Breaking through a revenue ceiling [Scale Your Impact #85]

Read time: 3 minutes

Hi Reader,

Here are three cool things that happened this week:

📗 Launched our new book The PARA Method: The Simple System for Organizing Your Digital Life in Seconds. Very happy with over 800 pre-orders in less than 3 days. I'll write about how we did it and why I believe every course creator should self-publish a book.

🍻 Met up with two fellow Write of Passage alumni in Toronto. Online friends make for truly top notch conversations. Let me know whenever you're in the area. I'd love to meet!

🤓 Started Mariah Coz's Profit Architecture program to help us build an evergreen ecosystem of courses and products. I'll report back what I learn.

Now to the newsletter...

3 Strategies for Business Growth: How to Break Through a Revenue Ceiling

Feeling stuck in your business growth? You're not alone.

I recently had a call with an online education company that was facing the same issue. They had a solid cohort-based course bringing in multiple 6-figures every year, but their growth had stalled.

Now, you might be thinking, "What's the big deal? A stable business is great!"

But according to fitness entrepreneur turned investor Alex Hormozi, if your business isn’t growing, it’s dying because the market you’re in is expanding (if you’re in a declining market, you have much bigger problems.) Btw, I highly recommend reading his book $100M Offers.

So, how do you break through a revenue ceiling if your growth has stalled? According to Hormozi, there are only three ways to grow a business:

1. Get more customers
2. Increase the average order value (profit per purchase)
3. Increase the frequency of purchases

Let's take a closer look at these options and explore some ideas for each.

1. Get More Customers

• ​Increase the number of leads coming in by creating a killer lead magnet, running ads, publishing valuable content and focussing on one core social media channel to drive traffic. Also, don't forget to optimize your website for conversions.
• ​Optimize your copy and run launch events to increase conversions at the bottom of your funnel.
• Introduce new offers that cater to new market segments, for example, a high-ticket group coaching program or low-ticket self-paced version of your course.
• Create an alumni referral program where your best customers get rewarded for referring new students to you.
• Work with affiliates to promote your offers. They'll receive a commission for generating revenue for you.

2. Increase the Average Order Value

• Raise your prices. Simple as that.
• ​Add tiers to your existing offer. There's always someone willing to pay more for something extra.
• Introduce add-ons to your offer, such as 1:1 coaching or a membership program.

3. Increase the Frequency of Purchases

• Run more cohorts of your course per year. This gives customers more opportunities to purchase from you.
• Let students enroll in your course at any time of the year, rather than just during a specific launch period.

Now that you have some solid options to choose from, how do you decide which ones to pursue?

​Try the ICE framework! It will help you to decisively move forward with a small selection of strategies that are feasible to implement and have the highest likelihood of moving the needle.

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