https://www.youtube.com/watch?v=BSwJQsogah0

1 00:00:00.000 --\> 00:01:00.000 what's going on everyone i've got a fun
topic today how to make a million dollars and so i know this is uh
almost clickbaity uh but i want to uh go over it mostly because it's
like one of the number one questions i get all the time and so we might
as well actually break down the math for you and so the number one way
that i know that someone has no chance in actually doing this is they
don't even know the math behind how to accomplish their goals right and
so that's what we're going to break down today all right so the first
thing is you have to know how many units or whatever it is you're
selling to get to your goal right and the question is do you want to
make a million dollars in revenue or do you want to make a million
dollars in take home income mind you to be in the top one percent in
america it's four hundred thousand dollars a year all right and so let's
say you have a business that runs 40 net margins which mind you is very
good um if you run 40 at margins that means if you made a million
dollars in revenue you would make 400 000 a year in net profit what you
get to take owner pay right from your business which is why by the way i
think that having a job that pays well is very underrated i think it's
just from being realistic if you look at the odds i think it's

2 00:01:00.000 --\> 00:02:00.000 far far far more likely that you can
achieve a six-figure or multi-six-figure income fast by having a really
high-paying job because you've acquired a skill then trying to learn
basically all the skills and own your own business i'm just being candid
and i think that if i knew the amount of risk that i was taking on when
i started business i don't know if i would have done it again and i
think that i had an atypical entrepreneurial journey because i wasn't
really an entrepreneur personality type i just really hated my job
enough that i was going to do anything but that and so that's what
started it but let's get to that let's get to the mean the potatoes all
right so a lot of times people haven't even figured out their price
points on things yet and so the easiest way to understand this is that
if you have a million dollars a year which is what you want to make then
you want to break this down right so a million dollars a year is going
to be 83k per month all right roughly right it's 83 333 whatever you
could say 84k but 83k per month all right that's what you have to make
in uh revenue right now if you break it down per day i think it's three
three

3 00:02:00.000 --\> 00:03:00.000 three three three i think um per day
but if you if you do it per week so let's just break this into weekly uh
it would be like let's just say 21k okay so 21k per week all right and
you'll notice i'm gonna keep breaking this down because it's really
difficult to hit fuzzy targets right i heard this from jason flatland
fuzzy targets don't get hit right so we need to make this a very precise
clean pristine target all right so we got a million dollars a year
breaks down to 83k per month 21k uh per week excuse me 21k per week and
then from there you know seven seven days would be about 3k plus per day
right so so that's that's how we know how we can get to that number now
i like weeks because weeks are like normal cycles daily can be a little
bit too volatile until you get to like 10 feet you know uh 10 million
plus per year um and so if we're if we're talking starting out right 21k
per week all right so the thing is is we just have to know what the
lifetime value of our customer is and so let's say you're selling a
single product that has no upsells right which is pretty common um a
single product that has no upsells

4 00:03:00.000 --\> 00:04:00.000 let's say your ltv is a thousand
dollars okay now i want to be really clear about this you don't have to
sell a thousand dollar widget for this for the math that i'm about to
share with you to make sense all right it just means that your total
lifetime value of a customer is a thousand dollars like starbucks i
think their ltv's like eight thousand dollars and you're like holy cow
well think about how many times you purchased the starbucks over the
last you know 10 years right it adds up and so for me i'll give you a
couple different examples of what a thousand ltv might be if i sold a
course for a thousand dollars and i sold nothing else that would be 1000
ltv if i sold a 100 a month gym membership and the person on average
stays ten months that would be a thousand dollar ltv if i sold uh let's
say ah crap if i sold uh uh skin care products right and the average
order value was you know 250 and the average amount of time that someone
stayed on my cream products was four months one thousand dollars was my
ltv okay so these are all different ways of achieving a thousand dollar
ltv which makes this hopefully a little bit simpler now if i have to get
to a million dollars then i need to sell 21 units

5 00:04:00.000 --\> 00:05:00.000 per week right and so that would be 21
divided by a thousand which is 21 right units per week to hit our goal
and so if i know that i only really sell five days a week monday through
friday right then it means i got to sell four or maybe five i'd probably
make five my goal so i overshoot it a little bit so i gotta sell five
deals a day right and if i have five deals a day and the nice thing is
with this process that i'm walking you through right now like you can
add as many zeros as you want it works the same way right you can add
zeros to your product zeros to your goal like everything works the same
way so it's five deals a day is what i have to close now the thing is is
i may know my math right and know that five deals a day we close let's
say one out of three one out of three phone calls which means i'm going
to do 15 phone calls a day who show up right and now if i'm selling
products and it might be based on site conversion so if i have like you
know one percent conversion on my store an e-commerce store for example
then i would need a hundred times the amount of sales i need right so if
i need five quote sales per day with an uh the lifetime value of a
thousand and

6 00:05:00.000 --\> 00:06:00.000 i know that it takes a hundred clicks
to get one purchase then i need 500 clicks a day hopefully that makes
sense here but i'm just walking through a more a more service-based sale
because it was top of mind all right so 15 calls right per day and let's
say that i know my show up rate on these calls is you know 66 so i'd
have 22 set appointments per day right and the thing is is i know that
based on my either outreach efforts it takes let's say i don't know 50
outreach efforts to get one appointment i need a thousand outreach
efforts a day right now mind you a thousand dollar deal would not be
worth any kind of effort like that so because this is way way too low to
have kind of like a hand-to-hand combat uh sale type type system um this
would probably need to be closer to like ten thousand dollars um and
then there you go you get your 10 million but but i'm using this just to
illustrate uh like the different ways to get there right and so um a
nice thing to think about this is that if you if you take out if you
take this little number here your deal size right

7 00:06:00.000 --\> 00:07:00.000 and you put that as the main variable
for this process right you could either sell you know nine 10k deals per
month and have a million dollar business wow right you could sell one
100k deal per month to have a million dollar business that sounds pretty
chill you could also sell 100 well roughly you know 83 right 1k deals
per month that sounds a little harder right or if you have hundred
dollar widgets you got to sell god 830 right or 33 whatever it is times
100 per per month to hit that 83k right and so you can kind of see how
much harder it gets the lower the price like it's it's hard to sell 833
things every month i mean that's that's a lot of work right and honestly
it's hard to sell 83 things a month selling nine easier right and so
it's been this is just the conclusion that i've

8 00:07:00.000 --\> 00:08:00.000 made throughout my life is that
especially when you're starting out i think it's easier to start with
premium things as in like it's easier to just over deliver like crazy
for a client rather than trying to think about like how do i make this
scalable it's like you don't need to worry about that yet like you need
to just start making money right and so it's like how can i just how can
i how can i find a sweet spot in here right this like five thousand ten
thousand fifteen thousand dollar mark how can i find a sweet spot in
here where i can just provide tremendous value to someone um that they
will want to continue to do services with me and i don't have to have a
tremendous amount of operational skill because the reason that this is
so hard for people this hundred dollar month or even ten dollar month
range is it's the operations behind it you have to be able to support so
much volume uh that you're very good with people and that's a totally
different skill than learning how to market and sell and acquire
customers and so this is where i think most people kind of run into
trouble and why a lot of people who end up making more money earlier
kind of focus on this on this upper side of the ladder there's a very
very very few exceptions of people who uh make a lot of money like super
super rare make a lot of money below this thousand dollar um you know
per unit price tag right

9 00:08:00.000 --\> 00:09:00.000 like you have to find a way to get your
ltv higher because it's just too hard like acquiring customers is just
too difficult to not have a high ltv and like like i said starbucks
right 8000 ltv so it doesn't have to be your ticket price that has to be
low it's just like you have to find ways to make customers worth more
right unique expensive sticky air if you remember that from before habit
forming something that they want to continue to come back again and
again and again so anyway how to make a million dollars i think most
people do not do this math on this which is you got to make twenty one
thousand dollars a week and then there's a zillion ways to make twenty
one thousand dollars a week right you can sell hundred dollar units you
can sell a thousand units you can sell ten thousand units because a
hundred thousand dollar units um but at the end of the day that is how
you do it and if you're thinking about this from a sales professional
standpoint so i'll break this down for you guys as a bonus because i
know a lot of sales people follow our stuff um make this whatever your
product is your commission right so if you want to make a million
dollars as a salesperson right then you need to sell like unless you get
a thousand commission then you need to sell 83 units a month of your
thing right and that may sound crazy and that

10 00:09:00.000 --\> 00:10:00.000 it is because that's why you know
that's why the top one percent is you know half of that in terms of
income right and so uh but if you can if you can figure out that a
thousand dollars you know if you can get your like you should be able to
think in your mind like this is my income goal as a salesperson this is
what i would like to make is the amount of calls you know or calls taken
required to hit this goal uh reasonable right because on some level
every every position has a cap based on time right how much how much
time you could allocate right there's only 24 hours in a day and so
anywho reverse the math on your own business and your own products that
you're selling and a lot of times this will help you get your goals a
lot faster so anyway keeping awesome lots of love and i'll catch you
guys soon bye
