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The Most Important Formula in Business

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Anything related to matters of the mind

Andy Black

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View: https://youtu.be/-QHiYHcWnAQ


(Read more here.)


Transcript

Hi, this is Andy Black

In this video, you will learn about The Search Sales Funnel and the single most important formula in business.

If you’re running a paid search campaign, then you have “searches” at the top of your sales funnel. This is the number of searches performed by people on a search engine.

Your ads receive “impressions” when they are shown in the search results. If your impression share was 50%, then your ads were only shown half the time they could have shown.

When someone “clicks” on your ad, they end up visiting your “website”. With all this talk of clicks and traffic, it’s easy to forget that clicks are actually “visitors”. To be successful with paid search you need to remember that you’re not buying clicks, you’re buying visitors.

If your offer is interesting enough your visitors might convert into “leads”. They could ring you, complete your “Contact Us” form, get a quote, or sign up to your email list.

Or they might skip this step entirely and go straight to the next step, and become a “buyer”.

It’s always good to think of that first purchase as a test. If you pass the test, you stand a chance of converting that one-off buyer into a “customer” … which is just a “repeat buyer”.

If this customer is really satisfied, they might become a “referrer” for you, where they recommend your product or service to other people.

They may even end up becoming a “champion” for your business, where they go out of their way to protect your brand, and promote your business.

So what’s the most important formula in business?

Well, it’s “R + R = Profit” … where R + R is Repeat business, and Referrals

The front end of your sales funnel is where most of your customer acquisition costs are.

Yet most of your revenue can come from a good back-end to your sales funnel,
where you provide such value to your buyers that they make it a custom of buying from you … and refer you to other people.

If the front-end of your sales funnel ran break-even, then any revenue afterwards will be mostly profit.

That’s partly what “R + R = Profit” means.

But the formula stands for more than that.

The real insight is that you can only build a profitable business when you add such value that people come back to buy more from you, and then recommend you to their friends.

The key takeaway for you is that you will never get repeat business or referrals if you’re not adding value.
 
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Last edited by a moderator:

Iwokeup

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Andy, great post. Thank you very much.
 
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SmoothFranko

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Make a show called "Andy's Talks" and you'd have the majority of all active members on these forums watching you. throw so ads on there + ??? = profit?
 
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Andy Black

Help people. Get paid. Help more people.
Staff member
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Read Fastlane!
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May 20, 2014
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Ireland
Make a show called "Andy's Talks" and you'd have the majority of all active members on these forums watching you. throw so ads on there + ??? = profit?
Hmmm... Last week someone outside the forum told me to create an "Andy's Corner" on YouTube or something. I've been giving it some thought... I do love writing, and I also love flipcharts and "chalk and talk". I might be able to get more content out that way... I have so many posts/threads in my head that I feel it will pop if I don't get some of it out there.

@SinisterLex has a corner already. (Way to go Lex!)
 

SlowlaneJay

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Hmmm... Last week someone outside the forum told me to create an "Andy's Corner" on YouTube or something. I've been giving it some thought... I do love writing, and I also love flipcharts and "chalk and talk". I might be able to get more content out that way... I have so many posts/threads in my head that I feel it will pop if I don't get some of it out there.

@SinisterLex has a corner already. (Way to go Lex!)

ohmygodyes

oh-yes.gif
 
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Surf16

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Thanks for this Andy.

I am just getting started on creating a landing page and found your posts very helpful so far.

(Read more here.)


Transcript

Hi, this is Andy Black

In this video, you will learn about The Search Sales Funnel and the single most important formula in business.


If you’re running a paid search campaign, then you have “searches” at the top of your sales funnel. This is the number of searches performed by people on a search engine.

Your ads receive “impressions” when they are shown in the search results. If your impression share was 50%, then your ads were only shown half the time they could have shown.

When someone “clicks” on your ad, they end up visiting your “website”. With all this talk of clicks and traffic, it’s easy to forget that clicks are actually “visitors”. To be successful with paid search you need to remember that you’re not buying clicks, you’re buying visitors.

If your offer is interesting enough your visitors might convert into “leads”. They could ring you, complete your “Contact Us” form, get a quote, or sign up to your email list.

Or they might skip this step entirely and go straight to the next step, and become a “buyer”.

It’s always good to think of that first purchase as a test. If you pass the test, you stand a chance of converting that one-off buyer into a “customer” … which is just a “repeat buyer”.

If this customer is really satisfied, they might become a “referrer” for you, where they recommend your product or service to other people.

They may even end up becoming a “champion” for your business, where they go out of their way to protect your brand, and promote your business.

So what’s the most important formula in business?

Well, it’s “R + R = Profit” … where R + R is Repeat business, and Referrals

The front end of your sales funnel is where most of your customer acquisition costs are.

Yet most of your revenue can come from a good back-end to your sales funnel,
where you provide such value to your buyers that they make it a custom of buying from you … and refer you to other people.

If the front-end of your sales funnel ran break-even, then any revenue afterwards will be mostly profit.

That’s partly what “R + R = Profit” means.

But the formula stands for more than that.

The real insight is that you can only build a profitable business when you add such value that people come back to buy more from you, and then recommend you to their friends.

The key takeaway for you is that you will never get repeat business or referrals if you’re not adding value.
 

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