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Posts Tagged ‘profit’
Sales Success Is Yours When You Track Your Leads
Sales leads are not typically covered in sales training books or courses as thoroughly as other parts of the sales process such as closing the sale. The sales process begins with generating leads, so it is important to understand as much as you can about them in order for your business to be as profitable as possible.
Are you able to name the number of leads you got over the last month? Most people can answer that question with a handful of leads that have high potential or resulted in a sale, but a large number of potential leads fall out of the process, sacrificing possible sales.
So, what’s the big deal anyway? The more you know about your leads the more successful your business will be, because generating leads is the first step to making sales. And, wouldn’t it be worth it to use some of the things you learn about your leads to cut marketing costs or the time you spend getting leads?
Your first action plan is to create a way to track key information about the ways that you generate your leads. Here are a few areas to start analyzing:
1. What is the main venue through which you get your leads? Before a lead becomes a lead, they are only prospects – someone who visits your website or that you meet at a networking group. Identify your main sources for gathering prospects, such as the Internet, trade shows, networking events, or direct advertising.
2. What “specific sources” do your leads come from? Organic search, PPC, a specific networking event, another website, response to a blog post on someone else’s blog, or a specific advertising campaign are all examples of specific lead sources.
3. Last, what quality would you rank the leads you get from the sources you defined in the earlier steps? An effective way to come up with this is to assign a percent value to every lead a source provides. So, if a lead actually results in a sale, it receives a higher percentage value than one that expressed interest but didn’t get past the proposal stage.
Once you know where your best leads originate, you will find you are able to spend your marketing dollars and your time much more efficiently.
Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” to learn about an online accounting program that makes it simple to track your leads and conversion rates.
Meet Your Sales Goals By Understanding Your Conversion Rates
Do you know the number of leads you need to generate to reach your income goals? As simple as this question might be, I’ve found very few people actually have this number in the top of their minds.
There are two factors to take into consideration. First, there are your expenses. You should make sure to have an online accounting program advanced enough to help you analyze your costs and how they relate to your profitability.
The next factor to take into consideration is how successful you are at converting sales from your leads (conversion rate). If you are successful at lead conversion, you will see a significant improvement to your bottom line.
Let’s take a look at the process more closely:
The first step is to determine your monthly sales goal. For our purposes, let’s use $100,000 as your monthly sales goal.
The next step is to work out what your conversion rates are. In order to keep this example easy, suppose that all of your leads come from your website.
Suppose you convert 2 and a half out of 1000 visitors into paying customers. That’s a .25% conversion rate.
This is the calculation you can use to determine how many visitors you will need to your website to meet your income goals. Let’s assume every conversion will actually purchase from you in order to keep it easy.
(Desired Sales / Sale Price / Conversion Rate) X 100
The formula would look like this, if you want to achieve $100,000 a month in sales, you have a conversion rate of .25% and your average sales price is $20:
($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.
Yikes! That is a lot of visitation! Luckily, there are a few adjustments you can make. You can change your price. You can change your visitation, or you can change your conversion rate.
Many begin by increasing the conversion rate. If you test a bit, it’s actually quite easy to bring a .25% conversion rate into the 1.5% or even 2% range.
Let’s look at the difference that would make using the formula:
($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.
What a difference!
By increasing your average sales price to $47, you can improve your results even more:
($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal.
Everyone would rather work smarter than harder. Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient.
Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” to learn about an online accounting program that makes it simple to track your conversion rates.
How Tracking Conversion Rates Can Help You Meet Your Sales Goals
How many leads do you need to make the amount of money you want to have in a year? While this may seem like an easy question, not a lot of people can come up with the number.
There are two things to consider regarding this question. The first is your costs. You should make sure to have an online accounting program advanced enough to help you analyze your costs and how they relate to your profitability.
The second factor is your ability to convert leads to sales (conversion rate). If you are successful at lead conversion, you will see a significant improvement to your bottom line.
Let’s take a look at the process more closely:
The first thing you will do is to work out what sales level you want to achieve each month. Let’s use $100,000 as the figure for our purposes.
The next step is to work out what your conversion rates are. In order to keep this example easy, suppose that all of your leads come from your website.
Assume that you are able to convert 2.5 visitors into sales for every 1000 visitors to your website. Your conversion rate is .25%.
Use this formula to figure out how many visitors you would need to your website to acquire enough leads to get the sales you want. Let’s assume every conversion will actually purchase from you in order to keep it easy.
(Desired Sales / Sale Price / Conversion Rate) X 100
Therefore, if you have a $20 average sales price, a conversion rate of .25%, and you want to achieve sales of $100,000, your calculation would look like:
($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.
Yikes! That’s a lot of visitors! Now, there are a few things you can do to change things. The average price can increase. Or, you can increase your visitors or the conversion rate.
Many begin by increasing the conversion rate. It is very possible to increase to ablut 2% from an original .25% rate.
Look at how that will affect the calculation:
($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.
What a difference!
You can improve things even more by raising your average sale to $47:
($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal.
Today, it’s all about working smarter, not harder. Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient.
Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” to learn about an online accounting program that makes it simple to track your conversion rates.
How To Increase Sales By Tracking Leads
Most sales training books and courses spend a lot of time on closing the sale, but very little time is spent on discussing the leads that, well, lead to those sales. The sales process begins with generating leads, so it is important to understand as much as you can about them in order for your business to be as profitable as possible.
Can you count the number of leads you received over the past 30 days? Most mentally review and can name a handful of quality leads they talked to, but a good amount of potential leads are lost every month.
What’s the big deal? Because a company spends so much time and money to get leads, the more you know about them, the more profitable the business will become. And, if you can use your newly found information to either reduce the cost of your marketing or the time that you spend, wouldn’t that be worth it?
First, you need to be able to track specific information about how you get leads. Here are a few areas to start analyzing:
1. What is the main venue through which you get your leads? Before a lead becomes a lead, they are only prospects – someone who visits your website or that you meet at a networking group. Identify your main sources for gathering prospects, such as the Internet, trade shows, networking events, or direct advertising.
2. Then, answer the question, what specific sources do you get your actual leads from? For example, specific sources could be a particular trade show, an online blog a direct advertising campaign, an existing client referral or a pay per click advertising campaign.
3. Finally, what is the quality value for each of the leads you receive from those general sources and specific sources? I have found that this is easiest to derive by assigning a percentage value to every lead received from a source. So, if a lead actually results in a sale, it receives a higher percentage value than one that expressed interest but didn’t get past the proposal stage.
You will be able to spend your marketing budget and your time much more efficiently once you understand where you leads come from and the quality of those leads.
Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” to learn about an online accounting program that makes it simple to track your leads and conversion rates.
Tracking Conversions to Achieve Your Business Goals
Do you know the number of leads you need to generate to reach your income goals? While this may seem like an easy question, not a lot of people can come up with the number.
There are two things to consider regarding this question. The first is your costs. You should make sure to have an online accounting program advanced enough to help you analyze your costs and how they relate to your profitability.
Second, you need to know how well you are able to turn your prospects into sales (conversion rate). If you are successful at lead conversion, you will see a significant improvement to your bottom line.
Let’s take a look at the process more closely:
The first thing you will do is to work out what sales level you want to achieve each month. For our purposes, let’s use $100,000 as your monthly sales goal.
The next step is to work out what your conversion rates are. Let’s suppose that all of your leads are generated through you website in order to keep this example simple.
Assume that you are able to convert 2.5 visitors into sales for every 1000 visitors to your website. That’s a .25% conversion rate.
Use this formula to figure out how many visitors you would need to your website to acquire enough leads to get the sales you want. To keep it easy, suppose that each conversion will ultimately result in a sale.
(Desired Sales / Sale Price / Conversion Rate) X 100
So, if you want $100,000 in sales and your average sale price is $20, with a conversion rate of .25%, the formula would look like this:
($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.
Yikes! That is a lot of visitation! Now, there are a few things you can do to change things. You can change your price. You can change your visitation, or you can change your conversion rate.
Many begin by increasing the conversion rate. If you test a bit, it’s actually quite easy to bring a .25% conversion rate into the 1.5% or even 2% range.
Take a look at the difference that makes to the number of visitors you need to achieve your goals:
($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.
What a difference!
By increasing your average sales price to $47, you can improve your results even more:
($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal.
Today, it’s all about working smarter, not harder. Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient.
Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” to learn about an online accounting program that makes it simple to track your conversion rates.
Conversion Rates Are the Key to Achieving Your Sales Goals
Do you know the number of leads you need to generate to reach your income goals? While this may seem like an easy question, not a lot of people can come up with the number.
When answering this question, there are two considerations. Expenses are your first consideration. You should make sure to have an online accounting program advanced enough to help you analyze your costs and how they relate to your profitability.
The next factor to take into consideration is how successful you are at converting sales from your leads (conversion rate). The more efficient you are at converting leads, the more income you will be able to make.
Let’s take a look at the process more closely:
The first step is to determine your monthly sales goal. Let’s use $100,000 as the figure for our purposes.
Next, you need to calculate your current conversion rates. Let’s suppose that all of your leads are generated through you website in order to keep this example simple.
Now, let’s say that for every 1000 visitors, you “convert” 2.5 into sales leads. You have a .25% conversion rate.
Here is a formula to calculate the number of visitors your would need to meet your monthly sales goals. To keep it easy, suppose that each conversion will ultimately result in a sale.
(Desired Sales / Sale Price / Conversion Rate) X 100
Therefore, if you have a $20 average sales price, a conversion rate of .25%, and you want to achieve sales of $100,000, your calculation would look like:
($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.
Wow! That is a lot of visitation! Luckily, there are a few adjustments you can make. You can increase the average sales price. You can change your visitation, or you can change your conversion rate.
For most people, the best place to start is conversion rate. It is very possible to increase to ablut 2% from an original .25% rate.
Let’s look at the difference that would make using the formula:
($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.
That’s a nice change!
By increasing your average sales price to $47, you can improve your results even more:
($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal.
Everyone would rather work smarter than harder. Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient.
Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” to learn about an online accounting program that makes it simple to track your conversion rates.
Complete Business and Training in a Box with NPC
Don't have a product to market? Can't create a product of your own?Tired of selling other people's products? If you didn't know already, the product owner's are the ones who make the most money in the digital product world. And with marketers today making membership sites as good as they have ever been, you don't have to spend any time at all to get your own products to sell online.
One such membership site is Niche Profit Classroom which was created by Adam Short. Adam Short first came onto the scene with his PGI membership area which later developed into Niche Quake and it now has become what it is today in Niche Profit Classroom (NPC).
NPC offers a complete Business and Training in a box membership. They offer 2 complete Niche Products every month to their members. In these niche packages, you get full Private Label rights (meaning you can do anything with them, put your name on them, change them and sell them as your own) to a complete and comprehensive ebook on the Niche, a complete website filled with content and graphics, an email follow up series for subscribers to your list, a sales letter for your ebook, keyword research on the niche, and a 21 day blueprint to success for your to follow and promote your own product.
Not only do you get these niche packages every month which is well worth the price of the membership by themselves, but you also have access to the training area that will help you in your efforts and developing your business.Also included is an NPC made keyword research tool and other helpful software for your Niche empire. Last but not least, you also have the ability to host up to 15 domains in your members area, so you won't have to pay for hosting either.
NPC has step by step videos to show you how to set up your first sites for those beginners too.With the 21 day blueprint that is provided, all you have to do is follow the step by step instructions to start promoting your niche businesses.You will not even have to decide which niche to target as you'll know it will be profitable. It takes all the guesswork out of starting a new business. These are proven and profitable niches.
For a complete Niche Profit Classroom Review and an exclusive bonus package, visit http://nicheprofitclassroomreview-bonus.com/