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The math behind a million-dollar business

Ramit Sethi · January 19th, 2015

I never thought my blog would generate a million dollars. In fact, the first time it happened, I didn’t even know. One of my team members emailed me in the middle of the night and attached this image:

amillionbucks

transactionvolumeClick “Display Images” for the actual email

 

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I had no idea.

When I was writing today’s post, my co-workers were like, “So what did you do?? Did you throw a party? Buy a car? What happened??”

I was like, nothing, I said that’s cool, back to work. They rolled their eyes. CLASSIC INDIAN MOVE

Spelling bee champ goes NUTS!!!

 

It didn’t hit me until later. The milestone that really meant a lot to me was making my first $100. That meant I could make $1,000, which meant I could make $10,000 and later $1 million and even more.

When I say hitting a million dollars wasn’t about the money, this is what I mean. I don’t worship my bank account. What really matters is never having to worry about travel, or rent, or taking care of my family. And the money simply allowed me to live a life of MORE. More success, more fun, more family, and more giving back.

I want the same for you, which is why 2015 is the year of more. And I pointed out how it’s easy to want more — but when it comes down to actually GETTING it, nobody wants you to actually change.

The world wants you to stay vanilla.

Just look what happened over the weekend! Some guy saved up to eat at a high-end NYC restaurant, Eleven Madison Park, and posted a bunch of pictures from his meal.

The comments are hilarious. More than half of them call the meal “ridiculous” and talk about how they would NEVER eat there (insert snooty eye roll).

Do you see what’s going on here? To this guy, dining at this restaurant is his dream. He carefully saved his money to be able to afford this superlative experience. He went from a DREAMER to a DO-ER.

The rest of the commenters just shit on his dreams. “What a waste! I could eat at Dairy Queen 87 times with that!”

The world wants you to stay vanilla.

But I want you to get MORE, whatever that means to you. It doesn’t matter if you want to eat at a $225-a-person restaurant, or take your nieces and nephews to an amazing day at the zoo, or pay off your parents’ debt. You define what MORE means to you.

So now the question is, how do you get it?

BAD: Setting delusional goals

youaredelusional

GOOD: A simple, systematic series of steps that build on each other.

Yes, you should be investing. I’ve been writing about this for years. If you haven’t started yet, click here and catch up.

Yes, you should find your Dream Job and get paid what you’re worth. I’ve also been showing you exactly how to find your dream job, bypass online job sites, and master your interview and negotiations for years.

Shit, I even have an awesome tip on what to do with low gas prices!

But now, we’re talking about starting an online business.

This is something special because it’s more advanced, more challenging, but gives you MORE rewards and MORE options…without having to wait 30 years.

Your successful online business will let you afford virtually any luxury this year — and it will continue generating income while you sleep.

Just like my own online business:

ztl_unitssoldNotice the green lines, which show how my online business generates sales during the weekend, while I’m not working

 

YOU DECIDE: The best part? YOU decide how big you want your online business to be. You can easily create a small, simple, automated business that brings in a $100 a month. That’s fun money.

495_ebooksale My first sale, a $4.95 ebook

 

Or you can build a sales machine that scales up to $1,000,000 a year (or more).

recentsalesreportThis is one day’s sales

 

Let me show you how:

The math of a million-dollar online business

If you want to make a million dollars online, you have a lot of choices:

  • $50 product x 20,000 sales
  • $100 product x 10,000 sales
  • $200 product x 5,000 sales
  • $500 product x 2,000 sales
  • $1,000 product x 1,000 sales

ATTENTION PEOPLE SHRIEKING THAT THIS IS OVERLY SIMPLISTIC: Yeah, I know. It’s a model. The point is to show you that generating $1 million is not some mythical, unattainable goal that you can never get. You use models to see the possibilities, then you go deeper to make it happen.

For a lot of you, just seeing the numbers is eye-opening.

For some of you, you’ll want to know exactly how to go from the math to building an online business machine — finding the idea, the traffic, packaging and productizing and pricing. I’ve spent years putting the very best of my strategies into a course, Zero to Launch. It’s not open yet, but I will open it next week with all-new material.

But don’t worry about that right yet. For now, I want to focus on the math.

For now, what you need to know is: $1,000,000 is not magic. It’s math.

ramit_wizard I hate you!

 

The key is to stop thinking in terms of trading your time for money and start thinking of systems. That’s what an online business is — a sales machine that does the work for you. You front-load the work and keep profiting from it year after year.

(That’s why my business grows even when I’m on vacation.)

So, look at the math above, if you have a $1,000 product and make just 1 sale a day, you’ll hit $1,000,000 in less than three years.

Remember, even if you choose to do 1/10th of that, that’s $100,000 — life-changing, quit-your-job money, especially since it’s an asset that grows over time.

The real magic comes when you add a second product. And then a third. Check out this video which shows how you can start with a simple $50 ebook and scale your business up to $1,000,000.

 

By the way, I don’t care if you decide to make $5,000 or $1,000,000 — it makes no difference to me. The point is for you to get started. YOU DECIDE what more is, and you decide how much you want to make. I can help you at each level.

Do you see how this is such a different approach from what you hear in the media? It would be easy for me to write some post about credit card interest rates or the newest savings account. Or to tell you how bad the economy is.

I think you demand more of me than that. And I demand more of you than just reading yet another post and feeling motivated for 2 hours.

I want more for you this year. But it’s not enough to want it. We have to do the work to get it.

This distinction between dreaming and doing is why 95% of people will not get more — but you will.

Here’s what I want you to do

This week, I’ll be opening up more about the IWT business, including more revenue numbers than I’ve ever shared before. Read the posts carefully.

And on Sunday 1/25, I’m going to take you behind the scenes of IWT’s online sales machine and show you how to build your own — one that works while you sleep.

I’m giving you advance notice now so you can clear your schedules.

Date: Sunday, 1/25, at 9:00pm Eastern (6pm Pacific)
Sign up (free): How to Build a Sales Machine That Works While You Sleep

Specifically…

  • The flexibility to control your own hours.
  • The confidence to share your passion with the world.
  • And the freedom to choose how you want to live your life

Click that link above to lock in your spot, free.

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