Ways to increase revenue for your small business in NDAs

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- How do you make more money? Or how do you increase your revenue, or better yet, profits? You know, I believe that profits solve all problems. In this video I'm gonna share with you guys my experience in learning how to do those things. How do you increase the amount of money you make in your business? How do you grow faster? And it was really through this kind of challenge I went through my last company, Clarity. Clarity is a marketplace for entrepreneurs to get expert advice from other entrepreneurs over the phone, kind of like AirBnB for entrepreneurs. And you know, the business model was that we took a 15% transaction fee, but the truth is, once we ran the numbers, we realized we needed to increase the lifetime value of a customer. That is, the value of a customer over time based on their current pattern of purchasing. So, what I wanna share with you guys, is the lessons that I learned spending months studying, understanding pricing and really figuring out there's only three different levers that you can pull to increase your revenue, increase your growth and ideally, increase your profits in your business. The first one is to charge more. It sounds crazy 'cause I lot of you guys are thinking well, if I charge more my customers will leave. And you know what, maybe some of them will. Maybe 10% may do that. But I would challenge you and my argument for you is, ask yourself what value can I create for my customer if I only increase my prices by 10%, what value could I add to make sure that that's justified? And that's the best question you could ever ask yourself is how can I add more value to justify the increase in price? So, the first lever, the easiest thing you can do is just put your prices up by 10%. The second one, is increase the average transaction size for purchase. And that means, you know, if you're currently selling something, it's $100, how can you make the average transaction size 10% more, so $110. And the way the thing about that is, ask yourself, what are the other challenges that you're customers might be dealing with? If they buy your product, what are other things that they might need, because you know if they're buying that product, they're on this journey that you can bundle or add to that purchase. You've seen this, I mean, the ultimate, if you want to see this in real, live action, is Go Daddy. Go try buy a domain and walk away with just the domain. You know exactly what I'm talking about. They've really perfected this idea of an up sell and a down sell and those are all there to increase the average transaction size of a purchase. It's not about a $20 domain. It's about the hosting, the email support, the design work. Whatever you need, they've really figured out how to increase that because the more you increase it, the more profit you're gonna have, the more margins you're gonna be to reinvest into your business. The third thing you can do is increase the amount of times a customer purchases. Right, so if you think about it, on average maybe a customer purchases one time a year, you gotta ask yourself, what can you do, in your business, that would increase that to, even again, I like the number 10%, what if you could increase it to one point one. What would need to be true? What could you offer? What would that look like to increase the amount of times they purchase? Because check this out, this is some really cool math. If you can get your price up by 10%, you can increase the average transaction size of that first purchase by 10% and you can increase the amount of times the customer buys by 10%, you can grow your business by 33% this year just by doing those three strategies and that's what I wanna share with you guys and get you really excited about the opportunity ahead of you to really take your business to the next level. To really think about strategically, those key areas to really get the most revenue out of your business. So with that, if you know somebody that needs to see this video, please share with them so they can get this information. I also ask you to like and comment on the video with your questions and I wanna challenge you, as per usual, to live a bigger life and a bigger business and I'll see you next Monday.