Perry Marshall – What’s Your 80/20? MOI: 013
Perry Marshall's book is an amazing read if you want to find out where your business is coming from. Perry has a calculator that's free for everyone to use and see how much your business is worth.
We used this calculator for our fan page when each fan was worth $5. This meant we should have been earning $500,000 a month but this wasn't the case. We were losing out on $450,000 a month, $1,000,000 every two months, and $6,000,000 every year due to us actually only bringing in $50,000 per month. Our fan profit has gone up to $7 dollars since then and we now have 300,000 fans. Using the rule we should be receiving $1.2 million dollars a month and $25 million dollars every year.
What You're Going to Learn in This Episode:
How much your business is worth
How much each customer is worth
Think of this like a baseball game - you can either sit in nosebleed seats, green seats, suites, ect. All of which have different prices ranging from $23 to $20,000. All of the people who attended this event saw the exact same game, no one saw a different game.
The venue only holds 60,000 fans but the other fans may be watching at home or in a bar. Everyone is still buying food and drink to watch the game, which still gets included in these factors. The average fan may be worth $50 or $60 - 16 dollars for their meal, 6 dollars for a drink, ect.
What items have the highest conversions? As the prices get lower, the conversion gets higher and vice versa. Some people are willing to buy 3 or 4 dollar items and others go for the 3000 dollar items.
Look at the calculator and see how much your buyer is worth! You can figure out where you need improvements.
Get Perry Marshall's 80/20 Book !