The Profit Flywheel Part Two — Nailing the Audience Audit

The Profit Flywheel equation has two sides and the audience audit is one of them. How does it get you closer to your goals?

Why did you start your business?

For many people, it’s not just to work in it. They usually want to achieve something more. They have specific goals, like retiring as soon as they can, trying to find more time for themselves, or taking their family on vacation.

This methodology aims to get you closer to your goals and increase your wealth. It’s a wealth acceleration flywheel that helps you move closer to the things that matter to you.

The flywheel has specific components, such as cash flow or customer retention, but let’s talk about the two primary parts.

One part is about mitigating potential risks. There’s always a risk so you want to create an asymmetry in your favor.

What does it mean?

You want to make sure that you have a higher probability of winning than experiencing ruin.

The other important part of the flywheel is the audience audit.

When you want to test something, you typically have little control over if your audience will see it.

You want to do something, but you have no idea how you’re going to communicate with the audience. For instance, you have no idea who’s going to see your Facebook Live and why.

You don’t know the algorithm.

But you can identify the platform that your audience is hanging out on and where they are on the diffusion scale.

Finding Your Champions

When you find out where your audience is and what they like, you can talk to them appropriately. You can have more control over what they see and how they receive it.

These are the three steps to help you do that.

#1 Create Your Champion List

Creating your champion list is simple.

Map out the people who think that you walk on water. They’re the people who love to talk about you.

Everyone has those people around. It’s like they think that everything you say is gold and everything you do is effective.

You may be wondering if they even exist. But if you’ve been in business for a while, there are people who think that you’re great. They’re almost always your customers for life.

That’s the most important place to start. List out the names and it’ll surprise you to find how many you can come up with. Many people actually have great things to say about you and your products or services.

#2 Rate the Quality of the Relationships with Your Champions

Now you need to rate the relationships with those champions. What’s a quality relationship? How do you rate it?

We’re not going to use a scale, but rather something that’s more efficient.

Ask yourself these two questions:

• How likely are they to say nice things about you?
• What’s the quality of their audience?

They may have a massive engaged audience of their own. That’s crucial for helping us to generate cash. They may think that you’re the best thing that’s ever walked on this planet, but they can’t help you launch, pivot, or even generate cash if they don’t have an audience.

#3 Figure Out How Accessible They Are

It’s another critical question to ask.

Is this person someone who would love to talk about you, but they’re too busy?

They may think that you’re the greatest ever, but you can’t get a hold of them. These people don’t have time to send an email for you because they already have the next six years of marketing lined out or something.

In any event, the goal is to find champions that are actually accessible.

Compiling Your Data

How do you reach out to these people on your champions list?

There are ways to do it.

You’re not looking to send a mass email to your list. Contacting your clients should be more personal, especially if they’re private or platinum clients. You don’t send your mom and dad emails. Instead, you take them to dinner.

And you want to make a super high impact.

You can do this by gathering data. It helps you figure out how to communicate with those clients. It allows you to get prepared for the talk. With the data, you can have a conversation that will leave a much greater effect than a typical email.

After that, take a look at the platform where your audience is.

Check out the metrics that you’re following, whether it’s the average number of people who watch your stories or something else.

But don’t rely on one platform, as the algorithm can be unpredictable. Compile your data from everywhere: your Facebook page, your email, LinkedIn, etc. Get it all in one place and identify where your audience is.

From there, take micro steps towards getting their email or phone number, for instance. If people feel like they have a relationship with you through social media, you’re not going to believe how many of them will just willingly give you their phone number.

The next step is to see where the revenue is. What are your people responding to?

If you don’t know, that’s cool — unless you want to launch a new offer or add a revenue stream.

But if you want to get control over your cash flow, you need to have the ability to generate cash on demand. You can do it by segmenting your list.

I have my own list segmented. One week I’d offer something to one segment and watch how it goes. Another week, I offer it to another segment. And I can start determining what I need for cash flow. I will know who I need to talk to and how.

This is important because you may be spending six hours a week on podcasts and sending just one email a month. If 90% of your revenue comes from emails, you may want to audit or redistribute your time.

And if you don’t know, you’ll just keep doing what you’re doing and probably have to do more of everything. That’s why you need to audit often so that you know where your cash is coming from.

Know Your Audience

If you’re following the Profit Flywheel, your goal is to make your income streams stable and reliable. Moving them to the known and tipping the scale in your favor becomes easier when you know your audience.

That’s why you should perform your audience audits from time to time:

• Make a list of people who want to talk about you.
• Assess the relationship you have with them and their reach.
• Find out if they’re easily accessible.
• Gather as much data about them as you can.

It’ll make it simpler to identify where your money is coming from, and you’ll be able to generate cash on demand.

Is it something that you’d like to see in your business? Check out my website to learn more about how I can help you apply this method.