells you…
This formula reveals a very important point: In order to
increase your revenue, you have to increase one or
more of these three variables.
Whether you’re a service business or you are a
product-oriented business, you can only influence
revenue by changing one or more of these three
Two of these variables were addressed in previous
Buy more often, getting customers to come back for
Buy more at one time, increasing the average
transaction size, increasing the average purchase at one
In this presentation, we’ll cover the strategy of
increasing the number of people who buy from you:
Getting more and better buyers and referrals.
Pros and Cons of Getting More &
Better Buyers and Referrals
Many resources and options are readily
A good referral system synergistically
complements a new buyer acquisition
Many elements and options can be
automated or semi-automated
Takes the most effort and money
Long period from contact to buyer (in
Easier to work with buyers who already
like, know, trust, and value you (using
the other two revenue ratchet
Over-emphasis on new buyer
acquisition may cause business to
ignore the other revenue ratchet
Getting More &
Power Practice #1: Define who is your
Ideal Buyer Selection Criteria
1. Your audience must have a big
PROBLEM or a burning DESIRE.
2. They must be AWARE that they have a
big problem or burning desire.
3. They must have a history of spending
money to solve their big problem or
fulfill their burning desire.
4. They are actively looking for solutions
and have the money to buy now.
5. They are value-conscious rather than
6. They are readily accessible to you.
7. They are clients, customers, and
patients that you would love working
Meet all six of the above criteria and you’ll position your business to maximize its revenue and profit potential.
(You can still build a good business, by meeting only four or five of the criteria but you won’t be realizing the
potential of your business.)
Power Practice #2: Understand how
your buyers think, decide, and act
Study the hidden forces
that shape our decisions
Practice scientific principles
for being persuasive
Power Practice #3: Understand and
meet your buyers’ expectations
Buyers’ expectations = what they think they need and say they want
As an expert, it’s tempting to point out what you think they really need.
But they won’t buy what you think they really need until you first give them
what they really want!
The only reliable way to understand and meet your buyers’ expectations is
to ask them!
Once you understand your buyers’ expectations, you are ideally
positioned to create and provide valuable solutions to their problems,
needs and desires.
Power Practice #4: Adopt lifetime
educational marketing approaches
Educational marketing enables you to provide value to your prospective
clients and customers even before they contact you or decide to work
Education-based marketing is a “lifetime approach” because the ways
you educate and inform your audience continue to work for you long
after you initially create them.
Examples of education-based marketing, also known as “inbound
marketing,” include blog posts, videos, SlideShare presentations,
podcasts, webinars, teleseminars, eBooks, and special reports.
Power Practice #5: Use your strongest
educational marketing channel(s)
2. Networking (in-person or virtual)
3. Speaking (in-person or virtual)
5. Direct outreach (direct mail, calls,
6. Joint ventures and strategic alliances
7. Paid media and sponsorships
8. Special events & trade shows
9. Publicity & media relations
10. Internet & social media
While it may seem there are an infinite number of marketing strategies, consider that each falls under one of
these 10 general marketing categories.
Power Practice #6: Effectively
communicate the value you provide
YOUR VALUE PROPOSITION
ANSWERS THIS QUESTION:
What are the specific results,
outcomes, improvements and
experiences that my buyer
wants to get by using my
products and services?
Power Practice #7: Market and Sell
Using the “Rule of Ones”
1. Focus on ONE audience
2. ONE flagship offer (product or service)
3. ONE lead-generation source
4. ONE potential buyer engagement strategy
5. ONE buyer conversion strategy
6. ONE buyer at a time
7. ONE day, ONE week, ONE month at a time
Read previous blog posts in the
Revenue Ratchet series…
RATCHETING UP YOUR REVENUE (PART 1): POWER STRATEGIES EVERY SMART
ENTREPRENEUR NEEDS TO KNOW
RATCHETING UP YOUR REVENUE (PART 2): ENTICING BUYERS TO BUY MORE
RATCHETING UP YOUR REVENUE (PART 3): 5 POWER PRACTICES FOR SELLING
MORE – ENTICING YOUR CUSTOMERS TO BUY MORE EACH TIME THEY BUY
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Starting out as young plastic surgeon in 1995, George struggled mightily with the business side
of medicine. Overcoming those challenges ultimately inspired him to become the business
guide and mentor he wished he had when he needed a helping hand.
Disillusioned with the political and business sides of the medical field, George retired as a
board-certified plastic surgeon at the age of 40. He hung out his shingle as a professional
business coach in 2005. But other than a “shingle,” he had no business cards, website, blog,
business contacts, or success stories. Unwittingly, he became somewhat of a folk legend in
some circles after he created an annualized six-figure revenue stream in 73 days and then
doubled it by the end of the year.
These days, George helps gifted, service-oriented professionals make
more money in record-time and keep more of what they make. One of
his clients bested his revenue acceleration record (six-figure annualized
stream in 70 days) and others have come close (99-392 days).
You can learn more about George his approach to rapid revenue and
profit acceleration at www.Freedompreneur.com.