Many startups think, getting more customers is the only way to get more revenue. But did you know there are 2 easier ways to increase revenue?
Let’s assume you are selling a $100 product (physical or digital). If you just have 1 customer, you earn $100 once. If you double num of customers, you earn double, but your cost to fulfil also doubles, support requests increases. Overall costs increase.
If you sell to 1000 customers, you are basically getting 1000x revenue, but also proportionally increase the headaches associated with it.
Instead, think of ways to sell more to your existing customers. You have almost zero CTA (the cost to acquire) your existing customers. They are already happy with you, so you can sell more to them much easier than new customers. They trust you, they’ll buy from you.
A) You can sell more quantity of the same product, or you can also sell a complementary product.
Eg: if you sell milk 🥛, sell them cereal 🥣. If you sell bread 🍞, sell eggs 🥚, etc.
Your ACV (Average Cart Value) increases and your customers are also happy that you provide a better service to them.
B) You can sell the same product, repeatedly to them – creating a continuity or subscription program.
Eg: If you sell milk, sell fresh milk every day morning at 6 am. If you sell bread, sell them a new loaf every two days.
This ensures that you have a predictable business. Even Amazon does this with its “Subscribe & Save” program.
This is what businesses have been doing for ages for physical goods. You can use the same concept for digital products.
If you have an ebook, sell a package of video courses + interviews for a higher price. People who like just a book would buy just the book. Customers who love what you sell would readily buy the full package.
I have bought so many products sold by @joncalhoun, @adamwathan, @steveschoger, @mijustin have sold, because I love what they do. And every time, I end up buying the entire package even if just the ebook would be enough.
You can also sell membership packages with access to a private slack channel or Facebook group. Send a private newsletter every week or month. These allow you to sell a membership plan.
Having a SaaS product automatically takes care of the subscription part. But give your customers multiple price points with different feature sets so that they are happier to upgrade.
Do you want to find new ways to increase your revenue? Book a free strategy call and let’s discuss.