Google reports 1.4 BILLION results for the phrase “How to increase your online revenue” and even more for “how to optimize your sales funnel” … and most of them are wrong. (caveat … I didn’t read them all, but the first two pages miss the point!).
If you read anything on this subject, you’ll get some great advice. That advice will most likely include SEO, Content Marketing, Survey your Audience and more. All of these will help you optimize your funnel to some degree, but they are hard to get at, require a great deal of knowledge or bringing on experts in any arena. And, if they’re honest, it’s not a guarantee that they will work.
You might think that I’m against these points … far from it. If you care about your online revenue you should understand SEO, you should be producing content, and you definitely should understand your audience. But I like things easy and straightforward and my clients like strategies that are guaranteed.
So, I’ve told you the wrong way … so let’s show you the “right” way (I’m going to use the word right as shorthand for easy, quick, practical and achievable!). Sidenote: this tactic works regardless of whether you’re using Optimize Press, Click Funnels or any other web platform
Compounding Is your Friend
The answer lies in compounding returns and its one of the most powerful and misunderstood concepts on the planet. I’m sure you’ve already experienced compounding, but probably in a negative way … The growth of COVID19, your mortgage repayments and credit cards are all great examples of compounding at work. The good news is compounding can work for you as quickly as it can work against you … if you understand it.
Before we Optimize …
Let take a relatively average online funnel overview:
The above diagram shows a mailing list of 120,000 people. You send your list an offer:
- 30% open the email
- 30% click through to the proposal
- 5% agree to purchase
- 5% complete the purchase.
The results of that journey would be 27 sales.
Your Funnel After 5 Days …
Let’s see what happens if we optimize your sales funnel by increasing each metric by 10%, WITHOUT changing our initial audience size:
Now we’re talking:
- 33% of our audience open the email
- 33% click-through
- 5.5% of the audience agree to buy
- 5% of them complete the purchase.
We’re now at 35+ sales … an increase of 37%
If you take this concept further and increase your list size by 10% and your sale price by the same margin, the results are staggering … a 79% increase in revenue. Further still: reduce your cost of production by 10%, and you’re looking at more than double the profits.
The key here is to see your work effort is much smaller than if you invested in any one area … changing a 5% to 5.5% in 2 areas is much simpler and accessible than trying to get a 30% increase in any one piece of the puzzle if done correctly.
Make this the focus of your week next week. Map each step of your funnel and increase its effectiveness by 10%, then send me the pictures of what you’re going to buy with all that extra cash!
PS … struggling to work out how you find the 10% on each step? You have two choices: