How to Raise Revenue with One Contractor Change
Who isn’t looking for ways to generate more revenue, reach revenue targets and essentially grow your business.
You have a virtual team of contractors covering the bases, launch promotion, PR, design, client care, technology, marketing and paying them to do what they do best. Are they doing their best for you? What if you could tell just how well your contractors were doing.
It’s easy to check your team for revenue leaks when they aren’t delivering on their goals. Here are a few signs:
- Do you receive emails frequently the promo materials will be a “little late”?
- Do you have clients with missed payments you don’t know about and haven’t heard from you?
- Are you delivering ‘love’ to your new clients a week late into the relationship?
- How many pitches is your PR assistant sending out to book those interviews and JV gigs? Are they even the right fit?
- Is your web administrator testing your web links? Making sure weird code isn’t coming up in your email blasts. Promo materials scheduled in the right system at the right time.
Start with knowing what 100% means for each of your contractors. What are their key responsibilities and your expectations? Then, ask yourself how would you know if they meet your expectation for each of their key responsibilities.
Losing revenue and Overpaying
You’re paying 100% for all the pieces of your business to get done and delivered 100% correctly.
It’s like asking your virtual contractor…
“Hey I want to hire you to onboard my clients. It’s ok if it takes you 3 weeks to onboard at least 4 out of 6 clients. I don’t need money right away and the clients won’t think I’m a flake. I’ll still pay you for onboarding all 6, sound good? #saidnooneever
It’s meeting with your accountant because…
“The IRS sent me a personal love note and it says I owe $10,000. I know the taxes you prepared said $2,000. It’s cool I have an extra $8,000 laying around in my IRS rainy day fund. I’m so glad I paid your full rate to do my tax filing this year. Let’s keep working together.”
You’re worried about revenue from clients you don’t have yet. Are you willing to lose revenue from an underperforming team you’re actually paying that helps you generate revenue?
Your Team is the Foundation to Reaching Your Revenue Goals.
They make sure you’re receiving the revenue from existing clients, staying in contact with former clients (lifetime value of a client shouldn’t stop when after you finish one project), and helping your brilliant information and services get visible to all the right people who need it.
Get the tech wrong and your potential clients can’t find you or think you’re not worth the price. No follow-up with potential interviewers or JV partners and you’re a flake. Potential revenue is flying out the window, not into your bank.
Get crystal clear with your Team on Responsibilities and Expectations.
Half the problem is your team is unclear about which part of their responsibilities really matter. You gave them a job description, which you probably changed and then gave them the laundry list of everything to do.
But what about focus? What do they do that makes revenue possible?
The answer is not everything!
So what should your contractor focus on? It’s those key areas that if it slips through the cracks you’ll be cursing like sailor and talking yourself out of firing them.
There’s one thing you’re not doing that could be getting you to your revenue goals.
Use performance metrics. The industry calls them key performance metrics or KPIs. Regardless what their called, what they do is important! They help your team and you get really clear, like pinpoint exactly what’s a priority and what 100% delivered means.
Here’s a basic example:
- 100% Follow-up on all missed client payments within 24 hours.
- Based on the data in 17Hats system
- To be reviewed every month
- If 100% follow-up not achieved for the month, consequence is 5% credit on next invoice
The natural response is make a list of everything you want to measure and give it to your team member. Everyone rides off into the sunset bonding over metrics and you’re making the bank roll you wanted.
Everything you want to measure doesn’t matter to your revenue.
Get to what matters. It’s less than 10 performance metrics and it’s usually in the neighborhood of 3-5. These metrics are the critical ones. Critical like, you’re going to lose money or not be able to take more clients if it doesn’t happen, which means less money.
These will be the performance metrics you want your team member to prioritize. When money is tied to it, it definitely goes to the top of the make shiz happen list.
What can you do to get started?
Make a list of the current responsibilities for each contractor role. Now, make a check mark next to each one that’s only dependent on the contractor to do the job (without relying on others to do part of the work).
Digital designer creates the workbook design and format, but can’t finish the workbook unless the copywriting is ready. So completing a new eCourse workbook wouldn’t be totally dependent on the design contractor. A draft design within 48 hours after copy received would be.
For the contractor role responsibilities that you checked, jot down your expectation of a job well done. Describe what “good” looks like. Get specific and use numbers, like you were ordering your favorite coffee drink (1 pump extra chocolate ½ water ¼ cup of room at the top)
Rank the responsibilities for each role you just defined from most to least important for reaching your revenue goals. This will give you a good start on thinking through possible performance metrics that matter to your revenue goals.
Stuck? Drop me a question on Twitter or leave a comment to get your question answered.