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Ratcheting Up Your Revenue (Part 4): More & Better Buyers & Referrals

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This presentation is part of the Revenue Ratchet series from Freedompreneur Coaching & Consulting dedicated to highlighting key principles of rapid revenue acceleration.

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Ratcheting Up Your Revenue (Part 4): More & Better Buyers & Referrals

  1. 1. Ratcheting Up Your Revenue (Part 4): POWER PRACTICES FOR GETTING MORE & BETTER BUYERS AND REFERRALS
  2. 2. 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 year.  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.
  3. 3. 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 variables.  Two of these variables were addressed in previous blog posts:  Buy more often, getting customers to come back for more.  Buy more at one time, increasing the average transaction size, increasing the average purchase at one given time.  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.
  4. 4. Pros and Cons of Getting More & Better Buyers and Referrals  PROS  Many resources and options are readily available  A good referral system synergistically complements a new buyer acquisition system  Many elements and options can be automated or semi-automated  CONS  Takes the most effort and money  Long period from contact to buyer (in general)  Easier to work with buyers who already like, know, trust, and value you (using the other two revenue ratchet strategies)  Over-emphasis on new buyer acquisition may cause business to ignore the other revenue ratchet strategies)
  5. 5. POWER PRACTICES for Getting More & Better Buyers and Referrals
  6. 6. Power Practice #1: Define who is your ideal buyer
  7. 7. 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 price-sensitive. 6. They are readily accessible to you. 7. They are clients, customers, and patients that you would love working with. 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.)
  8. 8. 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 Recommended Reading
  9. 9. 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.
  10. 10. 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 with you.  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.
  11. 11. Power Practice #5: Use your strongest educational marketing channel(s) 1. Referrals 2. Networking (in-person or virtual) 3. Speaking (in-person or virtual) 4. Writing 5. Direct outreach (direct mail, calls, etc.) 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.
  12. 12. Power Practice #6: Effectively communicate the value you provide
  13. 13. Clarify Your Value Proposition 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?
  14. 14. 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
  15. 15. 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 OFTEN  RATCHETING UP YOUR REVENUE (PART 3): 5 POWER PRACTICES FOR SELLING MORE – ENTICING YOUR CUSTOMERS TO BUY MORE EACH TIME THEY BUY
  16. 16. Free Actionable Rapid Revenue Acceleration Advice  Start accelerating your reach and revenue by joining FreedomCore, your FREE basic Rapid Revenue Acceleration membership www.Freedompreneur.com
  17. 17. About George  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.

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