Are You Measuring The Right Metrics In Your Business? Here’s 4 You MUST Monitor (And What Will Happen If You Don’t)

You know what the legendary marketer Gary Halbert once said about business:

“You are not in the business of selling. You are in the arithmetic business.”

Truer words haven’t been spoken.

Selling alone is not enough.

Just because someone makes a boatload of sales every single day does NOT mean he has a thriving business.

It’s the NUMBERS that decide whether a business is going to grow big or come crashing down.

If you truly want to build a profitable business, you need to absolutely know your numbers.

So let’s take a look at the most critical metrics that are essential for your business:

Metric # 1 – Cost Per Customer Acquisition & Average Customer Value

Sometimes it’s shocking to see the number of marketers who don’t know their costs to acquire a customer.

It doesn’t matter if you are selling $2 product or $200,000 product, every campaign has a customer acquisition value.

Unless you know that number, you will have no idea where your business stands.

I will give you an example.

I promote a program called MOBE where I generate $1250 – $10,000+ commissions per sale selling high ticket information products and live masterminds.

Now MOBE has a front end product called as the MTTB which is a 21 step training & coaching system. MTTB costs just $49 and it leads to all the high ticket products in the MOBE funnel.

Now when I create any marketing campaign for MOBE, I keep a close eye on the customer acquisition costs for MTTB sales.

If I spend $250 or $500 to get an MTTB sale of $49, is it a good thing or bad thing?

Well, that depends on my average customer value (which refers to the revenue that I generate from an average customer over time).

Each MTTB sale is worth over $1000+ in commissions to me over time because a lot of customers end up upgrading after going through the MTTB program. So my average customer value with MTTB is over $1000.

So even if it takes me $250 or $500 to make a single $49 MTTB sale, that’s still good because it’s all profitable for me in the end.

If I didn’t know these 2 metrics (customer acquisition cost & average customer value), I would have never been able to grow my MOBE business so fast and make $3.4 million with it in a couple of years.

It’s the understanding of numbers that allowed me to scale my MOBE business fast.

If you want to run a successful business, your goal must be to REDUCE your customer acquisition costs and INCREASE your average customer value.

You can reduce your customer acquisition cost by tweaking your traffic campaigns to get cheaper traffic. However this doesn’t work for every situation.

There are times when you just have to accept the traffic costs and work on your funnel to convert better. When your funnel converts more visitors into sales, your customer acquisition costs drop down.

As a guy who has made over $15 million online, here’s a piece of golden advice:

Focus more on improving your funnel to make more money than trying to reduce your traffic costs. You will grow much faster, make more profits and have a far more stable business that way.

As for increasing your average customer value, you need to offer more products to your customers. Having high ticket products in your funnel can shoot up your average customer value big time.

Also focus on having a strong follow up process (through email and if possible, direct mail). It will eventually result in your customers buying more products from you which will increase your average customer value.

Metric # 2 – Average Cart Value

This metric is DIFFERENT from your average customer value.

Average cart value is how much you make (on average) when a customer completes the checkout process.

The simplest way to GUARANTEE the profitability of your marketing campaign is to ensure that your average cart value is GREATER than your customer acquisition costs.

For example, let’s say you are promoting a $27 product which has a $197 upsell offer.

Let’s assume it costs you $50 to get a customer of your $27 product.

So basically you are making an initial loss of $23 for every customer you bring in.

Now if some of your customers take up your $197 upsell as they checkout, your average cart (money that you make PER checkout) will increase.

Average Cart Value – Customer Acquisition Costs = Immediate Profits

If your average cart value is say $75 and your cost per customer acquisition is $50, then you are making an immediate profit of $25 PER sale.

When you can generate customers for a PROFIT, your business can scale rapidly. You don’t even have to worry about cash flow issues as you are making money RIGHT OFF THE BAT.

Metric #3 – Upsell Conversion Rate

As mentioned before, when you get your average cart value higher than your customer acquisition costs, you pretty much guarantee the immediate profitability of your campaign.

Now how do you increase your average cart value ?

By simply optimizing your upsell sequence.

If you have your own products, then start testing out different offers and price points in your upsell sequence to bump your average cart value.

Here are a few ways you can do that:

  1. Go From High To Low – When customers buy your product, offer them a high ticket solution at a discounted one time offer price (the discounted price should cost at least $997+). Even a random sale or two can bump up your average cart value big time. If a customer chooses not to take it, then keep offering them lower priced products in a sequential order.


When you offer products from high to low price point, it creates a natural price anchoring which can lead to sales. For example, a $297 product offered directly may or may not be perceived as pricey. But when offered after a $997 and $497 product, it suddenly starts looking inexpensive (natural price anchoring). That’s why going from high to low priced products is such an effective upsell sequence.

  1. Offer Done For You Solutions – Everybody want to get results in an easier and faster way. Offering high priced done for you solutions are proven to get a lot of sales… and you can increase your average cart value big time with it.
  2. Offer Related Products At A Similar Price Point – This is a different kind of upsell strategy. If someone buys a $47 traffic product, you can offer them a $27-$47 product on creating funnels…another $27-$47 product on writing emails…and so on. People love to buy related items and this can boost up your revenues nicely.
  3. Offer Payment Plans – Sometimes people may want to take up your mid to high ticket offers but they may not have the funds to pay for it…or they may be skeptical about spending a nice chunk of money in one shot. Adding 3 month payment plans can help you get a lot more conversions. You can even do $1 trials (like pay $1 now and the rest after 30 days) and while those offers work great but you have to also deal with cancellations, refunds and chargebacks. A regular 3 payment plan is usually a much better option.

The closer you get your average cart value to your customer acquisition costs, the faster you can scale without worrying.

Metric #4 – Sales Page Conversion Rate

Your sales page is the gateway to your profits.

If your sales page doesn’t convert well, not only will your cost per customer acquisition shoot up but your average cart value will suffer too due to less people seeing your upsell offers.

There are 4 main components that you need to test and optimize for the best sales page conversions.

  1. Sales copy – A good sales copy can double, triple or quadruple the number of front end sales you make.
  2. Sales medium – Sometimes a sales letter converts the best while other times a video sales letter does. At times, a regular video featuring your face may convert better than both. There are times when sales video with written text below can get you the best conversion rates.
  3. Order buttons – This may seem like a small thing but it really isn’t. Where you place your order button, how often you place it and its color can have an effect on your conversion rate. It’s not as important as sales copy or sales medium but it still is important enough to be tested out.
  4. Order page – The FASTEST way to increase your sales is just to go and tweak your order page. Most marketers assume that people either decide to buy something or not when they go through a sales page. But in reality, it doesn’t work that way. There will always be a lot of people on the fence wondering whether they should take the plunge or not. These people would land on your order page and think about whether to complete the checkout process. This where a well optimized order page comes into play. With the right guarantees, testimonials and design, it can dramatically bump up your front end conversions.

When you test & optimize all the above 4 components, you are bound to have a great sales page.

Your ENTIRE funnel and business depends on your sales page. A bottleneck there would affect everything else. So getting it right is of utmost importance.

So that sums up the 4 main metrics that you need to focus on in your business.

These are supremely crucial for the success of your business.

So keep testing and optimizing your traffic and conversion campaigns to improve your business numbers.

When you get it right, you can truly scale BIG.

Always remember Gary’s words:

“You are not in the business of selling. You are in the arithmetic business.”

Words to live by.

Dedicated To Multiplying Your Income
– Shaqir Hussyin
“On A Mission To Create 100 Millionaires In The Next 3 Years”

Get Done For You Traffic
Get Done For You Sales Funnel @GURU
$3.5 Million Earner w/ Top Tier Program, MOBE

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P.S. If you would like to learn how you can IMPROVE your business numbers and start making more sales & profits, then sign up for FREE Income Kickstarter strategy session with my 7 figure coach.

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