I am feeling slightly defeated about my website's slow revenue growth, which I launched in July 2012. Here is a quick break out of my yearly revenue so far: July 2012: $5K 2013: $45K 2014: $100K 2015: $165K (estimating) I put all my free time into this website. This is a side business for me as of now but my goal is to have this be my full-time job. At $165K there is not enough left over to pay myself a salary at this point. I need to reach at least $500K-$1M in revenue, but at the current pace it seems like I never will. How can I increase my website revenue growth at a faster rate?
I'm going to assume based on numbers and that you can't pay a salary to yourself at $165k in revenue that you're working with an ecommerce business or some type of business that has a hard cost to what you're selling.
You have a good growth rate so far. But let's shift focus towards getting your business into a place where you can make it a full-time gig.
A key here will be turning your existing customers into repeat customers and increasing their lifetime value. If you're an ecommerce business, this means upselling them into products that compliment their past purchase. If you are in some other product space, it's offering them a higher value upsell to increase their value.
A great example of doing this in ecommerce is with super food companies. These stores sell dehydrated or freeze dried super foods in packages, and their upsell is to go from a one-time purchase into a subscription. When they have someone on a 3-month, 6-month or 12-month subscription, they've effectively increased that customer's value by 3x, 6x or 12x.
That means if you have $165k coming in this year from all new customers, moving into something subscription based could push that revenue from $165k into $495k, 990k or $1.188m.
Assuming subscription is possible with your product. If it is not possible, then you will want to increase the number of repeat purchasers.
Selling them into products that compliment their past purchases can get you into doubling or tripling a customers value if you are selling products of equal or greater value.
I hope this helps, but I'd love to learn more about your business and what you are actually selling.
If you're interested in talking to me further, send me a message on Clarity!
That depends on how you're generating revenue now, honestly.
Is this a product? Monetized content (ad revenue)? Subscription?
Of the many ways to increase revenue, the two that are probably most actionable are:
1. Increase your number of customers.
2. Increase the lifetime value of each customer.
Without knowing anything about your model, it's very difficult to offer useful suggestions for going about this.
I've worked with hundreds of clients on growing online revenues, so I'd be happy to offer insight for your site — let me know if you'd like to discuss further.
It's not clear what your business model here is but I will second Jamil scenario above. There are so many monetization models that you could apply.
Also, understanding the category will help clarify the opportunity to scale up and how, and at what pace and a possible timeframe.
Here is an idea if you want to double your growth rate!
You have a website, you already know your audience, and you want to increase your revenue. Lets say that you dont want to invest to much in marketing and you want to double your growth rate.
But how do we do it?
Here is marketing tip for you to double your revenue.
Understand who is your audience - have you placed Google Analytics your site, have you placed BIzo.com tag on your site? have you placed Demandbase.com tag on your site. By placing this tags, you can understand in terms of marketing (or analytics)- what kind of audience.
Let say that you get this kind of audience:
Company SIze: Small
Job Title: Sales Manager
So we know right now our audience and we know that majority of revenue comes from this audience.
Next Step: Buy this audience:
So we found out who is our audience, so next - we need to buy this audience. For Example: You can buy this audience from Linkedin Ads, Bizo Ads or DemandBase. Buying means - showing banner ads- to your potential clients who have the same demographic data as your website.
Doing this, you will invest your $$$ in targeted audience rather than broad audience. Doing this marketing strategy, will cost you 10x cheaper than broad marketing.
What is the difference between targeted marketing and broad marketing?
Targeted Marketing - you target only your potential clients, - example: you want to target "Sales Managers from Retail Industry. You will use thirdparty data providers to show your ads just to those sales manager. This mean 1to1 marketing.
Broad Marketing - broad marketing is the reverse of targeted marketing. Example: in your advertising, you're banner will show to 95% to students and 5% to Sales Managers. This means that your CPL will cost 200$ with Broad Marketing - but - with Targeted Marketing will cost 20$.
Hope this will help you.