How to leverage the power of compounding and grow like crazy

Most of the venue owners we speak to, when they first enquire with us, want more event enquiries...

And of course that's perfectly logical.

If you get 20 enquiries per month, and that typically translates into $20k per month in revenue, then getting 40 enquiries per month could turn into $40k per month.

Double the enquiries. Double the revenue. Happy days.

Let's take that example and assume that those 20 enquiries come from 400 people (who were actively looking for a venue) checking out the functions info on the website (traffic).

Monthly traffic = 400
Enquiry rate = 5%
Conversion rate = 25%
Avg event value = $4000
Gross profit % = 50% (25% COGS and 25% labour)

Revenue = 400 x 5% x 25% x $4000 = $20,000

Gross Profit = $20,000 x 50% = $10,000

And when we double the traffic (1 metric);

Monthly traffic = 800
Enquiry rate = 5%
Conversion rate = 25%
Avg event value = $4000
Gross profit % = 50% (25% COGS and 25% labour)

Revenue = 800 x 5% x 25% x $4000 = $40,000

Gross Profit = $40,000 x 50% = $20,000

This is linear growth.

But compounding is a bit more exciting.

This is where we improve multiple metrics simultaneously.

Monthly traffic = 800
Enquiry rate = 6%
Conversion rate = 30%
Avg event value = $4400
Gross Profit % = 55% (due to price increase)

Revenue = 800 x 6% x 30% x $4400 = $63,360

Gross Profit = $63,360 x 55% = $34,848

In case you missed it, this came from increasing traffic, improving the enquiry rate, improving the conversion rate and raising prices - which improved GP.

Now, obviously, this is all easier said than done. 

Which is why I've created a series of short courses you can access for free, inside the new SERV. Academy. 

This content is designed specifically for Venue Owners and Event Managers who want to convert more enquiries, upsell more confidently and raise prices - without the fear of losing bookings.