Jay Abraham is an acclaimed American business executive, author and conference speaker, who is listed by Forbes as one of the Top 5 executive coaches in the US. He is the founder and CEO of the Abraham Group, a marketing consultant firm focused on providing growth strategies to businesses.
His work includes developing strategies for direct response marketing amoung which is his concept he calls “The 3 Pillars Of Revenue.”
Not only does he used them himself, but he helps other businesses use them as well with the best of success as a result.
So what are “The 3 Pillars Of Revenue?”
The 3 Pillars Of Revenue
- 1. Acquire (and Increase) Customers
- 2. Continue Doing Business With Those Same Customers
- 3. Sell High-Ticket Items
When looking at different types of online businesses, make sure they check all the boxes of the 3 Pillars, if you want to be successful.
So let’s examine these Pillars a bit more closely.
1. Acquire (and increase) Customers
While this may seem simple to do it’s often the hardest. Knowing how to market your products/services requires a particular knowledge and skill set. Don’t ignore acquiring those skills. Realizing you have to spend money to make money is a necessity. Advertising costs money and/or time but is extremely important if you want to get your business and product known to the public.
2. Continue Doing Business With Those Same Customers
Repeat business. Consider the cost of acquiring just one customer. The profit you make off that first sale doesn’t even cover the cost of acquiring them as a customer. You need each and every customer to come back and buy more from you. That’s where your break even lies. If they return multiple times you can turn a profit. Great products and/or services and above average customer service will establish trust and respect and a higher liklihood of repeat business.
3. Sell High-Ticket Items
A high ticket product or service that provides higher value to a customer is important to the profitability of your business. For example, let’s say you sell wood stoves. A customer may want a small wood stove that costs $200. You sell them that but then they need stove pipe and flashing for the roof and a chimney stack. Once this sale is made, that’s it. You take your profit and say bye, bye to the customer. BUT, what if you offer an annual wood delivery and chimney cleaning service for $2,000? You could even break the price up into quarterly or monthly payments with interest. That’s a high ticket sale WITH repeat business (and potential interest)! Always have higher value items to sell that will complement or complete the sale.
WHEN ALL 3 PILLARS ARE PRESENT, YOU HAVE THE RECIPE FOR SUCCESS!
Legendary Marketer, in their 15 Day Business Builder Challenge, goes into details in their training on these 3 Pillars.. definitely worth checking out!)
So that’s all for today. Check back with NetworkerZilla for more articles and tips on how to build any successful online businesses!
Toodles for now! ~Callie
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