What’s one of the top goals of most businesses?
‘How to increase revenue generation?”
So, since revenue growth is such a big topic…
Want to discover untapped revenue streams within your business, or what is the best revenue growth formula?
And oh yes, there’s a revenue growth formula but…
Today, I’m going to share some “backroom” stuff.
First, what do i mean by ‘revenue generation?’.
It’s the process of planning, harvesting and increasing revenue generation for your company.
Enough said, here’s a real personal business story to help drive the point home.
You see, most people know me as “Johnson Emmanuel, the marketing guy” who knows how to increase revenue for companies.
And they’re absolutely right.
Nothing makes me happy like helping businesses make big money, because, according to McKinsey & Company, the most important thing that keeps a business flourishing is sales.
Yes, sales!
I mean revenue.
Everything else is “commentary”.
The most important thing that keeps a business flourishing is sales. Yes, sales is the king.
Having been in the marketing game for 19years now, I can say they are 100% right.
If you know how to increase revenue, your chances of success will be huge.
An increase in revenue generation would amount to huge growth in your business, because you’d be able to not only compete in your market, your chances of winning are alot higher.
I have seen businesses with terrible crappy products win over businesses with a superb amazing product.
So, why would that happen?
It’s simple, the company that makes the highest sales wins, why the company with the best product and fewer sales may win the ‘trophy’.
As a business owner, who cares about the ‘trophy’ without the money, anyway?
And oh, listen carefully…
I’m by no means telling you to sell crappy products. If you do, you’ll be out of business faster than you ever thought.
“Wait a second Johnson, are you not contracting yourself?”
NO, I’m not.
The thing is, the more you give great marketing to a bad product, the more you tell the world that you’re a bad person, and soon, the word will spread, and you’ll be out of business.
That’s exactly what I mean…
Nothing kills a bad product faster like good marketing.
Anyway, let’s get back to the story…
Aside from the marketing side of things I do, I own and run real businesses, and I’m a very heavy investor in multiple businesses and in multiple countries.
I’m able to see things from multiple perspectives, unlike your regular “professional” one-eyed guru, if you know what I mean.
Anyway, I run this fast-growing phone marketing company.
I’m competing against big companies like SLOT.
The company is doing very, very, very well but truth is, I’ve not been paying attention to it, until recently, and things started growing like crazy.
You see…
Within every business, there are atleast 5 (or more) hidden money centers.
Recently, the CEO of the company came (with his team) to meet me because they run the company, not me.
During our discussion, we found a lot of “money spots” worth billions that was left untapped for years.
I mean “real money spots”.
OK, the company sells a lot of phone, the bulk comes from wholesale.
But like you know, if you are selling brand new phones, the margins are small.
Very small!
So, wait a minute…
“Johnson, you are the Deep Pocket Clients guy, why are you selling stuff with low profit margin?”
Great question!
For us…
We use the company to store up capital.
“What does that even mean?”
The worst place to deposit money is the bank.
So, when we make money from company A, we use the profit to establish company B,instead of merely depositing the profit in the bank.
Make sense?
Personally, I HATE to store money in the bank, that is why I run zero balance accounts, as often as possible.
It doesn’t make any sense to me.
It is what my billionaire mentor taught me.
And the other good thing about the (phone) business is that it has alot of liquidity…
You can quickly get cash out WHENEVER you want.
Which is exactly like keeping money in the bank, but this time, with a far higher interest rate.
Anyway, we’re making a lot of sales but we wanted to tap generate more revenue from the business because I knew we were leaving money on the table.
We found 11 money spots within the business.
But I won’t share all with you, I’ll give you (maybe one or two).
The major thing I need you to know is that, if I look through your business now, I’ll milk out millions of dollars from your current business, millions that you’re yet to tap.
One of the biggest weaknesses of small businesses is monetization, revenue generation.
Why small businesses suck at monetization and revenue growth, some big companies are great at it.
Have you ever heard of Apple?
That’s a crazy question, I know.
Apple is a $3trillion dollar company, how come they are?
Well, because of WHO they sell to…
They sell to consumers, small and mid-sized businesses, education, enterprise and government customers.
YOUR BUSINESS IS LEAKING REVENUE, WE CAN STOP IT!
Get a FREE “Next Level Growth” Blueprint ($2,500 Value)…It is for SELECT businesses.
UNLIKE some businesses that sell to only one of these segments of the market.
Look, mastering how to increase your revenue in your business might turn out to be one of your most valuable business asset.
Anyway, what does Apple sell?
You probably already know it is…
- iPhone.
- iPad.
- Mac.
- iPod.
- Apple Watch.
- Apple TV.
- A portfolio of consumer and professional software applications.
- iCloud.
- Apple Music.
- Apple Pay and a variety of accessory, service and support offerings.
They also generates revenues from product sales, subscription fees associated with iCloud and Apple Music, and extended warranty fees for its products.
Can you see variety of products and services that generate money for them?
And their profit margin is as high as 63%.
Yes, 63%!
Like I said before, every business has multiple “hidden” revenue spot that the owners are not seeing.
They become too busy running the business, leaving out (sometimes), the most profitable aspect.
So, what did we do?
Spot #1: Servicing
I mean, repairs.
For many years, we neglected repairs but there’s a lot of money in it.
BILLIONS!
It was one of the most stupid things we ever did, but I know why, we were too busy making a lot of money from sales, neglecting this huge profit angle.
Servicing is huge.
Infact, in 2017, it was about 15 trillion dollars, in the US, alone. According to Businesswire, the professional service market will hit $8Billion in 2022.
That’s crazy, right?
So, clearly, we were leaving out alot of money.
Do you know that in 2019 alone, Apple made 46.3 billion dollars from services alone?
If you have a solid monetization strategies, you’ll be shocked how you’d explode your profit.
Let’s talk about another company that is also doing something similar…
They are in completely different space, electric car.
Enter Tesla!
Tesla has amazing monetization in place.
You’ll think they’re just a car making company but in Q1 of 2021, they made almost $2B from other areas, OUTSIDE vehicular sales.
Let’s quickly break it down…
In Q1 2021, they made about $10B.
$893M was from services.
$494M was from their green energy program.
“Are they are green energy company?”
NO!
BUT the goal of Tesla is to ensure that the world reduces dependence on fuel usage, because it is not healthy for the environment.
So, they’re making money from all these solar batteries they sell.
Now, can you see why I said we were sitting on alot of money?
Infact, the service segment is one of the five most profitable revenue centers for Apple, yet we didn’t tap this.
And many people are like that.
They are making a lot of money from “A”, and they be like “why worry looking at B”, and in most cases “B is way more profitable”.
As soon as we discovered this, I told my CEO to get his team to work.
They eventually discovered that, sometimes, people pay alot for services.
In fact, our finding revealed that that angle will pump in a lot of money into the business.
As soon as we discovered this, the next thing became…
“How do we go about it?”
Look, we wanted to do this fast, and I mean, really quickly.
We had different options, but to me, they were not fast enough.
I asked them one question…
“Who do you know that has a phone repair business that is very good?”
I asked them that question because I was driving somewhere.
They mentioned a few guys but I didn’t really like them.
Soon, I remembered a guy I knew personally.
He’s extremely good at fixing phone, the hardware side of it.
When I say good, I mean “very, very good” but there’s a big “BUT”.
He has two big problems.
Problem #2: This guy has temper issues.
Problem #2: This guy doesn’t know how to price his stuff, hence he’s just leaving an “OK” life.
To my mind, I thought i had found an answer to these whole puzzle but…
Here’s the fun part…
Inside this profit center, we just discover another four profit centers within it.
Crazy stuff!
Just imagine that, I’ll share more on that, much later.
Anyway, I met this guy again, and we had a lengthy discussion.
I actually thought he would be excited at the idea, turns out that he said “NO”.
I’m going to cut the crap…
Truth is, he had some fears, and it was all some kind of limiting beliefs.
I helped him overcome them, and quickly, he was on board.
So, I bought over his company.
Bought him a brand-new car and got him a good apartment.
The repairs angle of the business has kickoff off, and it is one of our best decisions.
Look, an A-star knows other A-stars.
So, i asked him to get other people who are like him, for the hardware and software side of the servicing.
He did recommend some folks, and we got them on board, and honestly, I’m more than grateful to this guy.
It is completely amazing.
While the business doesn’t bring huge revenue, but the profit is crazy.
I mean, completely insane.
Revenue is great but profit is what matters, because that is what you take to the bank.
Revenue is great but profit is what matters, because that is what you take to the bank
I told you I was going to share two revenue spot we discovered, right?
One down, one to go!
Spot #2: Franchise
This one is huge.
Sadly, we didn’t take advantage of it early enough like one of our competitors, but the funny thing is, sometimes in a business, their “bigness is also their weakness”.
Our competitor who is currently doing this is making a lot of stupid mistakes that we have noticed, and you know in business, your job is to make them slip so you can take advantage of them.
We believe that franchise is going to be huge for us but we’re not kicking off with it until 2022.
WHY?
We do not want to make the mistakes that our competitors are making.
And we even did a pre-sell, we were shocked at the number of people who were ready to pay for our franchise.
So, clearly, this is going to be very huge for us.
Now, I want to challenge you, sit down, look through your business, and find out the “revenue growth” opportunities that would change the game for you.
Look, we believe that in 5years, we will beat our current major competitors, or at least, reduce their dominance.
WHY?
Because we found what they are even yet to find.
And they’re probably too busy to even find them.
Your job is not to “just” read this post, it is to learn the lessons and go to ‘war” with them.
Yes, “war” because that is what business is.
What do you think?
