It’s hard to believe another week has gone by. As we are getting ready to move our family overseas in just a few short months, each week seems to be coming and going faster and faster.
This past week I accomplished quite a bit as I continue on my quest to re-brand my YouTube channel and build out my online course offerings.
Today I want to update you on how things are going with our OB Foundations Blueprint, my deeper purpose (and yours), what to think about when pricing your services, and some of the cool tools I came across this week.
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OB Foundations Blueprint Update
I’m now half-way through building out my OB Foundations Blueprint, which is an entry level course for people who are thinking about starting and building an online business. While I am still in the “build out” phase, it is only available through my monthly membership program (currently priced at $97/month, but will be going up to $197/month after this course is completely built out).
As I build out this membership community and brainstorm how I can provide more and more value to my current (and future) students, I’ve been thinking long and hard about what my business is going to look like in 6-12 months.
I have a goal to hit $1 million in annual revenue, but I have come to realize that I can’t do this without having a deeper purpose to what I’m doing and how I’m providing value to the world.
My Deeper Purpose
And my “deeper purpose” is to help people, particularly entrepreneurs (and aspiring entrepreneurs), to become happier people who are able to spend more time with their family doing things that they love, have less stress and be more at peace with themselves and the value that they bring to the world.
When the people I help are able to accomplish these things, they will be happier, healthier people who will live longer and have more enjoyable lives.
All of these things fit into my personal definition of freedom, which is the ultimate goal.
So I’m about to get a little “woo woo” on you - but here goes.
In order for me to accomplish my deeper purpose, I will need to help at least 1,000 entrepreneurs to achieve at least $1,000,000 in revenue through their own online business.
That’s $1 Billion in revenue from my students!
And as I write that, I realize this is a lofty goal. It’s a HUGE goal in fact. But it is one that I know I can attain.
So if you are a student of mine, (if you aren’t, no judgment - you’ll get there 😉) - go ahead and head over to our private Facebook Group (also in the process of being rebranded) and let us know how much revenue you did in your business since you started working with me.
Pricing Your Services
When you are just getting started in online business, you likely will want to start with a lower priced offer. The point of this offer is not to make a lot of money, but rather to validate your idea and get people taking action to let you know what they like, what they don’t like, and what you could add/subtract to make your offering even better.
But after you launch those first several offers, it’s time to start looking more long term. I would start with developing your deeper purpose (as outlined above), but then it is time to think about what kind of business you want to have. What are your financial and lifestyle goals?
The ultimate goal of building an online business is lifestyle design. In other words, you want to create a business that serves the life that you want.
So if you want to have a small, local business that serves customers in your area - that is fine and can be done through your online efforts. This is how I built 2 very profitable local law firms.
Alternatively, you can create a business that is set up to run on its own and generate cash with very little long term effort from you. This is how I built up my DIY template store (which we are still building, BTW).
Or, you could focus on building courses, memberships, group coaching programs and more that will serve your customers on an ongoing basis. This will take more work, both up front and ongoing, but can provide more financial benefits.
Regardless of which you choose, you need to understand the potential limitations of each potential business from a financial standpoint.
What I mean by this is that if you are selling a low-price product, you will need to have a lot of customers to serve your lifestyle. To reach $100,000 in revenue selling a $100 product, you will need to sell 1,000 units. Alternatively, you could sell a $100,000 product and only require a few sales a year to meet your needs. The most common option frequently lies somewhere in the middle.
I bring this up because as I look to my initial goal of reaching $1M in revenue in one year, I have to think long and hard about how to get there. Even selling a $1,000 product would require 1,000 sales per year. To accomplish this requires a significant ad spend and lots of leads. With even a 5% conversion rate (which is quite good), and a cost per lead of $10 (quite low), I would need to spend approximately $200,000 on ads to get there (assuming no organic sales).
The reason I wanted to touch on this is that there are lots of people who talk about these huge launches they have where they are generating multiple 6 or even 7 figures in revenue. But behind those launches is likely a huge network of affiliates (who typically command a 50% revenue share), or a tremendous ad spend. So the ultimate profit margin is not nearly in line with the revenue from the launch.
There is a sweet spot in terms of what you will price your product at and how much it will cost you to get enough leads to hit your revenue goals. This is still a work in progress for me, but that is what business is all about, isn’t it?
❤️ My Favorite Things
🎤 Podcast - How I Built This with Guy Raz. I love this show. Guy interviews successful business owners such as Sara Blakely from Spanx, Jim Koch from Sam Adams, and Stacy Madison of Stacy’s Pita Chips. These are all just ordinary people that built extraordinary brands. Guy does a masterful job of telling their stories.
🎬 YouTube Video - This week I was so excited to see North Carolina’s own Penn and Kim Holderness win the Amazing Race. They live right here in Raleigh and small local celebrities. I love their YouTube Channel and if you are looking for a few laughs, you can check it out.
📱 Productivity App - The hands down winner this week is Descript. This is my new favorite tool to edit videos for Instagram and Facebook. It is also great to transcribe videos for free in minutes. Sorry Rev, this one might hurt your business model.
🖋 Quote of the Week
"This is where EHR (expected hourly rate) is a great filter. If you can pay someone less than your current EHR to do something, you should. The higher your EHR, the more you’ll be able to pay other people to do these tasks in your business.”
James Schramko “Work Less, Make More”