How long does it take your salespeople to respond to leads?
Posted: Sat Jan 18, 2025 5:50 am
What is the Lifetime Value (CLV) of your customers?
Speaking of customer lifetime value, what is the average lifetime value of your customers? It is helpful to know this so you can factor it into your potential annual sales.
It will also identify how many new customers you need to attract to sustain your business. You may find that most of your business comes from repeat customers. And you should place a strong emphasis on marketing to them.
So how do you get this metric? Take your annual revenue per customer, multiply it by the number of years you retain customers, and subtract that from your customer acquisition cost.
This will let you know if your customers are also worth more than what you spend. If you are paying more for advertising and marketing and not getting any returns, then it is time to make some changes to your budget.
Now, if your annual contribution per customer varies a lot, you can use another formula. You will need the average gross margin per customer lifetime, the annual discount rate, and the retention rate.
Once you have these numbers, you can use the following formula:
Gross Margin x (Retention Rate / [1+Discount Rate – Retention Rate]
Start using these metrics to improve your sales
Now is always the best time to start making improvements to your business. Especially when it comes to your revenue.
Who can deny that freelancing is the future? The growth of remote entrepreneurs and workers has skyrocketed over the past decade and there is no end in sight.
By 2020, we expect to see a 40% increase in the workforce made up of independent contractors and freelancers. But how do they do it? You’ll find that the most successful freelance businesses have processes and systems in place and, more importantly, the tools to manage them.
If you're looking to run a profitable freelance business, here are the tools you should consider using.
Tools to manage your finances
Without a doubt, you need tools in your arsenal that allow you to argentina cell phone number database keep your finances in order. This includes accepting payments, paying contractors, and getting reports to see how your freelance business is doing. There are several tools on the market that you can use for this purpose, but in this post I will be talking about PayPal.
1. PayPal
This is one of the most popular payment platforms on the market. It supports transactions in over 200 countries.
Not only does it allow you to accept and send payments digitally, but it also allows your customers to pay via debit card or bank account. Then, to ensure that your business looks official, you can use quotes and invoice templates to send to customers.
You can add your business logo and set it up so you can calculate the running total of products sold or services rendered. And best of all, in the event of a dispute, you can prove that you are right, so a spiteful customer doesn’t try to get an unjustified refund. But if your customer tries to avoid paying for whatever reason, dealing with unpaid invoices is easy if you have detailed records. It’s not hard to do when you use PayPal. You can write off bad debt if there is no chance your customer will pay the invoice in the future. Then, once your business is doing well (making at least $20 a year), you can apply for working capital loans.
Speaking of customer lifetime value, what is the average lifetime value of your customers? It is helpful to know this so you can factor it into your potential annual sales.
It will also identify how many new customers you need to attract to sustain your business. You may find that most of your business comes from repeat customers. And you should place a strong emphasis on marketing to them.
So how do you get this metric? Take your annual revenue per customer, multiply it by the number of years you retain customers, and subtract that from your customer acquisition cost.
This will let you know if your customers are also worth more than what you spend. If you are paying more for advertising and marketing and not getting any returns, then it is time to make some changes to your budget.
Now, if your annual contribution per customer varies a lot, you can use another formula. You will need the average gross margin per customer lifetime, the annual discount rate, and the retention rate.
Once you have these numbers, you can use the following formula:
Gross Margin x (Retention Rate / [1+Discount Rate – Retention Rate]
Start using these metrics to improve your sales
Now is always the best time to start making improvements to your business. Especially when it comes to your revenue.
Who can deny that freelancing is the future? The growth of remote entrepreneurs and workers has skyrocketed over the past decade and there is no end in sight.
By 2020, we expect to see a 40% increase in the workforce made up of independent contractors and freelancers. But how do they do it? You’ll find that the most successful freelance businesses have processes and systems in place and, more importantly, the tools to manage them.
If you're looking to run a profitable freelance business, here are the tools you should consider using.
Tools to manage your finances
Without a doubt, you need tools in your arsenal that allow you to argentina cell phone number database keep your finances in order. This includes accepting payments, paying contractors, and getting reports to see how your freelance business is doing. There are several tools on the market that you can use for this purpose, but in this post I will be talking about PayPal.
1. PayPal
This is one of the most popular payment platforms on the market. It supports transactions in over 200 countries.
Not only does it allow you to accept and send payments digitally, but it also allows your customers to pay via debit card or bank account. Then, to ensure that your business looks official, you can use quotes and invoice templates to send to customers.
You can add your business logo and set it up so you can calculate the running total of products sold or services rendered. And best of all, in the event of a dispute, you can prove that you are right, so a spiteful customer doesn’t try to get an unjustified refund. But if your customer tries to avoid paying for whatever reason, dealing with unpaid invoices is easy if you have detailed records. It’s not hard to do when you use PayPal. You can write off bad debt if there is no chance your customer will pay the invoice in the future. Then, once your business is doing well (making at least $20 a year), you can apply for working capital loans.