Page 27 - Business Mastery for Exponetial Profit make more work less ver1 220721A5

In the first funnel, the cost of acquiring a client is £100 per client
but the cost of acquiring a lead is just £10 pounds. All your leads
are unlikely to convert so you must work out the percentage of
conversion. In this example, it is roughly 30% from leads to
appointments and 30% from appointment to becoming a client. So,
the investment of £1000 generated income of £20000

Input =£1000
Output = £20000
Is that exponential profit or not?
The next example is likely to blow your mind:

Instead of generating the cost of acquisition at £10 per lead, the
cost was £2 per lead. Remember cost reduction was one of the
elements of our value innovation.
Instead of generating 100 leads in the first example after spending
£1000, the leads increased to 500 when the cost was reduced to
2 and the revenue skyrocketed to 100000 from the input of just
1000
Input = £1000

Output = £100000
Can you see how small input may produce an exponential result?
The advert account is from Facebook and it one of our accounts.
The cost of generating leads was $1.89 which is less than £2 used
in the example for simplicity. Very few companies are generating
lead at such a low cost. It wasn't by accident that the cost was so
low but because our strategy is to follow the value innovation
formula. We are still working hard to even reduce that cost further
and that tells you that cost reduction is not a one-off event but a
continual action throughout for the long term. Can you do that? If
yes, then you are likely to build a long-lasting business.

To determine the input generating higher output –
Minimum Viable Transaction to Generate asymmetric result
Test with small samples

Scale-up

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