As a professional blogger your goal is to provide solutions to others in your niche that are having problems. Typically, it will be a teaching in a blog post. In turn they will eventually get to know, like, and trust you which will ultimately lead to a sale of your products or services.
Sound about right?
We are going to talk about some unconventional ways to increase your revenue.
What are your thoughts on that? Are you game?
Buy Products for Your Business
Come on. Are you serious with that? Absolutely 100%. Here’s why.
Let’s use an inexpensive product that I recently bought as our example.
CommentLuv Premium plugin for WordPress
Investment was $67.00
How is spending $67.00 going to increase my revenue?
Simple. When someone leaves a comment on your blog there will be a link back to their most recent post. Now if a fellow blogger leaves a comment on your blog my guess is they liked what you had to say. Wouldn’t you agree? This will allow you to connect with them. That connection can potentially lead to business for you. How much business can one connection bring to your business?
Also, if you comment on other blogs that have the CommentLuv plugin enabled a link will appear with the most recent post you wrote. Not only will the blog owner click on your link, others who are also leaving a comment will do the same. Provided you’re adding something to the conversation – i.e. “bringing it” which will nudge a reader to see what you’re about. This will allow you to make additional connections. Let’s say you make a lot of connections, but only one became a customer of yours. How much is that one customer worth to you?
Would you spend $67.00 to make:
You better believe it. That is what buying products can do for your business.
Determine your ROI (Return-On-Investment) before buying any product for your business
Example ROI for a piece of diagnostic equipment I used to sell to eye doctors
The cost of this equipment was $85,000
Approximate monthly payment of this equipment was $1,500
Now this procedure was not medically necessary and insurance did not cover it. Therefore it was an out-of-pocket expense to the patient. Most eye doctors charged $39 for this procedure.
Not every patient chose to have this procedure done, but at least 50% of them did. Yes, 50% is an accurate percentage for this procedure. Actually 50% is a little under industry average for this procedure to tell you the truth.
Let’s get to our example.
XYZ Eye Care Associates – This is a target practice based on patient volume.
They see 500 patients per month. Half (50%) – 250 of those patients chose to have this procedure done, paying $39 each.
250 x $39 = $9,750 in gross revenue
$9,750 – $1,500 = $8,250 in net revenue.
Based on this example your ROI for this piece of diagnostic equipment is 5 ½ times! What a no-brainer this is for a doctor right?
Would you want an ROI of 5 ½ times your monthly investment?
You should be nodding your head yes, yes, yes I would love an ROI of 5 ½ times my monthly investment.
You may or may not be spending $85,000 on a product or service to grow your business, but $85,000 psychologically is a crap load of money to anyone even if your potential ROI is 5 ½ times your monthly investment.
How many eBooks, eCourses, or products do you need to sell to breakeven?
How many eBooks, eCourses, or products do you need to be profitable?
Do you agree or disagree with what we have talked about so far? Leave me a comment either way.
*Disclaimer about stories
If this is your first time here on my blog I tell stories from my extensive offline experience that I have accumulated over the last 14 years that help illustrate the points that I am making and providing you tangible examples. Yes, you are a professional blogger and we’re using the internet, but the internet is not somehow this completely different animal where you cannot draw comparisons between the two. Business is business. Offline or online.
Make sense? Good. Carry on.
I was in an eye doctor’s office yesterday where, I was talking about why they should buy my $20 product, but more importantly how a $20 product will increase their revenue.
The recommended sale price is $30 to the patient. Doctor only makes $10 a bottle.
You’re probably saying $10 is nothing. Not even worth my time. Hear me out before you jump to that conclusion.
See this particular product is for the treatment of chronic eyelid diseases. Translation these diseases have no cure, so my product helps alleviate any discomfort associated with said diseases which results in a happy patient.
This product is to be used essentially for the rest of a patient’s life. Basically to achieve desired benefits you use the product twice a day for ever. Now does every patient follow those directions?
Absolutely not. They’ll use the product until they feel better. Stop. Wonder why their eyes don’t feel good, which is because they have not been using this product every day twice a day. So they start up again.
That is an additional 8 to 12 touches that patient has with their eye doctor a year.
What does that mean for their business?
Additional sales of eyeglasses, contacts, booking of eye exams, etc.
Which is can be $100’s and even $1,000’s of dollars in additional revenue for the practice.
This is all due to selling a $30 product. Unfortunately, eye doctors are terrible business people which makes selling to them extremely difficult. I touched on this briefly in my post last week.
Does this make sense to you? If not it should.
As professional bloggers you make your living by selling products, and services that people need or want.
Don’t forget about spending money on products that will help you increase your revenue by way of the two examples I just explained.
Please tell me your thoughts? Does this make sense? Or am I off my rocker here? Leave me some feedback in the comments.
Time is priceless. Can we all agree on that? Okay, here we go to another example.
Outsource pieces of your business when it makes sense
Here is a great article on outsourcing that is worth your time. Check it out, then keep reading this post. Okay.
Example – You need to make technical changes to your blog, but do not have the time to get them done.
More specifically –
- Add to your existing pages
- Remove content that you no longer feel is relevant to your audience
- Want to test a new optin method
- Incorporate a new plugin you had been meaning to, but had not gotten around to it.
Whatever it is you want done from a technical standpoint.
This type of technical stuff that you need to get done can be a big time suck for you, unless of course this is your wheelhouse.
Unfortunately, if it is you’re in the minority my friend.
So here is what you do.
Put a price on your main product or service. For the sake of this exercise your main service is consulting and you make $150 per hour when you break it down that way.
If the technical guru you need to hire costs $75 or even $100 per hour aren’t you better off hiring them to do that work?
I mean your time is worth $150 per hour as that is what you’re paid as a consultant.
Based on this example would you spend the money to outsource the technical tasks?
Yes, absolutely as your time is worth more.
Even if you’re just starting out and bootstrapping everything you need to think in these terms.
A couple of interesting statistics on outsourcing
Reasons why Companies Outsource per Statistic Brain Research Institute:
Reduce or control costs 44%
Improve Business or Customer Focus 28%
Accelerate project 15%
Now as a professional blogger you need to consider outsourcing so you can focus on your reader’s:
Accounting and/or bookkeeping is something you should definitely outsource.
Here are some other things to think about outsourcing.
Hiring Writers to write for you
Design work – i.e. blog design, infographics, banners, etc.
Now there are some easy-to-use tools to help you with designing infographics, banners and the like which are not that time consuming, but again do take up time.
Without repeating myself too much you need to place a value on your time and if that value is larger than what it would cost you to outsource some of these tasks, then you need to consider doing so.
Let me get this out of the way before we talk about tax deductions.
In no way, shape or form am I an accountant. At the end of the day you need to consult with your own tax professional about what you can and cannot write off.
The majority of money you spend on your business is a tax write off.
What does this mean for you? The less you have to pay Uncle Sam. The less I have to pay Uncle Sam the better.
As a professional blogger what are some of the expenses you can write off?
Email provider service
A new laptop if you need to buy one
Any tool or service you use – i.e. LeadPages, etc.
You get the point. Now I know what the next question is.
I have to spend money to acquire all of those tools and services.
Yes, you’re right.
But…Here’s the thing you’re going to end up making more money by doing this.
Why you ask?
Every deduction you take comes off your gross revenue which reduces the number in which you have to pay taxes on.
Gross Revenue for 2015 = $100,000
Expenses (Like we just went over) $10,000
The net revenue number you will need to pay taxes on is $90,000.
Quiz: Do you pay more or less taxes on $90,000?
This is yet another example of why it makes sense to spend money as you will end up making more money.
If you tend to make a lot less and your deductions are significant the government may end up paying you money.
Let’s say your 2015 revenue is $40,000 and your expenses end up being $30,000 that can be considered poverty level and Uncle Sam will cut you a check.
My advice to you, before you hem and haw about having to spend XYZ for this or that tool think of it in these terms, which will most likely make your decision a no-brainer.
Are we both on the same page? Are you picking up what I am putting down? Okay good.
In December of 2014 about 10 days before the end of the year the Federal Government increased the Section 179 tax deduction from $25,000 to $500,000, but it was only going to last until December 31, 2014.
At that time I had been working with a large eye physician and surgeon practice for the past 7 months trying to get them to buy my instrument which was $52,000. As a result of this 10 day deadline they decided to move right then and there.
They could write off the entire amount of $52,000 for the calendar year 2014. In a multi-million dollar business such as this taking $52,000 off the top for 2014 is critical for them. Also, the amount they could write off for purchases going forward in 2015 is only $25,000.
It was a win for me and a win for the practice.
Do you see the benefit of taking advantage of all available tax benefits for your business?
You better my friends or you’re leaving money on the table.