The Million Dollar Equation w/ Richelle Shaw [Episode 166]

Richelle Shaw built her first business from $300,000 to $36 million in less than 5 years and then lost it all after the 9-11 tragedies. However, that did not stop her because she would later rebuild her business to a million dollars in less than 5 months.

Richelle is the author of The Million Dollar Equation. On today’s show she breaks down what the book is about and how it can help entrepreneurs put strong systems in place that will help them succeed and grow their business.

Bullet Points

• Find out how Richelle rebuilt her million dollar business in 5 months.
• The systems you need to keep a client for life.
• What you need to do to build a strong referral system.
• Why you should always offer more than one product or service.

What are the basic elements of Richelle’s Million Dollar Equation?

What Richelle teaches people in The Million Dollar Equation is how to be nimble in an ever changing market. You need to first understand what kind of systems you have in place. What are your great solutions? Second, refine your target market and target those people specifically.

There’s only three ways to grow a business: 

1. Get a new customer.
2. Get an existing customer to spend more.
3. Get an existing customer to come back more often.

What systems does Richelle recommend entrepreneurs use to keep their customers?

There are three Rs in Richelle’s Million Dollar Equation.

The first R is retention – making sure you keep a client for life.

The second R is reactivation – when the customer has disappeared, there’s an alarm bell that goes off.

Do you have a list of people who worked with you last year? How many of them haven’t come back? Send them an ‘I’m sorry’ letter and offer a deal they can’t refuse.

The third R is the referral system – you have to have a system in place that gets people recommending you. How do you make sure referrals are consistently happening? The first step is to acknowledge anyone who says you offer a great business and service.

How do you get an existing customer to spend more?

The first thing Richelle asks her clients is how many products or services do they offer? If they only offer one service, then that’s a problem. Find ways to creatively branch out your services so your clients can keep spending more with you.

Learn More About Richelle Shaw

What’s your most powerful sales asset?

Listening and morning affirmations.

Who’s your business role model?

Richelle’s first boss.

One book every sales person should read.

Marketing Outrageously Redux by Jon Spoelstra and Mark Cuban.

What’s your favorite music to get you pumped up?

Donny Hathaway.

What’s the first sales activity you do every day?

Richelle goes through her green list – her top prospects.