In Blog, Entrepreneur

How to Create Predictable Revenue
for a Personal Brand

The number one reason why personal brands fail to scale, is the fact that they never develop a sound business model and marketing strategy that generates predictable revenue.

if you never know how much money you are going to make next month… How are you supposed to know when to hire an assistant, or a marketing person to help bring your vision to life?

Without predictable revenue, you simply can’t do it.

There are two most straightforward ways to generate predictable revenue.

One requires capital and attention to analytics, the other is a simple business model tweak.

The two easiest and fastest ways to create predictable revenue in your personal brand business are to create a paid marketing funnel, and/or create a recurring subscription product.

Let’s dig further into each one.

1. Paid Marketing Funnel

Are you running your personal brand like a hobby, or like a business?

If you want to build a business, you’ll need to get savvy with your business numbers, and get comfortable with investing in marketing.

The BEST way to create predictable revenue is have complete insight and control over a marketing funnel, where you are able to know that when you spend $1 in ads, that it’s going to generate $1.5 or $2, or even $4 in new business.

That’s how successful businesses grow. They test and tinker and optimize marketing funnels to the point where they know for every $1 they put in, they get $2 out.

In order to do this, you first need to have a marketing funnel, and a product that you can sell. You also need to be able to track your results so you are able to calculate key metrics.

One of the best things to start with is a webinar funnel, where you market a live or automated webinar, coach or train the attendees for 20-40 minutes, and then offer a product or service that will help them get results faster.

With a webinar, or any paid marketing funnel, here are some of the key metrics that you will want to be sure that you are tracking.

You will want to track:

  • Ad Spend
  • Clicks
  • Opt-in Conversion %
  • Email Open %
  • Email Click %
  • Views or webinar attendees
  • Clicks to Checkout
  • New Customers
  • Sales Conversion %
  • Revenue
  • Return on Ad Spend (ROAS)
  • Customer Acquisition Costs (CAC)

It may seem like a lot, but with Google Analytics, FB Ads Dashboard, and your Email/CRM software you should be able to get almost all of that information, with a little simple math.

The number one thing to make sure you track, is your Customer Acquisition Costs. That is the most critical number, because if that number is positive, you would want to ramp up your ad spend because you’re basically printing money.  A positive Customer Acquisition Cost would be where you spend $200 to create a $497 customer – your net profit would $297, which means that for every $200 you spend, you are generating $297.  Time to start acquiring more customers!

On the other hand, if your Customer Acquisition Cost is negative, meaning it costs $400 to create a $297 customer. That means you are losing money on your advertising and it’s time to revisit your funnel and figure out where it needs to be optimize.

That’s where all the other tracking comes into play. When optimizing, keeping track of the numbers in your funnel will reveal exactly where you need to revamp your funnel.

2. Recurring Subscription Product

This requires you to think about your personal brand business a little differently, and possibly tweak the business model that you’ve been planning, or already have up and running.

Recurring subscription products are the number one thing you can focus on to ensure predictable revenue.

If the only thing you did this year was create a single, recurring subscription product, and generate 20-30 sales per month, you will be in the top 5% of all personal brands.

It’s much easier to make a $29/mo sale than it is to make a $400 sale.

Up until now, most people implement a recurring subscription product as a membership sites, group coaching, mastermind, monthly live video training with Q&A.  But, ultimately, it comes down to people providing their content and training in smaller pieces each month.

The key to this model, is getting creative, and also giving people a reason to keep paying month after month. You’ll want to find a way to add so much value that they would be crazy to cancel or leave.

One creative thing that I haven’t seen many people do is add a physical component to your recurring subscription product.

Physical meaning either in-person, or a physical product.

Masterminds can be an example of an in-person aspect of a recurring subscription, but most masterminds are a one-time payment.

On the other hand, shipping a physical product will increase your cost exponentially, but no one else is doing it! For a higher-priced monthly subscription, or a mastermind, shipping something physical to your customers each month will increase retention.

The bottom line is get creative, and don’t think that just creating a membership site is going to propel your personal brand to success.

There are a couple other trends starting to form in this “recurring subscription” space that are clearly going to be the future of “Influencer businesses” that even the big personal brands, like Tony Robbins, Brendon Burchard, Tim Ferris, haven’t taken advantage of yet. We discuss these strategies and trends with our paid members months before the information trickles out into our blog.

If you want to stay on the cutting edge, be sure to join our Personal Brand Inner Circle for the latest tips, strategies, tools, and interviews with top personal brands.

If you’d like to stay up-to-date on the latest tools, strategies, and best practices for building your personal brand, be sure to join our private, Personal Brand Builders Community. It’s free… and awesome… What are you waiting for?

We hope you enjoyed this article, thanks for reading! Follow us on Facebook, and Twitter for updates every time we publish!

 

Click here to download your Personal Brand Website Kit