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Hello Chris M. Walker CEO of Legiit here.
I usually leave the Legiit blog in the hands of our extremely talented in house blog master, or occasionally to the amazing freelance writers on Legiit.
(If you’d like to have a post featured on the Legiit blog learn more here)
But today I found something interesting I wanted to share with you that can help you 4x your sales on Legiit, or anywhere else in business.
These days a big part of my day is spent looking through numbers, statistics, and other types of data to find ways that we can scale Legiit and help as many customers and freelancers as possible.
This week I found something interesting.
In compiling data in various ways for 2019, we found all sorts of actionable stats that we will be taking advantage of for the rest of the year, but the one that we found that will be of the most help to you is this:
On average a customer that makes a purchase from a freelancer will purchase from them 3 more times… a month, every month, for the entire year.
Additionally the 2nd and 3rd purchase usually doubles in value from the 1st with the 4th being roughly 20% higher than the 3rd.
Now its common business knowledge that it is easier to sell to an existing customer than it is to acquire a new customer; but I had never had any real data to back that up before.
I realize this is a bit abstract, so here is an example.
We will call our customer Jack and our freelancer Diane.
Steve is looking to start a podcast and looks in the Audio & Music category on Legiit for someone to write him a little ditty for the intro and he finds Diane.
Diane makes a little ditty for Jack for $5.
Now it would be easy for Diane to just see that as a $5 sale and nothing major. But she still takes pride in her work, and customer service and does a great job for Jack.
However later on Jack decides to start a YouTube channel to go along with his podcast and hires Diane to make a full jingle to be the background music for the intro video he got made in the video category. For this service he pays Diane $10 he also gets her to make an outro for the podcast for $10 and a bumper for the YouTube videos for $15.
That single $5 sale has now been worth an extra $35
Now multiply that over the course of a year. 35 * 12 =$420 over the course of a year.
That doesn’t sound like a lot with those numbers… but that is 84 times as much as Diane would have made if it had stopped with just the $5 sale.
So imagine if we started from a $20 sale? or $100 sale?
A $100 sale in this scenario would then turn into roughly $900 a month or $10,800 a year. Now multiply that by 4-10 regular customers. That is a full time living of 40 – 100 thousand dollars a year.
All from one small initial sale.
Now remember these are just averages. I personally have customers that spend several thousand dollars a month with me, and I have others that spend $5 and disappear forever, and I have some that have spent hundreds of thousands with me and followed me across 3 different platforms over 5 years.
But these numbers do illustrate a very clear point: Every customer no matter how big or small can, and does on average lead to more sales, more money, and a long term relationship.
Having repeat customers is great, but in order for them to be repeat, you have to make a sale in the first place.
It’s true that when there is an entire marketplace full of experienced freelancers that getting off the ground can be tough, so here are some tips on how to get your first sale on Legiit.
Your profile represents your business to potential customers (and marketplace freelancing IS a business) so you want to look professional.
This should include:
This is very similar in nature to the last suggestion, but has several things that are unique to it.
Some important factors:
Check out our previous post How To Write A Service Description That Sells for more on this.
When you start a marketplace service there are going to be well established freelancers offering similar services that have years of experience and reviews, so you will have to get an edge on them.
Some ways to go about this include:
Legiit offers several options to help you market your services and make your first (or additional) sales that no other marketplace does. Some of them are:
These are just a handful of the ways that Legiit works directly with freelancers to help them scale their business. If you would like to learn more about how I grew my freelancing business from scratch into owning my own marketplace you can take my free course Legiit Freelancing Mastery
The good thing here is that the numbers are in your favor. Remember most freelancers that make a sale are likely to make 3 more sales to that same customer every month.
That said you don’t want to take that for granted. You want to give people every incentive to become a repeat customer.
Some key ways to go about this are:
Let’s pick that apart a little bit.
The first line “I have an important message for you regarding your delivery, as well as some secret unannounced bonus gifts at: https://superstarseo.com/thanks5000 ” makes them feel like a VIP, gives them some bonuses, and get them into a chatbot list so I can market to them later on. It also has a video of me thanking them for their business. Click that link if you want to see exactly how it works.
The next line “Your order is complete!” is letting them no that we did the work.
The next 2 lines tell them specifically how to verify the order. This is important, no matter how simple the interface some people will need a little extra help figuring it out, and that is on you to assist them with.
I then thank them for their business… another thing that should go without saying, but doesn’t always happen.
Then the P.S. take one more opportunity to get them back into a place where I can reach them again, and gives them something valuable.
This paragraph or so of text is the #1 key to how I grew both of my businesses, and without it Legiit wouldn’t exist today. Its that powerful.
In my opinion marketplace freelancing is the fastest and most effective way to financial and personal freedom. That’s why I have invested so much of myself into making Legiit the most freelancer friendly platform possible.
Spending time mining data is not what I envisioned my career becoming, but when it reveals data like this that can literally change customer’s and freelancer’s lives it is worth it.
If you are thinking of getting started freelancing, or are already established I hope you will put some of these tips into action, and leverage the “already in your favor” odds to quadruple your sales, and help customers Get More Stuff Done.
Thanks for reading everyone and thank you all for being Legiit.