MBA2171 How Making More Expansion Revenue Is Easier Than You Think

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Expansion revenue is just a fancy term to say make additional revenue from your customers, selling them more products, more services, add on products done for you, services, you name it. The point here is that expansion revenue is incredibly important to the health of your business. It allows you to increase the average revenue per customer. That means for every customer you bring in, they spend more money. That means you don't have to work as hard bringing in new customers or even more so as you bring in more customers, they spend more money. This increases your revenue, your profits and allows you to have some healthy, healthy margins. But many people complicate making more expansion revenue. They think they need to do some sort of full on new product they need to invest 18 months in building or some fancy expansion revenue upsell funnel. Or maybe they think they need to hire a sales team to close more expansion revenue sales. I'm here to say there's one thing you can do to massively improve your expansion revenue and it's not that complicated. I'm going to share with you what is the one thing that I've done in my business that allowed me to increase my expansion revenue by 300% in this past year. So let's get into it. Let's get down to business. Before we begin on how to simplify getting more expansion revenue, let's first take a look at two examples. One business that is working hard on getting expansion revenue and one that isn't. You might think that it's not such a big deal. Maybe I don't need to worry about expansion revenue. But let me show you why you should invest in it. Let's say there's two companies. So just to make things easier, to make this example easier, let's say the average revenue per customer for both companies is $1,000. So this is on average how much each customer that comes into these companies spends during their lifetime. This is sort of the lifetime value, how much they spend with you. And let's say both of these companies get 100 new customers every single month. Now, one company ignores expansion revenue and the other really goes all in. And I'm going to be very conservative here. We're not going to say they're doubling their average revenue per customer, but let's say they make an additional $400 all on every customer, on average, $400. But some customers might spend $800, some will spend $200. But the point here is that they're making offers and providing more value and they're able to secure an additional $400 from each customer in expansion revenue. That company that actually made an effort on working on their expansion revenue made an additional $40,000 in revenue a month and nearly half a million dollars in revenue extra in the year. $480,000. These are conservative numbers. This is not thousands of customers a month. This is not explosive expansion revenue growth. This is incredibly conservative for a steady growth company. Can you afford to just leave half a million dollars on the table every single year? If your business is running for 10 years, that's $5 million just wasted. You didn't take on that opportunity. And today I'm going to show you one thing, one thing you need to focus on that will make other a big difference in your expansion revenue. What is that one thing? Well, most businesses make a huge mistake. They don't offer more value. It's that simple. They don't tell their customers they have other products. They don't tell their customers that this product, this additional product can help them get more out of their purchase, get more out of their existing situation or the first product they bought. They don't give the opportunity for the customer to buy. The customer is clueless about what else you offer. They're not offered any additional services or products when they need it. We'll talk about that in a moment. Sometimes people think that I already told them once, that's enough. And they're just leaving massive amounts of money. So the best thing you can do to improve your expansion revenue is simply let your customers know what you got. You have to make it part of your system, a part of the onboarding of a new customer. Listen, I'm a high value person. I'm a high value business owner, meaning I like to give as much value as possible to the customer. I don't like to annoy people. I don't like to spam people with offers constantly. If you're on my email list, you know that we don't do this. You probably get an offer from me far less than what you normally get on any other email list. So I'm the first person to say don't spam people. But. And this is a huge but. Okay, Telling people what you offer is not spamming. Okay. You don't have to pressure sale, you just have to tell them. I have this by the way. So telling your customer once a week like in your newsletter at the end. By the way, did you know that I wrote a book on this topic? It's 9 95. This is where to buy it. By the way, do you know that we're running a live masterclass two weeks from now? You can register here. It costs $29. By the way. Do you know that I offer a live course? It costs $500 and includes this, this and this. Sign up here. This is not a sales pitch. This is just letting them know this is what I have. There's so many people that you're unaware of on your email list that love what you offer. They love your blog, they love your podcast, they love your YouTube channel. They love a product they bought from you in the past. And they're a super fan and they wish they can gobble up everything you have, but they just don't know you have it. Let them know. Some people have their products and services hidden on their website. Make it very clear. Have a product's menu item on the top of your website in the menu, in the navigation. I'm a big believer in holding your subscribers by the hand and giving them step by step instructions. So for example, if somebody signing up to my free opt in my freemium, my lead magnet on my website, I deliver that lead magnet via email through an email automation. I give them more value. I give them my best blog post, my best podcast episodes. But I Also let them know, hey, if you like all this free stuff and you want to learn more, the next level up is this product, is this course called the $100 MBA. For example, for those who are part of the hundred dollar mba, I also let them know I have a coaching program called Mission Control and it's part of my email sequences. I have to let them know one of the easiest hacks you could do is just add your flagship product or one of your products or your entry level product in the signature of your email. So anytime you reply to anybody, anytime, maybe you're replying to customer service emails, have it in the signature. Want to go even more Ninja? Add it to any signup process. For example, you might have a lead magnet on your website, a free guide, a to do list or something. When they sign up for that guide, you're going to send them to a page to say thank you. On that page you can easily just offer it. You don't have to make it a sales pitch. Again, tell them, I've emailed you this lead magnet if you want to fast forward if you want to take things to the next level. Right now I have a program, I have a book, I have a course that you can take. Click here to learn more and send them to your course sales page. Some people don't want to go the whole funnel. They just want to take to the next step. They're willing to pay and they want to get started. You don't know how people learned about you or where they're at in their journey. For example, with my business $100 MBA, somebody might be listening to my podcast for years I didn't know, but they're listening for years. And then they go to my website, they sign up for lead magnet and then they'll discover, oh, there's a live program called the $100 MBA that I can take. I'm already sold on Omar, give me that. But they would never know if I did not tell them, if I didn't give them a chance to see what it's all about. Now some people say, well, I don't want to be pushy, I don't want to be too salesy. This is not pushy or salesy. You're not forcing them to do anything. You're just making them aware. And that's the tone of the message. Do you get upset when you go to the supermarket and you see candy bars and mints at the checkout aisle? No, you don't because you understand that this is optional. And by the way. Aren't you glad that there are mints and chocolates at the checkout aisle? When you actually want mints or chocolates, it's convenient. Not every time you're going to buy, but sometimes you will. And if you don't have the mints and chocolates in this metaphor right at the checkout aisle, they'll never buy. That's how you increase your expansion revenue from zero to a whole lot more. To wrap up today's lesson, I love business because of all the amazing opportunities you have. There's no ceiling to growth. Now. We didn't talk about creating expansion revenue opportunities for your business. You don't need to invest time and money building out add on products or services. You can just offer it first, figure out if somebody actually wants to buy it. Once somebody buys it, then you can fulfill it. Especially if it's a service. You can figure this out, hire out for it, charge enough so you can actually outsource this problem to somebody else and they can fulfill that service. If it's a product that you're delivering, you can ask them to pre order and see how many pre orders you get. But my favorite solution to this is partnering with somebody. Let's say your customers would really benefit with a done for you service. You might be a product like a software company and you don't do done for you. You actually create the software. You don't do a service like that. You don't have the manpower for it and have no interest in getting into that part of the business or building out that side of the business. For sake of example, let's say you have an email marketing software like mailchimp and you have customers that says, hey, could you build out my email automations? I don't want to deal with this. And mailchimp's like, well, we're in the business of software, not services. Well, what mailchimp could do in this example is partner with services that do this, that specialize in building people's email marketing funnels and automations and things like that. And they can get a cut of every customer they refer. And they can simply just say, hey, we've partnered with this firm to fulfill this service. And you and the partner can work out how you want to hand over the customer and the payment. But the point here is that now you have a whole new service that you can offer your customers that you don't need to fulfill. You're just the middle person. You're the person that connects the service and the customer. You have the customer asking for something that you don't do, you found somebody that does it and now you're getting a kickback, you're getting some commission, you're getting a cut of that sale without having to do any work, right? All you got to do is pass them on. This is why it's important to network. This is why it's important to make friends in industry and in business. Because that way you can be able to find these connections and reach out to people and say, hey, I have customers that would love your product. This is a win win. Like this is like a hell yeah for them. And you just made expansion revenue with no cost on your end. Thanks so much for listening to the $100 NBA show. Hope you found this episode helpful. If you did, leave us an Apple Podcast rating and review, we'd love to hear from you or a review on any podcast app you like. Spotify, you can give us a star rating. Go ahead and do that right now. And if you really love the show and you want to show us some love, share it on social Let your friends and family know. On social media, send them over to 100mba.net so they can subscribe to the show with our subscribe buttons. Before I go, I want to leave you with this. Sometimes we think the solution is a lot more complicated than it actually is. What I found in my 20 years of entrepreneurship history and experience is that sometimes doing one pivotal thing can make a world of a difference and is far more impactful than doing nothing. That's why I like to share lessons like today's, because I learned that the hard way. Thanks so much for listening. I'll check you in tomorrow's episode. I'll see you then. Take care.