The ONLY Way to Improve your online Business
Posted 17th August 2008 at 10:09 PM by Michael Silvester
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 wit thousands of members.
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.
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, whats this got to do with internet marketing?
Lots...
Let me explain...
It doesnt 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.
Le me break this down further for you...
Lets say for examples sake these are your stats
Leads/Traffic = 2000
X
Conversion = 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 couldnt be more
further than the truth.
Lets 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%
Intead of your profit onnly going up
by 10% it has jumped up to a massive
$695.74 from a measly $432
Way better than 10%...Hell Yeh!
You shouldnt be looking at your website
stats in any other way!
Most people only look at their conversion
rate...when there is so much more!
Take Care,
Michael Silvester
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 wit thousands of members.
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.
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, whats this got to do with internet marketing?
Lots...
Let me explain...
It doesnt 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.
Le me break this down further for you...
Lets say for examples sake these are your stats
Leads/Traffic = 2000
X
Conversion = 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 couldnt be more
further than the truth.
Lets 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%
Intead of your profit onnly going up
by 10% it has jumped up to a massive
$695.74 from a measly $432
Way better than 10%...Hell Yeh!
You shouldnt be looking at your website
stats in any other way!
Most people only look at their conversion
rate...when there is so much more!
Take Care,
Michael Silvester
Total Comments 12
Comments
-
You really make it sound so simple. I will be keeping in touch.Posted 1st March 2009 at 09:16 PM by ynoel1
- I just started my online business, what do you think about free advartisingPosted 9th March 2009 at 06:57 AM by Power-To-Wealth
-
You put it very well, and are in very good company. Jay Abraham outlines the phenomenon as well. The thing that people don't think through is that if you increase any one area by 10%, your entire picture increases by that, because each factor applies itself to the whole.
Obviously, you know all this stuff, but, for the sake of others, if I may, here's another example to stimulate the mind on what this could mean.
For simplicity (because I'm tired and lazy), let's say you've been making 10 sales a month, average $100, with $10 profit per sale. You have 500 visitors, with a 2% conversion, giving you the 10 sales. That's $100 monthly profit. Increase the conversion rate 50%, from 2% to 3%. Now, with that change alone, you're make 15 sales or $150, for a 50% improvement. Cut the expenses so you profit 50% more per sale ($15 instead of $10). Now you're making 15 sales times $15 profit which is $225. A 125% improvement for improving two variables by 50% each!
Say that excites you so much you work hard on improving your traffic, and you manage to increase it 50% also, from 500 to 750. So 750 x 3%= 22.5 sales x $15= $337! That's a 237% increase in cash profit, by tweaking three variables 50% each! Seems almost too good to be true! (I had zero hours of sleep last night, so I'm sorry if I screwed up the math, but I think it's right). Powerful stuff!
I admit I'm a newbie, so if this kind of post is inappropriate, and you want to remove it, no hard feelings. I hope my example contributed to making the principle even more real and tangible; I just get excited about it, because it almost seems magically powerful!
ThanksPosted 20th April 2009 at 07:32 PM by Greg guitar
Updated 20th April 2009 at 07:35 PM by Greg guitar (Clarity) -
Thanks for the informative post.
Breaking the detail down really helps !Posted 24th April 2009 at 11:54 PM by Easy Cash - This has been very helpful. I need to learn all I can!!!!!!!!!Posted 25th April 2009 at 12:48 PM by hugginss
- This article was a very technical break down on developing a strong automated business, not specifically internet, but any business. I recently started a internet marketing company and one of my biggest challenges so far would be lead conversion. This perspective really helped, I will apply what you have shared with us in this article.
Thank You,
Jabril
CEO
Entrepreneurs WantedPosted 2nd May 2009 at 11:31 PM by BROOKLYNBRIL - I like your analysis. it's technically detailed.Posted 5th May 2009 at 01:36 PM by umoumo
- Great common sense about first principles, thank you very much! CiaraPosted 19th May 2009 at 06:03 AM by Ciara Mac Mahon
- Definitely very useful information for those who are taking a business approach to making money (which is exctly what you have to do). I appreciate hearing about your success. nice One!Posted 21st June 2009 at 01:37 AM by
- This is a great eye opener. What a business education you've got there.
Thank you.
PrincePosted 8th July 2009 at 04:04 PM by Princeng - Really senseful and good tips. Well done.Posted 17th July 2009 at 12:34 PM by Toppy
- Thanks for not hodding such a life changing info, good job!Posted 23rd July 2009 at 02:13 PM by prof2200
