“Opportunity is missed by most people because it is dressed in overalls and looks like work.” – Thomas Edison
In my capacity as a consultant and coach to different businesses, I’ve become very aware of what it takes to increase revenue in a company. Growing your business, making more money, seeing more customers come in the door, literally that is what every business owner wants. I get asked all the time – what are the best strategies for business growth?
There are thousands of ways to grow a business as far as business growth strategies go. But, if you look at the bigger picture, there are only three ways to make more money in your business. That’s it. So, read over these and decide where you can focus your time and efforts to start making more right away.
1) Sell Your Product/Service To More People
This one wins the prize for most obvious. I call it “More People.” It’s what everyone thinks of when they want to make more money. I fall into this trap all the time time, even in my businesses. Man, we think, if I could just get some more customers I would make so much more money! And yes, that is true. You can earn more income by selling your product to more people.
But, how do you go about selling to more people? Let’s look at a few strategies.
The first and most obvious is to get more traffic either coming in your store or visiting your website. Do this by buying ads, focusing on SEO strategies, billboards, or other traffic getting methods. As your spend more on traffic, for example, this will bring more people to your website. As people come to the site, a certain percentage will take an action and buy something. And just like that, you’re making more sales and hopefully more money.
Another often overlooked traffic source is your email list. You may have prospects on a newsletter that you could email to come to your site again. You could send them to an article or read about a special sale you are running. This is just another way to get eyeballs to your offer.
2) Sell Your Product/Service For Higher Prices
Now we’re cooking with grease. This is one way to really make business growth happen FAST. I call this one “More Money.” This strategy wins the award for the causing the most fear in business owners. Business owners have a fear of charging higher prices because they believe it will hurt sales. While this is always possible, it many of my experiences (selling digital ebooks/audios/videoes), I have often found the opposite to be true. As I split test different price points, I tend to sell more when the price is higher. I’m not talking huge numbers here, but usually $37 will outperform $19.
My theory on this is perceived value in the mind of the customer. I call it the Seven Dollar Steak Theory. Do you really want to eat a $7 steak? The price tells us what we need to know about the quality of the product. A $50 steak (we would hope and assume) will taste way better than a $7 steak. Let’s bring this back to you and your business.
If you’re currently selling something for a certain price, try to raise that price. All things being equal, whatever amount you charge above what you are charging now should be NET PROFIT right to you. And that’s huge. I don’t know any strategy as useful as this one. Charging more doesn’t add to your expenses. You are spending the same on ads, the same on customer service, the same on fulfillment, etc. All you’re doing is lining your pockets with more money.
It’s a bold move – but the rewards are incredible.
If you’re going to do this, here’s how I recommend you roll it out. Start with split testing the higher price on just a portion of your orders. Or, and this is mainly for online orders, let the new price point run for at least 1000 visitors. See how sales held up. Most will find that there was no drop off in sales at all. And cha-ching, there’s extra money in your pocket.
A few things to watch out for:
- If you raise it too much, and sales suffer, go back. Just try a smaller increase. No harm, no foul. You have to test to find what the market will bare.
- Feel bad about raising your prices or feel like it “won’t work for your business”? Easy. Add some valuable bonuses that help justify paying more in your customer’s mind.
- Still afraid? – Just do it. Let it run for a day or two. See what happens. You can always return to business as usual whenever you want.
[shareable text=”Feel bad about raising prices or like it won’t work? Add valuable bonuses to justify paying more in your customer’s mind. “]Feel bad about raising your prices or feel like it ‘won’t work for your business’? Easy. Add some valuable bonuses that help justify paying more in your customer’s mind.[/shareable]
3) Sell Your Current Customers More Products/Services
And here we are. If you’re selling to more people, and you’re charging more money for your product… what else can you do? That’s right. Sell more products and services to your existing customers. This one is summed up simply as “More Products”. This strategy wins the award for making you hustle. I never said making more money in your business would be easy right? But, when the extra coin is rolling in – it will definitely be worth it.
“The longer you’re not taking action the more money you’re losing.” – Carrie Wilkerson
Here’s how this business growth strategy works. You have customers buying from you right now, presumably. The great thing about people is they LOVE to buy stuff. And once they’ve bought from you, they are like a gazillion times* more likely to buy from you again. It’s just the nature of us humans. And because they have already bought from you, you already know they want what you’re selling.
So, what to do? Expand your product line. Think of every possible angle. If you sell shoes, sell socks. If you already sell socks, add shoelaces, or offer to lace them for the customer in the store, or a shoe of the month club, or a shoe cleaning plan, whatever. This is the part of the show where you start getting creative. If you want some help, google shoe stores and see what else they are offering. I know this from years of experience. If you offer it, someone will buy it. We aren’t talking everyone, but someone. Even if it’s a very small percentage. It all adds up.
So, if you want to make more money, keep adding more things for sale. An easy way online to instantly make more money is to add an upsell offer right after your initial order. Some people hate this, I know, but man does it work wonders. Instead of redirecting to the receipt/thank you page after the order, send your customer to an upsell page that offers them one more thing to purchase.
It’s the online equivalent of grocery store checkout lane. As you stand there to check out, you are forced to stare at candy bars, gossip magazines, and ice-cold drinks. We’re already going to buy stuff anyway, so why not throw in The National Enquirer and a Butterfinger?
Bonus Jonas) The Easy Way To Add More Products (Another Business Growth Strategy)
Ok, sometimes people want the easy way out. I know that’s not you. No, you always work hard and don’t ever look for a shortcut. But, I’ll go ahead and write this for those “other” people who want something quick and easy to add a few bucks to their bank balance.
If you don’t want to source other products or heaven forbid, create them from scratch, there is an easier way. You can sign up as an affiliate to promote other people’s products. There are tons of affiliate sites out there, here’s a list of some of the top ones. But, you can easily register here and just send your existing customers to these offers. If they buy it, you get paid.
The key here is that you make sure that what you are promoting makes sense to your customer. Common sense, I know, but if you sold your customer a shoe, don’t email them an offer to buy a gun. Try your best to find like-minded offers. A good example would be if you sold women’s shoes, you could probably send an offer about a make-up guide.
You also don’t want to overdo it. But adding little things like this can add more money to your business (and to you) fast.
*Not a real stat
Herbert Popolow says
Interesting. I hope it really does make me money in the bank.