In a few months I'll be celebrating my 15th anniversary since I made my first dollar online.
Over the past 15 years I've been involved in growing many different online businesses. I've covered a fair bit of ground including working within the areas of software, e-commerce, finance, affiliate marketing and even service based businesses.
I’m a big fan of trying to distill big topics into actionable and concrete focal points.
Starting today and continuing over the next few months I'm going to be sharing with you the exact framework that I now use every day to help grow online businesses.
I meant to do it a few months ago, however, I wanted to ensure that I could roll it out in the most engaging and compelling way possible.
If there is just one thing I want to stress is that while this is “theory”, I’m using it in practice every day. One of the businesses I work with is using an advanced version of this framework to do millions of dollars in business every week.
I only say this so that you might give it more than a cursory look, but really engage with the mechanics of why it makes for a powerful growth machine.
In this first episode of the Growth Framework series I'm writing, I want to introduce you to the mechanics and give you a clear understanding of just how powerful the levers are within this framework.
It’s made up of just 3 levers.
- Conversion Rate
- Lifetime Value
Those three pillars are simple to explain.
Traffic is the lifeblood of any online business. You need to understand the best ways to get traffic to your site that converts. There are lots of good and bad ways to get traffic.
The “Growth Framework” outlines the ones you need to focus on and ignores the ones that chew up a massive amount of time and have very low returns.
Unfortunately, a huge amount of people are ignoring the important ones and focusing on the easy, but ineffective ones.
2) Conversion Rate
Conversion optimization is only just now starting to get into the mainstream.
This is kind of weird in many ways as improving your conversion rates is one of the easiest ways to grow your business without getting any more traffic at all.
My “Growth Framework” will give you the shortcuts you need to get the biggest returns as fast as possible.
3) Lifetime Value (LTV)
Outside of the “Growth Hacking” space, this isn't talked about enough. Yet, like conversion rates, it’s one of the easiest ways to increase the profitability of your business.
Essentially it is all about how to make each “customer” worth more to you. So that is all about increasing upselling, cross selling, continuity building and retention. My “Growth Framework” shows the key parts to focus on.
Not only that, I’ll explain to you how there becomes a profit snowball when you can increase LTV so much that your ability to buy traffic becomes exponentially more powerful.
To drive this point home, I’ve created a calculator to show how each of these levers impacts your business.
The way it works is simple.
- Plug in your current daily traffic statistics, your conversion rate and how much each customer is worth over a 12 month period. You do this with the left hand slider for each section.
- Adjust the right hand slider for each section to the level you think you could improve things to with optimization.
- Check out the increase in monthly revenue.
If you want to try out an example try inputting the following:
Daily Traffic Current: 300
Daily Traffic Optimized: 600
Conversion Rate Current: 1%
Conversion Rate Optimized: 2%
LTV Current: $30
LTV Optimized: $60
Current Revenue: $2700 per month ($32,600 annually)
Optimized Revenue: $21,600 per month ($259,200 annually)
I still find it incredible that these small improvements can have such dramatic results. Essentially taking you from a part time income to being well on your way to becoming wealthy.
Does this get you as excited as me? It darn well should! 🙂
I hope you’ll follow along with me to learn how to move the three levers (traffic, conversions and LTV) to turn your business into a juggernaut.
I’ve said it before and I’ll keep saying it. These are the keys to the kingdom when it comes to successfully growing an online business.
Hit me with thoughts and questions below.