Why Some Start Up Entrepreneurs Fail Even Though They’re Making Money!
At first glance, (it both) sounds and seems totally ironic, does it not?
How any profit seeking start up entrepreneur of any kind, and or shape or size.
Could actually still whined up going broke, even though they’re periodically making sales,right? 😀
Typically, (and certainly) not in all cases, but more times than not, the primary, over -riding reason(s) for this consistently happening is, their continued effort, to avoid altogether, and or to neglect, tracking their businesses real internal metrics.
Because as you’re about to discover, once they start consistently doing so, it quickly becomes a lot less difficult, to spot and or anticipate, certain financial struggles and or temporary rough spots.
This way you can better prepare and adjust certain strategies and or tactics. While totally eliminating others altogether.
Who Else Wants Discover How Some Savvy Start Up Entrepreneurs Still Ultimately Fail Even Though They’re Earning Money!
With your permission, you’re about to get a really condensed version, of one of the online marketers, best kept secrets.
This powerful little, easy to use formula. Helps both start up entrepreneurs of any and all kinds, stay at home Moms & dads, affiliate marketers and or direct sales specialist alike.
Better organize and structure, how to start with the end goal in mine, and work backwards, to put in place, all the necessary processes and or systems, to help them ultimately reach their stated, yearly,monthly, weekly and or daily income goals.
This is how powerful and versatile, this one incredibly straight forward formula is.
Even Your Very Best Entrepreneurial Ideas Have To Make Economic Sense In Order For Them To Work Long Term!
And remember, it doesn’t matter if you’re a traditional, offline, brick and mortar business of some kind. And or a small, one or two service provider outfit. And or an on or offline, start up entrepreneur, with 50 initial employees and or associates on your payroll etc.
It really doesn’t matter, because you can simply tweakk this proven formula here and there.
And it’s customized to your given situation.You may have already heard it called many things. For this particular example, simply refer to it(, from here on out), as the “Ten and Three Rule.” (Outrageously catchy, right? 😎 )
Successful Entrepreneurs Have To Learn To Be Extremely Flexible And Decisive!
Since every bodies personal, (gross monthly) income goals are different! Strictly for the sake of demonstrating this, potential game changing formula! Play along, as if your currently monthly, gross income goal, is to gross ten thousand dollars!
And it does matter, if you currently haven’t earned a nickel online just yet. You are merely using this example, to further introduce you to the basic (fundamentals) of this proven concept.
And help lay the proper foundation.
Basically, the “Ten and Three Rule” states. (After countless tests!)On average, about 10% of your semi qualified-targeted- leads, (when exposed) to one of your best, market tested lead magnet- capture page/sign up forms.(Power list building 101.)
On average, about 10% of them (or more!), will initially join your opt in email/mobile marketing list.(It doesn’t mean they won’t unsubscribe at some point BTW! 😀 )
Just initially provided you’re targeting the right audience, with a practical,market tested, problem solving, free list building giveaway of some kind.
Of those initial ten percent, typically about 1-3% of them, will normally become, first time buying customers of some kind.
Unfortunately A Lot Of Start Up Entrepreneurs Fail To Closely Monitor The Really Important Details!
Now, let’s say you sell -either- a product or service of your own, and or an affiliate product or service, which you earn a bare bones minimum, of $1,000 dollars gross,per sale completed.
Based on this information, and the proper use of the “Ten and Three Rule.”Believe it or not. You now have enough viable information, to systematically work backwards. In order to determine.
How many completed sales, monthly and daily qualified leads you need, in order to consistently hit or exceed! Your stated monthly income goals!
Being A Successful Entrepreneur Means Knowing And Understanding Your Businesses Internal Metrics! (So You Can Start Adjusting When And Wherever You Need To!)
In order to gross and meet your stated monthly goal of grossing $10,000 per month. With the just the sale of your product or service, which grosses $1,000 dollars per sale.
You know, by simply dividing $10,000 dollars (your stated monthly) goal, by $1,000 dollars per sale. You need ten sales of this particular product or service, correct?
($10,000 divided by $1,000 dollars per sale = 10 sales per month needed, to meet your stated, monthly income goal.)
Next, since you also know, you average a maximum of 3% of your monthly leads, ultimately converting into first time paying customers.
You simply work backwards again, and divide your gross number of sales needed per month, by your 3% (or X percent closing ratio.)
Smart Entrepreneurs Learn How To Make Their Numbers Work For And Not Against Them!
So ten sales, divided by .03% equals 333.(10 divided by .03% = 333 total number of qualified leads. In other words, (in this particular example only!) You’ll need at least 333 opt in leads, to initially join your list, so ultimately, 3% of them, ten prospects, ultimately become, first time paying customers.
And since you also know, you average a 10% opt in rate. You further work backwards and divide 333 by .10%, and you should get 3,330.
Meaning, you need a total of 3,330 clicks and or (PPC ) Pay Per Click exposures to your market tested lead capture page offer. In order to get ten percent of them to join one of your lists.
Or 333 opt ins. Which (of course) equals your ten percent opt in rate. For this particular example only!
Successful Entrepreneurs Are Definitely Coach- able!
Take the time to watch the video embedded in this particular post! Because it’s narrated by one of the web’s most skilled online marketing experts.
This being Laurie Conrod. Although she primarily works with the network marketing, affiliate marketing and direct sales industry.
She specializes in helping beginners, through advanced online marketers.Initially set up their paid- (PPC) Pay Per Click, Facebook and or Google Adwords, or PPC Bing campaigns etc.
And she also offers expert, paid one on one coaching packages, to help you or I, properly set up your sales funnels.
In full the spirit of full disclosure. While I am personally not one of her paid students, and or paid consulting clients just yet!
I am one of her many subscribers, who follows and models her proven expert advice, very closely!And I highly suggest you do the same. 😀
You Simply Can’t Develop Your Entrepreneurial Skills Too Much!
The featured 18 plus minute video, walks you- step by step, through the proven, “Ten and Three Rule.” Only her numbers are slightly different.
This is only being done, to demonstrate to you, the formula truly works, no matter what your specific numbers are.
This being said, hopefully after reading this blog post and studying her excellent tutorial video a few times, you can better appreciate, why some extremely savvy start up entrepreneurs, still ultimately go broke! Even though they’re periodically making sales!
P.S.Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below)
that you can apply to your business, product or service in the next 30 days or less!
As always, if you got any value out of this post, please Google Plus or tweet this.Thanks!
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