After watching a video by Corbett Barr in YouTube, I am convinced of the power of compound revenue. For people who are not familiar with Corbett Barr he is the creator of ThinkTraffic.com. As an internet marketer this is a website that I go to often because they have great tips that I can use in my online business.

So what is the compound revenue and how does it work?

Firstly, in order for this idea to work you need to have a product that you can create once and sell many times. Ideally, these products would be an ebook, membership site, video course, or software.

After you have come up with a product that you can sell many times, then you can do four different things to increase your revenue. These four things are:

  1. Grow your audience.

  2. Offer multiple products.

  3. Increase your conversions.

  4. Increase your revenue per sale.

In the video he calls these things your 4 points of leverage. The beauty of the concept is that you can only focus on one point of leverage and increase your revenue.

Here is what Corbett says about each point of leverage:

Grow Your Audience

If you are able to grow your audience or traffic month after month to your site, then you will be able to sell more of your products. This, of course, is dependent on your conversion rate or conversions. Nevertheless, if your conversion rate stays the same and your audience grows, your revenue will still increase.

Offer Multiple Products

The more products that you offer, then the more chances you have to sell to your existing audience. Your conversion rate and audience is the same, but you are selling more products. As a result, your revenue will increase.

Increase Your Conversions

If you were able to increase your conversion rate, which is sales per visitors, with one product and the same size audience, your revenue will increase.

Increase Your Revenue Per Sale

If you are able to increase the price that you sell your product with the same audience and conversion rate, then your revenues will increase.

In the video he goes through each point of leverage using actual numbers in an excel spreadsheet. The idea of compound revenue comes alive right before your eyes. Above you see how just improving one point of leverage can increase your revenue. However, in the video he shows you how your income or revenue can grow exponentially improving all four.

The Idea Of Compound Revenue Explained By Corbett Barr