How to make a million dollars starting from scratch
When you’re starting from scratch you have a lot to consider. Your offer, your pricing, your niche, and the list goes on and on…
But your numbers and the math behind it stands out from the rest.
The math is simple to understand compared to all those fuzzy marketing stuff. You’ve all heard the old expression “sales is a numbers game”.
This is what a million bucks looks like for a product priced at $1000.
To make a million bucks you need…..
>>1000 sales at $1000 each
>> 3000 qualified prospects
>> 9000 leads
>> 90,000 attempts to get those leads (10 attempts to get 1 meeting)
There is a lot of research done on the psychology of buying, sales metrics and the amount of work involved in closing deals. Typical close ratio for an average salesperson is 3:1, meaning 3 opportunities to close 1 deal.
On average a salesperson needs 3 leads to qualify 1.
Attempts are all the interactions needed to setup 1 meeting. Things like emails, phone calls, in-person visits, etc. Average numbers are about 10:1.
This is what a million bucks looks like for a product priced at $5000.
>> 200 sales at $5000 each
>> 600 qualified prospects
>> 1800 leads
>> 18000 attempts
It’s amazing how simple and yet incredibly powerful numbers can be.
They always work even though the ratios are going to be different for each business. Find out what the ratios are in your niche. In the world of internet marketing these ratios end up as your conversion rate for your paid traffic, opt-ins, landing page, etc.
All of a sudden making a million doesn’t seem that hard when you look at these numbers. It’s very possible if you have the right offer at the right price AND you have a system that can deliver it at scale.
You don’t need a fancy business degree from some Ivy league school, just pure good ol’ fashion business common sense that has stood the test of time and technology.
But you need to make sure it’s going to work for YOUR business
The beauty of working with these numbers is that it frees you to choose your goal and strategy.
Do you want to make a million in 12 months, in 2 years, in 10 years…..
Set your goal and choose how fast and hard you want to push.
The other incredible power of numbers is that it shows you how much work is involved in getting to that million.
Do you have a funnel system in place that can deliver?
With so many marketing automation tools and internet marketing tactics, there are many ways that you can build a funnel that delivers the numbers.
For example, for your $1000 product, create a funnel that generates 90,000 leads. The leads can come from paid or organic traffic, trade shows, events, webinars, or other sources. You know your niche better than anyone so figure out what traffic sources you need to go after.
Setup this funnel to engage and qualify based on interactions and call-to-actions.
Your funnel filtration can be setup to qualify real prospects looking for a solution and not just tire kickers looking to waste your time.
The best part about these numbers is that they are doable when you have designed scalability in your funnel.
Think about how easy it is to test numbers on a piece of paper compared to designing and creating products. And think about how much headache you can save yourself if you do this in the beginning before you start creating your product.
Build consistency and scalability into your sales
One of the most common challenges in sales is creating scalability and consistency.
What good is it if you can make a million dollars in 2017 and you only make $100K in 2018?
What good is it if you’e constantly falling in the trap of trading your time for money because you’re unable to scale?
So take a good long look at your numbers and choose to build scalability and consistency into your business.
For a $1000 product, 9000 qualified prospects and 90,000 attempts can be a significant barrier for many businesses. But the good news is that digital marketing and e-commerce have revolutionized the way businesses can interact with their target market.
Both paid and organic traffic can now be integrated into your funnel to create a system that can work for you 24/7 on autopilot generating leads on demand.
So imagine instead of hiring an army of sales reps needing to make 90,000 attempts, your automated funnel can take care of 90% of the work. How cool would that be!
By tweaking your funnel levers, you can basically create an on-demand lead generation and filtration system that sends you qualified prospects direct to you inbox.
So now double your sales
So now that your hyper funnel can run like an absolute beast, how do you double your business?
That’s the beauty of a scaleable and consistent funnel. You can 2x sales by changing the inputs to the system. But often doubling sales requires an adjustment to your operation which can be tricky. So in that case you may need to tweak your strategy or find a way to optimize the operational aspect of your business.
I see so many entrepreneurs start creating products without really understanding the numbers first. And then when they go to market, it hits them like a ton of bricks. Discouraged and frustrated, they wonder what the hell happened!
Instead, do the numbers first before even creating the product. Test your sales funnel even if it’s just on paper. Setup a pilot program to test the concept with a few customers. If it doesn’t make sense on paper or the pilot fails, it sure ain’t going to make sense after you build it.
Choose your definition of success
BTW, success is not just defined by the ability to make a million bucks. There are many ways to be successful in life. Your goal maybe to make an extra $1000 a month, $10,000 a month or something else. The important thing is to have a plan and a strategy.
I know this short post seems simplistic. In reality there are many more variables and we all know that 80% of those that set out to create a business eventually don’t make it for various reasons.
The good news is a great majority of these failures can be avoided by thinking through your sales numbers and putting more effort into creating hyper converting sales funnels.
But it doesn’t need to be complicated. In fact, the simpler the better. In today’s complex world of business, simplicity is not only refreshing but something that we all desire deep inside.