businesses small. Let me clear one thing up: It’s okay to make a mistake or even fail at something. What’s not okay is not being introspective and failing to take responsibility for the mistake. You need to understand what you could do differently next time. If we go further, we could take the additional leads that didn’t buy whatever product or service they originally contacted you for and make another offer. Maybe we make an amazing offer 60 days or 90 days after the nor- mal sales cycle. We could offer a downsell from the core product or a totally different product and service from what they originally came to us for. We could even make affiliate offers as a way to get a return on the investment we made to generate the leads in the first place. All of these strategies would have the effect of bringing down your overall customer acquisition cost and, believe it or not, actually in- crease sales of your core prod- uct or service. We could keep going and dig into what you do once they be- come a customer and how you handle increases in the num- ber of visits per year or number of items they buy from you. We could easily talk about decreasing customer churn and the massive impact it has on profits, but we will have to save that for an arti- cle for another day.
Once you’ve done a mindset re- set and refocused your personal mission on buying back your free- dom and time while increasing your net worth, you have to make an adjustment to how you make decisions both personally and professionally. This mindset shift is key before we get into tactics because it changes how you view all areas of your business, from sales and marketing to opera- tions. etc. There is a really good book called “Built to Sell” that goes in depth on this subject. In a nutshell, every decision you make should, at a minimum, take into consideration if the deci- sion you’re making, the direction you’re heading both personally and professionally, or next quar- ter’s goals will buy back more of your time and/or either increase, decrease, or have no impact on the resale value of your busi- ness. This shift is the first step in helping you scale and grow your business because it changes how you operate and make decisions from the mindset of a small-busi- ness owner or technician to that of a CEO. The next area is how to get all you can from all you’ve got. For this example, think about the average number of leads you get per day, week, or month. On average, if you get 100 new leads, what percentage of them buy? One simple and easy way to see a mas-
profits on the existing leads you’re already getting. By work- ing on improving your close rate or offering additional products and services to leads that didn’t buy, you may spend a little extra money in nurturing the leads. But compared to what it costs to get a new lead, done correctly, your overall cost per new sale will ac- tually decrease. As an example, if you spend $100 to generate a qualified lead, but you have a close rate of 15%, your cost per new cus- tomer would be $750. Instead of forgetting about the 85 leads that didn’t buy, if you invested an average of $2 per month per lead for a year, and over the year, you closed an additional five sales out of the original 100 leads, each of the five extra sales you closed would only cost you $408 per sale. If we use dollar cost-averag- ing, your cost per new customer would decrease from $750 down to $665. We could even take it a step further and offer addition- al products or services that may interest the leads that didn’t buy and further reduce the cost per new customer of your core offer- ings. When I lay it out like this, it seems so simple. You may be wondering why you haven’t done this before? The answer is also simple: It requires an investment in nurturing those leads, and most business owners are scared of investing in nurturing because it is difficult to track the exact ROI. They’re scared it won’t work perfectly from the start, losing them money. This fear of making a mistake, losing money, invest- ing and giving your investments time to grow, and the difficul- ty measuring the effectiveness down to the penny is what keeps
sive increase in closed deals is to focus on how you can close more sales, generate
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more rev- enue, and increase
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