Maximize Profits Tool
Maximize Profits
With This Revenue Modeling Tool
If your goal is to maximize profits and not just revenue, it's important that you understand how your numbers play together. That's why we've put together this revenue modeling tool. Which lever should you pull for the biggest, fastest commercial gain?
| Benchmark | Optimized | Increased | ||
|---|---|---|---|---|
Traffic |
20,000 | 0 | ||
Conversion Rate |
% | 2.00% | 0.00% | |
| NEW CUSTOMERS | 400 | 400 | 0 | |
| Customers |
400 | 400 | 0 | |
| Transactions per year |
1.0 | 0.0 | ||
| Average Order Value |
$ | $300.00 | $0.00 | |
| Gross Revenue |
$120,000 | $120,000 | $0 | |
| Profit Margin |
% | 5.0% | 0.0% | |
| Net Profit | $6,000 | $6,000 | $0 | |
| Revenue per visitor | $6.00 | $6.00 | $0.00 |
How Do I Use This Tool?
- Add your businesses numbers under the "Benchmark" column.
- The amount of traffic you receive per year or per month (just use the same date range for all the numbers).
- Your conversion rate from visitor to customer.
- On average how many transactions customer make per year.
- The average order value per transaction.
- Your profit margin.
- Find which lever combination gives you the most revenue per visitor.
- On the column just to the right of "Benchmark" change the percentage dropdown.
- See the affects of what that percentage increase would make.
- Remember that the more you increase the revenue per visitor the more you can spend on acquiring more visitors. Read more about the marketing equation.
