Editor’s Note: this is the third post in a series on how to explosively grow your audience-based business. Hassan had so much to say on the subject that we asked him to write 3 in-depth posts all about how to grow your business!
Do you ever feel like your audience based business isn’t living up to its potential?
Your fingers ache from creating killer content, you’re burnt out from all the networking you’re doing, and your brain is numb from thinking of new ways you can help your audience.
But you still feel as if your business could be better. You feel as if your audience could be bigger, your relationships stronger, and your profits higher…
The first step to living up to your business potential is to generate more leads. And thanks to the strategies in part one of this series, you’ve got loads more people viewing your website, product, or blog.
The second step to explosively growing your business is to increase your conversions, which is the percentage of people that buy from you. We covered that in part two of this series.
This week, it’s all about profit per sale.
Growing Your Business Means Increasing Your Profits Per Sale
Once you’ve increased the size of your audience, and the percentage of that audience that buys from you, the final step towards rocketing your audience-based business to unbelievable heights is to increase the amount you earn from each sale.
Here are 6 ways to explode your profitability by increasing your profits per sale.
Profit Tactic #1: Skyrocket Sales 300% by Rewarding Your Audience
Rewarding your audience for purchases or referrals boosts their loyalty and makes them feel valued. This can drive your profits through the roof.
A case study from Marketing Sherpa demonstrated how Sony used a reward-based strategy to increase the use of their “Sony Credit Card.”
Sony could have simply sent out emails politely asking users to use their Sony credit card, but that probably wouldn’t have had much effect.
Instead, in the emails they used for the campaign, Sony highlighted how “the cardholder could receive up to $250 in rewards and $100 credit for any friend referred.”
This simple reward based strategy “rewarded” Sony with a 300% conversion boost and 2.8 times more people using their card.
You can do the same in your business.
Reward your audience with great products or services like free content, 1 on 1 coaching, or gifts.
Show that you appreciate their business, and they’ll show their appreciation by buying more.
Take any offer you have, and add a generous reward for buying in. It could be an exclusive interview, a special report or a steep discount. Think of what your audience would value most, and proceed from there.
Profit Tactic #2: Wow Your Audience Into Buying by Treating Them Like ClientsViewing your audience as your clients, not your customers, can trigger amazing changes to your business.Click To Tweet
Before going into why, let’s look at the difference between the two.
Customer: A person who purchases a commodity or a service.
Client: A person who is under the protection of another.
When you regard your audience as your clients, who are under your protection, things really start to flourish.
This is where “getting into bed” with your audience pays gigantic returns.
When you understand the real reason behind why people do business with you, you can serve them better than anyone out there.
For example, if someone is hiring you to write blog posts: what are they really after? They’re not buying words on a page. They can do that themselves.
The reason they’re handing over their hard-earned money is for the rise in conversions, the avalanche of traffic, the ecstatic readers, and the extra thousands of dollars a month they feel all this will bring.
That’s what they’re really buying. So that’s what you should focus on delivering.
That’s what it means to put your audience under your protection. When you do that, you become a mentor, a teacher and a guide – not just another salesman.
When your audience sees you as a mentor and a guide, they’ll be delighted to purchase more services and products more often, because they know what you’re offering is of tremendous benefit to them.
Are your clients (ie your audience) coming to you for marketing advice? Help them get more business. Are they visiting you for nutritional information? Help them get healthier.
Think about their end goal and help them achieve it, before they ever become a paying client.
Profit Tactic #3: Provide a Service That Brings You Recurring Revenue
Well-known copywriter Ben Settle charges $97/month for a private newsletter that gives inside knowledge on copywriting and business and keeps readers up to date with the latest business discoveries he makes.
Freelance blogger Tom Ewer recently launched a subscription product called Paid to Blog. It’s a membership site that compiles tons of quality writing jobs from the internet and lists them all in one place.
Consultant Derek Johanson created CopyHour, a yearly subscription service for people who want hone their copywriting chops. The service collects the best old-school and modern sales letters and emails you one ad a day, along with an explanation of why the ad was effective.
What do all those products have in common?
All of them give audiences access to valuable tools and resources that help them get closer to their goals – while also providing the creator with recurring income. These products have real value behind them, and that’s what you should aim to give if you want to launch a recurring service.
Talk to your audience before you sell anything. Find out their most urgent pains and create something that gives ongoing support around those problems.
Recurring value means recurring income.
Profit Tactic #4: Boost Revenue by 40% With Up-Sells and Cross-Sells
First off, let’s define the difference between an up-sell and a cross-sell.
Up-sell: Get the customer to spend more money by offering a more expensive model or adding features.
Cross-sell: Get the customer to spend more money by adding more purchases from other categories.
A case study by SAS showed how one insurance company used up-sells and cross-sells to increase their revenue by a shocking 40%.
That’s a huge deal.
If your audience is already purchasing from you, they’re already investing time and attention in you and your products. They’re already trusting you to serve their needs, which means they’re more likely to buy from you again.
Are there any additional products or services you can add that complement your main product or service? Can you add more time and volume options to your services or products?
Could you add more quality? Bonuses? Be creative.
Take your current products and services, and think about how you can add value. For example, if you’re a copywriter, you could critique copy or coach others on how to write copy. If you’re a writer, you could coach others on how to write, create products that teach writing, or critique other people’s writing.
Profit Tactic #5: Ramp Up Prices by Learning Your Value and Raising Your RatesIf you don't know the value of what you’re offering your clients, you’re leaving piles of cash on the table.Click To Tweet
When you know the exact value your service or product has for your clients, you have way more room to play with when it comes to pricing.
Still not sure how this means you can make more cash? Consider this example.
Let’s say you’re a consultant that helps luxury cruise ships sell more tickets. When you started your business, you took a peek at what your competition was charging. You saw their prices, and settled with what you thought was a modest fee of $1000 for your consulting services.
But you never looked into how much you were actually increasing income for your clients.
Now, business is going good, but you feel it could better. After a bit of research, you decide you want to raise prices to boost profits.
After researching how much money you make your clients, you discover that each new customer you get for a client equals an extra $2000 dollars in profit for them.
And on average, you secure five new customers a month for your clients.
This means you’re slamming down an additional $10,000 into the pockets of your client.
After realizing this, you double your prices, explaining to your clients how they’re paying you $2000 to make $8000.
Let’s be honest, some clients will leave.
But most of your clients will see the $8000 value that you’re bringing them, and they’ll happily do business with you at that price. Meanwhile, you’ve doubled your profits — instantly, with no extra effort.
Are you a freelancer? A coach? A mentor? A consultant?
Regardless of the type of audience based business you have, or the service or product you’re offering, pricing your services based on what your competition charges could be costing you big time.Know what your services are worth, and get paid for what you’re worth.Click To Tweet
Pick your main service or product and interview 3-6 of your clients. Find out how much value your service adds to their business or their life. Once you know the average amount of value you bring to the table, you can raise your prices without feeling sleazy.
Profit Tactic #6: Eliminate Risk to Inspire Undying Loyalty for Life
I want you to imagine you’re a farmer, and that you want a pony for your little daughter.
There are only two for sale in your town. Both ponies are exactly the same.
The first man tells you he wants $600 for his pony. Take it or leave it.
The second guy is selling his for $785. But, the second man also tells you he wants your daughter to try the pony out for a month before making any decisions. He offers to deliver the pony to your home, along with a month’s worth of hay to feed the pony.
He’ll even send a stableman once a week to show her how to care for the pony. He then tells you that after 30 days, he’ll take back the pony and clean up the stall if you’re not satisfied. If you are, he’ll ask for the $785 then.
Which one do you think you’d choose?
There’s no competition.
You’d be losing out if you didn’t take the second offer.
And that’s the way you want it to be for your clients.
You want the value of what you offering to be so insanely good, they’d be crazy not to choose you.
If you go out of your way to make sure you’re giving your clients the best value they can get, and then you take all the risk yourself so they experience no risk whatsoever, then…you won’t have clients for long.
Instead, you’ll have loyal friends who buy from you. Who trust you.
You’ll have a raving audience.
Remove the risk of buying for your audience. Make doing business with you so good it would be stupid to deal with “the other guy”. If everyone else is offering a 30-day, no-question return, make yours a 60-day, no-question return. If everyone else offering a full money-back guarantee, offer a double-your-money-back guarantee.
You get the idea.
Reversing risk better than anyone else makes you feel like the safer option. Plus, your confidence in your services will generate interest, which means you can charge more.
Your Audience-Based Business is Waiting to be Nourished. Are You Going to Feed it?
When I started this post, I asked if you felt that your audience business wasn’t living up to its potential. You shouldn’t feel that way any more! Through this post, as well as the previous posts in this series, you now have 17 ways to generate more leads, convert those audience members into sales, and increase your profits.
In other words, you now have “consultant-like” inside knowledge (more than enough to be dangerous) on how to create radical changes to your audience-based business, blasting it to stratospheric heights.
Your next step?
Pick one strategy and work with it.
Nothing more, and nothing less. Do this, and business growth is inevitable.
Which of these tactics resonates most strongly with you? Are you having trouble with some of the growth strategies laid out in this series? Let’s chat about it in the comments down below!