The journey from 0 to 1 Cr. to 4 Cr.
Nishant Patel, CAPM?
Chief Product Officer @ Drinkun Inc | Transforming Marketplaces, Agile Practices | Certified Project Manager and Scrum Master
Did that excite you?
You are reading this that means you want to earn 1 crore. So let me show some simple ways by which you can achieve that goal.
The above chart is your key to earn 1crore. Now let's look into detail.
One way is that you create a product that costs 100 rupee and sell that product to 1,00,000 customers. 100x1,00,000 = 1,00,00,000.
Second way is that you create a product that costs 1000 rupee and sell that product to 10,000 customers. 1,000x10,000 = 1,00,00,000.
Third way is that you create a product that costs 10,000 rupee and sell that product to 1,000 customers. 10,000x1,000 = 1,00,00,000.
Forth way is that you create a product that costs 1,00,000 rupee and sell that product to 100 customers. 1,00,000x100 = 1,00,00,000.
Now you will be thinking, is it that simple?
No
It is not
- Create a product that people really need
- Developing products
- Marketing and sales
- After-sales service
Be let's discuss case 1 and case 4 in detail and the difference between them
In case one, you are creating a product worth 100 INR and scaling it to 1,00,000 customers.
In this case, your marketing and customer acquisition cost will be equivalent to your profit or maybe equivalent to your product cost that varies with product demand, needs, region, and many other things involved in customer acquisition cost.
This is a whole new topic and keeping it for a new blog.
So the conclusion is that you might have achieved 1,00,00,000 in revenue but may fail to generate profit out of that. If your product is such that people don't want to buy it.
Now let's take a look into case 4 where your product cost is 1,00,000 and you just have to find those 100 customers who really need this product.
For such high-end B2C and low-end B2B products, you can take the help of lead generation and create a lead magnet.
We have already looked into 2 cases but we cannot neglect the other 2 cases.
So what are the possibilities for people to buy products in that category?
There are plenty of products and services out there in all ranges.
If there are no competitors out there who are providing the same products as yours you can charge a higher amount. As there will be no supply. That is for a narrow niche
If there are fewer customers then you must have to increase product cost to sustain.
“Don’t find customers for your products, find products for your customers.” – Seth Godin
Now, what if I tell you that you can generate 4 crores placing all 4 ways together.
Yes! you heard me right.
Follow me, I am going to solve your problem in simple steps.
You might have heard about upselling but never applied and are unaware of the power of up-sales.
If you don't know what is upselling then don't worry I have explained this in a very easy and simple way.
Let's Start with case 1 that you are selling products of 100 to 1,00,000 customers.
From those 1,00,000 customers, suppose your product/service was liked by 10% of those customers and are ready to buy more of your products. Then you can upsell them other products with a higher amount of cost with more value, obviously.
So now you have 10% of 1,00,000 customers that is 10,000 customers who are ready to purchase your product of 1000.
You have successfully converted them from funnel 1 to funnel 2 that is from case 1 to case 2 (reference from our blog)
This way you have to convert your customers from funnel 1 to funnel 4 the more customers you will convert into the next funnel the more revenue you will generate.
But that doesn't mean that you are just focusing on the revenue and profit part and not giving value for what you are charging them. You must provide more and more value in such a way that they feel this product worth buying and can buy more of your products in the future.
You might be asking that, how can I generate 4 crores from this?
We have seen that there are 4 ways to earn 1 crore And I said that put that all together to work as a monster revenue generator.
1 crore in each funnel/case and you will successfully generate 4 crores of revenue.
There is no such rocket science in it, it's just simply maths and your products.
You just have to create 4 products that can give 10 times more value than others. Place them in a line.
Sell the 1st and most affordable product. And 2nd the. 3rd and 4th. From products of 100 INR to 1,00,000 INR.
I hope you have gained value from this.