Graham McGregor is a marketing consultant who runs Simple Marketing Answers.
OPINION: Most of us would like “improved revenue” in our business in 2022.
In other words, we would like to receive more money this year than last year.
However, not all income is the same. In my opinion, there are two main types of income that we can achieve in our business.
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Enter a turnover: We can make new sales to new customers or customers.
This type of income is something that many businesses spend most of their time and energy on.
We do things to create new customers who will spend money for the first time on the products and services we offer. The downside of type 1 income is that in most cases it takes a lot of effort and isn’t very profitable.
Imagine you have a retail store: Your goal is to bring 10 new people per month to your store to spend money with you. How are you going to attract these new people to your store?
In most cases, you’ll need to do some kind of marketing to let these people know about your store and then want to visit it in person. This will cost you money and/or time.
So whatever money your new customers spend in your retail business, you will have costs that you will have to withdraw. This reduces your profits. Now many businesses need to generate type one income.
Especially when they are just starting out or are relatively new in business.
However, there is also another type of income.
Type two incomes: This is where you make new sales to existing customers and customers.
In most cases, this requires very little effort, but can make a huge difference to your results.
Let’s go back to the retail store example for a moment: And just imagine that with a simple 30-second formula, they could get ten customers every week to buy something extra and make a profit of $10 on it.
In other words, they did a simple point-of-sale upsell after a customer agreed to buy something.
That $10 profit multiplied by ten people a week is $5,000 in new profit every year. And it only took 30 seconds with every customer who ever agreed to buy.
If you have existing customers or a customer base, there are literally hundreds of other products and services they could buy and you could make a profit on.
And the good news is that you don’t have to sell or provide most of these products or services yourself.
You can actually recommend great products and services that your customers will love and have other businesses provide and deliver those products and services to your customers.
And you receive a payment for each purchase made by one of your customers. Type two income is therefore excellent. However, you need to have an existing business with clients and customers for this type of income to work best for you.
Here is what I recommend you do now.
Indicate in dollars the amount of additional revenue you want in your business for 2022. In other words, how much more money do you want to earn in 2022 compared to what you earned in 2021.
Then decide how much of that revenue you’d like to be type one revenue where you make new sales to new customers and customers and how much of that revenue you’d like to be type two revenue where you make new sales to new customers. existing customers.
Then take action and do a few things to achieve your revenue improvement goals.
Graham McGregor is a marketing consultant. You can get his free marketing guide “The Plan B Sales Solution” at www.simplemarketinganswers.com