Profits That Lie Hidden In Your Business

Many CEOs don’t realize that they’re stepping over $1,000s of dollars to pick up $100s of dollars. What does this mean? Many companies focus 100% of their efforts on front end sales. This means lead generation which traditionally consists of paid advertising, internet marketing, direct mail, website SEO, etc..

After a lead/prospect is generated, then they’re converted into customers via the company’s website (in the case of ecommerce) or by their sales team (in the case of professional services). The final step is the customer receives their deliverable/fulfillment and that’s it. These companies literally do nothing else and drop the ball right there! They generate virtually 100% of their revenues from the process that we just described.

The problem with this approach is that to acquire a customer you spend the maximum amount of money! This means that your profit is much less because your cost of sales are at it’s peak. Your cost of sales will include your advertising costs, sales commissions, referral/ affiliate commissions, coupons, customer discounts, etc.. This is why some companies actually manage to increase their sales yet notice that their net profits don’t appreciably increase in lock-step.