$1,000,000 – 1 Million Dollars: Is It Possible?
Just stumbled upon this image on Facebook earlier today which I actually haven’t seen for a while and it really hit me just how easy 1 million should be to make.
You see I think psychologically we look at big goals and often think of them as being un-achievable, get overwhelmed with the thought of even getting close and as a result never even get started.
Now not everyone agree’s with this same logic, others take the principle of setting a huge target and then if they don’t succeed then they have still done really well… Which method works the best really depends on YOU and how you deal and define success and failure.
But anyhow, let’s take a look at this picture….
Now let’s convert this into a more Internet Marketing based setup and work in an example too….
Let’s imagine we have some kind of recurring revenue stream (maybe a membership site) that cost’s $27 a month to join (maybe with a 7 day or 30 day cheaper trial etc but we will keep it simple for now).
3087 people paying x $27 per month = $1,000,000 per year in income
Now let’s take these 3,000 people and say that we have an upsell in there for $97 a month which gives them some more one on one time with you, some group coaching and a little bit more help. This upsell converts at say 10% (will probably convert better at that price point), that means 309 people will take up this offer.
309 people paying for up sell x ($97 – $27= $70 extra per month) = $259,560 per year
Then let’s compound this even further, this is a group coaching up sell which with 309 members all asking you questions and wanting help means that there will always be a few people who will want even more of your time, as such it’s a perfect opportunity to add in another simple up sell here.
Let’s do this one at say $497 a month? and it converts at 10% again based on the people who take up the first up sell only. Which means we have 31 people paying $497 a month now.
31 people paying one on one up sell x ($497 – $97 = $400 extra per month) = $148,800 per year
Now we are actually at OVER the 1 million mark per month just by adding in 2 very simple up sells (a few webinars, private group, private calls and more of your time and resources etc to help).
So we are going to back track a little bit and try and make up this extra $408,360 we have suddenly made (almost 1/2 a million extra).
Let’s now say we only sell 2,000 spots at $27 a month = $648,000
Upsell 1 = 10% conversion = 200 people x $70 extra p/month = $168,000
Upsell 2 = 10% conversion = 20 people x $400 extra p/month = $96,000
Total: $912,000 per year income
And that’s only with 2 very simple upsells on ONE membership site.
Add in product promotions for tools, services, other cool methods or products and you have suddenly made even more money.
Or likewise you could even go back and increase the costs of your upsells, or even the front end cost of joining your membership site or software or whatever it is you have setup.
What this image should show you is that recurring revenue streams are the way to go, you need to reach a lot LESS people who will pay you monthly compared to trying to sell something just one time.
Then you need to reach even LESS people if you add in upsells to your business so that people have the opportunity to spend more and get more in return (in this example, more of your time).
Hope these numbers made sense, hope they made this income goal look a lot easier to achieve and likewise take a minute to look at it (ive printed this picture out) and work out what you could to achieve the same goal.