I’ve been helping a client change his business model recently.
Don’t get me wrong. His business is successful. The gross revenue is over half a million a year.
A lot of people would be ecstatic about those numbers!
But he’s only earning a fraction of the net profits he should.
I don’t want to go into detail on his specific business.
Suffice it to say that his business has become overcomplicated with too many moving pieces. Managing all of that has become expensive. Even though a lot of sales are being made, the profits are eaten up by expenses.
Here’s another issue.
When you have too much going on, it can be difficult to identify your KPI’s (Key Performance Indicators).
And if you don’t know your KPI’s (such as your opt-in rate, cost per sale, average transaction value, etc.), it’s difficult to optimize your marketing.
If you find yourself in a situation like this, the best thing you can do is take a step back and look at the 80/20. What is the 20% that’s creating 80% of your results?
Whether you’re running a business like that or you just in the start-up phase, here are 3 dangers you need to watch out for…
#1: Lack of Focus
Are you spreading yourself too thin?
This could mean dividing your attention between multiple markets. I have clients who are in more than one market, but all of them focused on one market first until it was profitable before expanding into other markets.
It could also mean selling too many products, and not focusing enough attention and optimization on your top selling funnels.
Or it could be trying to generate traffic in too many different ways at once. One of the big lies in today’s hustle culture is that you need to be everywhere. You can’t afford to be everywhere as a small business!
#2: Products Too Cheap
It’s tough to make a living selling cheap products to broke people.
The majority of my clients sell courses, coaching, and consulting. Some clients do earn a portion of their profits from lower cost offers (under $100).
But the real money comes from either continuity or high ticket offers.
One of the fastest ways to boost your net profits is to launch a higher ticket offer.
You don’t even need a large number of buyers to take advantage of it.
Your numbers totally change when 5% to 20% of your audience decide to upgrade.
#3: Expenses Too High
Your lack of focus can cause your expenses to get out of hand.
You need multiple websites and lists for those different markets. You need customer support for all those products. And a big one is that you’re likely overspending on advertising because you’re not focused on the best method for you.
At the same time, a lack of focus means your funnels aren’t as profitable as it should be because you’re dividing your attention across all these different traffic sources and products.
Instead, you need to optimize the most profitable funnel.
Check out my 21 Money Multipliers course.
It’s all about optimization.
Discover how to multiply the profits from everything you’re doing online…and scale your business from six to seven figures if you choose.
