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## The Ultimate Business Success Formula

The cool thing about business success is that it’s a very simple mathematical formula. The difficulty comes in figuring out how to apply the formula to your business, but that, too, can be found by brainstorming.

First, let’s deal with the actual formula where there are 3 parts:

#Leads X Conversion% = #customers

#customers X #Transactions X Sales price = Revenue

Revenue X %Profit Margins = $Profit

Now, let me explain this in simple words:

#Leads – how many people each month see your business offering

Conversion% – how many of those leads bought, signed up, or responded in some way?

#customers – leads purchased or signed up by your customers

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

Ad value – what is the average cost per ad?

Income – the total amount you bring in

% Revenue Profit – the amount of revenue you make from each sale

$ Profit – how much money you have at the end of the transaction

So, let’s plug the numbers and see how it works:

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

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

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

Now, here’s something cool. If, every month, you could figure out how to increase one price, your business would look like this (numbers rounded to the nearest whole number):

**First month (your first place)**

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

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

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

**The second month **– we increase the number of leads by 10%

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

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

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

Your profit last month: $60.00

**Third month – **we increase the conversion rate to 5%

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

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

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

Your profit last month: $556.00

**Fourth month – **We increase the number of transactions to 1.5

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

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

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

Your profit 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 value) $300.00 = (Revenue) $5100.00

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

Your profit last month: $255.00

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

**The sixth month **– You start again, increase your leaders and the cycle begins.

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

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