Business Breakthrough: 1+1 Model
Thursday, November, 13th, 2014 at 3:35 pm by Mike J. Agugliaro
This is called the 1 plus 1 Model.
So here’s the deal: If you wanted to grow a $5 million business or a $10 million business, how many customers do you need? Go ahead. Yell it out! What’s the matter? You’re too good to yell at the computer you’re watching this on?
You’re saying, “I need like a thousand with this average invoice and conversion.” But isn’t it the reality that if you want to do a $5 million business that you just need one customer to pay you $5 million and you’re done. Yeah, wouldn’t that be cool?
No, I haven’t done that either but I just wanted to use it as an example.
So the 1+1 Model is to help you take less calls and create greater revenue. Instead of fighting in the game to always get more customers, we want to serve our existing customers at a higher level. And when you do that, they’ll want more things done.
So here’s an example of how it would work:
Let’s say I’m taking a call, and I’m like, “Hey, Mr. Jones. How are you doing tonight? Yeah, so I got you all set. We’re going to come out and take care of that toilet bowl that keeps running for you. We’re going to do an amazing job. Hey, by the way Mr. Jones, I have a question to ask you. A lot of times when customers call and they say that there’s a problem with the toilet bowl, they’re also dealing with some kind of slow running drains or drippy faucet. Is that the case at your home? Because I would be glad to have the service expert take a look at that, too.”
So here’s the deal: Now if one out of 10 customers say, “Yeah, you know what, I do have some other problems.” I’m setting the stage, not only for the service expert to be able to serve the customer, but I also get to stay and do more for that customer. And, make more money. It’s okay to make money and make profit. Because without making money and profit, we can’t have a business to help anybody else. So profit and revenue is the level we are serving customers at, then get to serve our employees and it all goes downhill from there, in a positive way.
So the 1+1 Model is what you communicate to the customer that would make sense to them at the same time.
I saw something really cool the other day. I bought this really neat video program just to learn more about YouTube and how to do videos. Because the day you stop squeezing the lemon or sharpening the axe, it’s the day you’re done. It was 97 bucks –nice and cheap with tons of value. As a matter of fact, if you’re interested in this program about videos and YouTube, hit me up. I’d be glad to share it with you.
And as soon as I’m done and I’m paying, a little thing comes up. And it says, “Hey, a lot of customers that bought this program also were interested in webinars and how to do webinars for their employees or business. And I was like, “Holy crap.” And, of course, one program was only $97. This was only $47. So, now what am I at? Like 150 bucks. But I’m thinking, “Holy crap, I made a decision to buy the video program which means they’ve already built my trust. I’ve already got credibility in them. I’m a buyer. And now they’re offering me something else that makes logical sense.”
Guess what I do? I don’t even know if I’m going to do webinars, but I bought the program. Now the average invoice or transaction went from under $100 to $150. That’s a 1+1 perfect example of the model. Now a lot of times, this happens intuitively.
Here’s another example: I’m at Walgreens the other day. As I’m checking out, I turn over and look and see a sign there. It says something like “This is our partner in health insurance.” Without looking at that sign, I would have never known Walgreens had a partner to buy insurance from. Again, 1+1 Model.
Now 1+1 can do two things for you:
- It can exponentially increase your sales.
- It can increase your sales with less customers.
So your challenge today is to get out of the game of always fighting for more and do what you do today with your customers a lot better. Now if you magnify that with other skill sets or other trades that you do – I don’t care if you offer your customers cleaning services or flowers – position that and make sure you are doing an amazing job.
Mike Agugliaro, Business Ninja