– Today we are gonna
talk about the three ways to generate more revenue for your business and for your company. Now, business sometimes people
make it way too complicated than it needs to be. People are complicated. I always say business is simple
but people are complicated. Finding the right people
or building the right team, because every single
individual is different. So that’s a little bit more complicated. But when it comes to business,
it’s actually quite simple. There are actually only
three ways for you to grow a business, to grow a company. So if you are struggling with your sales, struggling with cashflow,
I would recommend you look at one of these
three ways and see what you need to work on. Way number one and that
is getting more customers. How do I get more people in the door. You want to get more customers,
we all want more customers so we can generate more revenue. Now it depends on your business type. You might have a two-step process, meaning you may not get
a customer directly, it may not be a direct sales scenario. It could be a two-step process where you actually generate a lead. Maybe you generate a lead
online and then you convert that lead into a sale,
so a two-step process. So you have the lead generation process and then you have the conversion process. It doesn’t matter. The bottom line is
that’s what you focus on, that what most entrepreneurs focus on, how do I get more customers. The challenge is if you
have been in business for any length of time
that the biggest payoff, sometimes the highest paid
leverage points that you have within your business may not
be getting more customers because it costs a lot of
money to acquire customers now-a-days, right. When you’re running traffic,
when you’re doing any kind of advertising, it costs a lot of money to acquire that first initial customer. If you are a startup, yes,
then focus on getting customers because you need customers to survive, but if you have been in
business for a while, then I want you to consider
some of the other ways to increase your revenue,
to grow your business. And idea number two and way number two, that is getting your customers
to come back more often, or the frequency of purchase. We’re talking about increasing
the frequency of purchase. Now this is a very big deal
because getting customers are very, very costly,
right, the cost of acquiring a new customer, but if you have customers who are already buying from you, they know you, they like
you, they trust you, they have done business with you, very often I find that this is the part that most entrepreneurs neglect. They spend all their
time, it could be 80, 90% of their time just focusing
on let’s get more customers, let’s get more customers. That’s where the revenue
comes in instead of nurturing the relationships that they already have. Let me give you a perfect example. Let’s say if you run a retail business and you are some kind of service provider, maybe a massage therapist,
maybe acupuncture, maybe you run a salon, it doesn’t matter, and you have people coming to
you, let’s say once a month. Once a month they will visit your store, they will visit your
shop and a transaction will take place. You provide your service, you’ll get paid and that’s 12 times a year, once a month. Now, I want you to think about this. Imagine instead of once a
month, by the time let’s say you finish the service, let’s say
you finish doing their hair and before they pay you ask them to book the next appointment. We call that rebooking,
right, in business term, rebooking the next appointment. And you encourage them,
instead of coming back every four weeks, you say why don’t you come back three weeks, every three weeks. Now, you may not think that’s a big deal. Let me tell you why that’s a big deal. If they come back once a month, that’s 12 times a year, once a month, that 12 times they will
transact with your business in a year’s time. Now what if now they come
back every three weeks instead of every month. You know what that does to your business? That’s now 17 times they will
come back to your business. So instead of 12 times a
year, now they’re coming back to your business 17 times a year. That’s five times more. Imagine what that does to your revenue. And it didn’t cost you anything extra. All you need to do is
ask and suggest, hey, instead of four weeks,
why don’t you come back every three weeks. So, what are some of the
things that you can do to get your customers to
come back to your business, to visit your business, to
buy from you more often? Idea number three, way number three and that is getting your
customers to spend more money with you each time they
do business with you, each time they visit you, or what we call increasing the transaction size. Now this is very simple. Let’s go back to maybe the retail example. Let’s say each time
your customer visits you they spend $100 with you,
hypothetically, right. $100 and that’s cool, but if each time they come back and you
do some kind of upsell and you get them to
spend a little bit more, an extra 10 or 20%, instead
of spending $100 each time, they spend $110, $120. It may be not seem like a big deal, but when you take that
out three months from now, six months from now, a year from now, in a given year, that’s
huge amount of profits. That’s additional profits
and revenue for your company without a lot of extra work. When you by a pair of
shoes, when they upsell you to that shoe polish, you’re already buying that pair of shoes, that shoe polish… Do you know the margin on those things? It’s outrageous. A perfect example would be McDonald’s. Whoever came up with the idea of, hey, would you like to supersize that? That one little line, right. Imagine you’re buying a
meal, going to McDonald’s, would you like to supersize that? Whatever, okay, sure. For just a couple extra
bucks supersize the drink and supersize the fries. They’re already making the fries, they already have the
drink in the machine, it’s just a bigger container,
a bigger little box and there you go. But for them, that couple extra bucks, the margin on that, it is huge
because you think about that, any given day, think about how many people go into McDonald’s every single day. And all they need to
do, come with the line, a perfect upsell, increasing
the transaction size, getting you to spend
a couple extra dollars each time you visit. Hey, would you like to supersize that? You’re like, sure, right. From there each person,
each cashier from that, let say only 10%, 15% of people say yes, hey, I’d like to supersize that. Cool, a couple dollars
extra in profit, in revenue, and then from there you
take that every single day, you take that 365 days, now you take it to all the locations. That is worth tens of millions of dollars, if not hundreds of millions
of dollars to the bottom line. Just think about that. That’s increasing the transaction size. You are there. You’re buying from McDonald’s anyway. So think about in your business, don’t just focus on
getting more customers. We all need more customers,
but how do you get more value? How can you sell existing customers more, be able to deliver more value to them? So don’t just think of
how to get more customers. So the three ways to grow your company, the three ways to generate
more revenue, very simple. Getting more customers,
come back more often, spend more money with you. If you focus on that, what can I do today, what can I do this week, what can I do this month
to get more customers, to get more customers
to come back more often and spend more money with
us, that’s my question that I want to leave you with,
something to think about. Now, if you want me to
talk about other questions regarding how to grow your business, how to grow your revenue, or maybe just how to find good people, comment below, let me know. I would love to make more
business-related videos for you. In the meantime, click
here and check out some of these other videos here. I’ve got over 1,000 videos
on my YouTube channel. I’m certain you’ll find
something that will help you in your business.

100 thoughts on “3 Ways To Generate More Revenue And Income”

  1. Satisfied customer = returning customer. This is one of the way to increase your income:) Keep up the good work Dan!

  2. Great video, this is the most important for any kind of business, πŸ’ͺLearned this years back.
    Increase the customers,the frequency and the average transaction.
    Looking forward to see that video on upsells.
    πŸ™‚

  3. Business is another form of relationship.
    Find right people to assist you, award them rightfully and the business will prosper.

  4. "'Would you like to supersize that': that is worth tens of millions of dollars" and costs people their lives if they do it too often.

  5. TLDR:
    1. Invest in increasing sales
    2. Optimize revenue stream (Dan used rebooking as example)
    3. Sell complimentary product or services that have high margins. Supersize product offerings

  6. Thank you so much for sharing this Dan! Very helpful.
    Now I would really like to see a couple of new episodes 9 rules for success – maybe from Steve Jobs, Bill Gates or Jeff Bezos… I love that you put your own thoughts on the ideas which is very appealing to me.
    Also a video on your biggest learnings in 2019 so far would be incredible since it is halfway over.
    What do you guys think?

  7. How many people noticed the iron Man suit eyes glow for different points πŸ˜‚ that was eye catching

  8. How do you start a business? I have a million dollar idea but how do I start?😭😭😭😭😭😭

  9. For I think Great video, this is the most important for any kind of business. It's a great idea to get extra income.​Thank you so much

  10. Dan, this video was also an eyeopener. I liked this video. It was educative. Thanks. This is Anthony from Santacruz, Mumbai, India.

  11. In regards to selling B2B Services; social media marketing in particular, how can you get around the objection of "what experience do you have in this niche". Especially as how i do not want to undervalue my skills and time by working for free for a month?

  12. Cool how you had the lights turn on each iron man suit for each one at a time for each of the tips πŸ˜‰

  13. SIFU, Im working on a sports dome project in a very busy and upscale area.
    Im wondering how can I pitch and sell ad spaces and even possibly naming rights for the project before it taking place?

    its the 1st structure of its kind.

  14. Real estate is a one time purchase property. Is there anyway to get more client? especially you are selling the property to expats. Or does it doing an education video of the real estate industry is it best way to increase the sales?

  15. If there was a magic genie who could

    make ONE problem disappear in your

    life, what would it be?

    Comment below, and I might make a

    video to help you make that problem

    disappear.

  16. Dan Lok is such a showman…I love the way those iron man suits light up at every point. Great video as usual dan

  17. Dan what I’d like to ask is what percentage of your profit should be reinvested that’s also another way you can grow as an entrepreneur

  18. Another awesome video Sifu! I especially like your point #2. I think nurturing the existing customers can not only generate recurring income, but also build up the reputation and brand which has a long-lasting impact on any businesses.

  19. This is a great video. I feel that very few big/small companies nowadays focus on their customers they just want money everyday from once off customers.this video taught me alot thanks Dan.

  20. 17=5×12…? More like 5 additional times. That hurt my brain Dan or mr editor. Be careful next time.

  21. Wish for Genie is to improve mental quality of my family,

    Wish for dan "The Man" lok is to make a video on paper work for High ticket closing partner, and video on deals on paper how does is look like.
    #dan
    #danlok
    #danthemanlok

  22. My biggest takeaway is making the relationship you have with consistent partners stronger and deeper. ❀️

  23. Dan Lok I take care of the customers that take care of me! I do business with them once a week. I schedule any new customer days later but my loyal customers come first! Even drop what im doing if I can reschedule my appointments for the next 2 days if its a simple project. Even warranty work, I do not mind at all and I rarely get any! Which is my guarantee to them.

  24. Hello Dan. Thank you for this presentation. Excellent!

    What price point 'Backend' product/service, should an entrepreneur create for hers/his $5K – $15K High Ticket Service. A $20K-$30K backend?

  25. So true…always more efficient to get existing customers to spend more. Devoted customers also tend to become your best referral drivers!

  26. 1. Get more new customers
    2. Have current customers to return more
    3. Have current customers to spend more.

  27. Hey Dan.. First off thank you for your guidance it helpes me a lot … In my business I give 5% off or 10% off depending on how much stock my klient takes.. How do I get my customers to buy even more since I already give them a discount? I am in the GRANITE MARKET
    Thank you JP

  28. there wouldn't be any become life it self is a problem to be solved , you so a problem you move a step ahead in live you make a problem disappear u remain in the same position in life

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