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)
- I would need 15 sales calls a week to get 10 sales calls that show
- 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