It's funny when you see people who put “The university of life” in their online profiles…
The university of hard knocks is another one of those privy league schools.
It's kind of like being creative with your resume when it comes to applying for a job…The reality is that most people actually attended the “know-it-all university” which is more like a community college with very low entrance requirements.
It's a habit that most people fall into through no real fault of their own. We're just kind of programmed to find an answer to some problem and then just transpose that answer to any problem that looks similar.
Once we have the answer we stop looking.
There's that one quote from Thomas Edison about not failing but eliminating 1000 ways the light bulb didn't work.
But most people don't even have the stamina to try 5 things that don't work let alone 1000 things.
I'm not talking about simply having a plan b.
I'm talking about deliberately setting up your life or your business to test as many different possibilities as you can to find the things that work best.
The tools are out there to find out what really works.
There's no excuse for doing what far too many people do, which is to set up a web business, and then look for people to complain to when it doesn't work the way they had planned.
Q: How do you know if people will respond to the pretty picture you made on your homepage?
Q: How do you know if putting your logo front and centre will help your sales?
Q: How do you know if people even want the product you have for sale?
Q: What do you do if you don;t know how to answer these questions?…
A: You test…
Ok Confession time – not everyone gets excited about conversion stats…
But I do…
I get a little too excited than is good for me really…
I'm a testing and conversion nerd – I'll admit it 🙂
I'm sure I could get all OCD about fishing or golfing or something, but neither of those makes me more money for less work.
Think about it like this. Finding small improvements in your sales process will make you more money for the same amount of traffic.
Small improvements in your lead generation process will allow you to get more people to that sales process for less expenditure.
Improvements in your back end followup will get those who bought from you to buy more or spend more with you.
A 10% increase in each of those doesn't create a 30% increase in your income.
It's a lot more than that. Let's break it down.
Let's say you have $10 product.
$100 expenditure gets you 1000 people to your sales process that converts at 1%
And you have a $100 upsell for your back end that converts at 10%
Cool so it plays out like this:
You spend $100 to get 1000 visitors.
Your page converts 1% of them (10 people) into customers making you $100 (break even)
Of those 10 people, 1 (10%) buys your upsell at $100
in total you make $200
So because of the upsell you spend $100 and make $200 back. Great.
Now let's add a 10% increase to all of those 3 steps.
$100 gets you 1100 people.
They convert at your sales page at 1.1% meaning that 12.1 people buy your product instead of 10.
They buy it at $11 (10% increase in price)
and 12.1 see your upsell and 1.21 people buy it at $110
now you've made 133 on the front end and 133 on the backend totalling around $266 for every 100 you spend.
That's a 33% increase in your income…
What would you have to do right now to get a 33% pay increase?
…but that's just the beginning.
You test and the winner becomes the new “Control” which you then try and beat…
Which means that you could get another 33% wage increase next month as well…
That's $353 for the same $100 spend. Compared to the original amount you were making that's now a 77% increase.
Your CPI or inflation based pay increase of 2% is starting to look pretty crappy right?
You can see why I get a “little too enthusiastic” about this stuff…
and why you should too.
Don't leave well enough alone… leave that for those with a bachelor of know-it-all-ism.
Test everything… and then do it again.
Look out for the next email and I'll give you a few hints about what to test.
The Moral Of This Story Is: If You Don't Test – You're INSANE! 🙂