In this issue, I’ll show you how to identify revenue leaks and fix them so your business earns more money.
We’re wearing many hats, and our day-to-day work can be cluttered. That’s why we often don’t realize when we’re leaving money on the table. If you implement these strategies, you can increase your revenue without increasing your workload.
Unfortunately, many solopreneurs and agency owners don’t take the time to hunt for revenue leaks. They’re focused on new clients, new product launches, and new income sources.
Let’s fix that today.
Earn more revenue from what you already have.
We’re told to hunt for new clients, create new lead magnets, set up new ad campaigns… in short, to drive new business.
But what if you already have enough leads and website traffic? What if you can do something to earn more with what you already have going on if you just knew your revenue leaks?
Here’s why people rarely talk about these things:
- Searching revenue leaks isn’t sexy. It can be dry and boring work.
- We don’t know what to look for.
- We’re so busy working IN the business that we don’t have the time to work ON the business.
- We don’t consider analyzing the “what is” as important as building something new.
Keep on reading to find an easy solution to help you identify and fix the points where your business is bleeding money.
Here’s how — step by step:
Step 1: Check for missing order bumps, upsells, and downsells.
Having one-click upsells is the lowest hanging fruit as you already have built these sales processes.
Go through your sales funnels and see if each has a one-click order bump offer. I’ve seen as much as 33% of customers take these order bumps on my virtual summits if they’re a good fit!
This 33% conversion rate means I've increased the average order value for List Building School by 23%. (By the way, List Building School is a great, free resource if you want to learn how to grow your email list and get more sales from your subscribers.)
How much more would you bring home if your average order value increased by 23%?
This is a screenshot from my ThriveCart account.
If you got those order bumps set up, think about what upsells and downsells you can add.
These are effective ways to increase the average order value and are rarely used to their full potential.
Step 2: Leverage email automation where possible to fix revenue leaks.
Too many solopreneurs and agencies rely on manual communication with their customers.
Do you have an email sequence that automates the onboarding process and explains to customers how to best work with you once they sign the contract?
Do you have an email sequence that holds people accountable for completing the course they bought from you?
What about abandoned cart recovery sequences or re-engagement campaigns?
Here are some ideas for automated sequences that can help you:
- Re-engage email subscribers who didn't open your emails in the last 60-90 days.
- Re-engage customers who didn't buy from you in the last 90-180 days.
- Recover abandoned carts.
- Onboard new customers smoothly into your programs or projects.
- Hold course students accountable for working through your lessons.
Make a list and prioritize the sequences you want to work on - don’t let this overwhelm you.
I'm doing this right now, even a year after moving to ConvertKit.
Step 3: Prioritize customer retention over acquisition.
Following a study from ElasticPath, it’s 5 times more expensive to attract a new customer than to keep an existing one.
The same study says that 44% of companies focus more on customer acquisition, and only 18% of companies focus on retention.
Existing customers are 50% more likely to try your new products and spend 31% more than new customers.
By making customer retention a priority, you create an unfair advantage over your competition.
What processes can you build to continually add value to existing customers so that they purchase from you again?
This is something I’m continually working on myself… it’s not easy but a worthwhile effort.
If you keep these three steps in mind and execute them, your business will start making you more money.
- Maximize your Average Order Value with post-lead-magnet offers, one-time offers, upsells, downsells, and order bumps.
- Set up email automation to reduce refunds, simplify client onboarding, and guide people through your course. Deliver great customer experiences.
- Know your metrics around client retention and prioritize getting repeat purchases to create an unfair advantage over your competition.
See you again next week.
Whenever you’re ready, here are three ways I can help you:
- Discover my proven process to get paid to create.
- Get more subscribers and earn more money from your newsletter with List Building School (3,900+ attendees)
- Book a 1-on-1 call to get your challenges sorted out.