Hello Everyone,
Today I
would like to discuss upselling, and business models. Do you as a business owner realize that most
online business or stores have a top-tier product? Think about this, every time you order
something from McDonald’s what do they ask you?
They always follow-up your order with, “Would you like fries with
that?” This is McDonald’s way up selling
you a top-tier product. Who would have
thought that that those words could help make them as popular as they are
today, just by making you buy the top-tier item. Now think about other places you go where
they offer top-tier products, this is what you would like for your business as
well.
Now
that we have a feel for what other business are doing to upsell you lets
discuss business models. You must start
from the end and work your way to the beginning. This means do not worry about traffic,
instead focus on the product that you want to sell and see if there is a market
for it. If there is no market then your
business will not succeed. So your first
step is to do some research on the economics of the area you are trying to get
into. After you have done this then you
want to focus on your targeted traffic, which will result in sales + profit.
The
most important number to you as a business owner needs to know is the Average
Visitor Value. If you have not done so
by now I highly suggest you use Google Analytics, It free and very simple to
use. Once you are a member you will be
able to see your unique visitors plus average visitor value. You want to always start measuring even if
you are not making any money. I’m going to show you how to calculate your
average visitor value:
|
1)
|
Leads
|
|
|
X
|
|
2)
|
Conversion
ratio (those who bought & those you didn’t
|
|
|
=
|
|
|
Customers
|
|
|
X
|
|
3)
|
Frequency
of Transactions
|
|
|
X
|
|
4)
|
Average
Transaction size
|
|
|
=
|
|
|
Total
Revenue
|
|
|
X
|
|
5)
|
Margins (%
you keep)
|
|
|
=
|
|
|
PROFIT
|
This is one of the numbers you as business owners need to
completely be aware of everyday.
If you have any further questions
please feel free to contact me and I can discuss with you how to go about
figuring this formula out.
Thank you,
JPM
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