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290 - Three Cool KPI's You Should Be Watching

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290 - Three Cool KPI's You Should Be Watching

Listen To Today's Episode: 

Episode Recap:

Some cool stuff I learned during day #1 of Snowpocalypse.

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Best Quote:

They said that for the test on average, for every dollar someone spends with you for continuity, they will spend $3 more with you throughout the year. So if they’re paying $40 a month, they’re going to average, whatever that is. So every dollar in continuity, they’re going to spend $3 more with you. So that’s kind of cool.

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Transcripts:

Hey everyone, this is Russell again, hope you guys are doing awesome. It is Snowpocalypse here in Boise, so they told us last night. At 1:30 I got an email from Brent, on my team. It was a video from Vin Crosby, the local news dude, it was a ten minute long thing talking about why the next 5 to 7 days is going to be insane. He talked about basically getting a foot of snow that should be starting in about 15 minutes from right now. Then after the snow comes, the next day it’s supposed to rain ice, so it’s going to rain like an inch of worth of water that will instantly turn to ice. Which he said will probably break tons of trees and power lines, which means we got no power, which means basically there’s a good shot there’ll be no power for the next 4 or 5 days. I’m like, “What?”

That was at 1:30 in the morning last night. So I’m like, crap I’m probably the last person to know about this. I don’t watch the news. So I was going to go race to the store last night, but then I woke up my wife and she’s like, “Everything is closed right now.” So we set my alarm for 6am this morning. The alarm goes off, I jump into the car and head on this journey to save my family from snowpocalypse, which is really fun.

I first went to Walmart because they opened earliest. Got tons, like 5 pallets of water and toilet paper, those kind of necessities. Then I went to Fred Meyer and bought food and, it’s funny, Brent was there. I bumped into Brent. It was so funny. I’m like, “Hey, what are you doing? How funny that you’re here.” He had these two space heaters. I’m like, “Oh I’ve got 5 space heaters in my house.” And he’s like, “But you plug them in, right?” I’m like, “Oh crap, yes.” And he’s like, “Well these are ones that run on propane, you need to get one of those.” So I got a propane thing. That was at Walmart. So Walmart was out of propane, so that’s why I went to Fred Meyer.

At Fred Meyer I bought 20 canisters of propane. Each propane thing will keep the heater going for 3 to 6 hours. So I got enough to keep me warm in a tiny room warm for 5 days if we need it. And then we got food and stuff so that was awesome. Then Brent was like, “I went over here and I got a generator.” I was like, “Oh!” So I run over here to get a generator, they were all sold out. So I went to another place, they were sold out. But then luckily Dave found generators not sold out.

And then I went to Dicks Sporting Goods, trying to find a generator, but instead I bought a whole bunch of stuff for the wrestling room. So the wrestling room is all prepped out as well. They canceled church tomorrow, which if you know anything about Mormon’s, we don’t cancel church. So something crazy is about to happen. So we’re all ready for it. The kids are all excited, they’re getting their little tents sent up and everything, and likely nothing is really going to happen. But if it does, we’re prepared.

So I’ve been Snapchatting my whole preppers journey. But while I was doing this whole thing, it’s been probably 4 or 5 hours that I’ve been on the road going back and forth from my house to the store, from my house to the store, I’ve been listening to a whole bunch of cool stuff. In fact, I’ve gone through about a day and a half of the 5 thousand dollar seminar while I was here. While I’ve been doing this.

It’s amazing you can learn so much. So what I want to share with you guys today, is some internet marketing math. Some numbers for you all. This is a little different than, I’ve done math episodes in the past but here’s some key metrics for you guys to look at. Maybe we’ll call it the KPI episode. So here’s some KPI’s-Key Performance Indicators for your business. Hopefully these will help.

Some of these I’ve had in my business for a long time, some of these I picked up today, which were kind of cool. So we’ll start at the very beginning. The first thing is you should know that on average you will make about $1 per name for each person on your list. Honestly, it should be higher than that, but that should be the baseline. You should make at least that if you are emailing your list and actually communicating with them. So that means if you have a thousand people on your list you should be making at least $1000 a month. Ten thousand people on your list, 10 grand a month. Thirty thousand people on your list, 30 grand a month and so on and so forth.

The first time I ever heard that, I set a goal. I said, “Crap, I want a hundred thousand people on my list.” And that became my focus. And sure enough, just like I was told and I heard, my income stayed very similar to that for a long time. And by the time I passed a hundred thousand people on my list, I was making a hundred grand a month. So for you guys that are setting goals, make that the first goal. Goal number one is that.

Again, $1 per month, per name is on the lower end of the spectrum. Right now I look at our company and we are almost $8 per name on our list. We got a big list. So yes, that’s on the low end. Just to kind of have the metric to shoot towards. So there’s number one.

Number two metric is, and this is kind of cool, I learned today. On the continuity program, so if you have someone one a print newsletter or a membership site or whatever it is, there was this test they were talking about. They said that for the test on average, for every dollar someone spends with you for continuity, they will spend $3 more with you throughout the year. So if they’re paying $40 a month, they’re going to average, whatever that is. So every dollar in continuity, they’re going to spend $3 more with you. So that’s kind of cool.

Dan Kennedy used to tell me that for thousand people you have in a continuity program, it’s an extra million dollars in revenue you will make that year. And I started looking, after that I launched a print newsletter and sure enough, just like he said, for every thousand people I had on my continuity program, we were making a million dollars a year in revenue. It didn’t come directly from the continuity program, but it came from, because they’re members of your continuity they will start buying other things. So they will buy, who knows, coaching programs, upsells, other products, things like that. Because they are getting it, they will spend three times as much money with you when they’re a continuity member than they will when they are not.

So that’s the second thing. If I were looking at your business I would be looking at how many subscribers do I have? How many people are on continuity right now paying me monthly? So that’s the next metric. And then the third one I want to share with you that’s kind of cool. Matt Furey is on this course I’m listening to from probably ten years ago, so it’s older. One thing he said that was awesome, he said, “You should try to get at least 500 people to buy from you a month.” Obviously first off you have to try to get one person to buy from you. But after you got customers, it’s happening; people need to make at least 500 transactions a month with you.

I started thinking about that, it goes back to the RFMS thing that we talked about 2 or 3 episodes ago. Recency, Frequency, things like that. But if you think about that, you need to be getting your customers buying at least 500 purchases, need to be happening per month. Obviously for me, we’re way past that. But it’s still a good metric, a good number to look at.

So there’s some new metrics for you guys. Hope that helps a little bit. Because for me, when I look at things, it’s funny whatever we measure grows. If you look at sports, without changing anything else, your lifting routine, your eating, anything, as soon as you start measuring stuff, it grows. It’s like a magic trick. So those are the three things you can start measuring. First off, how many people are on my list. That should be something you look at daily. When I first started doing this I was like man, I wanted a big list. So I start looking, I’m like oh I’m adding twenty people a day. I started looking and I started growing 20 to 30. 30 to 50, 50 to 100, 100 to 200, 200 to 500, 500 to 1000. You already know, we’re trying to get 1000 people a day on our list. That metric grew because we looked at it. So looking at subscribers.

Number two looking at your continuity members. I don’t know about you guys but we’re obsessed with Clickfunnels. Looking at our metrics on that. And Funnel University, the same thing, I got a goal, we are just shy of 30 thousand active members in Clickfunnels, as of today and our goal is 100 thousand by the end of next year. So we’ve got to look at that number a lot, because we have to add a lot of people to get that number. But it’s definitely attainable, we can get it.

In Funnel University, our goal is to have 10 thousand members in Funnel University, but I gotta look at that number and consistently have it in front of me. So my CPA’s gotta email me that every single day so I know what’s the number. Because if I’m looking at it, then it’s gonna grow.

Then the third metric for you guys to look at is frequency of purchasing. Trying to get, make sure there’s at least 500 transactions a month going through your merchant account. If not, you need to be doing fire sales, you need to be doing cool things, you need to be doing free plus shipping, whatever it is to get your people to buy more consistently. So that should be another metric.

So there you go, there’s three metrics for you. A dollar per name per month. A thousand people paying continuity is worth a million dollars a year to you. And you need to be getting 500 transactions a month coming into your merchant account. And if you do those things, you’ll have a very healthy business. So there’s three cool numbers to look at and measure. I hope that helps. I’m home, I’m going to unload firewood I bought today and all the other toys and food and if I don’t survive the snowpocalypse, tell my parents and everyone else who’s not here in Boise that I love them. We will talk to you guys all again soon. Thanks everybody.

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