Over the last five years, I’ve had the pleasure of meeting many of you around the world — sometimes only for a few minutes after a presentation, other times at length over meals, walks, car rides..etc.
And although our industry is so diverse and all our businesses goals so unique, I began to notice a pattern about your businesses (no matter the size/age/location) when compared to others in our industry. Some may argue the correlation is just coincidence. But I believe the trending ratio exists because this particular growth pattern has evolved as the most effective.
This pattern starts with a ratio of bookings:
In short, a business with a high golden ratio relies less on 3rd party listing site to generate bookings and thus can project their income deeper into the future. Whereas those that are too dependent on outside marketing sources are “less healthy” because they cannot project with the same confidence.
But here’s the good news…
Your actual golden ratio alone is way less important than the upward trend of your ratio year upon year. Even if small increments, those that can show upward trends in repeats and referrals have mounting momentum and more sustainable businesses in the long-haul.
ACTION: Let's set some goals!
- If you have not, calculate your golden ratio for 2018, and then dating back for as many years as possible (publish your numbers below)
- Plot those ratios on a graph (x-axis year, y-axis ratio)
- Create a percentage goal for 2019
Last edited: