Value Added Ep.19 – How to Increase Your Profits by 432% in 90 Days or Less

Despite the intentionally clickbaity title, this week’s episode is about a subject very near and dear to Jarod’s heart — maximizing the ROI of your business’s marketing campaigns.

Most digital business owners and marketers focus primarily on two things when attempting to increase their profitability — traffic and conversions. 

But to truly maximize your profitability, you need to dig deeper.

KEY TAKEAWAYS

• Harking back to Value Added Ep.10, one of the quickest ways to increase your profitability is to slash your costs. Prime culprits for eating into your margin include:
  • Unnecessary software subscriptions (it’s incredible how quickly these add up)
  • Ineffective employees
  • Commercial office space (could your team work remotely on a long-term basis?)
• Answer the damn phone! Far too many businesses obsess about driving more traffic without adequately servicing prospects and existing customers.

“I spend a lot of money on behalf of myself and my businesses, and I can’t count the number of times I reach out to a service, I want to give them my money, and they don’t answer the phone! 

And so I call my next contact to give them my business instead, only to get a lazy phone call back from the previous contact three days later. 

That just blows my mind, the tens of thousands of dollars that these lazy businesses are missing out on.” Jonathan Kiekbusch

• Consider utilizing tripwire marketing to generate more leads. Tripwire marketing means to offer a low-cost product—a course, for example—to gather more prospects, making it easier to upsell them later.
• Partner with other businesses that offer products or services that complement your own and take a commission on referrals. For example, if you’re a digital marketing agency, you’re bound to have clients that need web design services. By partnering with a reputable provider, you can earn a commission on each referral. Many digital businesses, like hosting companies, will already have an affiliate program, but you can often negotiate better deals/higher commissions if you contact them directly.

“If there’s a web designer out there that isn’t signed up for a hosting affiliate deal and recommending their clients to sign up through an affiliate link, that would be the stupidest thing in the world, right? 

I’ve had affiliate partnerships where we’ve gotten like $300 per conversion just because we were on a private deal. And so imagine that $300 for the average web design project is probably like around 10%.

So you can make an extra 10% on a project by doing absolutely nothing different other than sending an affiliate link instead of a direct link.” Jonathan Kiekbusch

• Don’t be afraid to raise your prices.

“Traffic, conversion, sales/customer intake, customer lifetime value, and net profit is what determines your overall marketing ROI. It’s much more complex than just what is the cost of your traffic and is the percentage of your conversions.” Jarod Spiewak

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