CASH On DELIVERY (COD) to me is a double edged sword. You can’t IGNORE it, and yet when you use COD, it ends up putting a BIG hole in your pocket.
Although, the number of customers increase thanks to Cash on Delivery Payment Option… here are a few things I noticed.
1) The Refund Requests is relatively higher from COD Customers compared to customers who pay online.
2) COD customers need more management, thus more employees and Customer Support Time.
3) This was an observation which was later verified with data – COD customers generally tend to be more RUDE with the Customer Support and in general compared to Customers that pay online. Of course, it’s subjective to an extent. I’m a COD customer myself. But I hope you can see the point here.
4) As an extension to the 3rd point, the Attrition Rate in the Phone Support is higher (Which is mostly Virtual in my company). Thus adding to the Stress Levels.
5) And lastly, the negative reviews or the Threat of Negative Reviews (most times customers aren’t home to accept the order) is higher from COD customers.
Given all these factors, I recently decided to get rid of the COD option.
Here is what actually happened:
1) My sales dropped by over 60%.
2) My CPA went HIGH.
3) The refund rate dramatically decreased.
4) My net profit went up drastically.
5) My Stress levels were almost down to ZERO.
6) I needed less staff and the team was happier in general.
So to conclude: If you run an E-Commerce Store in India, doing away with COD is something you should test.
Here’s a detailed video I created sharing the results of this E-Commerce experiment.
Warning: My suggestion is my personal opinion and not a prescription. If you are losing money with COD, if you are stressed all the time… Then it’s a worth while option to test getting rid of COD.
You may lose out on a lot of sales. But you would be happier and will actually take home more MONEY because your net profit will be higher.
Note: If you plan to have investors on-board, then please don’t test this option out. A BIG Revenue (Top Line) is what you need to show your investors… So the volume of sales is important and COD plays a BIG role in getting more sales.
Why I’m not a Fan of Selling Courses on Udemy! Why You Should NOT Start Off By Selling Your Courses on Udemy!
Now, the Reason I Say NO to Udemy is because you want to start off by Projecting Your Brand Correctly.
You see, Udemy is like any Marketplace. Just like Amazon. Just like Flipkart. Where you can find different products – in this case different courses on different topics. You can pick and choose based on reviews.
The Reason I do not ever suggest anybody to start out by selling on marketplace is because you Lose that Brand Value / Brand Perception.
Why I say ‘Do NOT Start off by Selling on Udemy’ is because You’ll Fall in that Category where You’ll be Compared with Every other Tom, Dick & Harry who’s Selling on Udemy.
The Perception of Your Brand, and Your Courses will fall down. And it may likely never recover.
Either You Could be the “Apple” or OYO…
Do You Think OYO Customers will be Happy to Pay Rs. 25,000/- for a night?
If You are Launching a Brand and If You Plan to Charge a Premium, and Have High End Products, DO NOT Start on Udemy. Why?
Well, I give a very detailed and descriptive reasoning about it in this video.
In the video, I also talk about:
✔ The Power of Branding
✔ The Magic of Marketing
✔ How NOT to Lose Your Brand Value / Brand Perception…
Want to Skyrocket & Grow Your Business in 2020 by Using the Tools that help Me Grow My Business?
I use several Digital Marketing and other tools in general to run my businesses.
While I am sure I use over 50+ tools.
I made a list of 25 Tools that I can’t live out… To be specific, I can’t run my businesses without these tools.
Want to know the names of those Digital Marketing and business related Tools I can’t Live Without In 2020? Well, I share the names of those tools in this video.
I did some rough calculation.
The tools cost me roughly Rs 90K + Per Month Recurring.
In addition, my Lifetime Subscription for some tools is a combined INR 2,00,000.
You can watch the video with the list of all tools I use here –
If you found the video helpful, give it a like 🙂
Go ahead & Skyrocket + Grow Your Business in 2020 by Using these very Tools that help Me Grow My Business.
CEO – The Marketing NerdzPh – 8422906036
P.S. Applications are now open for the 3 Months Certification Course at:
✔️ Hotel JW Marriott, Mumbai or
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For details, please call – 8422906036.
It’s a lazy Saturday Afternoon for me. I’m having to force myself to write this article.
The only motivation for me to write this article is YOU!
You see, I was just someone STRUGGLING in life to make ends meet and pay my monthly bills. I was just an average guy.
And here I’m today, living life on my own terms thanks to the Internet, the fact that I decided to learn Copywriting and Digital Marketing in particular.
My goal with this article is to give you some Insights into how you could earn more Revenue as a Digital Marketer by borrowing some ideas from my business model (The Marketing Nerdz) and adding them in yours.
You see, every month, I do an audit of the revenue from different Profit Centers we have at TMN to see how we are performing against our Short and Long Term Goals.
Before I move ahead, let me define what is a Profit Center as far as my business is concerned.
At TMN, we put similar products/services in different categories. And then, each of these categories become a Different Profit Center.
For example: We have different online courses like: – The 11 Week Online Copywriting Certification Course – The Advanced Digital Marketing Certification Course – How to Start Your Digital Marketing Agency Digital Course – And a lot lot more.
So we club all our online courses into one category called – Online Courses. And thus, Online Courses is now termed as a Profit Center.
Similarly, we have other Profit Centers like Services, Events, Mentorship etc.
Now, before I share TMN’s Revenue Split, let me walk you through the different Profit Centers we have in our business.
You see, my goal with the article is not so much about sharing the Revenue Split per se. My goal with the article is to give you more ideas on what other services/products you can sell… Or how you can Leverage Your Digital Marketing Skills to make more revenue for yourself.
Well, you better be… And most importantly, be ready to take some notes, especially note down all the ideas you get on a piece of paper or on your laptop while you read the rest of the article.
These ideas that pop into your mind could be the next source of revenue for you.
Alright, so without building more curiosity. Here goes the list of different Profit Centers:
1) Digital Marketing Service, India! – Obvious one! Nothing fancy here.
As a Digital Marketer, you could offer Digital Marketing Services to clients. And we categories services to clients in India as a different Profit Center.
At this point, you could see from the graph below that the Digital Marketing Services in India contribute to about 20% of our Total Revenue.
And the cost of operation is roughly about 35% to deliver these services.
Well, we intentionally want to keep our total revenue from this profit center to be under 25%. And we work with only a select from clients from India and mostly Mid-Size Companies.
2) International Client Services – We categorize all the clients from US, UK, Canada, and Australia into a different profit center called – International Client Services.
This is the biggest source of revenue by far for TMN.
The total revenue from this Profit Center alone is roughly 42%. And when compared to the Indian Counterparts, the cost of operation is lower by at least a 7 points on a percentage basis.
Given the dollar rate today, it’s a fairly decent bump on the bottom line too 😉
3) Education (Live Classes) – As you may be aware, we also conduct Digital Marketing Certification Courses at 5 Star Properties across different cities in India. As you can see in the graph, it just contributes to about 10% of the Total Revenue. That’s a small number given the cost of operation is roughly 50%. Plus it takes up a lot of my personal time.
But there is a reason we still do these courses even though they may not be the most profitable thing in the world. I would talk about it in perhaps another article.
One of the ways to make this Profit Center more revenue generating is to Franchise the education division. But I’m never going to take that route. In the Franchise Model, I feel the quality of Education is almost always comprised.
4) Online Courses – All our online courses are clubbed under this Profit Center. To be honest, we don’t push our online courses a lot and that’s why you see the revenue generated from it is in single digits.
As the CEO, I hate to admit, but I have had a Blind Spot in this direction especially given the cost of operation is just 20% for us.
And also with the demand for online consumption of courses increasing, this is one profit center that we aim to work on dramatically in the coming years.
If you are a Digital Marketer, this is one Profit Center you could take massive advantage of. The investment to entry into this profit center is really low.
5) Mentorship Program – If you don’t know, I run a Mentopship Program by the name – The 10 Lac Club. It’s a 1 year coaching program where I work with a select few individuals on a One-On-One basis.
This program is designed to help an individual eventually scale up to making Rs 10 to Rs 25 Lacs a year by adding different profit centers in their Digital Marketing Business. To know more about it, click here.
Now, I don’t work with a lot of folks in this program since it’s an investment of my personal time. And thus, it’s not scalable.
But since I love Coaching and Mentoring right from my fitness days, I still coach a select few individuals that I like.
So not a big Profit Center for us. But something that you could consider adding as a Digital Marketer.
One way to SCALE this is by offering Group Coaching. This way, you can help more individuals in the same invested time. Plus, the Cost of Operation is comparatively lower since it involves your time (And depends on how you value it). But in a tangible sense, it could be considered low cost of operation.
6) Events and Bootcamps – This is another High Cost Profit Center for us. Now although, the numbers suggests that it’s not wasting time on this Profit Center… here is a BIG lesson for you.
Numbers can often mislead if not read in context.
You see, although this Profit Center is not High Revenue and is also High Cost, it’s one of the most profitable centers for us, thanks to the back end.
Most people who are selected as our clients in India or who join my Mentorship Program are folks who attend our Bootcamp and Events.
So remember this, don’t determine the feasibility of a Profit Center based on the Front-End numbers. Always look at the back-end to determine if you want to continue with a Profit Center or end it.
7) Advertising and Affiliate Marketing – This is another Profit Center that’s under leveraged by TMN. One of the reasons, we don’t drive a lot of revenue via this Profit Center is – Yours Truly!
You see, I HATE promoting bogus products, or creating B.S. videos talking about how you can make 1000000000000000000 in salary or make 10000000000000 dropshipping or doing Affiliate Marketing.
Videos with HYPED up titles get more views. And eventually make good money.
I would rather, miss out on those views and a little money than selling people B.S. that’s not TRUE.
Plus, I’ll be honest, I don’t have the time to create so much content since I run multiple other businesses apart from TMN and I also need at least a 2 hour daily reading time.
But yeah, this is one year we plan to improve in the coming year but with promoting only products that resonate with me and I personally use.
8) TMN Media Property – This is work in progress. So I don’t want to talk about it for now. It’s going to cost us a lot… But it’s a long term play and will talk about this when the time comes.
Well, I hope that I was able to spark some New Ideas in your mind whilst sharing the different profits centers in my business.
If you are just starting out as a Digital Marketer – Start with Freelancing, make some revenue and then move on the adding one new profit center at a time while building the existing ones.
If you are not sure how to acquire new clients as a Freelance Digital Marketers – Grab my book, The 1 Lac Formula right here!
Oh, and if you found value in this article, let me know in the comments below! Don’t forget to share this with your Digital Marketing Friends and Colleagues.