The subject is very near and dear to my heart. I was attracted to the opportunity of making $10K/month (money, with little to no effort).
It drew me in like a magnet. I miserably failed on my first go around because I started at the end.
I started by building and selling my product. Sounds reasonable, however, that IS NOT what gets you to $10K.
I will tell you what does.
But first off, how did this magic number "$10,000 per Month" come to be? There's no science, expert conclusion, or ANYTHING that backs it up.
It was created by a bunch of clever YouTubers and now become social media dogma.
(All that is to say you can and should aim higher)
Now for the meat of the question. Here's the formula that should determine your course of action:
Authority x Conversion Rate x Price x Frequency = $ Sales
(A) x (C) x (P) x (F) = $ Sales
// I'll start at the end (F):
How often do you sell something?
Examples: Once-a-quarter retreat; weekly class; unlimited online course; 9-month coaching program
// Next is even easier (P) - how much do you charge? This does not have to be complicated funnel math.
Do this simply by stating the top line price: "My weekly class costs $49".
// Now, the conversion rate (C) will depend on the price.
If you are still in the planning phase then be conservative and use 3%.
Again, this differs wildly by price point. Here's a video I made about this.
// And now for the most critical one (A).
Authority is measured in several ways. For simplicity of this newsletter think of it as: # people on your email list + 20% of all your followers on social platforms.
It is an indication of how well you have established yourself and were able to attract a loyal audience.
And if you ask why "20% of social media followers". Simple, per any 80-20 rule, only 20% of your audience will care about what you have to offer.
Each one of the elements can be tweaked and we zoom in on what affects what in the course that I lead. If you are interested in dedicating 4 hours on a Saturday, reach out - I will make it free in exchange for a testimonial. 😃
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Here's an example. Let's pretend I have:
- 500 email subscribers
- 2,500 X followers
- 1,120 LinkedIn connections/followers
- This means 500 + 20% x (2,500 + 1,120) = 1,224
- I sell a "Masterclass" once a month at $97/seat. And my conversion is on average 4.5%.
Every year I can expect to make:
1,124 (A) x 4.5% (C) x $97 (P) x 12 (F) = $64,113.12
That's VERY good for a One-product business.
Tell me if this was helpful and tell me if I should next write about:
- (a) How to get audience and traffic?
- (b) How to establish authority?
Keep it real my friends, and never give up!
Still got questions? Let's talk about this, book a call. I am curious to learn your story and in exchange, I will share what I know to solve your questions.