Today, I want to talk about the most important part of your funnel…
And when I mean Math…I’m not talking about algebra or anything complicated.
I’m just talking about how much money you are making off each new customer you bring into your business.
Funny enough, this is often the most overlooked part of funnels that smash petty businesses to pieces…
And it’s really not hard to figure out!
In this short post, I’m going to cover
- What your funnel economics should look like if you want the fast road to over $1,000,000 a year in revenue.
- The easiest way improve your offers economics.
- Why this is more important than ever around election time in 2020
The Funnel Math of a Million Dollar Coaching Business
Many coaches I speak with tell me that the dream goal is $1,000,000 in revenue…
I’m not sure why everyone wants this mystically holy number $1,000,000 a year in revenue and not $852,000 or $1,150,000 but that’s beyond the point.
For a service provider or coach… this math is quite simple.
You need 10 clients paying you 10K per month (bonus +2K per month to account for taxes).
Or, 20 clients paying you 5K per month.
You can go the “bulk” route as well but that is up to you.
Your goal should be to maximize your customer LTV and if you’re service offering is smaller, you should try to get that LTV to 10K in less than 6 months.
It’s much easier to say “I’m going to charge 10K” than ACTUALLY doing it and I’m going to cover that in a moment…
But first, I want to talk about lower priced online courses.
The Funnel Math For a Million Dollar Course (And Easiest Way to Improve Your Economics)
Again, you could easily price your program around $5000 or $10,000 and follow the same math as above.
However, with courses this is where you really need to implement the value ladder.
Because you could have a funnel that looks like this:
First…you have a low ticket tripwire that’s 27 bucks. (Optional)
Then you have a free webinar and sell your course around $500 -$1000
If you sell a course around that price point pay attention because this is how you can quickly up your customer LTV.
All you have to do is turn the course into an 8 week program in a group coaching manor…and upsell it to those interested for a premium price!
So let’s say your program is $500
You could easily upsell people on a “group coaching, I will hold your hand so you don’t screw anything up” program for an additional $1500
Right there, you just made an offer appealing to the smaller percentage of people that want more attention and are willing to pay more!
And guess what happens after that?
You can add in another offer to either get those people on another 8 week group coaching session or something else.
It depends about your business.
This applies to coaching as well…
You could have a base priced 5K group coaching program and a high level 1-1 coaching program for 15K per month.
It’s that simple.
Why 2020 Will Bankrupt Most Low-Ticket Business Owners
This year, there is something crazy happening…
It’s going to make big news all across the world and…jack up ad costs 10 fold.
The 2020 election and it’s going to skyrocket your ad costs.
So if you don’t have great math to make your offer profitably convert, you’re screwed!
Take a look at your business and ask yourself “how can I make my math better to make more money?”
Hope this was helpful and I’m here if you have any questions.
Until next time! 👋