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## The Ultimate Business Success Formula

The beautiful thing about business success is that it is a mathematical formula that is actually quite simple. The complexity is in figuring out how to apply the formula to your business, but that, too, can be figured out with some creative thinking.

First of all, let’s deal with the actual formula, which consists of 3 parts:

#Leads X Conversion% = #customers

#customers X #Transactions X Sales Price = Revenue

Revenue X %Profit Moves = Profit $

Now, let me explain this in simple words:

#Leads – how many people see your business offer every month

Conversion % – how many of those leads actually buy, sign up, or respond in some way?

#customers – leads who bought or signed up are your customers

#Transactions – how many times, on average, does each customer buy from you?

Sales Price – what is the average price per sale?

Income – the total amount of money you bring in

%Profit Margin – the amount of profit you make on each sale

$ Profit – how much money is at the end of the transaction

So, let’s crunch some numbers and see how this works:

(#Leads) 300 X (Conversion%) 3% = (#customers) 9

(#customers) 9 X (#Transactions) 1 X (Sales Price) $200.00 = (Revenue) $1,800.00

(Revenue) $1,800.00 X (% Profit Share) 30% = ($Profit) $540.00

Now, here’s the cool thing. If, every month, you could learn how to add just one value, your business could look like this (numbers are rounded to the nearest whole number):

**Month one (your starting point)**

(#Leads) 300 X (Conversion%) 3% = (#customers) 9

(#customers) 9 X (#Transactions) 1 X (Sales Price) $200.00 = (Revenue) $1,800.00

(Revenue) $1,800.00 X (% Profit Share) 30% = ($Profit) $540.00

**Two months **– we increase the number of leaders by 10 percent

(#Leads) 330 X (Conversion%) 3% = (#customers) 10

(#customers) 10 X (#Transactions) 1 X (Sales Price) $200.00 = (Revenue) $2000.00

(Revenue) $2000.00 X (% Profit Share) 30% = ($Profit) $600.00

Your earnings last month: $60.00

**month three – **we increase the conversion rate by 5%

(#Leads) 330 X (Conversion%) 5% = (#customers) 17

(#customers) 17 X (#Transactions) 1 X (Sales Price) $200.00 = (Revenue) $3400.00

(Revenue) $3400.00 X (Profit %) 30% = ($Profit) $1156.00

Your earnings last month: $556.00

**month four **We increase the number of transactions by 1.5

(#Leads) 330 X (Conversion%) 5% = (#customers) 17

(#customers) 17 X (#Transactions) 1.5 X (Sales Price) $300.00 = (Revenue) $5100.00

(Revenue) $5100.00 X (% Profit Margin) 30% = ($Profit) $1530.00

Your earnings last month: $374.00

**The fifth month** – We increase our profit margin by 5%

(#Leads) 330 X (Conversion%) 5% = (#customers) 17

(#customers) 17 X (#Transactions) 1.5 X (Sales Price) $300.00 = (Revenue) $5100.00

(Revenue) $5100.00 X (% Profit Share) 35% = ($Profit) $1785.00

Your earnings last month: $255.00

**Total profit for 5 months**: $15,611.00 instead of $2,700.00

**The sixth month **– You start over, add your leads and the cycle begins.

See how easy it is? If you focus on just one area each month you will see your business grow faster and faster. Try it!

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