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CHAPTER 5 MULTIPLYING YOUR BUSINESS PROFITS

3) Average dollar purchase, 4) Number of repeat purchases
and 5) Net profit margins.

1) Leads
Leads are the potential customers that your business is able
to attract. Leads are also known as prospects. Whenever
someone calls your business, walks into your store or is called
upon by your salesperson, that person becomes a potential
customer or a lead. The more leads your business has, the
higher the chance that some of them will actually buy something
and become a regular customer.

2) Conversion Rate
Obviously, not every lead/ potential customer will buy
something and become a customer. For example, if 100 people
walk into your store everyday and 10 people end up buying
something, then your conversion rate is 10 out of 100 or 10%!

What if your business involves going to offices and selling
computer services? If you visit 20 companies everyday and
you end up making 5 sales, then your conversion rate is 5
out of 20, or 25%.

Profitable businesses are those who use strategies that give
them the highest possible conversion rate!

So, if you want to get MORE CUSTOMERS to buy your
products, then you must either increase your LEADS, increase
your CONVERSION RATE or both! You will learn exactly how
to do this later on in the chapter.

LEADS x CONVERSION RATE
= Number of CUSTOMERS

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 131