How to achieve multiple growth in traffic and sales from your website?
Posted: Thu Jan 23, 2025 8:59 am
Exclusion from the calculation of payments not received on time and fees for their execution.
This method of calculation does not increase its accuracy, but only leads to a distortion of the obtained indicators. Overdue payments are in an intermediate state between losses from lost customers and profits from active subscriptions. As a result, at the end of the analyzed period, a situation arises when the buyer exists, but there is no payment from him. In this case, problematic payments should be calculated separately, which will allow an objective assessment of the amount of income lost monthly.
Also, excluding commission from the calculation does not allow to get an objective picture and see the possibility of optimizing costs. Even if it is impossible to achieve a zero commission loss indicator, costs may be lower with direct use of payment platforms or changing the aggregator.
Taking into account one-time payments in calculations.
One-time payments are not repeated, so they cannot be used to calculate the average. Taking such amounts into account (for example, for providing a single consultation) leads to a distortion of the results of the financial assessment of the activity.
Including the planned profit from trial users in the calculation.
This mistake leads to an unreasonable overestimation of the product's profitability. It is equivalent to the statement that every user who tests the software will definitely switch to its paid version. However, every entrepreneur knows that the conversion cannot be 100%.
Exclusion from discount calculation.
Another common mistake that leads to a discrepancy between the calculated data and the actual profitability at the end of the period. If a user receives a discount on a special offer of 30%, then only 70% of the subscription price should be taken into account when assessing the MRR. When it is canceled, the indicator will increase by the amount of this difference.
These errors may seem insignificant, but they can dramatically distort the metric's performance.
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand india mobile phone numbers database visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153357
How to increase MRR
The following measures can be taken to ensure its growth:
Use of advertising discounts and coupons. Since they are not taken into account when calculating MRR, their use in sales allows you to dynamically increase this indicator. Thus, customers can be given a discount when paying for a subscription, a free trial period. However, you cannot replace MRR with ARR.
Increased retention rate. Customers are less likely to abandon a product if they are getting value from it and are happy with the terms of the subscription. Even if they cancel their subscription, such customers can be retained as referrals because they already know the product.
MRR is calculated based on the cost of the service paid by new customers. If you intend to increase the metric, it is better to do so during the free period. Customers should be notified in advance of upcoming changes. An effective measure may be to maintain the old subscription terms for customers who cooperate with the company for a certain amount of time, while new subscribers will pay an increased price.
This method of calculation does not increase its accuracy, but only leads to a distortion of the obtained indicators. Overdue payments are in an intermediate state between losses from lost customers and profits from active subscriptions. As a result, at the end of the analyzed period, a situation arises when the buyer exists, but there is no payment from him. In this case, problematic payments should be calculated separately, which will allow an objective assessment of the amount of income lost monthly.
Also, excluding commission from the calculation does not allow to get an objective picture and see the possibility of optimizing costs. Even if it is impossible to achieve a zero commission loss indicator, costs may be lower with direct use of payment platforms or changing the aggregator.
Taking into account one-time payments in calculations.
One-time payments are not repeated, so they cannot be used to calculate the average. Taking such amounts into account (for example, for providing a single consultation) leads to a distortion of the results of the financial assessment of the activity.
Including the planned profit from trial users in the calculation.
This mistake leads to an unreasonable overestimation of the product's profitability. It is equivalent to the statement that every user who tests the software will definitely switch to its paid version. However, every entrepreneur knows that the conversion cannot be 100%.
Exclusion from discount calculation.
Another common mistake that leads to a discrepancy between the calculated data and the actual profitability at the end of the period. If a user receives a discount on a special offer of 30%, then only 70% of the subscription price should be taken into account when assessing the MRR. When it is canceled, the indicator will increase by the amount of this difference.
These errors may seem insignificant, but they can dramatically distort the metric's performance.
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand india mobile phone numbers database visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153357
How to increase MRR
The following measures can be taken to ensure its growth:
Use of advertising discounts and coupons. Since they are not taken into account when calculating MRR, their use in sales allows you to dynamically increase this indicator. Thus, customers can be given a discount when paying for a subscription, a free trial period. However, you cannot replace MRR with ARR.
Increased retention rate. Customers are less likely to abandon a product if they are getting value from it and are happy with the terms of the subscription. Even if they cancel their subscription, such customers can be retained as referrals because they already know the product.
MRR is calculated based on the cost of the service paid by new customers. If you intend to increase the metric, it is better to do so during the free period. Customers should be notified in advance of upcoming changes. An effective measure may be to maintain the old subscription terms for customers who cooperate with the company for a certain amount of time, while new subscribers will pay an increased price.