Consultant marketing increases revenues

How can a book double a consultant’s revenue?

If you are an independent consultant, then you need to focus on the revenue formula. We don’t know who your ninth grade algebra teacher was and what your relationship was with him or her, but please stay with us. This is as easy as A times B plus C.

A stands for new clients. B is how much you charge per new client. And C is the amount of money you get from past clients. So Revenue = (A x B) + C

Actually, there are two components to new clients: # of qualified prospects you talk to multiplied by your conversion rate. For marketing services providers, there are suspects, tire kickers and qualified prospects. Here are my definitions. A suspect is one of the 6 billion people on the earth you suspect might be interested in what you do, but all you have is a name and contact information. A tire-kicker is someone who has taken a step toward you to say they are interested in what you have to say. They may have attended a seminar, came to a speech, visited a trade show booth, signed up for your e-mail newsletter, asked for a copy of your white paper, or some other information gathering activity.

Now, a qualified prospect, that is a tire-kicker or a referral who calls you and wants to meet with you to hear how you might solve their problem (and how much do you charge). To recap, here are the formula components.

A = (#QP x CR%) = new clients

B = $ you get per new client

C = $ you get from current and past clients

To illustrate, let’s say you talk to 10 qualified prospects per month. You convert 20% (1 out of 5) into new clients. You charge each new client $1,000. Added to that, you get $3,000 a month from existing and past clients. (Oh no, a word problem. Please, stick with me.) You make $5,000 per month.

(10 x .20) ($1000) + $3000 

(2) ($1000) + $3000 

$2000 + $3000 = $5,000

But what if you could talk to 15 qualified prospects per month instead of 10? What if you could get $1,150 per client instead of $1,000? What if you could convert 2 out of 5 (40%) instead of 1 out of 5? What if you could get $3,300 a month (10% increase) from past and existing clients instead of $3,000? All of these increases are actually modest and very doable. See what happens to revenue (yes, it more than doubles).

(15 x .4) ($1,150) + $3,300 

(6) ($1,150) + $3,300 

$6,900 + $3,300 = $10,200

How to leverage the four factors:

Number of evaluators you talk to each month. Hold seminars and teleseminars focused on client pain and research on how they compare to their peers. Your book is a credibility tool.

Percentage of evaluators you convert into clients. Use a lead conversion system where you ask the right questions (can increase conversion rates by 50% to 100%).

How much you charge each new client. Experiment with three-tiered platinum/gold/silver pricing strategies. Experts can charge more, and being an author helps make you an expert.

How much money you get from past and existing clients. Ask about problems and offer options how to solve.

About Henry DeVries

Best-selling author and “marketing with a book” expert Henry DeVries is an authority on typing and talking: how to maximize revenues by writing books and making speeches. He speaks to thousands of business leaders, professionals, and consultants each year, teaching them successful tactics that shine a spotlight on their company, cause, or career. Along with his best-selling books — Self-Marketing Secrets, Client Seduction, Pain Killer Marketing, and How to Close a Deal Like Warren Buffett — the buzz-building tools of Henry DeVries have been used to dramatically increase revenues and leverage marketing budgets for two decades. He speaks to thousands of professionals and consultants each year, teaching them scientifically proven tactics that bring them new clients.

Comments are closed.