A simple formula for increasing your business revenue

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Presentation Summary

There’s a formula for increasing weight: eat more calories than you expend.

There’s also a formula for increasing revenue. It looks like this:

clients x transactions x price = revenue


Clients X Transactions X Price = Revenue

Clients (or customers) are the people who buy from you!

  • They give you money
  • You provide products or services

Transactions are the number of purchases (on average) that each customer makes

  • You might only make one sale per customer
  • You could have a subscription where they buy every month
  • You may sell different things to the same customer (each sale is a transaction)

Price is what you charge!

Revenue is the amount of money you bring in

  • Gross revenue – before expenses (aka “top line” revenue)

Want to make more money? Increase one of those first 3 numbers.

You can increase your revenue in 3 ways:

1. Increase the number of clients you serve

  • Get better at marketing (attracting the attention of strangers who need your services)
  • Get better at sales (converting those strangers into clients)

2.  Increase the average number of transactions each customer makes

  • Offer additional services
  • Keep in touch to remind them they can buy again

3. Increase your prices

  • If you’re under-charging, may be as simple as raising your price
  • Add value – create service packages – or describe your offers in a way that emphasizes the value they receive
  • Target different clientele (can afford to pay more)

(Not sure what to charge? This might help: how much should I charge?)

You can increase more than one of those factors and get even better results!

Need some help with this? Check out these affordable courses: Plan for Success and Your Next Clients