On Monday, I said I’d tell you how I’m applying the 3 laws in my own business.
But first, I need to apologize…
Instead of explaining what the “3 ways” were, I jumped straight into talking about split testing.
Oops!
So first, let me explain the 3 ways to exponential growth:
#1 – Get more traffic
#2 – Convert more traffic into customers
#3 – Get each customer to spend more
(ie. increase lifetime customer value)
Simple, right?
If you want to grow your business or a client’s business, work on one of these three areas.
Get 20% more leads and you get 20% more business.
Ditto for 20% more conversions and 20% more lifetime customer value.
Here’s where the exponential growth comes in –
Suppose you have a business that does $100,000 a year in sales.
If you increase all three areas by 20% (traffic, conversion, lifetime value),
you get a NET increase of 172.8%.
Here’s the formula: $100,000 x 20% x 20% x 20% = $172,800 = +72.8% growth
Look at your business, or a client’s business, with this perspective.
Because chances are, there are some simple, easy actions you could do to bump each area up a few points (and so create exponential growth).
Plus, you need to STOP doing anything that doesn’t affect these areas (if it must be done, delegate it).
YOUR primary value – as the entrepreneur and marketer – is to be the visionary who identifies what needs to be done to grow the business and create profits.
Plus, have a helluva good time doing it (life ain’t worth living if it’s not fun!).
In 2014, here’s how I’m applying these insights:
- Regular split tests on key pages on my website (law #2 – convert more traffic)
- Launching more products and a recurring model (law #3 – increase lifetime customer value)
- More podcasts, more often (law #1 – get more traffic)
- More podcast interviews on other people’s podcasts (law #1 – get more traffic
- Several high-price products and services, like VIP coaching (law #3 – increase lifetime customer value)
It’s simple.
Easy.
But don’t dismiss it for its simplicity…
I promise you – when you look at your business through these eyes, you’ll never look at it the same way again.
And in a year’s time, with a bank account full of cash, you’ll send me a handwritten note to thank me for introducing the idea to you.
Ha!
🙂
Now go work the 3 laws.
John, The Autoresponder Guy
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