Page 27 - Business Mastery for Exponetial Profit make more work less ver1b 01102021
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WHAT IS YOUR COST OF AQUIRING A CLIENT? £20/CLIENTS
GENERATE 500 LEADS £2/LEAD = £1000
150 APPOINTMENTS
50 CLIENTS @ £2000
PER MONTH = £100,000
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
25
