The Online Business Model
Building Your Online Business Model Step by Step
Lesson 2, going exactly through the model of how to build a online business, serving a specific group of people.
When we serve a specific group of people, that means that we’ve got a brand. And that means that we’ve got a brand that could be scaled and sold. You could build a seven figure business that you can sell, that should be really exciting.
So that’s why I go through the pain of talking about branding and the person behind the brand because if we do that upfront, then we know exactly the type of business we can build. It’s going to be simple to get to seven figures, and it’s going to be a business that we can sell.
Now, here’s how we get to seven figures. Here’s the magic formula for products. Selling 25 sales a day, four different products that each do 25 sales a day. That’s 100 sales a day. If each product sells, on average, about $30. That’s 100 sales a day at $30, it’s $3,000 a day in sales. $3,000 a day is about $1.16 million a year. Great, that’s all we need to do. All we need to do is to develop for products that sell 25 sales a day. So we have 100 sales a day.
That’s a million dollar business.
In order to do that, we need to know who that person is at the beginning of the brand. What journey they’re on and what three to five products they’re gonna buy at the beginning of their journey. And if we know that, if we know what those first few products are going to be at the beginning of their journey. Then, our job is to go out and get those products and make them available for people to purchase. Now, spoiler alert we can talk about all kinds of tricks and things to launch the business sell the products and all that stuff. Let’s just make this really simple. Your business is going to develop products for that person, at least four of them, you’re gonna make them for sale on the internet. So your only job is to go identify that person, what products they buy. Go get them and ensure that there’s four products that sell 25 sales a days, there’s 100 sales a day. That’s a million dollar business, and that’s a really good start.
That whole process takes about 12 months.
Lets go over products again. That’s 4 products selling each 25 sales a day equals 100 sales a day at an average price point of 30 bucks. That’s $3,000 a day or like $1.15, million, or whatever.
So your job is to think of that person and if you don’t have a person, it’s you! Think about you, and then think about the things that you buy. A collection of things.
So if you’re losing weight, you might buy fitness bands. You might buy low carb foods. You might buy protein snacks, you might buy beef jerky. You might buy something to track your fitness. You might buy a thermogenic weight loss pill. You might buy a water bottle you might buy new clothes, you might buy workout clothes. You might buy Personal Training. I just listed 10 things and that’s not the market that I serve.
So all you need to do is think about…. okay somebody’s going out on this new journey. Wow, what are the things that they’re going to start buying? What are the things that they’re going to be looking for on this journey, and write them down.
Now if it’s you, there’s probably going to be a natural draw to some sort of excitement with this, this idea or this product seems really exciting. Then you’re gonna have a seed of doubt… you’re like, but I can’t do this… or a bunch of people have done this… or that’s been done before… there’s too much competition doing that. I don’t want you to worry about that right now.
Here’s why. Big brands… like really big companies are buying small brands that are even smaller than you might think, really tiny brands. Because, big brands can’t change and keep up with the times fast enough. So they have to buy these small companies in order to stay ahead.
So, here’s why I tell you this, because the truth is, all you need is 25 people a day. And you need them to be really raving fans. So if you think of a company like Lulu lemon, you know, the yoga company. They were kind of a nice little brand that not a lot of people knew of a few years ago and now they’re a publicly traded company. Why, because they went after a very small crowd, and just served them like crazy. So they went really small. If you can think really small your business can grow really big. It’s a weird paradox. But if you serve a very specific group of people, even if it’s small, and you just go all in on developing the types of products that they want.
You will do so well. And so it’s actually easier than you might think. I should have told you in the Lesson 1. This is simpler and easier than you think. Most people overthink it. They try and think about the big business before they think about the really small business, but the really small fun meaningful exciting business that a few people really give a care about. That’s the thing that can grow to a seven figure business. So, when you know that you can build a million dollar business with just four products that sell a few units a day at 30 bucks. You go, Oh yeah, this doesn’t have to be this big complicated thing.
So who is your person, what are the things they buy, and in the future blogs. We’re going to talk about how to actually make that happen. You now know the formula for having a seven figure online business, you know that you need a specific person. Now we’ll go into the how to make this happen.