In this post, we are going to focus on profit maximizers: easy to implement techniques for you to boost profits and grow your business.
We’re going to cover 25 strategies which should provide you with plenty of ideas.
If you’re not sure where to start, try testing out a few different methods and see what works best for your specific situation. As with everything, progress beats perfection.
Implementing even a handful of these strategies can make a massive difference to your bottom line.
Let’s dive in.
Profit Maximizers: Jay Abraham’s 3 Ways to Grow a Business
According to Jay Abraham, marketing legend and a mentor I’ve learned a tremendous amount from, there are only three ways to grow any business.
We’ll organize our 25 profit maximizers within these three categories:
1. Increase Number of Clients
How can you attract new customers into your business?
2. Increase the Value Per Transaction
How much more can clients spend each time they buy from you?
3. Increase the Frequency of Transactions
How can you increase the frequency in which clients purchase?
At first glance, this might not seem earth shattering, but when these categories come together and compound, it can be transformative.
Jay refers to this as the “force multiplier effect,” as small increases create an exponential result in the bottom line of a business when combined.
To make this real, let’s take a look at an example of a fictional business making $200,000:
- Clients: 1000 clients
- Average Dollars per Transaction: $100
- Number of Transactions: 2 transactions
If we’re able to increase all three categories by a reasonable amount, the profit completely explodes:
- 12% increase = new profit of $280,986
- 35% increase = new profit of $546,750
What’s even more exciting? You’ll find these increases can be relatively simple to achieve with the strategies we’ll be covering.
Quick Profit Boost: Use Your Existing Assets
Before we get into the 25 profit strategies, how do you know where to start?
It can feel overwhelming to figure out which profit improvement areas to focus on first. My advice is to not try and re-create the wheel, and instead double down on resources you have already.
Most business owners I work with have tremendous untapped potential – better leveraging these assets is often the quickest way to maximize profit.
Here are the areas I’d start with to increase profitability:
- What’s your onboarding sequence (5-10 emails) for each new subscriber? Have you tested your results? What else have you tried to improve this?
- When was the last time you surveyed your existing customers?
- What have your prospects and existing customers asked for that you’re currently not delivering? (connects to the survey question above)
- How often do you communicate with current and past customers?
- What has been the most successful promotion you’ve ever ran in your business? How often do you run this promotion? Consider running it more often.
- What is currently your most successful advertising method? What audience demographics are you targeting? What are your top performing ads? What else have you tested?
- Do you have a premium, high ticket offer for your best customers?
- Do you currently have any joint venture partners? What about alliances with other complementary businesses in your market?
- What type of monthly continuity program do you currently offer? Beyond boosting profits, continuity can also have a major impact to the valuation of your business.
- What is your most successful lead generation method? Can you improve it? Have you tested other methods?
- What is your follow-up process for leads? (email sequence, direct mail etc.)
- When was the last time you ran a special limited time discount (i.e. 4 day promotion)?
- Do you currently offer any type of frequent buyer/membership/discount card type program for your VIP customers?
- Do you have a systematic, ongoing follow-up system you follow and put into action for every first time buyer you acquire?
- What products/services do your clients purchase right before, during, or after they do business with you?
- How do you reactivate and win back clients who haven’t purchased recently from you?
Increasing the Number of New Clients
1. Referral Systems
As a small business, one of the best ways to grow your client base is by referrals. When you have a satisfied customer, they are likely to tell others about their positive experience with your company. You can encourage this behavior by setting up referral systems, so this happens systematically on autopilot.
A couple quick ideas ideas on how to implement:
- Offer discounts or other incentives for customers who refer new clients to your business. This encourages customers to spread the word about your company and helps you to reach new potential clients.
- Offer referral bonuses to employees who bring in new clients. This motivates front line employees to actively promote your company and spread the word.
2. Acquiring Clients at Breakeven and Making Back End Profits
The term “back end” refers to products or services that are sold after the initial sale. After you sell a customer an initial product, this involves selling additional products or services to that same customer in the future (i.e. an extended warranty or related service).
The key to making back end profits is to acquire clients at breakeven or below. This means that you make enough money on the initial sale to cover the cost of acquiring the customer (you’ll often see this referred to as a self-liquidating offer). Then, any additional sales that you make to that customer are pure profit.
To do this, you need to carefully track your marketing and advertising expenses (including all costs associated with acquiring a new customer: advertising, labor, materials etc.). At this point, you need to make sure that your initial sale to the customer is large enough to cover all of these costs.
Once you have a system in place for acquiring clients at breakeven or below, you can focus on ramping up profits on the backend. If you look at how the fastest growing companies in the world are scaling, this is often the primary strategy they use.
3. Risk Reversal and Guarantees
Risk reversal is a powerful marketing technique for new customer acquisition – the idea being to remove all risk from the purchase decision by offering some kind of guarantee.
If you’re selling a product, you might offer a 100% money-back guarantee, allowing the customer to return the product for a full refund if they’re not satisfied. This completely removes risk from the equation and greatly increases the likelihood that customers will buy from you.
Another effective way to use risk reversal and increase your conversion rate: consider offer a free trial or sample of your product or service. This allows potential customers to try out your offering before they commit to buying it.
4. Joint Venture / Partner Relationships
A joint venture is a partnership arrangement in which two or more parties agree to cooperate in order to achieve a common goal. Joint ventures are often used to launch new products or services, or to enter new markets.
One way to find potential joint venture partners is to look for companies that complement your own business. For example, if you sell fitness equipment, you might partner with a company that sells healthy food products. This would allow you to reach a wider audience and acquire new clients.
Another way to find joint venture partners is to look for companies that serve the same customer base as you do. For example, if you sell high-end clothes, you might partner with a luxury car company. This would allow you to reach a wealthier customer base and increase sales.
5. Advertising with Direct Mail
In the world we live in, the vast majority of companies are hyper-focused on digital advertising and communicating with prospects online.
With the short attention spans of our prospects today, a great way to cut through the noise and distractions is to go back to old fashioned direct mail – sending physical letters/postcards to potential customers through the mail.
One advantage of direct mail is that it allows you to target very specific demographics with your advertising. For example, if you sell products for seniors, you can target retirement homes and 55+ communities with your direct mail campaigns.
Another advantage of direct mail is that it tends to be more cost-effective than other forms of advertising. If you already have your ad copy and creative working well in other mediums, you can affordably reach a large number of people (with high readability) with a single campaign.
If you’re looking for an effective way to acquire new clients, direct mail can be a underrated option to test.
6. Running Special Events, VIP Campaigns, or Info Nights
Another way to acquire new clients is to run special events, VIP campaigns, or info nights. These are all great ways to get potential customers interested in your product or service.
Special events can be anything from a launch party for a new product to a seminar on a relevant industry topic. The key is to make the event interesting and valuable for potential customers.
VIP campaigns are similar to special events, but they’re typically invite-only. This exclusivity can build intrigue and desire for prospects, and it can also help you to build relationships with key players in your industry.
Info nights are exactly what they sound like – an event where you provide information about your product or service. This is a great way to educate potential customers and get them interested in what you have to offer.
7. Better Integrate your USP Into Every Interaction and Marketing Campaign
Your unique selling proposition (USP) is what makes your business different from all the others in your industry. It’s what sets you apart and makes you special.
One major area of opportunity for the vast majority of businesses I see is to better integrate their USP into every interaction and marketing campaign. This means that your USP should be front-and-center in everything you do – from your website to your advertising, to every interaction with a prospect.
How many ways have you tested alternative USPs in the marketplace? What resonates the most with your ideal target customer? How can you better articulate what makes you superior to the competition?
8. Focusing on Publicity and Media Coverage
Another great way to acquire new clients is to be intentional about how you can improve publicity and media coverage for your business. Getting featured in the news or in popular publications can be a fantastic way to reach new audiences and build buzz about your business.
The beauty about PR is that it serves as free advertising and gives great credibility, as people trust media sources significantly more than typical advertising.
If you aren’t using publicity already, you’re missing out on the most powerful and affordable way to market your business.
9. Make Irresistible Offers
If you want to acquire new clients, making irresistible offers is essential. This means offering something that’s too good for potential customers to pass up.
How can you dramatically ramp up the perceived value of what you offer?
A few ideas:
- Offer a discount or enticing bonuses to your core offering
- Bundle your products or services together (offer more value for the same price)
- Remove all risk from the transaction (guarantees and risk reversal covered above)
10. Level Up the Skills of Your Sales Team
Your sales team is responsible for generating leads and closing deals, so they of course play a vital role in customer acquisition and the success of your business.
One big lever to acquire more new clients is to level up the skills of your sales team. This means providing them with the training, tools, and resources they need to be successful.
Can you further maximize the time they spend on revenue-generating activities, instead of getting bogged down with administrative tasks?
Has your full team spent time in world-class sales training – learning how to better connect with prospects, address objections, and effectively close?
As a side note, here’s one of the best sales frameworks I’ve come across:
11. Qualifying Your Leads Proactively
As you generate leads, are you qualifying them upfront, before you ever communicate with them?
If not, this could be a big area of opportunity for you.
What does this look like?
- More narrowly targeting the right audience (your ideal customer) in your advertising efforts
- Extra steps to filter out the large volume of prospects to those that are most appropriate for what you offer. One example: a contact form on your website to gather information before you speak with them.
- Having someone on your team reach out to leads and assessing their interest level before they’ve even had a chance to speak with you.
12. Communicating Frequently With Existing Clients and Inactive Customers
If you want to acquire new clients, you need to have a heavy focus on your existing clients and inactive customers. Why? Because they’re your best source of referrals.
The key to acquiring new clients is to communicate frequently with your existing clients and inactive customers.
This means staying in touch and keeping them up-to-date on what’s going on with your business. One way to do this is by sending out a monthly newsletter. This allows you to keep your clients and inactive customers in the loop about your latest news, products, and services.
Another way to stay in touch is by picking up the phone and giving them a call from time to time. This personal touch can go a long way in maintaining a good relationship, goodwill, and customer loyalty.
Customer reactivation also might be a big opportunity – can you win back inactive customers you’ve lost?
Increase the Value Per Transaction
13. Train Your Team to Upsell and Cross-Sell
Your team is the face of your business and one of the most important factors in increasing the value per transaction. Train them to upsell and cross-sell so they can provide your customers with the best possible experience and increase the chances of a sale.
Upselling is when you encourage a customer to purchase a more expensive version of what they were originally interested in. For example, if someone comes into a store looking for a pair of shoes, the salesperson might suggest upgrading to a better quality or style.
Cross-selling is when you sell complementary products to what the customer is already interested in. For example, if someone is buying a new phone, you might try to sell them a case or screen protector as well.
14. Change the Profile of Your Offerings to Be More Up-Market (Target the Affluent)
If you want to increase the value per transaction, another option is to change the profile of your offerings to be more up-market. This could involve selling higher-priced items, targeting a wealthier demographic, or both.
By doing this, you will be able to increase your prices (with very little impact on demand) and potentially make more profit per sale.
15. Point of Sale Promotions
Consider using point of sale promotions to increase the value per transaction. This could involve offering discounts on higher-priced items, bundling products together, or giving away freebies with a purchase.
For example, if someone is buying a new TV, you could bundle it with an HDMI cable and extend the warranty.
16. Offering Larger Units of Purchase
Consider offering larger units of purchase to increase the value per transaction. This could involve selling items in bulk or offering package deals on multiple products.
By doing this, customers will feel like they are getting more for their money, and they will be more likely to purchase greater quantities. If you’re looking for inspiration, Costco is masterful at implementing this strategy.
17. Increase Prices (Greater Margins)
One way to increase the value per transaction is to simply increase your prices. This may seem like a counterintuitive strategy, but if you can offer a high-quality product or service with high perceived value, customers will be more likely to make a purchase.
Remember: the more irresistible your offer, the higher the price you can charge.
18. Bundling Complementary Products / Services
If you’re looking to increase your sales, another effective strategy is to bundle complementary products or services together (make sure they go well together).
By doing so, you can create a package that provides customers with everything they need to complete a task or project, making it more likely they’ll purchase more from you.
Increase the Frequency of Transactions
19. Expand Your Product Line
One way to increase the frequency of transactions is to expand your product line.
This could involve adding new products that complement your existing offerings, or it could mean branching out into new areas entirely.
If you’re not sure what kinds of new products or services to offer, think about what your customers need and want. Have you surveyed your customer list as mentioned in the ‘quick wins’ section?
What other products or services would make their lives easier or improve their experience with your business?
I’d also recommend at checking out what your competition is doing. If they offer a product or service that you don’t, there’s a good chance there’s demand for it.
20. More Personal Communication with Clients
Another great way to encourage customers to do business with you more often is to improve your communication with them.
You can start by making sure you have their correct contact information, including their email address and phone number. Then, stay in touch with them on a regular basis – at least once a month if possible.
Think about what kind of information would be most valuable to your customers, and make sure you share it with them. This could include things like:
- Updates on new products or services
- Coupons or discounts
- Information on upcoming events or sales
- Blog posts or articles you think they’d find interesting (could be anything informative or entertaining)
21. Make it Easy for Customers to Do Business With You
If you want customers to do business with you more often, you need to take away all friction points and make it as easy as possible.
First, that means having a well-designed website that’s easy to navigate. Make sure your contact information is prominently displayed and that potential customers can easily find what they’re looking for.
You should also streamline your ordering process. If it’s too complicated or time-consuming, customers will be less likely to do business with you compared to a competitor.
And finally, don’t forget about the little things. Things like sending thank-you notes and following up after a purchase can go a long way in building customer loyalty.
22. Joint Ventures: Endorsing Others Products to Your Customer Base
Joint Ventures represent a lot of opportunity in this category as well.
For example, if you own a pet store, you could partner with a local pet groomer. You could promote their business to your customers and they could do the same for you.
Joint ventures are beneficial because they allow you to reach a new audience without having to spend any money on marketing or advertising.
And since you’re both promoting each other’s businesses, there’s a good chance that at least some of the people who see your joint venture partner’s endorsement will be interested in what you have to offer.
23. Using Loyalty Programs
Loyalty programs are another great way to increase the frequency customers buy from you. This could involve giving customers points for every purchase they make, which they can then redeem for discounts or freebies.
24. Running Special Events and Promotions
You could offer a discount to customers who make a purchase within a certain time frame. Or you could hold a contest or giveaway and promote it to your customer base.
Special events and promotions are a great way to encourage customers to do business with you more often. And since they’re typically time-sensitive, they can also help create a sense of urgency that encourages people to take action.
25. Price Reductions for Frequency and Combinations
Another way to encourage customers to buy from you more often is to offer price reductions for frequency or combination purchases.
This could be done by packaging best sellers with slower moving items.
For example, you could offer a discount to customers who buy two or more products from you. Or you could give a loyalty discount to customers who make a purchase once per week.
As you can see, there are a ton of different ways to use profit maximizers within your business.
At this point, I recommend you take a few minutes to figure out which techniques have the potential to have the greatest impact while being easy and quick to implement.
From there, it comes down to taking consistent action and figuring out what will move the needle most to improve profitability within your business.
I hope you found this post helpful. Let me know how these strategies work for you in the comments below.