Sales and turnover is the money that you receive from customers for products and/or services, but it’s not your profit. In order to make those sales, you have expenditure and what’s left is profit. In this article I talk about the three things that affect your profit and how you might boost your income when you’ve reached your ceiling.
It’s said that just two things affect your profit – expenses and sales. So to increase your profit you can
- reduce your expenditure in such a way that it doesn’t affect the quality of your product/service and
- increase your sales.
It’s also recognised that there are just three ways to increase your sales:-
- Get your existing customers to increase their spend with you (by increasing prices and/or get them to buy more from you)
- Get your customers to buy more frequently from you
- Get more customers
The trouble is, if you’re selling a service which involves your time on a one-to-one basis, then there are only a finite number of hours you can physically work and that naturally means you can only serve a finite number of customers. And if you’re already charging top dollar for your 121 services, then you’ve ended up with an invisible ceiling to your potential earnings.
Plus if you were lucky enough to be maxed out all the hours you can work at your top dollar rate, would that mean you had no time to pursue leisure and fun activities with friends and family?
There is another way to boost your income without having to sacrifice more time.
Online Information Products
Your knowledge, experience and information that you’ve acquired to date has value to others who don’t know what you know and would like to know what you know. You can teach others what you know. You probably already do while you’re delivering your one-to-one service. Even if you have a product based business, you probably know something that others would pay to know.
But here’s the difference.
You provide that information on a one-to-many basis, not one-to-one. You create the information product once then sell it many times over to several customers who want to know what you know that they themselves don’t know.
It’s called an information product and it can take the form of a video, audio or written article. You only have to create it once and sell it from your website. Done properly, using web tech tools to set it up, the sale and delivery happens automatically without your intervention or facilitation. Boom! You have a secondary income stream.
There are various price points you can consider from free to low cost or a combination of both and in any event, much cheaper than if they were to hire you one-to-one.
The other spin off from selling information products is that potential customers get a low-entry-cost way of trying you out before deciding to committing to your high-priced 121 services. Double win!
What does an info product look like?
Want to see an information product in action? Take a look at what I did for my client Gail, The Image Trainer’s information product – an online course on how to discover what clothes and colours to buy so you always have something to wear that looks good on you – www.thewardrobethatworks.com and read here what Gail has to say.
Click here to book a free, no-obligation 30 minute call with Vee to discuss how information products might help boost your income.