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!