TCM #011: Riding the Revenue Roller Coaster
Read time: 5 minutes
Hey 👋 – Tom here.
Happy Saturday to 918 motivated ecommerce entrepreneurs.
Below is your weekly one short tip on marketing and revenue growth for your ecommerce business.
Tackling the emotional ups and downs of running an ecommerce based business.
Enjoy.
Before we go any further, this week's sponsor is a doozy.
If you're looking for ways to diversify your ad spend and reduce your CPA, do it by partnering with complementary brands through RE:INVENT. 👈
Built by a good friend, Bryn, after selling his brand for a healthy 6-figure payday last year.
Don't walk – run! – to that waitlist.
And then go connect with Bryn on Twitter.
Today, I'm diving into the wild world of revenue volatility and how to handle it like a pro and tackle those emotional ups and down.
This edition is largely inspired by Morgan Housel's brilliant book, "The Psychology of Money."
(Finished it last week – I highly recommend it.)
Let's face it – in the ecommerce game, our income can resemble a roller coaster more than a steady climb.
One month you're swimming in cash, and the next, you can be left wondering where all the customers went.
It's enough to make even the savviest entrepreneur feel like they're on shaky ground.
Below are a few handy pointers that I've personally had to embrace over the years.
Buckle up; let's ride this revenue roller coaster together.
🎢
1. Embrace the Unpredictable 🌊
First things first, we need to accept that volatility is a natural part of the ecommerce world.
Economic fluctuations, seasonal trends, and even random events can all impact your revenue.
Ask me how I know.
I see swings of 200% growth some months, depending on what's hitting the news cycle.
So instead of panicking when things don't go as planned, I use it as an opportunity to learn and adapt.
Channel the inner zen and go with the flow.
If you can zoom out over a 7/30/60/90-day period, those peaks and valleys look a whole lot smoother.
It just never feels like it when you're in a cycle, huh?
It's normal, I promise amigo.
Know that you're not alone.
2. Build a Safety Net 🥅
A cash reserve can be a lifesaver during lean times.
So when you're riding high on a wave of profits, set some money aside to keep your business afloat during the inevitable downturns.
The peace of mind that comes with knowing you have a financial cushion is priceless.
Bad days are ahead.
Good days are ahead.
Embrace them both.
3. Diversify Your Offerings 🧺
You're more vulnerable to revenue volatility if all your eggs are in one basket.
So why not diversify?
Add new products or services, explore symbiotic niches, or collaborate with other businesses to create unique bundles. (Again reach out to Bryn at RE:INVENT for what they're doing for brand collabs.)
The more varied your income streams, the better equipped you'll be to weather any storm.
4. Know Your Numbers 🔢
Stay on top of your financial data.
Keep a close eye on your sales, expenses, and profits, and use this information to identify trends and make informed decisions.
By analyzing your data regularly, you'll be better prepared to handle fluctuations and adjust if needed.
My go-to for this – Lifetimely.
Low cost and a damn effective way of ensuring you're profitable.
5. Stay Connected with Customers 🤝
Your customers are the backbone of your business, so keep them engaged!
I want customers for life, not once.
Regularly communicate with them through email marketing, social media, and other channels to maintain strong relationships.
Become friends with your customers; reinvest in them.
We want to help ensure a steady flow of repeat business and referrals, even during slower periods.
Stuck for ideas?
Hit up ChatGPT and get those creative juices flowing.
Feels overwhelming?
Pick the channel that feels "lightest" to you.
You don't need to be on all of them to build a solid and wildly profitable business.
6. Learn from the Pros 🎓
Never stop learning.
Surround yourself with successful ecommerce entrepreneurs, read their blogs, listen to their podcasts, join communities (possibly like The Ecom OS when it finally launches this month... I know, I know) and don't be afraid to ask for advice.
You can even seek out a mentor who's been through it all before.
The more knowledge and support you have, the better equipped you'll be to navigate the revenue roller coaster.
Remember, we're all in this together.
We're all figuring it out as we go, and there's no shame in going through hard times. It happens to us all.
I didn't get here alone either.
It's not about avoiding the dips and dives but learning to embrace and manage them.
Keep your head high, stay focused on your goals, and never be afraid to ask for help.
Failure is a single event, not a character trait.
As always, I'm here to lend an ear or share my experiences if I can be of service.
Feel free to reach out any time, and until then, have a cracking weekend! (But also remember to touch grass.)
Your fellow ecom enthusiast,
Tom
P.S. Ready for more? Here's how I can help you level up your ecommerce game:
- The Ecommerce OS: This is my go-to system for skyrocketing from $0 to $1M in revenue (while staying profitable). (Early birds, you're in for a treat—enjoy 50% OFF on launch day later this month. We're nearly there.)
- Team up 1:1: Together, we'll outline your goals, craft a knockout strategy, and create a tactical action plan to supercharge your Shopify store. (Join 200+ clients who have already upped their ecommerce game.)
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Catch you next week or over on Twitter.
