Ambitious entrepreneurs often talk about 10x growth.
You may find it absurd in the beginning.
If not absurd then definitely too much to pull off.
The believers remind themselves of this quote by Norman Vincent Peale:
‘Shoot for the moon. Even if you miss, you’ll land among the stars.’
But those driven by logic need something more to come into ‘Yes We Can’ club. If you are someone who needs a dash of logic, here is the plan for you.
The Plan of 10x Growth For An Online Business
Let’s start with a simple revenue formula.
Traffic *Conversion *Average Revenue Per User (ARPU) = Revenue
To increase your revenue, you can either
Let’s look at some scenarios to see how it plays out in real life.
2x Traffic * 1x Conversion * 1x Average Revenue Per User = 2x Revenue
3x Traffic * 2x Conversion * 1x Average Revenue Per User = 6x Revenue
3x Traffic * 1x Conversion * 2x Average Revenue Per User = 6x Revenue
3x Traffic * 2x Conversion * 2x Average Revenue Per User = 12X REVENUE
Here you have it.
10x and even higher growth is within reach for you. It is realistic. You just need to work on fine tuning three distinct parts of your business that drive revenue.
Traffic is related to the technolgy stack, search and investing in growth channels. Conversion is based on trust. Revenue growth comes from your product or service’s value for users, asking for a higher price and making sure that you get in front of people who are willing to pay the high price.
How You Can Sell At A Higher Price Than Your Competitor By Serving A Different Niche In Same Industry
Drip is a popular email marketing software. A large marketing automation company Leadpages owns it. Leadpages is a funded business. They are answerable to their investors. That’s why they need to think more about
ConvertKit is another email marketing software in the league of Drip. They are self-funded.
Both Drip and ConvertKit served the same audience consisting of bloggers and online publishers until recently when Drip changed their positioning to serve eCommerce businesses. With it came an increase in price.
Their starter plan is comparable with ConvertKit but for a higher subscriber count (~5k) they are selling at a higher price point than ConvertKit. On the face of it, it may not look like a smart move because they may lose customers. But they should be fine because eCommerce businesses can afford to pay more than bloggers, the audience ConvertKit serves. This is all predicated on the fact that Drip addresses the needs of its eCommerce customers well.
In case of a service business this is even simpler. Just increase the price in the sets of 10s. Increase price for 11th customer, and keep it the same till 19th customer. Again increase price for 20th customer and so on.
Can It Work In Other Areas Of Life?
But quantifying success or growth parameters may not be as simple as tracking revenue growth.
If you want to apply this approach to health, you can.
To do it, work on improving all variants that give us good health. Like,
- How long and how well you sleep (duration and quality)
- What you eat (less junk)
- When and how much you eat
- Water consumption
- Time you spend in the open and fresh air
- Do you get ourside help
- Decompression time – spending time with loved ones, alone,
mediatting, netflixetc. depending on what works for you
Improving one of these will have some impact on your health but if you improve whatever little on every variant you will see massive gains.
You can also apply it to something as simple and seemingly daunting as writing a book. To do it well and fast – you will need to work on – hours spent writing, time spent researching, speed of writing, quanity of writing and agility of mind and body while writing.
Over to You 🙂