Do you ever wonder what the math would look like when looking at a million dollar business?
In this article, you’ll learn the 3-step math formula with actionable steps to get more traffic, boost conversion rates, and increase average order value.
The Million Dollar Business Video Tutorial
1. The Math Of A Million Dollar Business
There are many ways you can look at a million dollar business.
Today, we’re going to provide you The Million Dollar Math spreadsheet.
This way you can walk along with us and know exactly how to reach that million dollar mark.
- Traffic Per Day: 1,389
- Traffic Per Month: 41,670
- Conversion Rate: 2.06%
- # of Orders: 859.177062
- Average Order Value: $97
- Total Monthly Revenue: $83,340.18
- Total Annual Revenue: $1,000,082.10
Through the video above, we will go through how small adjustments to each number could make huge differences in your business.
2. Million Dollar Business Traffic Strategies
The very first thing you want to focus on is the total number of people who view your offer or sales page. This is what we refer to as traffic.
With all other factors remaining equal, in order to build a million dollar business, you’re going to need to increase traffic to your website.
Some affordable ways to do this are:
- Bumping up your SEO game
- Increase click-through-rates on your paid advertisements
- Schedule guest appearances on podcasts
- Form promotional partnerships with other people in your industry
These are all ways to increase traffic to your landing page.
3. What Conversion Rates Does A Million Dollar Business Need?
The next thing you want to do is increase your conversion rate inside of the formula.
This is one of the more important components of the strategy.
The conversion rate is the number of people who purchase or make it to the next step of your funnel.
Some simple ways you can increase the conversion rate is to:
- Hire a conversion rate optimizer
- Improve your sales copy
- Implement a website content strategy
- Start listening to your customers because this is what makes them more likely to respond to your offer
A simple increase from 2% to 3% in your conversion rate can lead to a 40% revenue increase in your business.
You don’t even need to pay for more traffic.
4. Increase Your Average Order Value
The third element is to look at your average order value.
This is the amount of revenue each order brings into your business.
In this article we include a few strategies that will also impact the lifetime value of each customer when you boost your bottom line.
Price Testing
The first strategy is simply by trying different price points for your product.
If you were to raise your price from $97 to $197, what would that do for your business?
While you may have a concern that might lower your conversion rate, that’s now always true. Why is that?
Studies have shown that buyers often behave irrationally when it comes to price.
When they view something as more expensive, it’s generally perceived as a better product. This is also why price positioning is important when valuing your product.
To find out what price points work best for you try different numbers out and track the results.
Bump Offers
To raise the average order value, you can also add bump offers such as upsells, upgrades, down-sells, or some type of video training/webinar.
Anything additional that can increase the order value can take you one step closer to getting the math correct.
5. View The Million Dollar Business Interactive Spreadsheet
Obviously this is nowhere near a complete strategy to build a million dollar business.
The 1 outlined in this video tutorial shows you how to pay close attention to the math.
The attached spreadsheet and calculated is an interactive tool. It’s simple to use, as you see on our video.
We suggest you give it a download and play around with it yourself.
You might find the one calculation that can lead you to making a significant change to the amount of traffic or conversion rates you get.
My name is Steve Nixon. Thank you so much for watching and reading.
If you enjoyed this video and article, I encourage you to also read our article on email campaigns or visit us on YouTube. Thanks, I’ll see you soon.
P.S. Don’t forget to download The Million Dollar Math Spreadsheet.