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Getting leads or sales but not seeing your bank balance where you want it to be? If you could have a billboard anywhere, what would it say? Marc Andresen was recently asked this question. Marc’s cranked out nearly as many successful businesses as the Beatles have crooned out #1 hits. His response which brings out pure delight and bliss to my soul: “Raise prices.”
Yep, after billions and billions made and after consulting company after company, he decided he’d plaster those words front and centre in the heart of San Francisco. There’s one teeny weeny thing Marky Marc said which I want you to tune in today. Conventional Wisdom says, price cheap. More people can buy. You’ll get volume and can grow. Time and time again, this is proven wrong because, this puts you into “Too hungry to eat mode.”
If you don’t charge enough? Can you afford the sales and marketing required to get anyone to buy from you? That is the point. This is how you scale. We’ve talked about this before, Traffic, Conversions and Economics. You need traffic to send to your offer. You need a mechanism to convert that offer to sales. Perhaps, the most important piece of the puzzle, 98% are missing is that the economics must work out so you make a tidy profit and can keep the lights on.
So, if you’re selling a product for $47 and it’s costing you $75 to get a sale, you’re not going to be in business too long, right? If your earning $1,000 per sale and you’re spending $300 in ads spend, sure you’re spending more on Ads but isn’t that better? Much better? Now you’re not losing money, you’re making money. When you have this all dialled in? Your biggest problem may be finding enough money to invest into your business which is a good problem. This is how peeps go from $1k months, to $100k months. They’re just increasing their ad spend because it’s churning out profits that allows them to do so. Simple enough, right? Let’s get you rolling ASAP. Millions in big ticket commissions are being paid out month after month. How long are you willing to wait before you start getting your share of the profits?