Start by applying the 80/20 rule to the top 20%.
The 80/20 rule is fractal. For you as a business owner, this means it applies to your whole group of customers and also to the top 20% and the bottom 80%. If you have a thousand customers, then 80% of your revenue will come from 200 of them. And 64% of all your revenue will come from just 40.
This only works if you offer them a way to pay you.
Create more than 1 product.
If you only have 1 product, you are missing out on at least a 50% increase in revenue.
To capture the extra revenue from the top 20% and then the top 20% of the top 20% (the top 4%), you need more for them to buy. If you have 1 product and 1000 customers, odds are 200 of them will buy your second product, even if it costs twice as much or more.
Add a third product and you got 40 more sales just like that.
Create special high end products.
You will have some number of super fans that will buy everything you put out.
For these customers they will spend oddly large sums of money for various exclusive experiences. Some examples:
- Various levels of access to VIPs who can help them
- Going to the front of the line
- A personal visit from you, the business owner
- Access to experimental or test versions of products first
Look at what people pay for backstage passes and dinners with celebrities and you will understand.
Check out 80/20 Sales and Marketing
I originally got this idea from a book by copywriter Perry Marshall, called “80/20 Sales and Marketing.”
The idea was so simple yet so strong it has stuck with me for at least 8 years without ever having picked up the book again. I recommend you pick up a copy and implement the ideas. Especially as a business owner.
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