Questions

I am part of a bootstrap startup called AeroLeads and I am investigating for some suggestions that can provide some dominant approaches to hit the sales target.

Every business needs two things to drive revenue:

Traffic

and

Conversion.

In 6+ years of doing consulting calls with business owners, the number one problem I've found they have is this:

Nowhere near enough leads needed to hit their money target. And they didn't even know it.

They were beaten before they started...and weren't aware before talking with me.

You need to back into the number of leads required based on the number of sales you need to make. Divide your revenue target by the average sale amount, eg $500K / $1000 = 500 sales.

And how many leads do you need to get those 500 sales?

Estimate conservatively first, then gather data to get to an actual figure as you go.

Say you figure you can get a 1% conversion rate. That's 100 leads to get a sale (think about all the filtering you need to do to get there.) 100 X 500 = 50,000 leads.

Consider that. For most people, they're thinking...vaguely...that they need around 5000. Beaten before they start. They'll never get there, to that $500K revenue target.

You can estimate your cost of customer acquisition this way. Again, most people aren't thinking about COCA, but it's one of the major numbers you need to know as a business owner. You can do the math and simulate your business: does the math even make sense before you begin?


Answered 2 years ago

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