This extract from an article called ‘How to make $1 million in 3 years’ is very interesting because it is not difficult to create a digital product or a funnel of digital products that could sell for $100 or much more! Indeed there is enough information on this website to do just that.
I loved the advice in point #3 – this is really the key and I like the fact that you can break the problem down to a micro-level of selling just one copy of your product. This makes the problem much easier to solve.
Critical to the success of this advice is having a method to calculate the cost of acquiring customers – if you can then make more profit than the cost of acquiring a customer, it is just a matter of scaling up.
Here are the three keys I have observed in practice by those who are crushing it:
1. Pick something “boring” and consistent. I’m not saying boring in the sense that it doesn’t excite you or your potential customers. I say boring to mean that it is boring in its simplicity. Stop looking for the next big thing. Pick something that is proven and just do it a bit better.
From there, figure out what you should be selling it for. Figure out what it is going to take numerically to hit your goal.
To make $1,000,000 in 3 years (gross revenue), you only have to make $913/day. That’s it!
Here are a couple ways to arrive at $1,000,000. You have to sell:
100 items at $10,000 each
1,000 items at $1,000 each
10,000 items at $100 each
20,000 items at $50 each
A $100 product sounds pretty good. To make $1,000,000 you would have to sell 9 of those a day. That’s it!
I think this perspective is very important because it stresses the key behind this entire strategy. CONSISTENCY. All it takes is selling 9 items a day.
2. Use your own money to finance it. Don’t fall into the line of thinking that you need a ton of money and partners upfront to make your business work. I fell into this early on and went as far as almost raising capital for my first blog. I spent months working on raising money, developing business plans, thinking about partners, roles and responsibilities. Ultimately I discovered that this was all unnecessary. Bootstrap it yourself, rely on yourself and launch!
3. Figure out what it takes to get 1 sale. This is the most important rule.
Making a million is easier than most people think. The key is to identify your ‘profit centers.’
These are the areas of your business that drive revenue and are where you should focus the majority of your time. For most, marketing, promotion and sales are the core profit centers. Spend your time here, make it your strength and then outsource the other items that don’t drive sales and aren’t your strengths.
Once you figure out how much money it costs you to acquire your first customer or first sale, you’re off to the races and it all becomes a numbers game. Assuming you are able to get decent margins when acquiring customers you’ll spend your time here… optimizing and pivoting as necessary.
The most successful people I know have figured this out and understand that it takes money to make money. They spend tens of thousands of dollars a day and a week on Facebook and Instagram ads to acquire customers. They have figured out the return on these investments and it pushes them closer to a million each day.
4. Make Money While You Sleep
The best way to make money is to do it passively. The great thing about the internet is that it is quite simple to automate this process. Once you have your product and cost per acquisition locked down, it’s time to automate the process.
There are countless platforms and services dedicated to helping you automate your sales, marketing and customer service. Use them!
At this point, you’re probably wondering what are some examples of successful business models that can make you $1,000,000 in under three years. Below are some ideas, but keep in mind that you need to create your own based on what you are both passionate about and good at. If you’ve read any of my articles before you’ll recognize that I tend to lean towards online business models and e-commerce models. For first-time entrepreneurs and people looking for side-hustlers, I recommend starting this way.
Here are some ideas.
- Self-publishing and distribute a book
- Affiliate marketing
- Online products (ebooks, Guides, video courses, membership groups, etc.)
- Media appearances
- Writing opportunities.
- Build an email list you can sell other products around
Now it’s time
My last piece of advice? If you’re going to set a monetary goal like make a million dollars, do it for the right reasons. I have seen entrepreneurs purely motivated by financial gain create absolute sh*t products that offer no value and do nothing to teach them any lessons. They ultimately fail (and look quite silly in the process I might add)
Going on Alibaba, slapping a logo on a little trinket and trying to sell it online simply because you might be able to squeeze some profit is not in-line with the above.
The above was written for driven people who want to create something derivative of their passion. They want to provide value.
If you want to make a million dollars on your own, you have to provide value.
Take your creativity and give it to others so that they can benefit from it. In return, you will be rewarded for your time and effort.
That is the hustle I want to be associated with and I hope you do too.
(This is an extract from prsuit.com/life-in-review/make-million-dollars-next-3-years)