How We Made $2.3 MILLION In New Recurring Monthly Revenue
Now we come to the part most of you would be interested in — how the new product increased our revenue rather substantially. Well, as I already noted at the beginning, it wasn’t that hard at all — in fact, it was the easiest money we’ve ever made (well, of course it took us many years of hard work to lay the ground for the eventual success, but how many of you want to hear about all the grunt work we’ve done?).
So, once the new product was finally launched, the first thing we did was to reach out to our existing merchants. As we now work exclusively with high-risk businesses, we knew that every single client of ours would benefit from our new offering.
And we were proved right. By the way, let me tell you just how good it feels when you call a prospect to offer her something she really, truly, needs.
Anyway, I made my way through our customer list and most of them signed up. I expect the hold-outs to eventually sign up as well, once they fully realize the benefits they are missing out on.
In all, we are now processing about 750,000 insurance-covered transactions a month. As the insurance cost to the consumer averages at $3.07 (it is lower for transactions under $100 and higher for those above $100), our new monthly revenue is $2.3 million.
Again, this is recurring monthly revenue. Of course, this is revenue, not profit, but our profit margin is pretty good.
Needless to say, we are quite happy with the results, although I can’t stop asking myself what took us so long to figure out something that is this obvious. And the consolation that hindsight is always 20 / 20 isn’t helping at all.