Instant Income - How to Generate More Instant Income This Year. Part 1 of 2
Written on the 1 January 2016 by Bill Doyle - Altitude Communications
Immediate Sources of Income
With Christmas little more than a distant memory it's time to buckle up and prepare for a big year ahead. And if you, like us, have given your credit card a workout over the festive season, then a few ideas for generating an instant stream of income would be well received.
Remember, that while these ideas are perfect for implementing now, don't forget about the rest of the year, as many of these ideas are perfect "ramp it up" ideas for whenever extra cash is needed.
So without further ado here are some strategies that you can start using right away to bring in the cash to your business and start generating more instant income this year:
The Lifetime Value of Your Customer
It's interesting to note that over the years how many business owners fail to harness the power of their most valuable asset. And no, we're not talking buildings, equipment or staff, the most valuable asset in your business is your customers/database list. After all without customers and clients, you wouldn't be in business would you?
Often, your existing customers are overlooked, relegated to the "done and dusted pile," instead of sitting pride of place, ready to be sold to again and again. Remember these people already know and trust you, so up and cross selling opportunities are 7 times easier than with a "virgin" contact.
These your existing customers are, far and away, the richest source of instant income in your business right now. The main reason why this is so important is because you don't have to cover the ongoing cost of new client acquisition. Customers have a lifetime value. It's expensive to generate new customers, day in day out, as there are a number of costs involved including advertising, marketing costs and ongoing acquisition.
Don't believe us? Then try calculating the lifetime value of one of your average customers. Here's how it's done...
The lifetime value is basically the total amount that the customer will spend with you over the entire amount of time that they are a customer less the amount it cost you to initially acquire them.
So go ahead, take a moment and have a look at your existing customer list and calculate generally, on average, what a new customer will spend over the lifetime of your products and services.
Then remember to add in how often do they come back to you? Is it weekly, monthly, fortnightly or yearly?
The next step is to try to calculate the profits on each one of those sales. From there you can decide how much of that profit you'd be willing to invest to acquire new customers on an ongoing basis in the first instance. Once you're doing some basic calculations, you'll discover that your existing customers are, by a long stretch, the most valuable asset in your current business, and one of the quickest ways to develop an immediate source of instant income.
Here is a quick formula to determine the gross product from all customer purchases:
A.Take the average customer's lifetime purchase in the gross dollar amount.
B. Subtract the cost of the goods sold, or services or products provided
C = The gross profit from all of your customer purchases.
Here's an extra tip: Check out the average frequency of purchase and see if there's any way you could increase the number of purchases that your client makes. It doesn't have to be a major purchase for it to add up to big dollars on your bottom line. Think about things like reminders to buy, new versions of their existing product, or until further notice replacement deals. The options are really endless but it will all lead to more contact and a higher level of ongoing communication with you valued clients.
Keep in Constant Communication
One of the most powerful ways of gaining on-going trust nd increasing your authority with an existing customer is by way of regular on-going contact communication. You need to be able to give them a reason to do business with you again and stay connected with them. That's where many business owners fall short.
Now, staying in constant contact can be an expensive proposition. Not only in the cost of getting the message to your customer, but also in the time to communicate with them. In order to minimise this expense, we recommended that you invest in a quality email marketing system like www.FasttrackEmailMarketing.com
It is one of the most cost effective forms of on-going communication, and a professional system such as FastTrack eMarketing allows you to simply and easily segment your customers into pre-defined groups and then automate the communication with them.
Here are just some of the benefits...
Increase referral rates and new customer numbers
Boost business performance
Increase your sales volume
Up-Sell your products and services
Reduce your marketing expenditure
Reduce response times with pre-written, professionally drafted sales letters
Shorten your sales cycle
Educate your existing and prospective clients about new product releases and services
This means that your on-going communication is "set and forget" effectively creating a silent sales person that sells your product with little if any intervention from you or your sales team.
Here's an example of what we mean "Remind your customers when their product is due for renewal, or up-sell them to any on-going services that you may offer such as coaching and continuity programs that you may have."
You could also consider rewarding your customers for staying in contact with you by offering them something that costs you nothing to deliver, like a free e-Book, or an online MP3 recording. Have a think about what you could provide to your existing customers for free that has a high perceived value, but is not at a discount and is not expensive to deliver.
Take a moment to answer a couple of questions:
1. What is one of your typical client or customer's biggest problems that they face?
2. What could you provide to help your customers solve the above-mentioned problems and to take advantages of some of the opportunities that you're offering?
3. How could you easily let your existing customers know that you will give them an item when they give you updated contact information?
So there you are a few simple but highly effective strategies for generating more instant income this year and helping to get you on the fast-track to success this year.
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