How to Create a Revenue Pyramid

Once you have created your tiered structure  and clarified what you will be offering at each level, the next step is to create your revenue pyramid.

To do this, draw a large triangle on a piece of paper with the point of the triangle at the top of the page. It should take up the entire piece of paper so that you have room to fill it in with the rest of this exercise. Assuming that you are going to create three tiers in your client delivery model, draw two horizontal lines dividing your triangle into three parts. The top of the triangle represents the revenue from your top clients, while the lower parts represent the revenue from your second and third tiers. Next, determine what client revenue on average you generate from each of the tiers.

For those of you that have an established practice, the next steps are:

  • Write in the number of clients you have at each level.
  • Add the number of new clients you’re committed to bringing in over the next twelve months.
  • Multiply the number of ideal clients at each level by the average client revenue you would bring in.
  • Add up the overall revenue that is represented in this revenue pyramid.

Now draw another line in your revenue pyramid underneath your third tier. Below this line would represent what you offer in order to support your client attraction process, such as: presentations, client events, informational seminars, or a free report or newsletter. Newsletters are great opportunities for you to stay connected to your clients and prospects and potentially connect with new potential ideal clients. What else might you include at this level to support awareness about you and your practice?

This revenue pyramid can serve as a great visual aid to motivate you in the direction of your goals. I invite you to keep it somewhere you will see it frequently (though ensure that it is out of sight from clients and prospects).

From here I invite you to ask yourself these questions:

  • How does that number feel?
  • Do you feel positive about it?
  • Does it feel realistic and doable?  

Given your revenue pyramid, how many clients in each tier do you want to attract in the next 30 days? What do you need to do differently this month to reach that goal? What are you going to do differently today?

If completing this exercise and creating your own revenue pyramid has inspired you and you feel ready to start attracting more business to your financial services planning practice, reach out to me today: susan@susandanzig.com

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