Today we’re going to be discussing something that is extremely pivotal to both online and offline businesses.
This is quite often the determining factor if a business will last 2 months, or 2 years. That factor is LTV, also known as Life-time (Customer) Value.
The reason why this is so important is because many businesses focus on obtaining one initial sale, and quite frankly, it’s impossible to make new sales for an infinite amount of time. New blood into a thriving business is always fantastic, but also difficult to acquire. The level of difficulty of making a previous customer purchase from you again versus attempting to make a cold lead purchase from you is vastly different. After crunching the numbers, a business is set up for much more profitability if they know that on average, a lead is worth $50 rather than $25.
Many business that sell consumable items, cosmetics, and other products can even take a loss on their front end sale, knowing that 4 weeks after initial purchase, that customer will most likely purchase additional products or partake in a monthly subscription that is highly profitable in the long haul.
Overall, increasing Lifetime Customer Value can be done in a few ways such as…
- Post Purchase Email Sequences
Building a solid post purchase email sequence is easier than ever. Keeping your follow up offers congruent with the initial product purchase, you can take the information you already know about the customer and sell them on an additional product that may supplement or compliment the original purchase. Setting up an email series like this can be done with softwares such as MailFunnels which is free for the first 14 days!
- Monthly Subscriptions
Recurring programs are extremely profitable and we’ve seen companies like these make a huge impact in eCommerce. Brands such as Dollar Beard Club, HiSmile, and countless cosmetic brands are capitalizing on this approach. It can cost $20 to acquire a $10 sale at first, but if the average retention rate is $10 / month for 6 months, then they’re setup for immense profits.
- Customer Retention
Customer retention is massive in regards to keeping LTV of your customers high. This can be done through things such as points and rewards systems, free gifts, and interactive features that keep customers feeling gratified and involved.
Wouldn’t it be pretty awesome to be able to start any business you would like in the matter of a few hours with zero startup cost?! Drop shipping using AliExpress allows you to find reliable suppliers for just about any product for your eCommerce store. That may be confusing to some of you, but I felt the same way when I first got told the same statement. So I’m going to give you a golden nugget by telling you what this means and how it will change the way you look at starting your next eCommerce business.
What is AliExpress?
Aliexpress is a marketplace just like eBay or Amazon. The main difference is that most suppliers are overseas so their prices are very competitive. Although AliExpress may position themselves to look like they are a retailer, many suppliers are open to the resale of their products on your store at a retail cost. They will then fulfill the product on your behalf through drop shipping.
What is Dropshipping?
Drop shipping allows you the freedom to test products without upfront cost. You won’t be stuck with huge piles of boxes in your house, packing your orders by hand or even endless trips to the post office. You will be able to spend your time focusing on the fun aspects of growing your business. It is as simple as establishing a connection with a supplier. You will then place their products in your store. When you make a sale you create an order for that product with your supplier. The supplier will ship the product directly to your customer without you ever having to see it. Although it is easy to use AliExpress for Dropshipping, there are a few things you need to look out for. We will walk you through how to set yourself up for success so that you can see amazing results.
Why People Will Buy From You:
Many people may be stuck on how to make their first dollar online. At the beginning it may seem difficult but that is just because it is difficult to make a decision.
Around 20 years ago there was one basic business model if you wanted to start your own business. You would have to go find a good location, find a niche you want to target then sell products to those people by marketing in your local area. This prevented plenty of people from starting because of the high startup cost.
Nowadays with the progression of the internet there are more than enough options to start your own business and generate income with a low startup cost. Because there are so many options and the barrier of entry is so low, to many people are starting their own business and then changing ideas before their first business has a chance to prosper.
If you want to generate your first dollar online this is where you will want to start step by step. In these steps we will be talking about Shopify specifically.
Step #1: Keep It Simple & Take Action
From an outside perspective it may seem like a complex process to start generating cash flow. When you start with the end goal and work backwards you will see the simple steps you need to take.
To generate positive cash flow there are two thing you have to do. First you have to take MASSIVE ACTION. Your dreams won’t work unless you do. Second you have to exchange a product or service for its monetary equivalent to make a profit. (A.K.A. Make a sale for more than it cost you to fulfill your product or service.) Seems easy enough right?
Without taking the proper action you will not succeed. Now that you are working for yourself nobody will tell you what to do. The only thing you will have to do now is decide which actions will make you money. You may not make money the second you finish the step, but each action you take should lead you to being able to generate revenue.
Step #2: What To Sell & Where To Find It.
Here we go! The major mistake people make when trying to decide what to sell is, they think they have to reinvent the wheel. You don’t need to come out with something new and innovative. All you need to do is notice a product where the demand is higher than the supply. By jumping into this market you know that you will make sales because you can model the other companies success and just take a piece of the pie.
Now many of you may have the question “Doesn’t it cost a lot of money to invest in inventory to have products to sell?”.
The answer is NO! You have platforms such as AliExpress that allows you to get in contact with suppliers of any product that will ship the items you sell directly to your customer once you make a sale. Yep! You never even see the product in person.
Once you find your suppliers you can start testing products with advertisements. If the product doesn’t sell than you have no worries, just move on to testing the next product! As soon as you find a winning product you can then double down on your advertising for that product to simply get more people to see it resulting in more sales!
Step #3: Where Do I Sell These Products.
There are plenty of platforms you can start on. Between all of the different platforms to build a website, eBay and Amazon it is easy to start listing products to advertise.
Shopify is proven to be the easiest way to create a brand that is scalable. Shopify makes it easy to process payments, add products, keep track of customers, tracking conversion, it’s simple to embed all your event tracking pixels for Google and Facebook, along with allowing each user to customize their site completely. They really made it plug and play.
>> Click Here to Start Your 14 Day Free Trial on Shopify <<
Step #4: Get Your Product In Front of People
This may be the hardest part of the process but once you find out where your customers hang out it makes it allot easier. If you reverse engineer this process you can streamline your way to making your first sales. By leveraging social media this makes it more simple to find networks of people looking for what you offer. Between Instagram and Facebook there are over 2.8 billion active monthly users. Do you think that if you could tap into a network of 100,000 highly targeted people you could make a single sale? I’d be willing to bet money that tapping into 100,000 targeted customers would completely change your life.
Now you may think you have to have a large budget to tap into large networks of highly targeted people. What if I told you that you could do this with as little as $25 or less? Well it’s completely possible if you catch one of the latest trends before it gets saturated.
This trend is Influencer Marketing. You can utilize Influencers in your niche to get your message out to your target audience while gaining social acceptance. Now this is the most powerful part. People follow these influencer walking in their footsteps. If the influencer is promoting your brand then you are hitting a warm market by using the most seamless form of word-of-mouth marketing. Now your brand is more likely to become viral by becoming a trending topic. This will also allow your page to gain traction and boost your loyal followers. Now you are building an asset to advertise with zero cost. Although you have this asset you will not want to you stop users your influencers!
Here you are. New company, new website, new ideas. All your time has gone into making, and perfecting the storefront. You’re excited to begin making money and selling products, but there’s a problem you discover. Your website is receiving views, but product’s aren’t selling, and customers carts are remaining empty. There are different outliers that can be causing this.
Maybe your visitors are having trouble navigating your site. Perhaps it is not clear where to click, or how to buy something. This is a common problem new storefronts experience, and it is driving away customers. Luckily, we will be discussing some methods to ensure your customers carts are full, and you are making money.
The first step to fixing this problem is simplifying your call to action. Your call to action is what tells the customers what to do, where to click, and what to buy. The call to action is going to guide the customer to do what you want. The most common examples of a call to action is a “Buy Now” button, or “Shop Now” on the homepage. The styling of these buttons vary for websites, so you may have to test out a few to see what works for your company.
Although these call to action buttons can differ, there are some basic things to understand when making them. (more…)
How You Can Have The Competitive Edge
Has Instagram been confusing you about growing your account with all their changes?
Ever since Instagram has changed their algorithm there has been this talk about Instagram Pods. Today we are going to discuss how you can work with the Instagram algorithm to keep your engagement high and gain real followers.
What Is an Instagram Pod?
An Instagram Pod is a group of people that stay in close communication with the single purpose of growing their Instagram accounts. These groups can be seen communicating across a variety of platforms. These platforms can be Instagram, Twitter, Facebook, Whatsapp, Telegram and I’m sure there are plenty more. Since these Pods have to be real people this method can be extremely beneficial to grow your Instagram if done correctly.
Theory of Instagram Pods.
Instagram has been reward accounts when your current followers enjoy your content. This raises your reach by bringing your photo higher on your followers feed and on the Discover page. By having quick, frequent and high engagement on your page theoretically, you can ‘hack’ Instagrams algorithm.