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Your 3 Profit Centres
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Your 3 Profit Centres
You want to make the right decision and a component of that decision process is calculating what your possible earning potential could be.
With the X2 Model there are three main Profit Centres these are:
1. Current Revenue
As a Digital Marketing Agency you will be consulting and advising on the full range of product and services offered. These include: various websites, email marketing programs, ecommerce stores and a range of additional services.
Typically there are three types of Partners, these are:
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Digital Consulting Agencies (focused only on building a digital client base),
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Business Coaches (with an existing base of 20-30 clients and offering add-on digital solutions), and
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Complimentary Service Providers (with a core business of over 250 clients who wish to offer a back-end service)
Each has a valid role within the X2 Partnership mix, and each group moves between the key Digital Market segments as defined in three bands:
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Small and medium sized businesses solutions ($5,000 to $10,000),
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Corporate solutions ($10,000 to $25,000), and
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Digital Enterprise solutions ($25,000 up).
Depending on your budget and commercial scope an initial aim of 15-25 projects in the first year is typical. This would vary depending on whether you sell singularly or in groups and what your level of activity is.
Initially, the average value for a small business project could be between $5,000 and $10,000 for the initial strategy and delivery. You can structure your pricing and marketing strategies to suit your particular goals. With experience your average Digital Consulting fee should increase as you work through the levels of competance.
2. Recurring Revenue
It is important to understand that each client who purchases a website should also be paying a pre-determined recurring fee. This fee would be for a range of services including: hosting, email services, security services, search engine optimisation, search engine marketing, payment gateways and translation, just to mention some of the recurring products and services.
Your potential monthly recurring revenue, would typically involve: SEO, Email Broadcast, Hosting, SEM, and regular consulting fees. The majority of the recurring revenue would not be time consuming. It would be expected that each client would pay between $5,000 and $10,000 annually for these core services.
Of course additional revenue could be generated by further product and service updates, website or email edits, and further strategic consulting.
3. Back-Ends and Add-Ons
Over time and when you are more experienced, you will be able to expand your offer. Using X2’s marketing tools you will also be able to communicate to your prospects and customers a far broader range of services including: CRM consulting, niche programs, special offers, outsourced accounting and much more.
If consistently executed these back-end and add-on offers will certainly boost your average client revenue and add directly to your bottom line.
Your Income Potential
So how much can you make? This can only be answered by you. Our systems are proven, so it depends on you. Would you organise ten presentations a week or a month? |
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