Sep 17, 2020
Growing a business is simple because there are only three ways to do it:
Get more customers,
get them to spend more,
or get them to buy more often.
That’s it!
Podcast Transcript
Growing a business is simple because there are only three ways to do it:
Get more customers,
get them to spend more,
or get them to buy more often.
That’s it!
When you’re working toward your first million dollars in revenue, the goal is to get customers. Get as many as possible. This has a snowball effect because at a certain point, referrals and word of mouth will start to kick in.
Once you hit $1 million, it’s time to move to the next phase. I call Phase Two ascension. To get your customers to spend more, you have to get them to buy the more expensive products. It might mean you have to make more expensive products. It might mean you have to create more trust and culture and expertise so that you are the person they think of first when they have a problem they can’t solve.
Once you have customers ascending up into more expensive products, move to Phase Three. Now it’s about consumption.
Figure out how to get them to use your product so much that they need to buy more of it more often. In our software, consumption means we’re trying to get them to use it more so they stay longer on the subscription plan. Consumption for a physical product is a bit different. If you sell hand lotion, it could mean sending them print materials showing them how to apply it several times a day so they run out of it more quickly. It’s easy to get overwhelmed in business when you’re trying to figure out what’s not working and how to make more money, but it’s really not hard.
Either get more customers, help them spend more, or figure out how to convince them to buy more often.