Hi.
Ideas have to do with VALUES and the exchange of those VALUES for eego/kudi/owo.
This is the one thing they always forget to teach in school and it is the one thing that makes us to:
1. Get the wrong ideas
2. Focus on ideas that leads to a dry pocket
3. Leads to endless frustration
If you want to 10x your inflow over the next 90days, this is the first step you must take NOW.
You must immediately start locating simple but highly *profitable* ideas and then invoke
step II of these five stepped processes.
So what if you have a *profitable* idea?
What next? Will your bank account be flooded miraculously..?
No way. No freaking way.. and that is why you must not only understand step II of the
five-step process but activate it by doing it consistently every day.
And step II simply has to do with attraction.
90% of the time, the reason why the idea(s) failed to take off is that the attraction factor is missing,
so let's talk about that today, and to help you understand, let me paint a picture.
Why do the best sellers of fabric concentrate in a single location; like in a particular clothes market? Think of..
Aswani Market in Lagos
Onitsha main market
Aso Ofi Market, Ede
Ariaria Market, Aba
Aleshinloye, Ibadan
Or why do auto parts dealers concentrate in Ladipo market in Lagos or Gbagi in Ibadan, Oyo state? What about the food markets?
It is a basic understanding that a lot of startups fail to understand. It has to do with traffic and attraction of traffic.
How good your idea is does not matter when it comes to filling your bank account with the gains of your effort.
Look, it is a game of numbers, and the more educated you are,
the less you pay attention to this simple secret because your education misdirects you and makes you major on minor things
and forget the major things that matter.
Here is how it works...
Let's say you have come up with a simple uncomplicated (I love uncomplicated stuff..)
an idea you can work on part-time that gives you $20 (the equivalent of roughly N6,400)
per unit sold and you set yourself a target to do N1m from this in a 60day period.
It means you need to get this product or service into the hands of those that need it
in exchange for N6,400 at a rate of 3 units per day to get you about N18k daily, every day
like clockwork for the next 60days.
The big question now is:
- Where do you find enough people to see your offer? (TRAFFIC)
- How do you get them to pay attention to your offer and partake? (ATTRACTION)
Traffic is why women go to specialized markets and fight tooth and nail to keep the stalls.
They know once they get a space, people will walk past every day and all they need to do is work on attracting that traffic
to their stalls to make *SALES-(STEP I)*
This is where we get stuck in our idea(s) & biz so let me help you clear this confusion permanently.
No fall my hand, let this stick permanently sir.
1. Cost of customer acquisition
2. Lifetime value of customer
3. Immediate value of customer
4. Conversion ratio
Let me explain this with a recent idea one of my mentors shared with me.
So think of a simple idea that fetches $20 every time someone makes a tiny purchase and you try to put in just about
4hours of work every day. (Hypothetically)
It generated $600 (like N180k) for you in the month of March alone. The big question now
is how do I take the figure to like $2k? The answer is below;
In order to swell my pocket with kudi, I have to first swell my traffic and that means I have to expose my offer to more people through ads.
This means I will expend some kash doing this.
This is the cost of customer acquisition.
So let's say I expend N150 (my current average) to acquire a customer
to my idea (biz), the next thing is how many of those new customers take my offer within the first 7days?
So if out of every 100 new customer, I get 5 picks of a $20 product/service,
it means for every N15,000 I put in, I will get back around N30k.
Big question. If this was your idea, knowing what you now know, what are the
two things you will focus ALL your energy on immediately?
1. Get more traffic
2. Work on more conversion through attraction
And this is where the uninitiated miss it totally.
See, sales cure all problems and if you are broke right now, it is because
you are either not selling or you are not selling enough. Chikena..!
For every idea you have, you must think in terms of the 4 things I listed earlier.
1. Cost of customer acquisition
2. Lifetime value of customer
3. Immediate value of customer
4. Conversion ratio
First, what will it take to acquire a customer to your biz (idea). Second,
what is the lifetime value of that customer?
The lifetime value of any new customer you acquire should be
evaluated to equal the prrice of your most expensive product/service.
So if your idea starts with an offer of N2,500 but you have real-estate(s)
worth N5.5m, then the lifetime value of a customer = N5.5m
The mistake we make in biz is that we try to make sharp-sharp money and
forget the big lifetime value of people. This is why you must build
solid ideas that can last decades, not those stupid, sharp-sharp nonsense
that delivers peanuts.
Third, you need to know the immediate value of a customer which is equal to
something you expect them to order sharp-sharp in the first 7days of meeting you
or knowing you.
The immediate value of the customer = the immediate cashflow
that keeps your biz going, keeps you motivated and keeps your
family going cause you are making some immediate returns on your time
and kash input.
So, lets say you put in like N25k and within the first month, you get back like
N40k - that is enough motivation to keep you going and helps you build
lifetime value with customers with a lifetime value of N5.5m..
The long and short of this simply is that over the course of 2, 3 or 10years,
your business will definitely grow.
The honest truth is that when you start marketng your biz, only 0.2% to 2%
of people who see or hear about you will become customer(s). Get that straight today..
This is why you MUST think in 100s and 1000s. If your unit price is
N5,500 - then to make your first N5,500, you will need to attract 100
people and IF you have done the right thing, expect that 1 of the 100
will do biz with you.
To get N55k, you need to push the number to 1,000 people, then you can
expect 10 fresh people to do biz with you.
The number of people who do biz with you versus the number who see
(meet) you is your conversion ratio (CR). The higher the CR is,
the fatter your pocket.
The big question you should be asking is where and how can you get a
flood of traffic and how do you convert them using your simple ideas!
Enjoy!!!
You can connect with me by clicking here If you have any questions.
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