One Million Dollars Per Year By the Numbers
What’s a great path to $1 million
When it comes to making your $1 million lifetime, or $1 million per year, you just reverse engineer it and do the math. Your blueprint will often comes from your focus and your frequency of what resonates with you. If you feel scarcity, you will take action out of fear, if you feel abundance, you will like attract more abundance and think long term like recurring income and retention. The main image for this post will show you the math of how to get there and what that looks like. It’s broken down into smaller numbers and more believable numbers, so that you know that others and time will help you get there. It also becomes obvious that creating value multiplied and compounded is what will get you there.
This visual illustration is important to see in your mind because it makes the $1 million seems like a more believable number, it is more bite-sized, and it should resonate with more people. Also by producting a recurring product it’s more of a platform that many others can utilize and create a network effect with. I think that it’s important to think about the 76x formula I have blogged about and also to think in terms of the lifetime value of a customer. When you think of the bigger numbers it makes you make smarter decisions with your business on the scaling and growing process. It may take you time to build your product market fit up, and get the right people to get a high conversion to reach the sales that you want, but you can get there if you keep A/B split testing and learning from it.
The compound effect of Retention
I believe the reason these numbers add up is that you are getting recurring income from people, and the recurring income comes from value, and it also comes from retention. Retention is an important number to focus on as you can see vs. just acquisition. With all of the data analytics and data dashboards that we can look at these days it just doesn’t make sense to not focus on retention, it’s so easy with the data we have collected in one place these days. Focus on retention of people reading your blogs, or watching your videos, way before you get into the retention of people paying for your product. This way you can test product market fit and the value that you are giving people.
You will want to use facebook data as well as google analytics data to make sure that your retention numbers are scaling. For example in the early days people may watch 10 seconds of your facebook video, but over time they may watch 90 seconds of your video. Always be looking for data patterns to learn from. Data patterns are the broad overview of you looking at stats, scanning the data, and working on your business vs. in your business like the emyth by Michael Gerber talks about.
The case for a funnel and pipeline
When you see data patterns that show you that retention is climbing with time on page or time watching a video, you will learn that you are building trust of other people’s limited time and attention and with this you will learn that this is scaling. Being that 100’s and 1000’s will be seeing your content over time with SEO that compounds, it’s important to build a funnel and a pipeline of leads, that get nutured and continue to get followed up on. Much of the follow up is done online, maybe through facebook in your funnel, but at some point it will be worth the exchange in value of time for each side (sales person and consumer) to talk by phone, and thus be in a database or part of a CRM. In this case, you are following up with your pipeline to move them further and further along every day or week until the closing. At some point you’ll get referrals and advocates, or a tribe, if yiou are doing it right.
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