This is the ONLY way to increase your online business!

[Michael Silvester]

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I just posted this to my WF Blog and I thought that you all might benefit from it!
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Hey Guys,

Michael Silvester here and I just wanted to let you
know about a very important way to keep track and
improve upon your internet marketing efforts.

I learned about this technique about 10 or so years
ago when I was offline running my own brick and mortar
businesses.

I've done it all...infact...I started my first business
when I was 16 years old doing a lawnmowing run in my
neighbourhood.

That small mowing run progressed into a gardening service,
and then eventually was sold as one of the biggest landscaping
businesses in the area in less than 18 months.

I've owned a security company, a stockfeed barn, a pool store
and even a gym with thousands of members…even a chain of
dog washing businesses.

My system works for all of the above…

And now I'm fulltime on the internet and loving it! Infact
I consult to offline businesses on how to go online and do
it properly.

I use this system when I consult my offline clients.

Now that you have a quick history about all the types of
businesses that I have owned. I want to tell you a little
secret that kept all these businesses growing so fast that
sometimes it was hard to keep up

Infact, at one stage I had 4 businesses running all at
the same time and it was my systems and this special trick
that kept them growing without me being there.

Your probably thinking...

So, what’s this got to do with internet marketing?

Lots...

Let me explain...

It doesn’t matter what businesses you have...there is only
5 ways to grow your business. And when I say business I am
talking about offline and online ways of generating income.

Here are my 5 secrets to increasing your business...

1. Increasing the leads/traffic that come to you
2. Increasing your conversion rate (turning leads to buyers)
3. Increasing your transaction amounts (the amount of times they buy)
4. Increasing your Average Dollar Sale (the amount they spend each time)
5. Increasing your Margins (the amount that you take home after expenses)

So if you break your business down and measure these
5 things then set out to improve each section you will
greatly multiply the business that you already have.

Let me break this down further for you...

Let’s say for examples sake these are your stats

Leads/Traffic = 2000
X
Conversion Rate = 2%
X
Transactions = 2
X
Average Dollar= $27
X
Margin = 20%


Leads x Conv = 40 clients
Transactions x Average dollar sale = $54

That gives you 40 x $54 = $2160

Then if your margins are 20% you have
$432 left in profit.

Not bad? No way...we can make this better...

How much do you think that you profits will
go up if we increased everything by 10%

Most people say this...

“If you increase everything by 10% your profit
will go up by 10%”...and that couldn’t be more
further than the truth.

Let’s just see what happens when we increase
each section by 10% using the stats above.

Leads/Traffic = 2200
X
Conversion = 2.2%
X
Transactions = 2.2
X
Average Dollar= $29.70
X
Margin = 22%

Instead of your profit only going up
by 10% it has jumped up to a massive
$695.74 from a measly $432

Way better than 10%...Hell Yeh!

You shouldn’t be looking at your website
stats or your offline business stats in any other way!

Most people only look at their traffic
And conversion rate...when there is so
much more!

Take Care,

Michael Silvester

P.S I hope this makes sense? I whipped it up in a couple of
minutes so there maybe a few typos etc

[SpeedDemon]

Yes, that makes a ton of sense. Thanks for writing that up, Michael.

Sometimes all of this internet marketing stuff gets so overwhelming. That's an awesome simplification of what really matters to the bottom line. And a much needed kick in the butt to see how I can improve those factors in my own business. Thanks again.

[Michael Silvester]

Glad that you liked it SpeedDemon.

Everything that we do online or in any
business will come down to one of those
5 categories.

Infact...somethings that we do will
improve more than one area in one hit!

Take Care,

Michael Silvester

[onlineleben]

Michael,
its a numbers game and I understand that, but still have a few questions/remarks:

1. Increasing the leads/traffic that come to you

The increase doesn't always come for free but has a cost associated

2. Increasing your conversion rate (turning leads to buyers)

Fully understood - the most important point in your mail. Decent programs for doing split testinig can be as low as $10. An investment which pays back almost instantly.

3. Increasing your transaction amounts (the amount of times they buy)

How do you manage that? More work/promotions on the backend? Longer sequence of your autoresponder or complete rewrite of your autoresponder messages?

4. Increasing your Average Dollar Sale (the amount they spend each time)

similar to point 3 - rewrite of your copy? Higher priced products?

5. Increasing your Margins (the amount that you take home after expenses)

How to do that? Saving cost? Getting paid better (Higher % commissions)? Systemizing your business?

Would be nice if you could elaborate a little more on some of these points.
Thanks in advance.