What you’ll learn in this episode:
Many people struggle to reach their sales goals.
Most often, those who fall short of their sales goals are lacking one or more of the three critical components that I will be talking about today.
Today, I’ll be giving you the most important tools that you need to grow your business, hit your sales goals, and hit your launch goals.
Here’s a glance at this episode:
- Your revenue goal needs to be much higher than you think.
- You need to be excited about the number of sales you’ll generate.
- Know the number of things that you need to sell to reach your revenue goal.
- Know how many people you need to reach to convert that number of sales.
- One of the most powerful places where you can have an audience is through an email list.
- When you have an audience and you offer them value over time, they become part of your community.
- Optimization and clarity are key.
Mentioned in this episode:
Work/Connect with me:
Hello, everyone and welcome back to the Practical Mindset Podcast. I’m Jess Miller and I’m so excited to be here with all of you this week.
For those of you that are new to the podcast, I know we’ve had a lot of new listeners – Welcome to the podcast! We’re so happy to have you here. And for all of you that have been following us now for over half a year, I’m so excited to have you back to this week.
We are going to talk about something that I think is really, really important. So we’re just coming off of a launch of our 10k accelerator program. We are March, we are launching the April cohort, we launch once every quarter. And this launch was one of our biggest launches yet.
And I want to share with you one of the most important pieces to growing your business, hitting your sales goals and also hitting the goals of a launch. The problem that many people have with their sales goals is that they are falling short of some of the critical factors that you need to actually hit your sales goals.
And so today, I’m going to walk through each one of those things. Because what happens is if you actually leave out one of these critical pieces, you end up selling yourself short and missing the goal.
So I’m going to outline these three things and then we’re going to walk through each of them. And, I’m going to give you an example of how to back into these numbers so you can take it right out of this podcast episode. And you can go apply it to your business. And you can press your test and see where there might be a gap in what you’re doing to hit your sales goals, which may be accounting for missing that mark, if that is what is happening in your business.
If you’re hitting your sales goals, and you want to just take it to the next level, this also applies. Having all of these things dialed in, will let you really stretch your goal and hit those sales goals numbers with ease.
Okay, so there are three components that you need in order to hit a sales goal. You need to know: #1 – the amount of revenue you want to generate, what is that amount, that number that you want to generate in your revenue?
#2 – is what is the price point of the thing that you’re selling? And how many of those things do you need to sell to hit that revenue goal?
And then the third thing is, how many people do you need to reach or expose this offer to in order to then have a conversion rate of enough people to buy that offer to hit the revenue target.
So we’re going to walk through each one of these things. I will tell you the place where I see people fall short the most is in the last step, which is understanding the amount of traffic and exposure and list size that you need to have in order to generate the number of people to buy the offer that you’re offering in order to hit the revenue and the sales goal that you want.
Okay, so number one is your revenue goal. So in my experience of working with a lot of different people, the biggest issue I see with the revenue target is people often aim too low. I know that sounds crazy, because all the time on the street, we talk about people getting freaked out by their sales goals. But in my experience is actually the other way around. People don’t set their goal high enough so that they are excited to go out there and actually hit it. And I’ll tell you that when I started my business, I did this too.
Everyone talks about hitting six figures. It seems to be the magical number. And that is a great number, if it gets you excited. But if it doesn’t get you out of your seat in a tizzy about your business to go out and tell people what you’re doing and to sell your offer so that you can hit that sales goal and to have that impact on people and help them – it is going to be completely demotivating.
So the first thing is you need to get clear on what is this number? What is the revenue number? And what makes me super excited. And you need to put both of those things together and come up with your number. That number is what you’re going to essentially build your plan against.
Okay, so the first thing is, what is that revenue number that I want to hit either I need to hit it for what for a certain reason, I need to bring in this number of sales, or I want to hit it, or both, like I need this money, I need this revenue to come in to keep my business afloat, and I need to profit. And I’m so excited about it. Okay, so that’s the first piece is what is the number.
The second piece is the price and the number of things at that price that you need to sell: packages, services, programs, products, whatever it is that you need to sell to hit that revenue goal.
So for the sake of this podcast, I’m going to give you an example of what I mean by this. So let’s pretend that your revenue goal is $10,000. You want to sell and bring in revenue for $10,000. And you have a product/service/package that costs $1,000. Okay, so you know, across $1,000, and you want to bring in $10,000, you would need to sell 10 of those packages/products/offers – whatever it is, 10 of those things at $1,000 to generate $10,000 in revenue. So now, you know, I want to aim for $10,000 in sales, I’m so excited about that. I have a product that is worth $1,000. In order for me to hit 10,000, I want to sell 10 of those. I have to sell 10, 10 times 1000 is 10,000.
If you were at a break even point with your $10,000, meaning I just I need to have $10,000 of revenue in my business just to keep the lights on. And you want to sell $12,000, right, to have a profit. So you’re going to be $2,000 over $10,000, then you would sell 12 of those things, right? 12 times 1000 is 12,000.
But for the sake of this example, we’re just going to keep it at $10,000. You want to generate $10,000 in revenue. You have a product that’s $1,000. And you want to sell 10 of them to get $10,000. Okay, so now you know, if I go out to sell this thing, this offer at $1,000 – I need to target selling 10 of those things to hit my sales target.
Then the third piece is how many people do you need to reach? Or what is the size of your list that you need to have, in order to convert 10 people to buy, essentially. This step is crucial. And this is the place where people often miss the mark, because they don’t know to do the math so that they can be really intentional about who they’re going out and talking to, who they’re exposing, to this offer, how they’re kind of bringing together this number of people that are going to see this offer and be exposed to it and have the, essentially, the chance to convert – right?
So how do we think about this in my example? So I’m just going to use an example of: there are 100 people in your ecosystem right now, and for the for the sake of this podcast, and to make it applicable to my business (and probably many of your businesses) we’ll think about that 100 people as a list size.
So many of you have listened to the podcast and heard me talk about this idea of your audience and this and the traffic of that. I personally believe, and I will say in full disclosure, it took me a long time to really latch on to this idea and believe it. So if you’re listening to this podcast, and you might not be in belief about what I’m about to say, here is your like divine intervention, to sort of think about this really seriously and get on board without wasting a ton of time, you know, an opportunity cost here.
So when I think about people in your audience, one of the most impactful and powerful places that you can have an audience is in your email, is having an email list. It is not the only way for you to grow your business, but it is one of the only ways for you to actually own that lead, own that audience.
When you’re on social media or you’re using somebody else’s platform – it is not yours. It is somebody else’s. If Facebook decided they were going to shut down your account tomorrow, and you lost all of your friends, there is nothing that you can do about that.
But when somebody opts into your email list, they are your lead into they choose to opt out. And emails in general, in my opinion, are extremely valuable, because I don’t know about you, but still to this day, my email gets a scroll every single day, several times a day.
So when someone opts in to the real estate, of that email inbox, you have a golden opportunity to build a relationship with this person, and really give exposure to whatever it is you’re talking about, whatever value, whatever offer it is. So I think email lists are very, very powerful.
And I will tell you that in the beginning of launching my business, because of my background, I was a very, very high touch in the sense of like, I needed to talk to you and I needed to go out and actually touch each person. So a lot of one on one conversations and, and high touch things that took a lot of my time and energy. And I’m still very much that way, I like to touch my clients in that way.
But the second best thing, to gathering people one by one by one, and having to give your time and energy to physically talk to them, or send them a message is to get them on your email list.
So if we assume for this particular example, that there are 100 people on our list, that is our audience. And we want to convert 10 people, we need to make 10 sales at $1,000. And there’s 100 people. And on average, we think about conversion rates at about 1 to 2% then you would need to have a list size of 500 people to convert 1 or 2% to actually buy your offer.
So let me just break this down. If you need 10 people, and you have a list size of 500 people, if you take 2% of 500, you get 10 people, that is this the basic math. So you need 500 people in your audience on that list, at a conversion of 1 to 2% to find your 10 people who are going to buy your $1,000 offer to get you a sales revenue to hit a sales goal of $10,000. So that means if you have 100 people on your list right now or in your audience, you need to find 400 more people to get on that list, to have a list size of 500. So that you can then find your 10 people, which is the 1 or 2% of the 500 people to buy your $1,000 offer to hit your $10,000 sales goal.
And it’s that number, it’s that traffic, that audience piece that people often miss. And from a very, very basic sales perspective, what ends up happening is you’re just not talking to enough people. And what I mean by talking to them is you’re not exposing them to your offer, enough people to that offer to hit that number so that when you convert the 2%, it’s a large enough number of people to buy that offer, that’s going to hit your sales target.
And so it’s very interesting, because a lot of times, one of the things that moves the needle the most for people, especially in the beginning of their business, but it’s true at any level of your business, is that once you turn that dial, to start talking to people, exposing people to your offer, getting them on your list or getting them in your audience and ecosystem. So you can reach them essentially so that they can hear you. It’s like you’re turning up the fire on your business, you’re turning up the fire on your sales. And it makes a huge, huge difference.
But understanding and really being able to back into that number and be intentional about it, is the missing link. Oftentimes for people who are not hitting their sales goals, they know how much they want to bring in and their revenue. They know how much of the prices of their packages, They can do the math generally saying okay, I need like we said 10 people at $1,000 to get $10,000 But then the engine behind it, the traffic, that audience is not dialed in. And when it’s not dialed in, guess what? You can’t measure it.
So you’re kind of shooting in the dark going out there and just yes, maybe you’re talking to people and yes, maybe you feel like you’re doing all the work and you’re hustling. But you’re not doing it adequately enough. And the key to so much of this is clarity, it’s clarity. You need to be able to know this number. You need to be able to track against the number. You need to be able to build a plan against this number.
And when you get that number locked in, it’s that number of people followers, list audience, whatever you want to call it, once you get it dialed in, you can get so creative. So creative in the way that you touch people in the way that you do things, and how you move people through that funnel to come to, to buy and to generate your sales revenue.
So again, for this example, you have a revenue target of $10,000, you have a package, a service, a product, something worth $1,000, in order for you to hit your revenue target of $10,000, you need to sell 10 of those things at $1,000 to generate that revenue. And in order to have enough people to convert at a rate of 1 to 2%, you need to have 500 people for sake of this argument on your email list in your audience in that ecosystem, in order to convert 1 to 2%, which is 10 people to actually buy your thing at $1,000 to generate $10,000.
Now, here’s the other great news about this, and I want to just say this as a caveat. As you talk about your offer, as you run through this process, and for some people like me, we have certain launches, or we generate sales in a certain pattern. So for us, we do this for our accelerator, specifically, every quarter, that’s when we open our doors. So as you do this, and you repeat it, and you get better at talking about your offer and dialing in your numbers, and touching people and helping them to hear the same message over and over again, you will get stronger at converting people.
So then your list of 500 instead of generating only 10 sales at 1% or 2%, it will start generating a higher percentage of clients. So the stronger you get at sales, the stronger you get at your marketing, when you take that whole ecosystem around the sales revenue goal, and you start to generate that in a more powerful way, your conversion rates will go up.
And so essentially, it will become even easier for you to find your 10 people or get more than 10 people right, exceed your sales goals. So the intentionality, and the clarity, and the power of doing this is really, really important. And it will just continue to compound and build on itself, you will get stronger, your audience will be hearing the same message, you will be building relationships with people by touching them often, right? It’s not even just about launching and sales and promotion in the promotion.
When you have an audience and you offer them value consistently over time, even when you’re not in launch, or not selling something, it is very powerful – those people become part of your community. And the relationships really matter. So dialing in those that that group of people even for for the sale, but even bigger than that, is super powerful – super, super powerful.
So I want you to take this information, and I want you to go back to your business. And I want you to look at your numbers, I want you to look at where is this dialed in? Where is it not dialed in? And where can I tighten it up?
So to recap, again, here are the things that you need to know in order to hit your sales number. In order to really piece out where the problems are with you hitting your sales goals, you need to look at these three things.
One, you need to have a clear number of the amount of revenue you want to generate. You want to know what it is from a practical perspective, like how do I make sure I’m profiting and I’m keeping the lights on and all the things right, all that practical stuff. And you need to be on a full on tizzy about your revenue, so that you’re excited about it.
One of the biggest issues I see is people are not excited about the amount of sales that they’re going to generate. And that is a total killer. So you need to know your number and be really excited about it.
Number two is you need to know the price of the thing that you’re going to sell, and how many of those things that you need in order to hit your revenue. Again, for the sake of this example, you want to have a revenue target of $10,000, you have something that is worth $1,000 You need to sell 10 of those to hit $10,000.
And then third, and super important is you need to know how many people you need to reach or have on your list in order to generate and convert that number of sales. So for the example that I gave you, you have 100 people on your email list for example, and you need to get to 500 people in order to convert 10 people. So 2% of 500 – 10 people, to buy your $1,000 offer to make the $10,000. So if you have 100 people on your list, you need to grow your list by 400 people, in order to get 500 people on that list. That is the goal. In order to convert the 2%, which is the 10 people that are going to buy your $1,000 offer, and they’re going to get you’re going to generate that $10,000 in sales.
So go back to your business and I want you to really dig into those numbers. And I want to hear from you send a message to firstname.lastname@example.org and let us know what are you finding? What is happening in your business? Where have you been able to dial it up and really make that more streamlined, so that you can hit your sales goals with ease. That is the key we want to hit them with ease. We want to spend our time in our zone of genius and not running around like trying to grab all these, these numbers that are not optimized. Optimization and clarity is the key.