This article is an excerpt from the Shortform book guide to "The $100 Startup" by Chris Guillebeau. Shortform has the world's best summaries and analyses of books you should be reading.
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Are you looking to increase your business revenue? What are some of the most effective strategies to amp up your revenue numbers?
Revenue is the backbone of your business. Your company’s survival depends on your revenue numbers. Below, we will highlight five strategies that can help you increase your business revenue, and consequently, profit.
Here are five surefire strategies to increase your business revenue.
How to Increase Your Business Revenue
Out of the myriad of revenue-boosting strategies, here are five that warrant serious consideration.
Strategy 1: Generate Traffic
An obvious way to increase your revenue is to get more eyes on your product or service by increasing the traffic either to your storefront or your website.
(Shortform note: For more information on generating traffic to your website, check out this article from Forbes.)
Strategy 2: Generate Conversions
Once you have a decent amount of traffic, focus on increasing your conversion rate, or the rate at which people make a purchase.
One way to create more conversions is to do A/B testing. A/B testing places two live offers, headlines, or webpages against one another and determines which is leading to more conversions.
Beyond A/B testing, you should look to the sources of your traffic, including Google searches, social media, and referrals, and determine which are creating the most conversions. This will give you a better sense of where you should focus your marketing attention.
Strategy 3: Raise the Average Price per Sale
There are three ways you can increase the average price per sale of your product or service:
- Upsell: Offer an upgraded version or an additional item with the purchase. For example, if you edited written works, you could offer an upgrade that includes proofreading for “just $50 extra.”
- Cross-sell: Offer a product related to the customer’s purchase. For example, if your customer just bought a tent, you could show that other customers who bought the tent also bought a camping lantern.
- Make a sale after the sale: Offer a special product or discount immediately after a sale. For example, if your customer just signed up for a private consultation, you could make a special “clients-only” offer for your book.
Strategy 4: Give Your Existing Customers More to Buy
While bringing in new clients is important, your existing customers have already shown that they’re willing to spend money on your product or service. Capitalize on this by creating advanced or supplementary products or services that your current clientele can purchase.
Strategy 5: Create a Product From Your Service (and Vice Versa).
If you currently offer a service, develop a product that relates to that service. For example, if you run a restaurant, you could sell a cookbook that includes some of your most iconic dishes.
Alternatively, if you currently offer a product, develop a service based on that product. For example, if you wrote a self-improvement book, you could offer life coaching sessions based on the lessons discussed in the book.
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- How to start a microbusiness
- How to start a business without needing to borrow any money
- The 6 simple steps you need to follow to launch your business
