Your Competition Already Knows This Growth Secret
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What is the five‑way growth formula and why does it matter?
What if I told you there are only five ways to grow a business? Not 500, not 5,000, five. It's crazy to me that we do not put more and more energy into conversion than we do into lead generation. The five ways. And this is five ways to multiply the bottom line profits of your business. Repeat business equals profit. This is kind of where it gets exciting to me. All right, what if I told you there are only five ways to grow a business? Not 500, not 5,000, five. That's it. Every business growth strategy you've ever seen ultimately falls into one of five categories, okay? Every marketing campaign, every sales strategy, every operational improvement, every growth initiative, every turnaround plan, every billion-dollar company, in fact.
Well, in fact, every startup, every franchise, every business on earth goes through the same five things. And here's the really exciting part, okay? You don't need massive improvements. I see this all the time where companies, they're like chasing the white whale. We need 100% growth over here. We need all this massive return on stuff. What you need is small improvements through the same five drivers. That's what we got. Because when these five numbers multiply together, tiny improvements create exponential bottom line growth today we're talking about the most powerful business formula i've ever taught the five ways this is five ways to multiply the bottom line profits of your business now every time i've taught this to people it blows their mind so if you've got a chance today get a pen and paper and note down the way the formula works so
The business growth equation, let's start with that. The formula of the five ways. Leads times conversion equals customers. So leads, potential prospects, potential customers, prospects in your business. Times conversion, conversion rate, percentage of leads that become customers, okay? So leads times conversion equals customers. customers is then multiplied by number of transactions, the repeat business rate, how often someone comes back to make a purchase. That's then multiplied by the average sale. Again, transactions, some might come once and never come back ever again. Others might come 10, 20 times a year type thing, but what's the average number of repeat transactions? And then average sales, some might spend $5 and some might spend 500.
What's the average sale for that? So Leads by conversion equals customers. Customers times transactions times average sale equals your revenues, total sales, okay? Then revenues times margins equals profit. So that's the five ways. Leads, conversion, transactions, average sale, and margins. That's it. That's the entire formula. Every business, every industry, every country, every market, every company. The five ways. So way number one, leads. Let's start with leads, okay? A lead is simply a prospective customer, someone who raises their hand, someone who shows interest, someone who may buy at some stage down the road. Now, most businesses immediately jump to advertising, but there are dozens and In our documented systems at Action Coach, we literally have more than 90 strategies for lead generation in a business.
And yet most people in most businesses run two or three strategies for this. And it's crazy to me. A growth business needs seven to 10 lead generation strategies working, systematized working at any point in time. So if you think of all the different types of lead generation sources, referrals, partnerships, Social media, obviously, webinars, podcasts like this one, content that you create out there in the marketplace, eBooks, articles, white papers, all that stuff. SEO is definitely a way. Getting out on AI today, that's definitely another way. Events, networking, affiliates. So When we think about it, the first question isn't, how do I get more leads? The first question is, how many leads do I actually need?
Because when you know that number, then you can get to the strategy. When you know how many actual leads you need per day, week, or number, the strategy becomes easier.
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Chapters
5 chapters
1
What is the five‑way growth formula and why does it matter?
0:00–4:42
2
How do leads fit into the five‑way business growth model?
4:42–9:12
3
Why is conversion the fastest lever for increasing profit?
9:12–14:37
4
How can increasing repeat transactions boost revenue?
14:37–19:49
5
What strategies can raise the average dollar sale?
19:49–23:43
Speakers
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