Millionaire Mindset Trait #2: Focus on the business model that can significantly help you increase your income. by Mark Ling

Millionaire Mindset Trait #2: Focus on the business model that can significantly help you increase your income.

The majority of millionaires understand that the universe doesn’t just hand you money.  While a few do believe that can and does happen by following the tenets of the Law of Attraction, in my experience the majority of millionaires are much more pragmatic about how wealth is acquired.  Most millionaires understand that real money is made by focusing on this business model:

Leads multiplied by conversion rates times the average dollars made per customer times the average number of transactions per customer determines the amount of money you make.
Let me put it more simply:

Leads x
Conversion rates x
Average $$$ per customer x
Average number of transactions per customer
= Your income

In my work as an internet marketer, that business model is what I always focus on.  It has played a significant role not only in helping me become a millionaire, but in helping me continually grow my business.

I’m always working on finding ways to get more traffic to my websites and get more visitors to my landing pages, which means more leads. I work to capture as many of those potential leads as I can with things like email marketing, newsletters, and so forth so I can convert those leads into buying customers or sales.
From those initial purchases I then try to get my average customer to spend more – to buy more products or higher-priced products. And from there I want to get them to become regular customers - to buy from me on an ongoing basis. All of these steps follow the business model shown above.

The greater each of those numbers in this equation, the more money I make.

Now, that’s what I do as an internet marketer.
Perhaps you’re thinking, “what if I’m not an internet marketer – will this model still work for me?” No problem! This business model applies to virtually every type of business there is. 

Let’s say you run a coffee shop. You most likely advertise in various ways in order to get more people (leads) to come into your shop. When they come in, you strive to get a higher percentage of them actually buying something from you (convert the leads).  And of course, you always want to get the average person to spend more money ($$$ per customer) – for example, you might say to them as they order a coffee, “Would you like a fresh pastry to go with your coffee today?” or, if they’re ordering a pastry or lunch, “Would you like some freshly brewed coffee to go with that?” 

And then, of course, you always try to get each customer to come back and buy from you again (average number of transactions per customer). So, for example, you might offer them a loyalty tab (kind of like frequent flyer miles except it’s coffee) or something like that. Or, if you’re a savvy business owner utilizing the power of the internet, you get them to sign up for your email list. Then you can occasionally run a
special offer and tell them in the email, “Hey, if you come in today you will get a free latte with whatever you order”.

All of those things combined will determine the amount of money your business brings in. At the end of the day, no matter what industry you’re in – whether it’s internet marketing, running a hotel, or selling real estate - these are the four things that you want to always be focusing on if you want to reach your goal of becoming a
millionaire.  Millionaires understand that you really want to pay close attention to detail and always keep trying to improve upon each area, because the money that you make is a multiplication of these four things – in other words, the higher those numbers, the more money you will make. So if you improve even just a couple of these things it will greatly boost your income.

Let’s look at some numbers…

For example, let’s say you have a business that’s bringing in $5000 per month - $60,000 per year. If you were to double just two of these areas – say your leads double and the average dollar amount per customer doubles – your income would quadruple – you’ve just gone from $60,000 per year to $240,000 per year! Not bad.

But let’s look at what happens if you double all four areas - your leads double, your conversion rates double, your average dollar amount per customer doubles, and the average number of transactions per customer doubles. Now you’re making sixteen times more money than you were making initially. $5000 per month x 12 months x 16 = $960,000 a year!

Now, as you can see it doesn’t take much of an increase to substantially increase your income. But let’s play with the numbers just one more time. Let’s say you tripled each one of those areas? You’d be making 81 times more money than you were originally!! Yes – 81 times!! So, your business has now gone from $5,000 a
month / $60,000 a year, to bringing in (are you sitting down?) – $405,000 per month!
Just by tripling those numbers. That’s an amazing leap from a meager $60,000 per year to $4,860,000 per year!

Hopefully you can now see how focusing on that business model – how an increase in any of those areas and especially in all four areas - can absolutely move you towards your goal of becoming a millionaire!
Millionaires understand the power of this business model and they use it to create wealth.

Article by Mark Ling  http://www.amazingself.com