I met a really wealthy individual worth over a billion dollars. And you know what he told me? The way to become a millionaire is by losing money. ►Subscribe: https://goo.gl/ScRTwc to learn more secret SEO tips. Find me on Facebook: https://www.facebook.com/neilkpatel/ Read more on my blog: https://neilpatel.com/blog
Hey everyone, I'm Neil Patel and today I'm gonna share with you, how to become a multi-millionaire, by losing money. What most people don't tell you is, in business, you gotta optimize for Lifetime Value, also known as LTV. What that means is, when someone's a customer, in many cases, they'll keep coming back and spending more money. Or you can upsell your customers or downsell them, and generate more revenue. In other words, whatever a customer pays you on day one, that doesn't mean that's all they're gonna spend with you. They can keep buying more products, more services, different products for different services, they can refer friends, there are so many more ways to make money from each and every single customer.
Number one, you need to have amazing tracking setup in place. You can't just install Google Analytics. You need a custom installation from tracking your conversions, your goals, what's driving revenues, what's not driving revenue, you can use tools like Mixpanel to optimize your lifetime value of your customers. Without it, if you don't know what a customer's worth, how do you know how much you can spend to acquire a customer?
The second tip I have for you is, provide amazing service that people aren't expecting. For example, Amazon has prime, free two day air shipping. Most people didn't expect it when they released it.
The third strategy I have for you, is having upsells and downsells. By having them, what you'll find is, you won't lose as much money up front, sometimes you can even break money if not make money.
The last strategy I have for you, if you're trying to really grow, focus on optimizing your conversions. Advertising is continually going up in cost. If you can get more of your visitors to convert in customers, you won't be losing as much money in the short run. You can use tools like Crazy Egg to run A/B tests, see how users engage with your website.
If you follow these tips, yeah you're still probably gonna lose money in the short run if you wanna grow your business fast and grow it into millions of dollars, but you'll be better off because you have a much bigger company in the long run, and eventually you'll see the profit. That's why Amazon operates at net zero, like, they don't care to make a lot of money. They'll have very thin margins and they're okay with it, because they just wanna gobble up the market share and look at them, they're worth so much money.
Almost a trillion dollars, they're saying one day Amazon will be worth over a trillion, and I believe that. So that's it, thank you for watching. Make sure you comment below if you have a question, I can help you with strategies for your business. And of course, if you enjoy this video, make sure you subscribe, like, comment, share. Thank you very much.