How to make $$$ in a year

  • Units - how many do I need to sell
  • LTV (Life time value you will be able to collect from this customer) - how much is the customer worth

For example, if I wanted to do 1 million gross:

  • LTV = $10,000
  • Sell to 100 clients
  • That will get you to 1 million (10,000*100)
  • Sell to 2 clients per week
    • 8 a month
    • 96 per year (8*12 months)
  • If you close 1 out of 5 sales calls and need 2 clients per week
    • 10 sales calls a week that show up to the call
  • If the average show rate is 75% (means 25% are no shows)
    • I would need 15 sales calls a week to get 10 sales calls that show
      • 10/75 = x/100, x = (10*100)/75 = 13.3333 (give yourself a buffer 15)
  • Average cost per sales call is $50
    • Buffer a little and save $75 cost per sales call
    • Since you need to get 15 calls
      • 15*75 = 1125 (give yourself some buffer 1150)
      • So you need to spend 1150 per week to get 15 sales call per week
  • How many ads do you need to make to spend 1150 a week
    • 10 ads per month
    • Block one day to make the ads and the copy
    • Block 2-4 hours a week to review the adds
      • Change copy and video/picture

Key metrics:

  • Number of new sales per month
  • Current revenue
  • Price of service
  • Churn
    • Number of customers leaving per month/active clients = N% churn
  • LTV
    • Monthly service price/churn
    • If you multiply the LTV by the number of customers you have times 12, this is the theoretical max the business can make per year
  • Gross profit
    • Price of service - cost to acquire customer - cost to fulfill customer
  • How many clients do they have

Increase price,customers,ltv Lower churn,cost to acquire customer

https://gymlaunch.libsyn.com/ep-338-how-businesses-exaggerate-the-value