How To Make $5 Million in 8 Weeks | Spotify Video Exclusive
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What specific process can double a business's profit in eight weeks?
We doubled the profit of a $5 million business in less than eight weeks, and we followed a single specific process that I'll break out in this video. And at the very end of the video, I'll walk you through a hypothetical example of a calves business, that would be the best business ever, that taught people how to grow their calves so you can apply it to your business using the same process. So I want you to imagine that you have a business or you'd like to start a business that has 100 customers that pay $100 a month. So I'm trying to use the simplest math possible. So 100 customers, $100 a month. So that means it's doing $10,000 a month in revenue. Now, let's assume that in order to fulfill those customers, we have $8,000 a month in costs.
So we're making $2,000 a month in profit. $10,000 top line, $2,000 bottom line, $8,000 of cost. That's the business. Now, you rub a magic iPad. genie appears. And this is not any kind of genie. This is a business genie. And this niche genie has one wish that he can grant you. And so he says, I can grant you one wish. He says, I will double your business in one of three ways. You need to tell me which way you want me to do. Door number one, or wish granted number one, is I will double the amount of customers that you bring in every month. With this business, let's assume that your churn is not that good. So people stay for on average three months. Number two, I will double your price. So you have the same number of customers and I'll double
how much they pay you every single month nothing else will change door number three he says now what i'll do is i'll double how long they stay so instead of staying for three months they'll stay for six months which of the wishes do you take the genie up on really be honest in the comments tell me what your first guess was going to be a b or c so with door a he doubles it So now we have 200 customers a month. What happens? Well, if we have 200 customers paying us a month, we now are making $20,000 in top line revenue. And assuming everything scaled proportionally, we would have $4,000 a month in profit and $16,000 a month in cost. Double the number of customers, we double the amount of profit, doubled our business.
Awesome. Let's go to door three. Because people are staying twice as long, but you're getting the same amount of customers per month, eventually you will get to the same equilibrium point as the first one. The exception is that that wish accomplished does something more powerful, which is it increases your LTV. Now, because of that and the additional months that they pay you, most businesses, it's more profitable the last month someone pays than the first month. usually a cost of acquisition, cost of onboarding. There's more cost associated with getting a new customer than keeping someone. If you can double the lifetime gross profit per customer, then your cost of acquisition can be bigger than it could in the first example.
Here, I eventually get to the same top line, but I have more bottom line because I didn't have to spend as much on marketing. So between A and C, you pick C. Now you're like, all right, well, what about door B? So let's say we had the same 100 customers. But now instead of paying $100 a month, they're paying $200 a month. We still have the same cost of fulfilling them.
It's $8,000. And our profit went from $2,000 a month to now we have literally the extra $100 a month.
That's pure profit.
What are the three options for doubling a business's revenue?
So we 6X'd the profit of the business with one change. For those in the audience who are thinking, but not as many people would buy. So I told you that we increased how much profit the business made. I'll tell you the one change that we did was, was we looked at the entire marketplace that were selling a similar service to theirs. And it was based on our research, we felt that the market could support a 50% higher price. And so we literally, and this is already a pretty expensive thing, we literally did nothing but add 50% to the price and changed nothing about the product. And guess what happened?
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